Estado Financiero

APPENDIX 2
- Index to Financial Statements
- Non-Consolidated Financial Statements of Hana Bank for the years ended

31st December, 2010 and 2009
- Non-Consolidated Financial Statements of Hana Bank for the years ended

BKK1-130029-v6 169
INDEX TO FINANCIAL STATEMENTS

Non-Consolidated Financial Statements of Hana Bank for the years ended

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-2

Non-Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-3

Non-Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-5

Non-Consolidated Statements of Appropriations of Retained Earnings . . . . . . . . . . . . . F-7

Non-Consolidated Statements of Changes in Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . F-8

Non-Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-10

Notes to the Non-Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . F-12

Non-Consolidated Financial Statements of Hana Bank for the years ended

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-85

Non-Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-86

Non-Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-88

Non-Consolidated Statements of Appropriations of Retained Earnings . . . . . . . . . . . . . F-90

Non-Consolidated Statements of Changes in Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . F-91

Non-Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-93

Notes to the Non-Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . F-95

HONGKONG:165547.1 F-1
Independent auditors’ report

The Board of Directors and Shareholder
Hana Bank

We have audited the accompanying non-consolidated statements of financial position of Hana
Bank (the “Bank”) as of December 31, 2010 and 2009, and the related non-consolidated
statements of income, appropriation of retained earnings, changes in equity and cash flows for
the years then ended. These non-consolidated financial statements are the responsibility of
the Bank’s management. Our responsibility is to express an opinion on these non-consolidated
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the
Republic of Korea. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the non-consolidated financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the non-consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall non-consolidated financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the non-consolidated financial statements referred to above present fairly, in all
material respects, the non-consolidated financial position of the Bank as of December 31,
2010 and 2009, and the non-consolidated results of its financial performance, and its cash
flows for the years then ended in conformity with accounting principles generally accepted in
the Republic of Korea.

Accounting principles and auditing standards and their application in practice vary among
countries. The accompanying non-consolidated financial statements are not intended to
present the financial position, results of financial performance, and cash flows in accordance
with accounting principles and practices generally accepted in countries other than the
Republic of Korea. In addition, the procedures and practices utilized in the Republic of Korea
to audit such financial statements may differ from those generally accepted and applied in
other countries. Accordingly, this report and the accompanying non-consolidated financial
statements are for use by those who are knowledgeable about Korean accounting principles
and auditing standards and their application in practice.

March 7, 2011

This audit report is effective as of March 7, 2011, the independent auditors’ report date. Accordingly, certain
material subsequent events or circumstances may have occurred during the period from the auditors’ report date
to the time this audit report is used. Such events and circumstances could significantly affect the accompanying
non-consolidated financial statements and may result in modifications to this report.

Hana Bank
Non-consolidated statements of financial position
As of December 31, 2010 and 2009

(Korean won in millions)

2010 2009

Assets
Cash and due from banks (Notes 3 and 22) W 5,981,378
— W 6,128,872
—
Securities:
Trading securities (Notes 4, 9 and 22) 782,794 1,312,165
Available-for-sale securities (Notes 5, 6, 8, 9 and 22) 17,236,353 15,706,104
Held-to-maturity securities (Notes 7, 8, 9 and 22) 2,358,243 3,878,531
Equity method investments (Notes 10 and 22) 901,227 412,857

21,278,617 21,309,657
Loans receivable, less allowance for possible loan losses of
W
— 1,715,575 million as of December 31, 2010
(W
— 1,544,437 million as of December 31, 2009 )
and plus deferred loan fees of —
W 75,962 million as of
December 31, 2010
(W
— 56,276 million as of December 31, 2009)
(Notes 11 and 22) 103,631,324 98,839,085
Tangible assets (Note 12) 1,052,865 1,082,843
Other assets:
Guarantee deposits 830,350 833,056
Accounts receivable 2,670,439 1,095,496
Accrued income 505,020 511,367
Prepaid expenses 74,078 96,361
Deferred income tax assets (Note 29) 59,085 72,674
Exchange receivables 466,411 1,828,644
Prepaid tax expenses 2,613 1,765
Derivative assets (Note 23) 2,118,211 3,391,402
Intangible assets (Note 13) 169,469 195,258
Miscellaneous assets (Note 14) 125,413 122,309

7,021,089 8,148,332

Total assets W 138,965,273 —
— W 135,508,789
Hana Bank
Non-consolidated statements of financial position (Continued)

2010 2009

Liabilities and equity
Liabilities:
Deposits (Notes 15 and 22) — 93,388,587
W W 89,884,425
—
Borrowing liabilities (Notes 16 and 22) 24,721,256 25,448,303
Other liabilities:
Severance and retirement benefits, net (Note 17) 19,529 17,682
Allowance for possible losses on acceptances and
guarantees (Note 18) 59,679 56,702
Allowance for possible losses on unused credit lines
and cash advance commitments (Note 19) 135,574 129,464
Due to trust accounts (Note 35) 894,848 1,005,307
Exchange payable (Note 22) 2,077,569 2,335,789
Income taxes payable (Note 29) 128,843 209,626
Accounts payable 4,467,041 1,162,651
Accrued expenses (Note 28) 1,501,144 1,733,995
Unearned revenues 58,723 83,119
Derivative liabilities (Note 23) 2,122,797 3,247,222
Other allowances (Note 20) 64,485 61,140
Miscellaneous liabilities (Note 21) 983,959 921,128

12,514,191 10,963,825

Total liabilities 130,624,034 126,296,553

Equity:
Capital stock - par value —W 5,000 (Korean won in units,
Note 24)
Authorized common stock - 2,000,000,000 shares
Issued and outstanding
- 219,799,157 shares as of December 31, 2010 and
2009 1,147,404 1,147,404
Capital surplus (Note 25) 2,726,159 2,724,149
Capital adjustments (2,973) (176,338)
Accumulated other comprehensive income (Note 26) 477,490 313,178
Retained earnings (Note 27):
Legal reserve 709,202 679,885
Voluntary reserve 4,232,922 4,249,921
Unappropriated retained earnings (948,965) 274,037

3,993,159 5,203,843

Total equity 8,341,239 9,212,236

Total liabilities and equity W 138,965,273 —
— W 135,508,789
Hana Bank
Non-consolidated statements of income
For the years ended December 31, 2010 and 2009
(Korean won in millions, except per share amounts)

2010 2009
Operating revenue:
Interest income:
Interest on due from banks — 73,114
W — 110,670
W
Interest on securities 832,306 841,093
Interest on loans receivable 5,412,488 5,507,513
Others 22,746 16,350

6,340,654 6,475,626
Gain on valuation and disposal of securities:
Gain on valuation of trading securities 4,975 363
Gain on disposal of trading securities 49,752 25,663
Gain on disposal of available-for-sale securities (Note 5) 277,842 371,552
Gain on disposal of held-to-maturity securities (Note 7) 102 —

332,671 397,578
Gain on disposal of loans receivable (Note 11) 43,253 14,135
Gain on foreign currency transactions 1,743,817 1,973,600
Fees and commission income from banking operations
(Note 35) 511,317 462,047
Fees and commission from trust accounts (Note 35) 40,513 37,362
Dividends income 37,130 24,021
Other operating income:
Gain on valuation and transactions of derivatives
(Note 23) 9,113,802 15,114,003
Gain on fair value of hedged items (Note 23) 18,783 48,062
Gain on securities sold 2,467 —

9,135,052 15,162,065

Total operating revenue 18,184,407 24,546,434

Operating expenses:
Interest expense:
Interest on deposits 2,728,623 3,291,113
Interest on borrowing liabilities 962,388 1,112,926
Others 30,515 44,850

3,721,526 4,448,889
Loss on valuation or disposal of securities:
Loss on valuation of trading securities 490 9,892
Loss on disposal of trading securities 15,529 8,238
Impairment losses on available-for-sale securities
(Note 5) 3,645 55,762
Loss on disposal of available-for-sale securities
(Note 5) 4,680 118,155
Impairment losses on held-to-maturity securities
(Note 7) — 25,845

24,344 217,892
Hana Bank
Non-consolidated statements of income (Continued)

2010 2009

Provision of allowance for possible loan losses (Note 11) W 595,791
— — 595,227
W
Loss on disposal of loans receivable (Note 11) 59,333 145,713
Loss on retirement of bonds 36 1,478
Loss on foreign currency transactions 1,926,612 2,233,863
Fees and commission expenses 104,846 95,118
General and administrative expenses (Note 34) 1,242,122 1,272,618
Other operating expenses:
Loss on valuation and transactions of derivatives (Note
23) 8,822,585 14,854,227
Loss on fair value of hedged items (Note 23) 47,610 4,557
Contributions to credit management fund 166,600 156,207
Insurance fees on deposits 118,592 117,869
Provision of allowance for possible losses on
acceptances and guarantees 2,501 16,877
Provision of allowances for unused credit lines and
cash advance commitments 4,957 1,409
Provision for other allowances 5,969 22,274
Loss on securities sold 4,726 —

9,173,540 15,173,420

Total operating expenses 16,848,150 24,184,218

Operating income 1,336,257 362,216

Non-operating income (expense):
Loss on disposal of tangible assets, net (1,413) (1,327)
Rental income 8,682 6,682
Gain on valuation of equity method investments, net (Note
10) 12,158 13,035
Gain on disposal of equity method investments (Note 10) 21,595 27,077
Others, net (62,861) (78,135)
(21,839) (32,668)
Income before income taxes from continuing operations 1,314,418 329,548
Income tax expense from continuing operations (Note 29) 329,305 87,803

Income from continuing operations 985,113 241,745
Income from a discontinuing operation, net of tax
(tax effect of —
W 11,242 million in 2009) (Note 37) — 32,185

Net income W 985,113
— — 273,930
W

Earnings per share (Note 30):
Basic and diluted, for profit from continuing operations W 4,482
— W 1,069
—

Basic and diluted, for profit for the period W 4,482
— W 1,211
—
Hana Bank
Non-consolidated statements of appropriations of retained earnings
Years ended December 31, 2010 and 2009


2010 2009

March 24, March 25,
Date of appropriations (2010 - proposed) 2011 2010

Retained earnings before appropriations:

Unappropriated retained earnings carried forward from the
prior year W 155
— W 107
—
Interim cash dividends (Note 27) ( —
W 8,800 per share: 176%
for common stock in 2010) (1,934,233) —
Net income 985,113 273,930
(948,965) 274,037

Transfer from other reserves:
Voluntary reserve 1,934,233 17,100

985,268 291,137

Appropriations:
Legal reserve (Note 27) 99,438 28,031
Losses on capital reduction — 175,031
Cash dividends (Note 27) ( — W 400 per share: 8% for
common stock in 2009) — 87,920
Other reserves 885,700 —

985,138 290,982

Unappropriated retained earnings to be
carried forward to to the next year W
— 130 W 155
—
Hana Bank
Non-consolidated statements of changes in equity


Accumulated
other
Capital Capital Capital comprehensive Retained
stock surplus adjustments income earnings Total

As of January 1, 2009 — 1,174,661 W
W —2,720,169 W
—(1,300) W
—87,178 W
—4,931,287 — 8,911,995
W
Capital increase with
consideration 12,500 87,434 — — — 99,934
Changes from credit card
business spin-off (39,757) (88,535) (175,031) — — (303,323)
Net income — — — — 273,930 273,930
Gain on extinguishment of share
options (Note 28) — 5,081 — — — 5,081
Foreign currency translation
adjustments — — — — (1,374) (1,374)
Acquisition of additional equity
interests in Bank’s
subsidiaries — — (7) — — (7)
Changes in unrealized gain on
available- for-sale securities
(Notes 5 and 26) — — — 237,396 — 237,396
valuation of equity method
investments (Notes 10 and 26) — — — (11,506) — (11,506)
Changes in unrealized loss on
investments (Notes 10 and 26) — — — 110 — 110

As of December 31, 2009 W 1,147,404 W
— —2,724,149 W
—(176,338) W
—313,178 W
—5,203,843 W
— 9,212,236
Hana Bank
Non-consolidated statements of changes in equity (Continued)

Accumulated
other

As of January 1, 2010 W 1,147,404 W
— —2,724,149 W—(176,338) W
—313,178 W—5,203,843 W — 9,212,236
Cash dividends — — — — (87,920) (87,920)
Interim cash dividends — — — — (1,934,233) (1,934,233)
Appropriation for loss on capital
reduction — — 175,031 — (175,031) —
Retained earnings after
appropriations — — — — 3,006,659 7,190,083
Net income — — — — 985,113 985,113
Gain on extinguishment of share
options (Note 28) — 2,010 — — — 2,010
adjustments — — — — 1,387 1,387
subsidiaries — — (1,666) — — (1,666)
available- for-sale securities
(Notes 5 and 26) — — — 179,474 — 179,474

As of December 31, 2010 W 1,147,404 W
— —2,726,159 W
—(2,973) W
—477,490 W
—3,993,159 W
— 8,341,239
Hana Bank
Non-consolidated statements of cash flows


2010 2009

Cash flows from operating activities:
— W 273,930
—
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Loss (gain) on valuation of trading securities, net (4,485) 9,529
Impairment losses on available-for-sale securities 3,645 55,762
Impairment losses on held-to-maturity securities — 25,845
Gain on valuation of equity method investments, net (12,158) (13,035)
Provision of allowance for possible loan losses 595,791 624,680
Depreciation 81,482 105,945
Amortization of intangible assets 59,793 39,338
Loss on disposal of tangible assets, net 1,413 1,327
Provision of allowance for acceptances and guarantees
losses 2,501 16,877
Provision of allowances for unused credit lines and
cash advance commitments 4,957 30,391
Gain on valuation of derivative instruments, net (67,378) (192,109)
Loss (gain) on fair value hedged items, net 28,827 (43,505)
Provision for severance and retirement benefits 47,550 60,540
Others, net 137,312 90,419
Changes in operating assets and liabilities:
Trading securities 535,290 (117,214)
Available-for-sale securities (1,271,714) (858,994)
Held-to-maturity securities 1,515,611 194,694
Loans receivable (5,419,353) (1,121,189)
Deferred income tax assets (32,285) (144,291)
Exchange receivables 1,362,233 1,231,978
Prepaid income taxes (848) 128,819
Derivative assets 216,144 1,489,380
Income taxes payable (80,783) 204,801
Payment of severance and retirement benefits (17,326) (80,745)
guarantees 476 —
and cash advance commitments 1,153 —
Other Allowances (2,624) (84,048)
Accrued expenses (228,402) (564,128)
Exercise on stock options (2,217) (1,333)
Unearned revenues (24,396) (35,481)
Others, net 26,534 99,685
Total adjustments (2,508,658) 1,302,827

Net cash provided by (used in) operating activities W (1,523,545)
— W 1,576,757
—
Hana Bank
Non-consolidated statements of cash flows (Continued)

2010 2009

Cash flows from investing activities:
Dividend income from equity method investments W 72
— — 6,548
W
Acquisition of equity method investments (477,200) (30,845)
Proceeds from disposal of equity method investments 4,864 99,797
Proceeds from disposal of tangible assets 896 6,121
Acquisition of tangible assets (53,711) (73,182)
Acquisition of intangible assets (31,860) (177,365)
Decrease (increase) in guarantee deposits 2,706 (69,360)
Decrease (increase) in accounts receivable (1,574,943) 2,066,681
Net cash provided by (used in) investing activities (2,129,176) 1,828,395

Cash flows from financing activities:
Placement (withdrawal) of deposits, net 3,490,895 (1,305,880)
Proceeds from (repayment of) borrowings, net 372,115 (2,411,213)
Proceeds from debentures, net 670,923 814,204
Redemption of bonds sold under repurchase agreements,
net (71,675) (368,666)
Repayment of bills sold, net (365,286) (389,665)
Decrease in due to trust accounts, net (110,459) (118,183)
Increase (decrease) in exchanges payable, net (258,220) 950,246
Increase (decrease) in accounts payable, net 1,370,157 (1,851,525)
Withdrawal of call money, net (1,505,303) (126,568)
Payment of cash dividends (87,920) —
Proceeds from issuance of capital stock — 99,934
Net cash provided by (used in) financing activities 3,505,227 (4,707,316)

Net decrease in cash and due from banks from credit
card business spin-off — (199,056)

Net decrease in cash and due from banks (147,494) (1,302,164)
Cash and due from banks at the beginning of the year 6,128,872 7,630,092

Cash and due from banks at the end of the year W
— 5,981,378 W 6,128,872
—
HANA BANK
NOTES TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009

1. Organization and business

Hana Bank (“the Bank”) was incorporated in November 1959 under the name of Seoul Bank. Seoul Bank
acquired Korea Trust Bank in August 1976. On September 27, 2002, Seoul Bank entered into a combination
contract with the former Hana Bank as approved by Seoul Bank’s shareholders on November 14, 2002. On
December 1, 2002, upon completion of the merger, with Seoul Bank as the surviving entity, Seoul Bank changed
its name to Hana Bank.

The Bank is engaged in commercial and consumer banking, investment trust business and foreign currency
exchange business, and other related operations as permitted under the Banking Act, the Capital Market and
Financial Investment Business Act and other relevant laws and regulations in the Republic of Korea. The Bank
is also engaged in bancassurance business since September 26, 2003, after the revision of the Insurance Act.
The Bank has 649 domestic branches and 4 overseas branches as of December 31, 2010.

On December 1, 2005, the Bank became a subsidiary of Hana Financial Group Inc. (“HFG”) through a stock
exchange with HFG. As a result, the Bank was delisted from the Korea Exchange (“KRX”) on December 12,
2005. The Bank is authorized to issue 2,000,000,000 shares of common stock with a par value of —W 5,000 per
share, and has 219,799,157 shares issued and outstanding amounting to W
— 1,147,404 million as of December
31, 2010. The Bank has offset 9,681,720 shares of treasury stock against the retained earnings through
December 31, 2010, according to the resolutions passed at the meetings of the Board of Directors.

2. Summary of significant accounting policies

Basis of financial statement presentation

The Bank maintains its official accounting records in Korean won and prepares statutory financial statements
in the Korean language in conformity with accounting principles generally accepted in the Republic of Korea
(henceforth “Korean GAAP”) with the exception of overseas branches, where the Bank used financial
statements prepared in accordance with the financial accounting standards generally accepted in their
jurisdictions, with adjustments to align with Korean GAAP if the adjustments materially effects the Bank’s
financial statements. Certain accounting principles applied by the Bank that conform with financial accounting
standards and accounting principles in the Republic of Korea may not conform with generally accepted
accounting principles in other countries. Accordingly, these financial statements are intended for use by those
who are informed about Korean accounting principles and practices. In the event of any differences in
interpreting the non-consolidated financial statements or the independent auditors’ report thereon, the Korean
version, which is used for regulatory reporting purposes, shall prevail. The accompanying non-consolidated
financial statements have been condensed, restructured and translated into English (with certain expanded
descriptions) from the Korean language financial statements.

The significant accounting policies followed by the Bank in preparing the accompanying non-consolidated
financial statements are summarized below.

Recognition of interest income
Interest income on loans and investments is recognized on an accrual basis. However, interest income on loans
overdue or dishonoured is recognized on a cash basis except for those secured and guaranteed by financial
institutions for which the interest is recognized on an accrual basis.

Securities
Securities within the scope of Statements of Korea Accounting Standards (“SKAS”) 8 Investments in Security,
are classified as either trading, held-to-maturity or available-for-sale securities, as appropriate, and are initially
measured at cost, including incidental expenses. The Bank determines the classification of its investments after
initial recognition, and, where allowed and appropriate, re-evaluates this designation at each reporting period
end.

Securities that are acquired and held principally for the purpose of selling them in the near term are classified
as trading securities. Debt securities which carry fixed or determinable principal payments and a fixed maturity
are classified as held-to-maturity, if the Bank has the positive intention and ability to hold to maturity. Securities
that are not classified as either trading or held-to-maturity are classified as available-for-sale securities.
HANA BANK

After initial measurement, available-for-sale securities are measured at fair value with unrealized gains or
losses being recognized as other comprehensive income in equity. Likewise, trading securities are also
measured at fair value after initial measurement, but with unrealized gains or losses reported as part of net
income. Held-to-maturity securities are measured at amortized cost after initial measurement. The cost is
computed as the amount initially recognized minus principal repayments, plus or minus the cumulative
amortization using the effective interest method, of any difference between the initially recognized amount and
the maturity amount.

The fair value of trading and available-for-sale securities that are traded actively in the open market (marketable
securities) is measured at the closing price of those securities at the reporting date. Non-marketable equity
securities are carried at a value announced by a public independent credit rating agency. If application of such
measurement method is not feasible, non-marketable equity securities are measured at cost less impairment,
if any, subsequent to initial recognition. Non-marketable debt securities are carried at the present value of their
future cash flows discounted using an appropriate interest rate which reflects the issuer ’s credit rating, as
announced by a public independent credit rating agency.

When held-to-maturity securities are reclassified to available-for-sale, those securities are accounted for at fair
value on the reclassification date and the difference between the fair value and book value is reported in other
comprehensive income as a gain or loss on valuation of available-for sale securities. When available-for-sale
securities are reclassified to held-to-maturity, gains or losses on valuation of these available-for-sale securities,
which had been recorded until the reclassification date, continue to be included in other comprehensive income
and are amortized using the effective interest rate method. Such amortization amount is charged to interest
income until maturity. Once the reclassification is made, trading securities cannot be reclassified to
available-for-sale securities or held-to-maturity securities and vice versa, except in rare circumstances only. In
addition, when certain trading securities become non-marketable, such securities are reclassified to
available-for-sale at fair value as of the reclassification date.

If the recoverable amount of a held-to-maturity security and available-for-sale security is less than acquisition
cost or carrying value, and such decline is deemed other than temporary, such security is adjusted to its
recoverable amount with an impairment loss charged to the statement of operations after eliminating any gains
and losses previously recorded in other comprehensive income for temporary changes. A subsequent recovery
is also recorded in the statement of operations to the extent of the previously recorded impairment losses if such
recovery is attributable to an event occurring subsequent to the recognition of the impairment losses.

Equity method investments

Investments in entities over which the Bank has control or significant influence are accounted for using the
equity method.

Under the equity method of accounting, the Bank’s initial investment in an investee is recorded at acquisition
cost. Subsequently, the carrying amount of the investment is adjusted to reflect the Bank’s share of income or
loss of the investee in the statement of operations and share of changes in equity that have been recognized
directly in the equity of the investee in the related equity account of the Bank on the statement of financial
position. If the Bank’s share of losses of the investee equals or exceeds its interest in the investee, it suspends
recognizing its share of further losses. However, if the Bank has other long-term interests in the investee, it
continues recognizing its share of further losses to the extent of the carrying amount of such long-term interests.
The Bank resumes the application of the equity method if the Bank’s share of income or change in equity of an
investee exceeds the Bank’s share of losses accumulated during the period of suspension of the equity method
of accounting.

At the date of acquisition, the excess of the cost of the investment over the Bank’s share of the net fair value
of the investee’s identifiable assets and liabilities is accounted for as goodwill or negative goodwill. Goodwill is
amortized over its useful life of five years using the straight-line method and the amortization expense is
included as part of valuation gain or loss on equity method investments in the statement of operations.

Further, the Bank’s share of any difference between the net fair value of the investee’s identifiable assets and
liabilities, and net book value of such assets and liabilities is amortized based on the investee’s accounting
treatments on the related assets and liabilities and charged or credited to valuation gain or loss on equity
method investments in the statement of operations.
HANA BANK

The Bank’s share in the investee’s unrealized profits and losses resulting from transactions between the Bank
and its investee are eliminated to the extent of the interest in the investee.

Allowance for possible loan losses

The Bank provides an allowance for possible loan losses for corporate loans using the minimum required
provision percentage given by the Regulation on the Supervision (“FSS”) of Banking Industry. Further, for large
corporate loans categorized as substandard or below, the allowance for possible loan losses is determined by
the greater of the loss by the present value method (“PV method”) or the loss by the minimum required provision
rate. But, if the abovementioned allowance for possible loan losses is less than the amount by the expected loss
method (“EL method”), the Bank uses the EL method.

The PV method computes the collectible amount of a loan expected future cash flows by discounting the cash
flows using the effective interest rate, and determining the present value of the future cash flows.

The EL method analyzes factors of estimated loss based on probability of default (“PD”) and loss given default
(“LGD”), according to a loan credit rating classification. This credit rating model considers the industry risk, the
individual risk and the financial risk of a borrower and classifies the borrower ’s credit risk within 17 ratings to
assess the PD based on historical data for the past five years. The 14 ratings of LGD are determined by the type
of loan and collateral and historical data for the past seven years. The provision rate is calculated by multiplying
the PD and LGD.

For household loans and credit card loans, provision rates are determined by a PD based on historical data for
the past five years and LGD based on historical data for the past five years. The minimum provision rate for
household and credit card loans should be at least the minimum required provision percentage given by the
Regulation on the Supervision of Banking Business.

The Bank provides the allowance for possible losses for all loans except for call loans, bonds purchased under
resale agreements, loans to banks and loans to the Korean government which are classified as “Normal”.

Troubled debt restructuring

If the present value of a loan is different from its book value due to a rescheduling of terms as agreed by the
related parties (as in the case of court receivership, court mediation or workout), the difference in present value
of the restructured loan payments and book value of the loan is recorded as an allowance for possible loan loss.
The difference recorded as an allowance is amortized to current earnings over the related period using the
effective interest rate method. The amortization is recorded as interest income.

Deferred loan fees and expenses

The Bank defers and amortizes certain fees received from borrowers and expenses paid to third parties
associated with originating certain loans. Such fees and expenses are amortized over the life of the associated
loans using the straight-line method.

Valuation of long-term receivables (payables) at present value

Receivables or payables arising from long-term instalment transactions are stated at present value. The
difference between the carrying amount of these receivables or payables and their present value is amortized
using the effective interest rate method and credited or charged to the statement of operations over the
installment period.

Tangible assets

Tangible assets are stated at cost less accumulated depreciation. Maintenance and repairs are expensed in the
year in which they are incurred. Expenditures which enhance the value or extend the useful lives of the related
assets are capitalized as additions to tangible assets.
HANA BANK

Depreciation of tangible assets is provided using the straight-line method for buildings and the declining balance
method for all other tangible assets over the following estimated useful life of assets:

Years

Buildings 4 to 60
Leasehold improvement 5
Vehicles, furniture and fixtures 5

Intangible assets
Intangible assets of the Bank consist of goodwill, trademarks, development costs and software, which are stated
at cost less accumulated amortization. Amortization is recognized as an expense based on the straight-line
method over the estimated useful life of 5 years.

Impairment of assets
When the recoverable amount of an asset is less than its carrying amount, the decline in value, if material, is
deducted from the carrying amount and recognized as an asset impairment loss in the current year.

Bonds purchased under resale agreements and bonds sold under repurchase agreements
Bonds purchased under resale agreements and bonds sold under repurchase agreements are included in loans
and borrowings, respectively, in the accompanying statements of financial position.

Stock issuance costs and debenture issuance costs
New stock issuance costs are deducted from paid-in capital in excess of par value, which is a component of
capital surplus. Debenture issuances costs are deducted from the amount of the proceeds from the debenture
issued, and are amortized as interest expense over the redemption term using the effective interest rate
method.

Securities sold
In relation to securities lending and borrowing, borrowed securities are recognized in the Bank’s memorandum
accounts. When those securities are sold, the Bank then recognizes corresponding securities as securities sold.
Any changes in fair value of securities sold are recorded as gain or loss on valuation of securities sold. The
differences between book value and repurchase price of securities sold are accounted for as gain or loss on
disposal of securities sold.

Accrued severance and retirement benefits
In accordance with the Employee Retirement Benefit Security Act and the Bank’s regulations, employees and
directors terminating their employment with at least one year of service are entitled to severance and retirement
benefits, based on the rates of pay in effect at the time of termination, years of service and certain other factors.
The provision for the years ended December 31, 2010 and 2009 is sufficient to, state the liability at the
estimated obligation arising from services performed to, and at rates of pay in effect as of the reporting dates.
Funding of this liability is not required by Korean law.

The Bank has deposited a portion of its severance and retirement benefits obligation with insurance companies
in Korea Life Insurance Co. Since the Bank’s employees are individually nominated as the vested beneficiaries
of the deposits in respect of what is due to them as of December 31, 2010 and 2009, those amounts have been
offset against the Bank’s liability for severance and retirement benefits as of such dates.

In accordance with the Korean National Pension Law prior to revision, the Bank had prepaid a portion of its
severance and retirement benefits obligation to the Korean National Pension Corporation (“KNPC”) at the rate
of 3% of payroll expense up through June 30, 1999. Such prepayments have been offset against the Bank’s
liability for severance and retirement benefits. In accordance with a revision in the Korean National Pension
Law, additions to these prepayments were no longer required effective from April 1, 1999.

Since 2010, the Bank has offered a defined benefit retirement pension plan (the “Plan”). Under the Plan, the
Bank accrues liabilities to employees who choose to be paid in regular installment after retirement as pension
benefits. The funds managed under the Plan are deposited currently in Kookmin Bank and other financial
institutions. The Plan assets are offset against severance and retirement benefits and pension benefits payable.
If the values of the Plan assets exceed severance and retirement benefits and pension benefits payable, the
exceeding amount is accounted for as investment assets.
HANA BANK

Provisions and contingent liabilities
Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made on the amount of the obligation. The provision is used only for
expenditures for which the provision was originally recognized. If the effect of the time value of money is
material, provisions are stated at present value.

Confirmed acceptances and guarantees, unconfirmed acceptances and guarantees and bills endorsed are not
recognized on the statement of financial position, but are disclosed as off-statement of financial position items
in the notes to the financial statements. The Bank provides a provision for such off-statement of financial
position items, applying a Credit Conversion Factor (“CCF”) and provision rates, and records the provision as
a reserve for possible losses on acceptances and guarantees.

The Bank records reserves for a certain portion of unused credit line and cash advance commitments on credit
cards. The Bank records the provision for such unused balances as a reserve for possible losses on unused
commitments and cash advance commitments which are calculated by applying a CCF and the minimum
required provision percentage given by the Regulation on the Supervision of Banking Business.

Income taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from, or paid to, the tax authorities. Deferred income taxes are provided using the liability method for
the tax effect of temporary differences between the tax bases of assets and liabilities and their reported amounts
in the accompanying financial statements. Deferred tax assets and liabilities are measured using the enacted
tax rates and laws that will be in effect when the differences are expected to reverse. In addition, current tax
and deferred tax are charged or credited directly to equity if the tax relates to items that are charged or credited
directly to equity.

Starting from 2010, HFG, the parent company, has adopted a consolidated tax return policy, which is a tax
payment system based on the consolidated taxable income (“Consolidated Tax Return”). Any changes in income
taxes due to the adoption of the Consolidated Tax Return are adjusted to the income tax expense account (refer
to Note 29).

Translation of foreign currency and financial statements of overseas branches
Transactions involving foreign currencies are recorded at the exchange rates prevailing at the time the
transactions are made.

Assets and liabilities denominated in foreign currencies are translated into Korean won using the exchange
rates of —
W 1,138.9 to US$1 and W — 1,167.6 to US$1, the rates in effect as of December 31, 2010 and 2009,
respectively. The resulting translation gains and losses are credited or charged to current operations.
Accounting records of the overseas branches are maintained in foreign currencies. In translating financial
statements of overseas branches, the Bank applies the appropriate rate of exchange at the reporting date.

Derivative financial instruments
Derivative financial instruments include futures, forwards, options, and swap contracts and are principally linked
to interest rates and foreign exchange rates. Derivative financial instruments are presented as assets or
liabilities valued principally at the fair value of the rights or obligations associated with the derivative contracts.
The unrealized gain or loss from a derivative transaction with the purpose of hedging the exposure to changes
in the fair value of a recognized asset or liability or unrecognized firm commitment is recognized in current
operations. For a derivative instrument with the purpose of hedging the exposure to the variability of cash flows
of a recognized asset or liability or a forecasted transaction, the hedge-effective portion of the derivative
instrument’s gain or loss is deferred as other comprehensive income in equity. The ineffective portion of the gain
or loss is charged or credited to current operations. Derivative instruments that do not meet the criteria for
hedge accounting, or contracts for which the Bank has not elected hedge accounting are measured at fair value
with unrealized gains or losses reported in current operations.

Share-based payment transactions
The Bank granted stock appreciation rights to the Bank’s employees and directors, and HFG also granted stock
options which may be settled by issuance of additional shares of HFG or by cash payment at the discretion of
HFG.
HANA BANK

For cash-settled share-based payment transactions, the Bank measures the goods or services acquired and the
liability incurred at the fair value of the liability, and re-measures the fair value of the liability at each reporting
date, with any changes in value recognized in profit or loss for the period. For share-based payment
transactions in which the terms of the arrangement provide the supplier of goods or services with a choice of
whether the Bank settles the transaction in cash or by issuing equity instruments, the Bank accounts for that
transaction, or the components of that transaction, as a cash-settled share-based payment transaction if, and
to the extent that, the Bank has incurred a liability to settle in cash (or other assets), or as an equity-settled
share-based payment transaction if, and to the extent that, no such liability has been incurred.

Share-based payment transactions implemented before the effective date of SKAS 22 Share-Based Payment
are accounted for in accordance with Korea Financial Accounting Standards (“KFAS”) Interpretations 39-35
Accounting for Stock Options.

Accounting for the trust accounts

The Bank recognizes, in accordance with Capital Market and Financial Investment Business Act, trust fees
earned from the trust accounts as income from trust operations. If a loss is incurred on a trust account that has
a guarantee of principal repayment, the loss is recognized as a loss from trust operations.

Per share amounts

Basic earnings per share are computed by dividing net income by the weighted average number of shares of
common stock outstanding during the year.

Income from a discontinuing operation

The Bank presents the post-tax profit or loss of a discontinuing operation as a single line item on the face of
the statement of operations under SKAS 11 Discontinuing Operations. Pursuant to SKAS 11 Discontinuing
Operations, all income and expenses related to a spin-off of Hana Bank’s credit card business for the year
ended December 31, 2009 were presented as income from a discontinuing operation (refer to Note 37).

Significant judgments and accounting estimates

The preparation of financial statements in accordance with Korean GAAP requires management to make
judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Such significant judgments and accounting estimates include
valuation of tangible assets’ book value, loans receivable, securities, deferred income tax assets and liabilities
and derivative instruments. Actual results could differ from those estimates.

3. Due from banks

Due from banks as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

Annual
interest rate
Counterparty (%) 2010 2009

Korean won:
Reserve deposits with BOK Bank of Korea (“BOK”) — — 2,038,766 W
W — 1,896,344

Certificates of deposits Other banks 3.4~4.7 650,000 277,786
Other deposits Other financial institutions 0.0~3.1 1,395,716 1,922,110

4,084,482 4,096,240
F oreign currencies: BOK and others 0.0~0.5 482,426 420,675

— 4,566,908 W
W — 4,516,915
HANA BANK

Restricted balances in due from banks as of December 31, 2010 and 2009 are summarized as follows (Korean
won in millions):

2010 2009 Restriction

Reserve deposits with BOK — 2,038,766
W — 1,896,344 Reserve for payment of deposits
W
Other deposits in Korean won 139,384 503,185 (*)
Due from banks on demand 127,424 49,375 Reserve for payment of deposits, etc
Due from others on demand 107,438 301,602 OTC derivative contracts

— 2,413,012
W — 2,750,506
W

(*) Capital Market and Financial Investment Business Act, etc.

The maturities of due from banks outstanding as of December 31, 2010 and 2009 are as follows (Korean won
in millions):

2010

Foreign
Korean won currencies Total

Within 1 month —
W 3,734,482 W
— 369,293 W
— 4,103,775
After 1 month but no later than 3 months 330,000 5,695 335,695
After 3 months but no later than 6 months — — —
After 6 months but no later than 1 year 20,000 — 20,000
After 1 year but no later than 3 years — 107,438 107,438
After 3 years but no later than 5 years — — —
Later than 5 years — — —
— 4,084,482
W W
— 482,426 W
— 4,566,908

2009

Foreign

Within 1 month —
W 3,862,616 W
— 414,837 W
— 4,277,453
After 3 months but no later than 6 months 128,355 — 128,355
After 1 year but no later than 3 years — — —
After 3 years but no later than 5 years 65,838 — 65,838
— 4,096,240
W W
— 420,675 W
— 4,516,915
HANA BANK

Due from banks by financial institution as of December 31, 2010 and 2009 are as follows (Korean won in
millions):

2010

Foreign
Counterparty Korean won currencies Total

BOK W 2,038,766
— W
— 120,458 W
— 2,159,224
Other banks 650,000 254,530 904,530
Others 1,395,716 107,438 1,503,154

— 4,084,482
W W
— 482,426 W
— 4,566,908

2009

Foreign

BOK W 1,896,344
— W
— 40,328 W
— 1,936,672
Other banks 277,786 78,715 356,501
Others 1,922,110 301,632 2,223,742

— 4,096,240
W W
— 420,675 W
— 4,516,915

4. Trading securities

Trading securities as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

Fair value (Book value)
Annual interest
rate (%) 2010 2009

Government and public bonds 3.8~5.8 W
— 476,601 W
— 976,684
Finance bonds 3.0~7.6 306,193 335,481

— 782,794
W — 1,312,165
W

Debt securities included in trading securities as of December 31, 2010 and 2009 consist of the following (Korean
won in millions):

2010

Acquisition Fair value
Par value cost Amortized cost (Book value)

Government and public bonds W
— 465,000 W
— 475,825 W
— 472,978 W
— 476,601
Finance bonds 310,000 305,831 306,173 306,193

— 775,000
W W
— 781,656 W
— 779,151 W
— 782,794

2009


— 964,000 W
— 985,339 W
— 985,824 W
— 976,684
Finance bonds 340,000 335,701 335,869 335,481

— 1,304,000
W W
— 1,321,040 W
— 1,321,693 W
— 1,312,165
HANA BANK

The fair value for trading debt securities is determined based on the lower of the valuation provided by KIS
Pricing Inc. or the Korea Asset Pricing Co.

Trading securities amounting to W — 30,000 million and W— 72,163 million as of December 31, 2010 and 2009,
respectively, are provided as collateral for borrowings from BOK and other financial institutions.

5. Available-for-sale securities

Available-for-sale securities as of December 31, 2010 and 2009 consist of the following (Korean won in
millions):

Annual interest
rate (%) 2010 2009

Equity securities — W
— 1,450,824 W
— 1,297,942
Investments in partnerships — 127,526 147,859
Government and public bonds 3.0~6.1 7,105,017 6,478,944
Finance bonds 2.4~6.5 2,126,764 2,151,212
Corporate bonds 2.0~8.4 3,851,669 2,855,378
Beneficiary certificates — 1,306,351 1,313,041
Securities denominated in foreign currencies 0.0~6.3 1,259,270 1,457,746
Other securities — 8,932 3,982

— 17,236,353
W — 15,706,104
W

Equity securities (including equity securities denominated in foreign currencies) as of December 31, 2010 and
2009 are as follows (Korean won in millions):

2010

Accumulated
other
Book value before comprehensive
valuation income Ending balance

Marketable equity securities W
— 687,165 W
— (13,446) W
— 673,719
Non-marketable equity securities 779,016 29,925 808,941

— 1,466,181
W W
— 16,479 W
— 1,482,660

2009

Accumulated
other

— 443,560 W
— 189,790 W
— 633,350

— 1,054,483
W W
— 264,729 W
— 1,319,212
HANA BANK

Details of marketable equity securities (including equity securities denominated in foreign currencies) as of
December 31, 2010 and 2009 consist of the following (number of shares in thousands and Korean won in
millions):

2010 2009

Accumulated
Book value other Fair value Fair value
Number of Ownership before comprehensive (Book (Book
Company shares (%) valuation income value) value)

POSCO 556 0.6 —
W 335,413 —
W (64,544) —
W 270,869 —
W 309,306
SK Networks Co., Ltd. 7,924 3.2 83,206 22,585 105,791 83,206
SK Corp. 607 1.3 54,056 30,672 84,728 63,415
Samsung Life Insurance 636 0.3 69,960 (4,770) 65,190 —
S One 550 1.4 29,825 982 30,807 —
Samsung
Electro-mechanics 230 0.3 27,955 521 28,476 —
KEPCO 880 0.1 29,918 (3,342) 26,576 —
Dongbu Insurance 384 0.5 12,442 4,839 17,281 12,442
BEA 2,421 0.1 9,678 1,855 11,533 1,007
Mando Corp. 85 0.5 10,980 (52) 10,928 —
Hanjin Corp. 223 1.9 8,900 (1,272) 7,628 8,900
Others 14,832 (920) 13,912 155,074

— 687,165
W W
— (13,446) W
— 673,719 W
— 633,350
HANA BANK

Details of non-marketable equity securities (including equity securities denominated in foreign currencies) as of
millions):

2010 2009

Accumulated
other Fair value
Ownership Book value comprehensive Fair value (Book (Book
Number of Company shares before (%) valuation income value) value)

Taesan LCD Co.,
Ltd.(*1, *2) 65,567 61.3 W
— 134,896 W
— 31,251 W
— 166,147 — 99,044
W
Consumer Credit
Assistant Fund 39 5.4 117,849 — 117,849 117,849
Hyundai E&C Co.,
Ltd.(*1) 1,579 1.4 102,884 (1,790) 101,094 102,884
Korea Housing
Guarantee 16,942 2.6 77,577 220 77,797 77,577
Kumho Industrial
Co.,Ltd.(*1) 4,363 4.0 71,482 (15,578) 55,904 —
Emerging
Infrastructure 8,964 13.4 43,748 (373) 43,375 35,659
SK E&C (preferred
stock) 5 0.1 40,000 3,072 43,072 10,206
Hyundai Merchant
Marine (Preferred
stock) 1,917 1.3 34,426 4,166 38,592 68,853
Panteck 73,706 4.5 30,662 (738) 29,924 30,662
Korea Securities
Corp. 2,506 3.7 20,872 3,638 24,510 20,872
HJC Corp. 492 7.2 17,989 (848) 17,141 17,989
Dong Bang
(preferred stock) 1,437 6.0 11,283 1,544 12,827 11,283
SAMT 8,769 11.4 10,041 — 10,041 —
ASIABRIDGE 104 15.0 11,867 — 11,867 7,723
Others 53,440 5,361 58,801 85,261

— 779,016
W W
— 29,925 W
— 808,941 W
— 685,862

(*1) Listed shares with disposal restrictions are valued using data provided by independent valuers.

(*2) According to SKAS 15 Investment in Associates, Taesan LCD Co., Ltd., which is under a joint
management by the creditor financial institutes committee, is excluded from being accounted for as an
equity method investment.

Non-marketable equity securities including Consumer Credit Assistant Fund, amounting to W— 144,619 million
and —
W 150,492 million, were valued at cost as of December 31, 2010 and 2009, respectively, as the fair value
could not currently be reasonably estimated.

The fair value of the available-for-sale non-marketable equity securities such as Hyundai E&C Co., Ltd. was
measured by an independent valuer using certain assumptions. The fair value was determined based on more
than one valuation model such as the discounted cash flow (DCF) model, imputed market value (IMV) model,
and risk adjusted discounted cash flow (RADCF) model, depending on the characteristic of the equity securities
as appropriate.
HANA BANK

Shares held by the Bank with disposal restrictions as of December 31, 2010 are summarized as follows (Korean
won in millions):

2010

Number of shares Book value Disposal restriction

Taesan LCD Co., Ltd. 65,567,244 W
— 166,147 Until December 31, 2013
Hyundai E&C Co., Ltd. 1,579,000 101,094 Until completion of M&A
Kumho Industrial Co.,Ltd. 4,362,793 55,904 Until December 31, 2014
Pantech 73,705,677 29,924 Until December 31, 2011
HJC Corp. 491,714 17,141 Until December 31, 2013
SAMT 8,769,429 10,041 Until June 30, 2013
Ssangyong E&C Co., Ltd. 292,180 1,901 Until completion of the selling
process
Kumho Tires 309,600 1,759 Until December 31, 2014
Daewoo Electronics Co., Ltd. 1,800,780 1,556 Until March 31, 2011
Younggwang Stainless Co.,Ltd. 101,400 221 Until December 31, 2012
JY Solutec 244,000 130 Until December 31, 2012
21st Shipbuilding Co., Ltd. 166,500 — Until December 31, 2012
Enertech Co., Ltd. 11,450 — Until December 31, 2012
Others 6,141,542 — (*)
— 385,818
W

(*) Of the shares (included in others) that are restricted for disposal, 4,297,142 shares of Daewoo Electronics
Co., Ltd. are restricted unless bankruptcy occurs, and 1,844,400 shares of Kohap Corp. are restricted
until its liquidation is completed.

Investments in partnerships (including investments in partnerships in foreign currencies) as of December 31,
2010 and 2009 consist of the following (Korean won in millions):

2010

Accumulated
other
valuation income Book value

Insolvent obligation resolution fund W
— 35,634 W
—— W 35,634
—
Bogosamo investment limited partnership 37,501 (3,348) 34,153
GS CAP 15,990 — 15,990
Consus Investment Private Equity Fund 3 15,116 (202) 14,914
Sangam DMC Consortium 14,989 (1,448) 13,541
KTB 2007 Private Equity Fund 8,989 61 9,050
Hyundai Consortium PFV 9,098 (296) 8,802
Others 19,367 3,061 22,428

— 156,684
W W
— (2,172) —
W 154,512
HANA BANK

2009

Accumulated
other

— 56,366 W
—— W 56,366
—
Consus Investment Private Equity Fund 3 11,949 3,117 15,066
GS CAP 14,361 — 14,361
Sangam DMC Consortium 9,460 — 9,460
Sky-Lake Global Investment Private Equity Fund 2 8,159 (81) 8,078
Others 29,144 (526) 28,618

— 176,104
W W
— (1,741) —
W 174,363

Investments in partnerships amounting to — W 62,747 million and W — 100,209 million as of December 31, 2010 and
2009, respectively, were stated at acquisition cost as their fair value cannot currently be reasonably estimated.

Debt securities as of December 31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010


— 6,888,725 W
— 7,036,363 W
— 7,001,725 W
— 7,105,017
Finance bonds 2,112,530 2,116,945 2,111,303 2,126,764
Corporate bonds 3,783,665 3,811,478 3,802,270 3,851,669
Bonds denominated in foreign currencies 1,160,445 1,170,989 1,170,953 1,200,448

— 13,945,365
W W
— 14,135,775 W
— 14,086,251 W
— 14,283,898

2009


Government andpublic bonds W
— 6,433,000 W
— 6,496,620 W
— 6,544,102 W
— 6,478,944
Finance bonds 2,160,000 2,150,942 2,157,647 2,151,212
Corporate bonds 2,846,000 2,873,623 2,867,840 2,855,378

— 12,818,074
W W
— 12,890,165 W
— 12,947,756 W
— 12,895,506

The fair value of available-for-sale debt securities is measured based on the lower of the valuation provided by
KIS Pricing Inc. or the Korea Asset Pricing Co.

Debt securities of W
— 2,845,886 million and W
— 2,503,111 million as of December 31, 2010 and 2009, respectively,
are provided as collateral for borrowings from BOK and other financial institutions.
HANA BANK

Beneficiary certificates and other securities as of December 31, 2010 and 2009 are summarized as follows
(Korean won in millions):

2010

Accumulated
Book value other
Acquisition before comprehensive
cost valuation income Book value

Beneficiary certificates W
— 1,275,506 W
— 1,286,686 W
— 19,665 W
— 1,306,351
Other securities 5,062 3,982 4,950 8,932

— 1,280,568
W W
— 1,290,668 W
— 24,615 W
— 1,315,283

2009

Accumulated
Book value other

— 1,296,406 W
— 1,297,004 W
— 16,037 W
— 1,313,041
Other securities 5,062 6,930 (2,948) 3,982

— 1,301,468
W W
— 1,303,934 W
— 13,089 W
— 1,317,023

The underlying net assets of the Bank’s beneficiary certificates as of December 31, 2010 and 2009 consist of
the following (Korean won in millions):

2010 2009

Balance Ratio (%) Balance Ratio (%)

Due from banks — 243,065
W 18.6 — 27,874
W 2.1
Equity securities — — 26,312 2.0
Government and public bonds — — 65,793 5.0
Finance bonds — — 732,928 55.9
Corporate bonds 1,786 0.1 58,385 4.4
Call loans 712,266 54.5 115,450 8.8
Others 376,903 28.9 320,881 24.4
Total assets 1,334,020 102.1 1,347,623 102.6
Total liabilities (27,669) (2.1) (34,582) (2.6)

— 1,306,351
W 100.0 — 1,313,041
W 100.0
HANA BANK

Changes in the unrealized gain (loss) of the Bank’s available-for-sale securities for the years ended December
31, 2010 and 2009 are as follows (Korean won in millions):

2010

Beginning Unrealized Realized gain Ending
balance gain (loss) (loss) Tax effect balance

Equity securities — 291,199
W — 17,079
W — (35,811)
W — 4,121
W — 276,588
W
Investments in partnerships 30,636 (2,172) (18,082) 4,456 14,838
Government and public bonds (50,823) 143,952 24,498 (37,059) 80,568
Finance bonds (5,020) 18,220 3,677 (4,817) 12,060
Corporate bonds (7,859) 52,813 6,661 (13,084) 38,531
Beneficiary certificates 12,976 19,665 (5,455) (3,126) 24,060
Other securities (843) 4,950 — (1,089) 3,018
Securities denominated in
foreign currencies 25,589 14,956 (14,856) (23) 25,666

— 295,855
W — 269,463
W — (39,368)
W — (50,621)
W — 475,329
W

2009


W — 260,629
W — 12,938
W — (60,185)
W — 291,199
W
Government and public bonds 66,950 (74,173) (76,818) 33,218 (50,823)
Finance bonds 37,218 (5,668) (48,483) 11,913 (5,020)
Corporate bonds (24,897) 13,743 8,101 (4,806) (7,859)
Beneficiary certificates (1,686) 16,036 2,761 (4,135) 12,976
Other securities 1,456 (2,948) — 649 (843)
foreign currencies (139,263) 122,056 89,887 (47,091) 25,589

— 58,459
W — 327,934
W — (22,986)
W — (67,552)
W — 295,855
W

Realized gain and loss from disposal of available-for-sale securities for the years ended December 31, 2010 and

2010 2009

Gain Loss Gain Loss

W — 3,054
W — 163,701
W — 34,576
W
Government and public bonds 56,211 132 57,692 59
Finance bonds 21,715 569 62,812 93
Corporate bonds 20,573 — 33,495 106
Beneficiary certificates 65,945 — 31,281 444
Securities denominated in foreign
currencies 14,418 925 22,571 82,877

— 277,842
W — 4,680
W — 371,552
W — 118,155
W
HANA BANK

Impairment losses on available-for-sale securities for the years ended December 31, 2010 and 2009 are as
follows (Korean won in millions):

2010 2009

W — 52,832
W
Investment in partnerships — 544
Debt securities — 2,386

— 3,645
W — 55,762
W

Structured securities included in available-for-sale securities as of December 31, 2010 and 2009 are
summarized as follows (Korean won in millions and U.S. dollar in thousands):

2010

Type Issuer Par value Issued date Maturity Book value Risk

Korean won:
Interest Range accrual note Shinhan Bank W 20,000 2006.09.18 2011.09.18
— W 20,300
— Interest
Range accrual note Shinhan Bank 30,000 2006.09.25 2011.09.25 30,450 Interest
Range accrual note SC First Bank 50,000 2006.09.27 2011.09.27 50,857 Interest

— 150,000
W —W 152,373

Foreign currencies:
Interest Interest SIFMA Citigroup US$5,000 2007.03.02 2017.03.02 W 5,610
— Interest
linked note Funding Inc
Range accrual note RBS 10,000 2007.05.04 2017.05.04 11,139 Interest

US$15,000 W 16,749
—

2009


Korean won:
— W 20,035
— Interest
W
—150,000 W
—149,254

Foreign currencies:
— Interest

S$15,000 W 16,004
—

Stock Exchangeable bond DPA US$40,000 2007.08.21 2012.07.05 W 50,440
— Stock index
Exchangeable bond KCC 15,000 2007.10.30 2012.10.30 17,743 Stock index
Convertible bond LG Display 40,000 2008.06.26 2012.04.18 50,577 Stock index
US$95,000 W
—118,760

US$110,000 W
—134,764
HANA BANK

Securities lent, which are included in available-for-sale securities as of December 31, 2010 and 2009, are as

2010 2009 Borrower

— 472,156 —
W — Korea Securities Depository and others

6. Reclassifications of investment securities

Pursuant to the revised SKAS 8, the Bank retroactively reclassified certain trading securities which were no
longer held for the purpose of short-term trading to available-for-sale securities as of July 1, 2008. The following
table shows the book value on reclassification date and fair value of such reclassified trading securities (Korean
won in millions):

2010 2009

Book value on Book value on
reclassification reclassification
date Fair Value date Fair value

Available-for-sale securities —
W 13,666 —
W 24,910 —
W 14,521 —
W 22,148

Among the securities reclassified during the previous year, 9,048 shares of SK Corp. have been disposed of
during the year ended December 31, 2010. From such disposals, gain on disposal amounting to — W 792 million
was recorded as operating revenue.

If the reclassification had not been made, net unrealized valuation gain amounting to W — 3,567 million and
— 7,627 million on trading securities would have been recognized in the Bank’s statements of income for years
W
ended December 31, 2010 and 2009, respectively.

7. Held-to-maturity securities

Held-to-maturity securities as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

Annual interest
rate (%) 2010 2009

— 468,192 W
— 634,563
Finance bonds 5.1~7.1 470,000 1,409,828
Corporate bonds 3.9~20.0 1,412,182 1,800,570
Bonds denominated in foreign currencies — 7,869 33,570

— 2,358,243
W — 3,878,531
W

Details of held-to-maturity securities as of December 31, 2010 and 2009 are summarized as follows (Korean
won in millions):

2010

Acquisition
Par value cost Amortized cost Book value

— 491,184 W
— 456,227 W
— 468,192 W
— 468,192
Finance bonds 470,000 470,000 470,000 470,000
Corporate bonds 1,441,602 1,439,676 1,412,182 1,412,182
Bonds denominated in foreign currencies 7,873 7,867 7,869 7,869

— 2,410,659
W W
— 2,373,770 W
— 2,358,243 W
— 2,358,243
HANA BANK

2009

Acquisition Amortized Impairment
Par value cost cost loss Book value

Government and public bonds — 648,416
W — 612,531
W — 634,563
W ——
W W 634,563
—
Finance bonds 1,410,000 1,408,777 1,409,828 — 1,409,828
Corporate bonds 1,830,788 1,824,721 1,826,415 (25,845) 1,800,570
Bonds denominated in foreign
currencies 33,576 33,567 33,570 — 33,570

— 3,922,780
W — 3,879,596
W — 3,904,376
W — (25,845)
W — 3,878,531
W

Held-to-maturity securities amounting to W
— 1,677,633 million and —W 1,952,881 million as of December 31, 2010
and 2009, respectively, are provided as collateral for borrowings from BOK and other financial institutions.

In addition, held-to-maturity securities amounting to W
— 23,771 million were disposed in 2010 prior to the maturity
date due to exercise of call option by the issuer. Gain on the disposal amounting to —
W 102 million was recorded
as operating revenue.

Structured securities, included in held-to-maturity securities, as of December 31, 2010 and December 31, 2009
are summarized as follows (Korean won in millions):

2010


Korean won:
— W 50,000
— interest
Range accrual note Kookmin Bank 30,000 2010.03.25 2015.03.25 30,000 Interest
Range accrual note Woori Bank 50,000 2006.04.10 2016.04.10 50,000 interest
Range accrual note Industrial Bank 50,000 2010.11.05 2017.11.05 50,000 Interest
of Korea

W
—280,000 W
—280,000

2009


Korean won:
Interest Range accrual note Woori Bank W 50,000 2006.04.10 2016.04.10
— W 50,000
— interest
W
—220,000 W
—220,000

In addition, the Bank holds structured securities included in loans (privately-placed convertible securities)
amounting to W— 13,552 million and —
W 7,564 million as of December 31, 2010 and 2009, respectively.
HANA BANK

8. Maturities of debt securities

The maturities of debt securities included in available-for-sale securities and held-to-maturity securities as of
December 31, 2010 and 2009 are as follows (Korean won in millions):

2010

Bonds
Government denominated
and public Corporate in foreign
bonds Finance bonds bonds currencies Total

Available-for-sale
securities
Within 1 month —
W— W 13,628
— W
—— W—
— W 13,628
—
After 1 month but no
later than 3 months — 3,905 12,534 34,194 50,633
After 3 months but no
later than 6 months 20,248 69,360 145,237 13,731 248,576
later than 1 year 121,973 290,633 623,291 4,530 1,040,427
After 1 year but no later
than 3 years 2,265,584 1,624,775 1,837,298 106,537 5,834,194
After 3 years but no later
than 5 years 3,120,703 124,463 1,051,885 675,715 4,972,766
than 10 years 1,441,176 — 181,424 295,214 1,917,814
Later than 10 years 135,333 — — 70,527 205,860

— 7,105,017
W W
— 2,126,764 W
— 3,851,669 W
— 1,200,448 W
— 14,283,898

Bonds

Held-to-maturity
securities
Within 1 month —
W 9,997 W—
— W—
— W 3,538
— W
— 13,535
later than 3 months 10,102 — 59,994 4,331 74,427
later than 6 months 100 10,000 60,000 — 70,100
later than 1 year 69,860 50,000 29,967 — 149,827
than 3 years 183,502 30,000 526,225 — 739,727
than 5 years 145,710 180,000 455,847 — 781,557
than 10 years 15,960 200,000 260,149 — 476,109
Later than 10 years 32,961 — 20,000 — 52,961

— 468,192
W W
— 470,000 W
— 1,412,182 W
— 7,869 W
— 2,358,243
HANA BANK

2009

Bonds

Available-for-sale
securities
Within 1 month —
W— W 9,996
— W—
— W—
— W 9,996
—
later than 1 year 10,209 357,188 20,383 110,301 498,081
than 3 years 2,835,271 1,258,236 1,910,343 383,254 6,387,104
than 5 years 2,992,120 69,253 784,567 491,011 4,336,951
than 10 years 514,706 — 69,937 284,446 869,089
Later than 10 years 106,637 — — 58,240 164,877

— 6,478,944
W W
— 2,151,212 W
— 2,855,378 W
— 1,409,972 W
— 12,895,506

Bonds

Held-to-maturity
securities
Within 1 month —
W 10,011 W 40,000
— W
— 68,358 W
—— W 118,369
—
later than 3 months 134 70,000 69,950 33,570 173,654
later than 6 months 39,823 209,944 91,522 — 341,289
later than 1 year 148,593 699,884 272,146 — 1,120,623
than 3 years 158,880 90,000 664,626 — 913,506
than 5 years 188,082 150,000 389,034 — 727,116
than 10 years 69,366 150,000 244,934 — 464,300
Later than 10 years 19,674 — — — 19,674

— 634,563
W W
— 1,409,828 W
— 1,800,570 W
— 33,570 W
— 3,878,531
HANA BANK

9. Securities concentrations

Information of securities by country of issuance or origination as of December 31, 2010 and 2009 is summarized
as follows (Korean won in millions):

2010

Korean won Foreign currencies

Country Amount Ratio (%) Amount Ratio (%)

Trading securities Korea — 782,794
W 100.0 ——
W —

Available-for-sale Korea — 15,977,083
W 100.0 — 1,106,496
W 88.0
securities US — — 47,077 3.7
Australia — — 25,614 2.0
UK — — 13,456 1.1
Mauritius — — 11,867 0.9
Others — — 54,760 4.3

— 15,977,083
W 100.0 — 1,259,270
W 100.0

Held-to-maturity Korea — 2,350,374
W 100.0 ——
W —
securities Singapore — — 7,869 100.0

— 2,350,374
W 100.0 — 7,869
W 100.0

2009



Trading securities Korea — 1,312,165
W 100.0 ——
W —

W 100.0 — 1,265,347
W 86.7
UK — — 11,189 0.8
Japan — — 10,451 0.7
Germany — — 8,161 0.6
Others — — 111,606 7.7

— 14,248,358
W 100.0 — 1,457,746
W 100.0

W 100.0 — 25,256
W 75.2

— 3,844,961
W 100.0 — 33,570
W 100.0
HANA BANK

Information of securities by industry as of December 31, 2010 and 2009 is summarized as follows (Korean won
in millions):

2010


Industry Amount Ratio (%) Amount Ratio (%)

Trading securities Financial services — 306,193
W 39.1 ——
W —
Public sector 476,601 60.9 — —
— 782,794
W 100.0 —-
W —

Available-for-sale Financial services — 5,880,385
W 36.8 — 618,727
W 49.1
securities Manufacturing 849,893 5.3 75,806 6.1
Public sector 7,428,620 46.5 316,681 25.1
Construction 445,942 2.8 — —
Wholesale and 228,200 1.4 — —
retail
Others 1,144,043 7.2 248,056 19.7
— 15,977,083
W 100.0 — 1,259,270
W 100.0

Held-to-maturity Financial services — 1,017,719
W 43.3 ——
W —
securities Public sector 498,084 21.2 7,869 100.0
Construction 399,813 17.0 — —
Others 434,758 18.5 — —
— 2,350,374
W 100.0 — 7,869
W 100.0

2009



W 25.6 ——
W —
— 1,312,165
W 100.0 ——
W —

W 35.7 — 544,047
W 37.3
Public sector 6,774,219 47.6 242,877 16.7
Construction 276,293 1.9 57,894 4.0
retail
Others 1,342,193 9.4 253,698 17.4
— 14,248,358
W 100.0 — 1,457,746
W 100.0

W 61.3 ——
W —
Construction 1,593 — — —
Others 802,653 20.9 25,256 75.2
— 3,844,961
W 100.0 — 33,570
W 100.0
HANA BANK

Information of securities by type of instrument as of December 31, 2010 and 2009 is summarized as follows

2010


Type Amount Ratio (%) Amount Ratio (%)

Fixed rate bonds — 782,794
W 100.0 ——
W

—
Trading securities

Available-for-sale Equity securities — 1,450,824
W 9.1 — 31,836
W 2.6
securities Investments

in partnerships 127,526 0.8 26,986 2.1
Fixed rate bonds 12,931,078 80.8 1,078,689 85.6

Floating rate 152,372 1.0 105,009 8.3
bonds
Beneficiary 1,306,351 8.2 — —
certificates

Others
8,932 0.1 16,750
1.4

— 15,977,083
W 100.0 — 1,259,270
W

100.0

Held-to-maturity Fixed rate bonds — 2,100,374
W 89.4 — 7,869
W 100.0
securities Floating rate 250,000 10.6 — —
bonds

— 2,350,374
W 100.0 W
— 7,869 100.0

2009



Fixed rate bonds — 1,312,165
W 100.0 ——
W

—
Trading securities

Available-for-sale Equity securities — 1,297,942
W 9.1 — 21,270
W 1.5
securities Investments

in partnerships 147,859 1.0 26,504 1.8
Fixed rate bonds 11,336,281 79.6 1,028,033 70.5

Floating rate 149,253 1.0 365,935 25.1
bonds
Beneficiary 1,313,041 9.2 — —
certificates

Others 3,982 0.1 16,004 1.1

— 14,248,358
W 100.0 — 1,457,746
W

100.0

Held-to-maturity Fixed rate bonds — 3,624,961
W 94.3 — 33,570
W 100.0
bonds

— 3,844,961
W 100.0 W
— 33,570 100.0
HANA BANK

10. Equity method investments

Equity method investments as of December 31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010

Equity method valuation

Book value
before Other Proportionate
Ownership Beginning equity Earnings comprehensive Carrying net asset
(%) balance Acquisition Dividend method (loss) income Disposal value value

Hana Bank (China) Co., Ltd.
(“Hana Bank China”) (*1) 100.0 W
— 346,980 W
—— ——
W — 346,980
W W
— 12,871 W
— (484) —
W— W 359,367
— W
— 359,367
Chi-lin Bank 18.3 — 372,600 — 372,600 (4,285) (1,504) — 366,811 334,556
F-35
PT Bank Hana (*1) (Formerly “BIMA”) 75.1 46,772 4,026 — 50,798 1,467 (2,000) — 50,265 49,382
Hana Funding Ltd. (*1) 100.0 57 — — 57 — — — 57 57
Mirae Credit Information Service
Corp. (“MCIS”) (*2) 12.0 2,415 — (72) 2,343 213 (1) — 2,555 2,555
Korea Credit Bureau
(Formerly “Korea Personal Credit
Information”) (*2) 9.0 2,769 — — 2,769 416 — — 3,185 3,185
HCS Private Equity Fund (*2)
(Formerly Hana Cambridge IMM) 14.9 5,403 1,339 — 6,742 398 — (912) 6,228 6,219
Darby Hana Infrastructure
Management Fund (*2) 9.9 398 — — 398 49 — — 447 447
UAM Co., Ltd. 17.5 11,992 72,800 — 84,792 1,430 — — 86,222 86,222
Hana First Private Equity Fund 30.0 — 25,935 — 25,935 (456) 54 — 25,533 25,533
Daol Fund (*2) 5.0 — 500 — 500 55 2 — 557 541
— 416,786
W W
— 477,200 W
— (72) — 893,914
W — 12,158
W — (3,933)
W — (912)
W W
— 901,227 W
— 868,064

(*1) For investments denominated in a foreign currency, the beginning balance was translated using the exchange rate at December 31, 2010.

(*2) The equity method of accounting has been applied as Hana Bank controls the investee’s Board of Directors despite holding less than 15% of equity interest.

HONGKONG:165547.1
HANA BANK

2009


Book value

— 346,608 W
—— W (4,254)
— —
W 342,354 W
— 1,832 W (102)
— —
W— W 344,084
— W
— 344,084
PT Bank Hana (*1) (Formerly “BIMA”) 72.1 26,931 18,595 — 45,526 (87) 299 — 45,738 44,424
Hana Funding Ltd. (*1) 100.0 58 — — 58 — — — 58 58
BC Card (*2) — 83,619 — (2,222) 81,397 10,731 10,531 (102,659) — —
Corp. (“MCIS”) (*3) 12.0 2,015 — (72) 1,943 474 (2) — 2,415 2,415
F-36
Korea Credit Bureau (Formerly “Korea

Personal Credit Information”) (*3) 9.0 2,710 — — 2,710 59 — — 2,769 2,769
HCS Private Equity Fund (*3)
(Formerly Hana Cambridge IMM) 14.9 5,150 — — 5,150 253 — — 5,403 5,383
Management Fund (*3) 9.9 367 — — 367 31 — — 398 398
UAM Co., Ltd. 17.5 — 12,250 — 12,250 (258) — — 11,992 11,992

— 467,458
W W
— 30,845 W
— (6,548) —
W 491,755 W
— 13,035 W
— 10,726 —
W (102,659) W
— 412,857 W
— 411,523


(*2) The Bank disposed of a considerable portion of its investment in BC Card during the year ended December 31, 2009. Accordingly, the remaining shares were reclassified
as available-for-sale securities.


HONGKONG:165547.1
HANA BANK

The Bank suspended applying the equity method accounting for Korea Travels as the Bank’s share of losses in
the investees exceeded its share of net assets. The Bank’s unrecognized share of the earnings for Korea
Travels for the year ended December 31, 2010 and the accumulated losses as of December 31, 2009 were W— 24
million and W— 1,667 million, respectively.

For the years ended December 31, 2010 and 2009, the unamortized difference between the Bank’s acquisition
cost and the Bank’s portion of the investee’s net asset value at the acquisition date representing goodwill
(negative goodwill), is summarized as follows (Korean won in millions):

2010

Beginning Ending
balance (*) Increase Amortization balance

PT Bank Hana —
W 1,343 W—
— W (460)
— —
W 883
HCS Private Equity Fund 20 (1) (10) 9
Chi-lin Bank — 33,953 (1,698) 32,255
Daol Fund — 19 (3) 16

— 1,363
W — 33,971
W W
— (2,171) —
W 33,163

2009

Beginning
balance (*) Amortization Ending balance

PT Bank Hana —
W 1,764 W (450)
— —
W 1,314
MCIS (339) 339 —
HCS Private Equity Fund 29 (9) 20

— 1,454
W W (120)
— —
W 1,334

(*) Beginning balances were translated using the exchange rate at the reporting date.

Details on individual investees’ net asset values per their unaudited financial statements are summarized as

Investee’s net Proportionate net
Closing date asset value asset value

Hana Bank China December 31, 2010 —
W 359,367 —
W 359,367
Chi-lin Bank December 31, 2010 1,830,849 334,556
PT Bank Hana December 31, 2010 65,755 49,382
Hana Funding Ltd. December 31, 2010 227,837 57
MCIS December 31, 2010 21,290 2,555
Korea Credit Bureau December 31, 2010 35,386 3,185
HCS Private Equity Fund December 31, 2010 41,600 6,219
Management Fund December 31, 2010 4,510 447
UAM Co., Ltd. December 31, 2010 492,698 86,222
Hana First Private Equity Fund December 31, 2010 85,200 25,533
Daol Fund December 31, 2010 10,823 541
Korea Travels (*) December 31, 2010 (11,042) —
— 3,164,273
W — 868,064
W

(*) The Bank suspended applying the equity method as the Bank’s share of losses in the investees exceeded
its interests in the investees.
HANA BANK

The Bank obtained the unaudited financial statements signed by the internal auditors and representative
directors of the investees. The Bank confirmed that the investees’ unaudited financial statements reflected all
significant transactions or resolution of accounting issues which the Bank identified.

The condensed financial position and the results of operations of the Bank’s equity method investees subject
to equity method of as of and for the years ended December 31, 2010 and 2009 are summarized as follows

2010

Operating Net income
Assets Liabilities income (loss) (loss)

Hana Bank China —
W 2,169,490 W
— 1,810,123 W
— 17,089 W
— 12,871
Chi-lin Bank 25,489,804 23,658,955 (117) (14,476)
PT Bank Hana 301,176 235,421 4,065 2,567
Hana Funding Ltd. 228,612 775 — —
MCIS 29,374 8,084 2,570 1,772
Korea Credit Bureau 45,300 9,914 3,723 4,619
HCS Private Equity Fund 41,600 — 1,739 2,727
Management Fund 5,392 882 585 492
UAM Co., Ltd. 1,786,464 1,293,766 9,886 8,173
Hana First Private Equity Fund 85,200 — (1,522) (1,522)
Daol Fund 11,588 765 1,530 1,173
Korea Travels 14,816 25,858 (342) 44

— 30,208,816
W W
— 27,044,543 W
— 39,206 W
— 18,440

2009


Hana Bank China — 1,919,408
W — 1,575,324
W — (144)
W — 1,832
W
PT Bank Hana 228,448 166,834 428 507
MCIS 27,683 7,561 1,537 1,115
Korea Credit Bureau 36,807 6,040 192 655
HCS Private Equity Fund 36,013 — 117 1,762
UAM Co., Ltd. 68,710 185 (1,925) (1,475)
Korea Lease Financing 93,272 303,734 636 (1,738)
Korea Travels 14,241 25,449 (272) 192

— 2,663,616
W — 2,086,565
W — 891
W — 3,163
W
HANA BANK

11. Loans receivable

Total loans receivable as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

2010 2009

Loans in Korean won — 90,137,953
W — 84,576,163
W
Loans in foreign currencies 4,763,179 4,600,416
Bills bought in Korean won 1,452,322 2,430,040
Bills bought in foreign currencies 2,072,853 1,881,097
Domestic import usance 3,219,199 2,423,755
Advance payments on acceptances and guarantees 121,007 5,893
Factoring receivables 667,822 143,514
Credit card loans 27 780,543
Bonds purchased under resale agreements 891,000 793,900
Call loans 847,678 498,799
Privately-placed corporate bonds 1,097,897 2,193,126

105,270,937 100,327,246
Less allowance for possible loan losses (1,715,575) (1,544,437)
Plus deferred loan fees 75,962 56,276

Total loans receivable — 103,631,324
W — 98,839,085
W

Loans in Korean won and in foreign currencies as of December 31, 2010 and 2009 consist of the following

2010 2009

Loans in Korean won:
Corporate loans:
Corporate loans for operations —
W 30,423,947 — 28,805,940
W
Corporate loans for facilities 9,158,554 8,810,204

39,582,501 37,616,144
Household loans 48,745,558 45,375,333
Public sector and others 1,250,255 1,025,047
Inter-bank loans 559,639 559,639

90,137,953 84,576,163
Loans in foreign currencies:
Off-shore loans in foreign currencies 31,514 81,459
Inter-bank loans in foreign currencies 171,745 159,961

4,763,179 4,600,416

— 94,901,132
W — 89,176,579
W
HANA BANK

Loans to banks and other financial institutions as of December 31, 2010 and 2009 are summarized as follows

2010

Other financial
Banks institutions Total

Loans in Korean won W
— 559,639 W
— 2,467,768 W
— 3,027,407
Loans in foreign currencies 171,745 275,970 447,715
Privately-placed corporate bonds — 50,000 50,000
Call loans 847,678 — 847,678
Bonds purchased under resale agreement 700,000 191,000 891,000

— 2,279,062
W W
— 2,984,738 W
— 5,263,800

2009

Other financial

— 559,639 W
— 2,192,669 W
— 2,752,308
Call loans 498,799 — 498,799

— 1,818,399
W W
— 2,760,776 W
— 4,579,175

Concentrations of loans in Korean won and in foreign currencies by customer and industry as of December 31,
2010 and 2009 are listed as follows (Korean won in millions):

2010

Foreign
Korean won currencies Total Ratio (%)

Corporate loans:
Manufacturing W
— 13,961,577 W
— 1,768,944 W
— 15,730,521 16.58
Construction 2,158,785 20,456 2,179,241 2.30
Wholesale and retail 6,047,881 542,452 6,590,333 6.94
Financial services 2,467,769 275,970 2,743,739 2.89
Real estate and rental 5,161,457 244,364 5,405,821 5.70
Others 9,785,032 1,739,248 11,524,280 12.14

39,582,501 4,591,434 44,173,935 46.55
Household loans 48,745,558 — 48,745,558 51.36
Public sector and others 1,250,255 — 1,250,255 1.32
Inter-bank loans 559,639 171,745 731,384 0.77

— 90,137,953
W W
— 4,763,179 W
— 94,901,132 100.00
HANA BANK

2009

Foreign

Corporate loans:
Manufacturing W
— 13,033,580 W
— 1,714,080 W
— 14,747,660 16.54
Construction 1,921,936 14,826 1,936,762 2.17
Others 9,471,299 1,696,200 11,167,499 12.53

37,616,144 4,440,455 42,056,599 47.16
Household loans 45,375,333 — 45,375,333 50.88
Inter-bank loans 559,639 159,961 719,600 0.81

— 84,576,163
W W
— 4,600,416 W
— 89,176,579 100.00

Concentrations of loans in Korea won and in foreign currencies by country as of December 31, 2010 and 2009

2010

Foreign
Korean won currencies Total Ratio(%)

Korea W
— 90,137,953 W
— 2,719,300 W
— 92,857,253 97.85
Japan — 323,133 323,133 0.34
Singapore — 246,125 246,125 0.26
Hong Kong — 331,313 331,313 0.35
US — 508,664 508,664 0.54
China — 261,253 261,253 0.28
Others — 373,391 373,391 0.38

— 90,137,953
W W
— 4,763,179 W
— 94,901,132 100.00

2009

Foreign

Korea W
— 84,576,163 W
— 2,435,344 W
— 87,011,507 97.57
Japan — 239,559 239,559 0.27
Singapore — 302,112 302,112 0.34
Hong Kong — 233,087 233,087 0.26
US — 547,216 547,216 0.61
China — 270,804 270,804 0.30
Others — 572,294 572,294 0.65

— 84,576,163
W W
— 4,600,416 W
— 89,176,579 100.00
HANA BANK

The maturity of loans in Korean won and in foreign currencies as of December 31, 2010 and 2009 is summarized

2010

Foreign

Within 1 month —
W 2,857,760 W
— 490,834 W
— 3,348,594
After 1 month but no later than 3 months 10,491,348 872,092 11,363,440
After 3 months but no later than 6 months 17,899,895 1,261,124 19,161,019
After 6 months but no later than 1 year 21,941,762 886,639 22,828,401
After 1 year but no later than 3 years 14,168,814 677,540 14,846,354
After 3 years but no later than 5 years 5,018,069 205,395 5,223,464
Later than 5 years 17,760,305 369,555 18,129,860

— 90,137,953
W W
— 4,763,179 W
— 94,901,132

2009

Foreign

Within 1 month —
W 3,565,006 W
— 403,594 W
— 3,968,600
Later than 5 years 15,766,570 484,956 16,251,526

— 84,576,163
W W
— 4,600,416 W
— 89,176,579
HANA BANK

Details on the classification of total loans receivable and the related allowance for possible loan losses as of
December 31, 2010 and 2009 (in accordance with the criteria set forth by the FSS) are as follows (Korean won
in millions):

2010

Loans receivable

Normal Pre cautionary Substandard Doubtful Estimated loss Total

Loans in Korean won W 86,925,899
— W 1,304,287
— W 1,034,791
— W 177,033
— — 136,304
W W 89,578,314
—
Loans in foreign currencies 4,358,914 148,382 47,002 19,016 18,120 4,591,434
Bills bought in Korean won 1,448,502 — 3,820 — — 1,452,322
Bills bought in foreign
currencies 2,072,779 72 — — 2 2,072,853
Domestic import usance 3,189,006 23,495 1,036 5,662 — 3,219,199
Advance payments on
acceptances and
guarantees 32,142 59 38,015 49,889 902 121,007
Factoring receivables 665,437 — — — 2,385 667,822
Credit card loans 27 — — — — 27
Privately-placed corporate
bonds 1,047,882 16,074 33,941 — — 1,097,897
Others 532,159 43,544 16,474 75,348 1,017 668,542

Total loans W 100,272,747
— W 1,535,913
— W 1,175,079
— W 326,948
— W
—158,730 W
— 103,469,417

Ratio to total loans
receivable (%) 96.91 1.48 1.14 0.32 0.15 100.00

2010

Allowance

Pre-
Normal cautionary Substandard Doubtful Estimated loss Total

Loans in Korean won W 831,213
— W
—121,603 W
—252,625 W
—90,295 W
—136,304 W
—1,432,040
Loans in foreign currencies 39,656 10,797 9,400 9,508 18,120 87,481
Bills bought in Korean won 12,593 — 764 — — 13,357
currencies 20,287 5 — — 2 20,294
Domestic import usance 27,585 3,987 207 2,831 — 34,610
Advance payments on
acceptances and
guarantees 280 4 7,603 38,789 902 47,578
Credit card loans — — — — — —
bonds 9,004 3,045 6,788 — — 18,837
Others 4,612 5,990 3,295 38,288 1,017 53,202

Total allowance W 951,021
— W
—145,431 W
—280,682 W
—179,711 W
—158,730 W
—1,715,575

Allowance ratio (%) 0.95 9.47 23.89 54.97 100.00 1.66
HANA BANK

2009

Loans receivable

Pre-

Loans in Korean won W 81,644,548
— W 1,446,392
— W 687,243
— W
—128,735 — 109,606
W W 84,016,524
—
Loans in foreign currencies 4,179,874 201,633 46,870 5,292 6,786 4,440,455
Bills bought in Korean won 2,410,040 20,000 — — — 2,430,040
currencies 1,879,520 332 — — 1,245 1,881,097
Domestic import usance 2,397,237 6,703 19,815 — — 2,423,755
Advance payments on
acceptances and
guarantees — 307 1,254 165 4,167 5,893
Credit card loans 780,444 81 1 4 13 780,543
bonds 2,161,582 15,074 16,000 — 470 2,193,126
Others 1,145,533 36,085 234,149 129,139 1,656 1,546,562

Total loans W 96,740,089
— W 1,726,607
— W 1,005,332
— W 263,335
— — 126,146
W W 99,861,509
—

receivable (%) 96.87 1.73 1.01 0.26 0.13 100.00

2009

Allowance

Pre-

Loans in Korean won W 774,293
— W
—107,769 W
—137,449 W
—71,319 W
—109,606 W
—1,200,436
Loans in foreign currencies 35,959 14,114 9,374 3,268 6,786 69,501
Bills bought in Korean won 20,768 1,400 — — — 22,168
currencies 16,205 23 — — 1,245 17,473
Domestic import usance 20,601 469 3,963 — — 25,033
Advance payments on
acceptances and
guarantees — 22 251 83 4,166 4,522
Credit card loans 11,707 12 — 2 13 11,734
bonds 18,543 1,055 3,200 — 470 23,268
Others 9,747 2,527 65,545 87,400 1,656 166,875

Total allowance — 909,046
W W
—127,391 W
—219,782 W
—162,072 W
—126,146 W
—1,544,437

Allowance ratio (%) 0.94 7.38 21.86 61.55 100.00 1.55
HANA BANK

Details of total loans receivable requiring classification as part of the determination of the allowance for possible
losses as of December 31, 2010 and 2009 are as follows (Korean won in millions):

2010 2009

Loans — 105,270,937
W — 100,327,246
W
Derivative instruments 487,347 1,529,604
Prepayments regarded as loans 36,453 16,958
Accounts receivable 144,742 —
Call loans (847,678) (498,799)
Inter-bank loans (731,384) (719,600)
Bonds purchased under resale agreement (891,000) (793,900)

W — 99,861,509
W

Historical ratios of the allowance for possible loan losses to total loans receivable as of December 31, 2010,
2009, and 2008, are as follows (Korean won in millions):

2010 2009 2008

W — 99,861,509
W — 99,861,900
W
Allowance for possible loan losses 1,715,575 1,544,437 2,047,957

Ratio (%) 1.66 1.55 2.05

Details of changes in the allowance for possible loan losses for the years ended December 31, 2010 and 2009
are as follows (Korean won in millions):

2010 2009

Beginning balance — 1,544,437
W — 2,047,957
W
Changes in present value discounts (2,578) (571)
Debt-to-equity swap (103,727) (285,022)
Disposal of non-performing loans (85,432) (134,974)
Write-offs (258,631) (686,201)
Collection of loans written-off in prior periods 28,767 34,331
Provisions of allowance of possible loan losses, net (*) 595,791 624,680
Decrease due to spin-off — (46,285)
Others (3,052) (9,478)

Ending balance — 1,715,575
W — 1,544,437
W

(*) Provisions on allowance of possible loan losses on the credit card business of the Bank, which was
discontinued due to the spin-off in 2009, amounting to —
W 29,453 million for the year ended December 31,
2009 were included.
HANA BANK

Details of restructured loans as of December 31, 2010 and 2009 are as follows (Korean won in millions):

2010

Restructuring detail

Before Debt-to-equity Present value After
restructuring swap discounts restructuring

Workout W
— 1,578,480 W
— (608,662) W
—— W 969,818
—
Others (*) 219,750 — 319 220,069

— 1,798,230
W W
— (608,662) W
— 319 W
— 1,189,887

2009



Workout W
— 739,267 W
— (403,642) W
—— W 335,625
—
Others (*) 46,164 (101) (1,976) 44,087

— 785,431
W W
— (403,743) W
— (1,976) —
W 379,712

(*) Others represent restructured loans to leasing companies and to companies for which the restructuring
process was completed.

The Bank provided an allowance for possible losses for the restructured loans considering each borrower ’s
repayment ability.

Changes in present value discounts originated from troubled debt restructuring for the years ended December

2010 2009

Beginning balance — 1,976
W — 1,753
W
Increase 283 794
Interest income, etc. (2,578) (571)

Ending balance — (319)
W — 1,976
W

The Bank sold the non-performing loans (“NPL”) with a book value of W
— 653,270 million through several open
bidding processes, and the reverse purchasing credit card receivables with a book value of W
— 6,900 million to
Hana SK Card Co., Ltd. In connection with these transactions, the Bank recognized gross gains of W — 43,177
million and losses of W
— 53,266 million for the year ended December 31, 2010. In addition, the Bank sold
mortgage loans with a book value of W
— 105,295 million to Korea Asset Management Corporation (“KAMCO”) in
2007 under the condition that the Bank and KAMCO will finalize the selling price based on the valuation results
of the mortgage loans. The Bank recognized gains of W— 76 million and losses of — W 6,067 million for the year
ended December 31, 2010 relating to the valuation changes arising from the mortgage loans sold.
HANA BANK

Changes in deferred loan fees, net of expenses, for the years ended December 31, 2010 and 2009 are
summarized as follows (Korean won in millions):

2010

Beginning Ending
balance Increase Decrease balance

Deferred loan fees, net of expenses —
W 56,276 W
— 56,217 W
— (36,531) W
— 75,962

2009

Beginning Ending

Deferred loan fees, net of expenses —
W 54,812 W
— 32,024 W
— (30,560) W
— 56,276

12. Tangible assets

Changes in tangible assets for the years ended December 31, 2010 and 2009 are as follows (Korean won in
millions):

2010

Beginning Transfer in Ending
balance Acquisition Disposal (out) Others balance

Property and equipment:
Acquisition cost:
Land W
— 524,474 W
—— W (913)
— —
W 721 W—
— W 524,282
—
Buildings 509,761 3,909 (857) 1,966 54 514,833
Leasehold improvements 141,252 6,612 (948) 756 93 147,765
Vehicles, furniture and
fixtures 561,459 29,705 (60,569) 186 60 530,841
Construction in-progress 13,192 13,485 — (3,629) — 23,048

1,750,138 53,711 (63,287) — 207 1,740,769
Accumulated depreciation:
Buildings 102,927 14,463 (210) — 8 117,188
Leasehold improvements 114,961 13,980 (897) — 47 128,091
fixtures 449,407 53,039 (59,871) — 50 442,625

667,295 81,482 (60,978) — 105 687,904

— 1,082,843
W W
— (27,771) W
— (2,309) —
W— W 102 W
— — 1,052,865
HANA BANK

2009

Decrease
Beginning Transfer in due to Ending
balance Acquisition Disposal (out) Others spin-off balance

Acquisition cost:
Land W
—519,335 W
—16 — (3,854)
W W 8,977
— W
—— W
—— W
—524,474
Buildings 500,098 5,458 (1,582) 5,840 (53) — 509,761
Leasehold improvements 139,863 10,115 (8,646) 38 (118) — 141,252
fixtures 559,531 48,354 (26,096) 3,565 (122) (23,773) 561,459
Construction in-progress 22,373 9,239 — (18,420) — — 13,192

1,741,200 73,182 (40,178) — (293) (23,773) 1,750,138
Buildings 88,518 14,717 (304) — (4) — 102,927
Leasehold improvements 102,955 19,026 (6,948) — (72) — 114,961
fixtures 419,476 72,202 (25,481) — (88) (16,702) 449,407

610,949 105,945 (32,733) — (164) (16,702) 667,295

W
—1,130,251 W
—(32,763) — (7,445)
W W—
— W
—(129) W
—(7,071) W
—1,082,843

The value of the Bank’s domestic land, as determined by the government of the Republic of Korea for tax
administration purposes, amounted to W
— 713,717 million and W
— 700,686 million as of December 31, 2010 and
2009.

Insured property and equipment as of December 31, 2010 are summarized as follows (Korean won in millions):

2010

Insured amount Insurance period

Buildings — 406,634
W 2010.03.30~2011.03.30
Vehicles, furniture and fixtures 128,173 2010.03.30~2011.03.30
Leasehold improvements 2010.03.30~2011.03.30
30,506
— 565,313
W

13. Intangible assets

Changes in intangible assets for the years ended December 31, 2010 and 2009 are as follows (Korean won in
millions):

2010

Beginning Ending
balance Acquisition Amortization balance

Trademark W
— 34 W 13
— W (12)
— W 35
—
Software 191,876 27,454 (52,169) 167,161
Others 3,348 6,537 (7,612) 2,273

— 195,258
W W
— 34,004 W
— (59,793) 169,469
HANA BANK

2009
Decrease
Beginning due to Ending
balance Acquisition Amortization spin-off balance

Trademark — 33
W W 12
— W (11)
— W—
— W 34
—
Software 62,071 174,945 (37,066) (8,074) 191,876
Others 3,201 2,408 (2,261) — 3,348

— 65,305
W — 177,365
W — (39,338)
W — (8,074)
W 195,258

14. Miscellaneous assets

Details of miscellaneous assets as of December 31, 2010 and 2009 are as follows (Korean won in millions):

2010 2009

Non-business use properties — 13,833
W — 13,833
W
Suspense accounts 91,734 81,022
Deposits to court 5,535 3,787
Receivables from spot exchange 12,647 21,782
Others 1,664 1,885

— 125,413
W 122,309

15. Deposits

Deposits as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

Deposit type 2010 2009

Demand deposits: Korean won deposits — 2,964,690
W — 2,954,118
W
Foreign currency deposits 1,525,405 1,187,614

4,490,095 4,141,732
Time and savings deposits: Korean won deposits 83,829,033 74,758,232
Foreign currency deposits
1,649,749 2,411,696

85,478,782 77,169,928
Certificates of deposits
3,419,710 8,572,765

— 93,388,587
W — 89,884,425
W
HANA BANK

Deposits received from financial institutions, excluding BOK deposits, as of December 31, 2010 and 2009 are

2010

Other financial

Demand deposits:
Korean won deposits W
— 1,915 W 173,287
— W
— 175,202
Foreign currency deposits — 13,337 13,337

1,915 186,624 188,539
Time and savings deposits:
Korean won deposits 3,176,185 12,357,954 15,534,139
Foreign currency deposits 5,467 62,034 67,501

3,181,652 12,419,988 15,601,640
Certificates of deposits — 1,388,716 1,388,716

— 3,183,567
W W
— 13,995,328 — 17,178,895
W

2009

Other financial

Demand deposits:
— 3,479 W 148,569
— W
— 152,048

3,479 178,675 182,154

2,541,618 11,638,041 14,179,659
Certificates of deposits 73,775 1,664,784 1,738,559

— 2,618,872
W W
— 13,481,500 — 16,100,372
W
HANA BANK

The maturities of deposits as of December 31, 2010 and 2009 are summarized as follows (Korean won in
millions):

2010

Time and
Demand saving Certificates of
deposits deposits deposits Total

Within 1 month —
W 1,282,025 W
— 15,831,228 W
— 1,417,509 W
— 18,530,762
After 1 month but no later than 3 months — 11,108,319 853,709 11,962,028
After 3 months but no later than 6 months — 11,625,833 352,054 11,977,887
After 6 months but no later than 1 year — 27,471,577 765,341 28,236,918
After 1 year but no later than 3 years 57,855 1,806,149 30,466 1,894,470
After 3 years but no later than 5 years 3,150,215 17,299,610 631 20,450,456
Later than 5 years — 336,066 — 336,066

— 4,490,095
W W
— 85,478,782 W
— 3,419,710 W
— 93,388,587

2009

Time and
Deposits deposits deposits Total

Within 1 month —
W 969,418 W
— 10,446,764 W
— 2,421,483 W
— 13,837,665
After 1 month but no later than 3 months — 10,949,629 1,768,627 12,718,256
After 3 months but no later than 6 months — 9,318,567 1,614,305 10,932,872
After 6 months but no later than 1 year — 26,592,469 1,579,084 28,171,553
After 1 year but no later than 3 years 740,399 2,212,902 1,183,498 4,136,799
After 3 years but no later than 5 years 2,431,915 17,136,207 5,768 19,573,890
Later than 5 years — 513,390 — 513,390

— 4,141,732
W W
— 77,169,928 W
— 8,572,765 W
— 89,884,425

16. Borrowing liabilities

Borrowing liabilities as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

2010 2009

Borrowings — 6,380,872
W — 6,008,757
W
Debentures, net 16,050,065 15,206,963
Other borrowings 2,290,319 4,232,583

— 24,721,256
W — 25,448,303
W
HANA BANK

16-1. Borrowings

Borrowings as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

Annual
Lender interest rate (%) 2010 2009

BOK borrowings BOK 1.3 —
W 344,730 W
— 494,366
Financial fund borrowings Korean gov. 2.0~4.6 59,796 75,424
Other borrowings Small corporations, etc. 0.0~5.5 1,167,956 1,163,391
Bank overdrafts Foreign banks, etc. — 118,155 37,528
Bank borrowings LBBW, etc. 0.3~5.0 4,690,235 4,238,048

— 6,380,872
W — 6,008,757
W

16-2. Debentures and other borrowings

Debentures as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

Annual
Lender interest rate (%) 2010 2009

Korean won:
Subordinated bonds Various investors 5.1~8.4 W
— 3,342,826 W
— 3,443,699
Other bonds Financial institutions 2.6~8.0 8,771,776 8,401,372

12,114,602 11,845,071
Less present value
discounts (5,487) (5,510)

12,109,115 11,839,561
Foreign currencies:
Debentures(*) Citibank Korea, etc. 1.5~6.5 2,516,682 1,573,369
Subordinated bonds Barclays, etc. 5.4~8.7 1,301,893 1,353,170
Floating rate bonds PAAM 6M Libor+1.84~2.66 132,636 263,866
— — 191,007

3,951,211 3,381,412
Less present value
discounts (10,261) (14,010)

3,940,950 3,367,402

— 16,050,065
W — 15,206,963
W

(*) The Korean government provides the Bank with a guarantee of USD 1,324,304 thousand.
HANA BANK

Details of subordinated bonds as of December 31, 2010 and 2009 are as follows (Korean won in millions):

Annual
Maturity interest rate (%) 2010 2009

Korean won:
Subordinated bonds Over due 5.2~7.7 W
— 282 W
— 1,156
Within 3 months — — 99,999
later than 6 months 5.1~5.2 599,544 —
later than 1 year — — —
than 2 years 5.3~5.4 1,000,000 599,544
After 2 years but no
later than 3 years — — 1,000,000
later than 4 years 6.1~8.4 742,500 —
later than 5 years 7.0~8.0 582,500 742,500
Later than 5 years 6.5~7.6 418,000 1,000,500

3,342,826 3,443,699
Foreign currencies:
Subordinated bonds Within 1 year 5.9 478,873 —
later than 2 years 5.4~8.7 823,020 495,127
later than 3 years — — 858,043

1,301,893 1,353,170

— 4,644,719
W — 4,796,869
W

Other borrowings as of December 31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010 2009

Bonds sold under repurchase agreements:
Korean won — 874,398
W — 930,549
W
Foreign currencies 277,348 292,872

1,151,746 1,223,421
Bills sold:
Notes sold 309,213 674,499

309,213 674,499
Call money:
Foreign currencies 829,360 1,726,763

829,360 2,334,663

— 2,290,319
W — 4,232,583
W
HANA BANK

16-3. Borrowing liabilities concentrations
Concentrations of borrowings from financial institutions as of December 31, 2010 and 2009 consist of the
following (Korean won in millions):

2010

Other financial
BOK Banks institutions Total

Borrowings W
— 344,730 W
— 4,847,029 W
— 47,661 W
— 5,239,420
Debentures — 2,810,142 13,255,671 16,065,813
Other borrowings 148,200 603,617 1,229,289 1,981,106

— 492,930
W W
— 8,260,788 W
— 14,532,621 W
— 23,286,339

2009

Other financial

Borrowings W
— 494,366 W
— 4,320,162 W
— 42,078 W
— 4,856,606
Debentures — 3,003,355 11,401,930 14,405,285
Other borrowings 148,200 1,960,143 647,393 2,755,736

— 642,566
W W
— 9,283,660 W
— 12,091,401 W
— 22,017,627

16-4. Maturity of borrowing liabilities

The maturities of borrowing liabilities as of December 31, 2010 and 2009 are as follows (Korean won in millions):

2010

Other
Borrowings Debentures borrowings Total

Within 1 month —
W 1,205,851 W
— 250,282 W
— 665,753 W
— 2,121,886
After 1 month but no later than 3 months 1,422,488 1,560,769 815,145 3,798,402
After 3 months but no later than 6 months 1,671,882 1,499,544 375,247 3,546,673
After 6 months but no later than 1 year 819,228 3,875,576 256,020 4,950,824
After 3 years but no later than 5 years 442,024 1,428,892 100,590 1,971,506
Later than 5 years 469,668 1,275,804 — 1,745,472

— 6,380,872
W W
— 16,065,813 2,290,319 W
— 24,737,004

2009

Other

Within 1 month —
W 1,311,273 W
— 241,156 W
— 2,240,292 W
— 3,792,721
After 1 month but no later than 3 months 1,660,890 857,136 1,199,478 3,717,504
Later than 5 years 545,895 1,411,961 — 1,957,856

— 6,008,757
W W
— 15,226,483 4,232,583 W
— 25,467,823
HANA BANK

16-5. Borrowed Securities

There are no outstanding borrowed securities as of December 31, 2010.

17. Severance and retirement benefits

Changes in severance and retirement benefits for the years ended December 31, 2010 and 2009 are as follows

2010 2009

W — 227,927
W
Payments during the year (17,326) (80,745)
Other 6 (5)
Decrease due to spin-off — (677)

Ending balance 237,270 207,040
Deposits for severance and retirement (356) (189,135)
Retirement pension plan assets (217,182) —
Prepayment to the NPS (203) (223)

Ending balance — 19,529
W — 17,682
W

As of December 31, 2010, none of retired employees has chosen to be paid in regular installment after
retirement, and therefore, there is no liability in relation to the retired employees. In addition, as of December
31, 2010, the retirement pension assets are managed through a guaranteed interest rate type of products. Also,
the Bank has deposited W — 356 million, a portion of its severance and retirement benefits and obligations, with
insurance companies, including Korea Life Insurance Co..

18. Acceptances and guarantees

Acceptances and guarantees as of December 31, 2010 and 2009 are as follows (Korean won in millions):

2010 2009

Confirmed acceptances and guarantees in Korean won:
Corporate debentures —
W 478 W 630
—
Collateral for loans 26,888 20,001
Others (*) 1,787,344 2,015,685

1,814,710 2,036,316
Confirmed acceptances and guarantees in foreign currencies:
Acceptances on letters of credit 688,352 931,974
Acceptances for letters of guarantee for importers 50,162 48,796
Others (*) 3,149,126 3,230,445

3,887,640 4,211,215
Contingent acceptances and guarantees:
Letters of credit and others 3,637,005 3,105,643
Bills endorsed 6,120 6,011

— 9,345,475
W — 9,359,185
W

(*) Others consist of acceptances and guarantees for the return of advances related to export, overseas
bidding, and contractual obligations.
HANA BANK

Details of classification of acceptances and guarantees and allowance for possible losses on acceptances and
guarantees as of December 31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010

Acceptances and guarantees

Korean won Foreign currencies Bills endorsed Total

Outstanding Outstanding Outstanding Outstanding Ratio
amount Allowance amount Allowance amount Allowance amount Allowance (%)

Normal W
—1,756,892 W—14,387 W—7,366,644 W —28,026 W
—6,120 W
— 54 W
— 9,129,656 —W 42,467 0.47
Precautionary 33,996 4,130 151,670 5,034 — — 185,666 9,164 4.94
Substandard 23,668 4,734 2,392 479 — — 26,060 5,213 20.00
Doubtful — — 2,517 1,259 — — 2,517 1,259 50.00
Estimated loss 154 154 1,422 1,422 — — 1,576 1,576 100.00

W
—1,814,710 W
—23,405 W
—7,524,645 W
—36,220 W
—6,120 W
— 54 W
— 9,345,475 —
W 59,679 0.64

2009



amount Allowance amount Allowance amount Allowance amount Allowance (%)

Normal W
—2,030,733 W—16,254 W—7,182,369 W —24,795 W
—6,011 W
— 54 W
— 9,219,113 —W 41,103 0.45
Precautionary 4,284 289 62,613 412 — — 66,897 701 1.05
Substandard 1,297 259 71,549 14,310 — — 72,846 14,569 20.00
Doubtful — — — — — — — — —
Estimated loss 2 2 327 327 — — 329 329 100.00

W
—2,036,316 W
—16,804 W
—7,316,858 W
—39,844 W
—6,011 W
— 54 W
— 9,359,185 —
W 56,702 0.61

Historical ratios of allowance for possible losses on acceptances and guarantees to total acceptances and
guarantees as of December 31, 2010, 2009, and 2008 are as follows (Korean won in millions):

2010 2009 2008

Total acceptances and guarantees — 9,345,475
W — 9,359,185
W — 8,934,702
W
Allowance for possible losses on acceptances
and guarantees 59,679 56,702 41,317

Ratio (%) 0.64 0.61 0.46
HANA BANK

Concentrations of acceptances and guarantees by country as of December 31, 2010 and 2009 are summarized

2010

Confirmed acceptance
Contingent Total
and guarantees
acceptances
Foreign and Bills Ratio
Korean won currencies guarantees endorsed Amounts (%)

Korea — 1,814,710 W
W — 3,341,534 W
— 3,489,654 — 6,120 W
W — 8,652,018 92.58
US — 6,775 5,654 — 12,429 0.13
Singapore — 152,755 107,931 — 260,686 2.79
Hong Kong — 153,033 29,886 — 182,919 1.96
Japan — 1,708 3,880 — 5,588 0.06
Others — 231,835 — — 231,835 2.48

— 1,814,710 W
W — 3,887,640 W
— 3,637,005 — 6,120
W — 9,345,475
W 100.00

2009

Contingent Total
and guarantees
acceptances
Foreign and Bills Ratio
Korean won currencies guarantees endorsed Amounts (%)

Korea — 2,036,316 W
W — 3,318,260 W
— 2,977,185 — 6,011 —
W W 8,337,772 89.09
US — 21,349 2,766 — 24,115 0.26
Singapore — 254,875 116,055 — 370,930 3.96
Hong Kong — 381,239 8,319 — 389,558 4.16
Japan — 1,745 1,318 — 3,063 0.03
Others — 233,747 — — 233,747 2.50

— 2,036,316 W
W — 4,211,215 W
— 3,105,643 — 6,011
W W 9,359,185
— 100.00

Concentrations of acceptances and guarantees by industry as of December 31, 2010 and 2009 are summarized

2010

Contingent Total
and guarantees
acceptances
Foreign and Bills
Korean won currencies guarantees endorsed Amounts Ratio (%)

Manufacturing W
— 813,540 —
W 2,537,117 W
— 2,538,899 W
— 1,756 —
W 5,891,312 63.04
Construction 82,462 281,200 170,458 — 534,120 5.72
Wholesale and retail 411,730 600,801 746,201 4,364 1,763,096 18.87
Financial services 4,988 248,807 4,260 — 258,055 2.76
Real estate and rental 12,743 7,646 1,356 — 21,745 0.23
Transport and storage 15,074 58,990 4,994 — 79,058 0.85
Public sector and others 474,173 153,079 170,837 — 798,089 8.53

— 1,814,710 —
W W 3,887,640 W
— 3,637,005 W
— 6,120 —
W 9,345,475 100.00
HANA BANK

2009

Contingent Total
and guarantees
acceptances
Foreign and Bills
Korean won currencies guarantees endorsed Amounts Ratio (%)

Manufacturing W
— 1,097,270 W
— 2,382,276 W
— 2,206,412 W
— 1,112 —
W 5,687,070 60.77
Construction 42,833 239,252 93,093 — 375,178 4.01
Wholesale and retail 415,971 1,196,360 671,668 4,899 2,288,898 24.46
Transport and storage 13,484 67,433 732 — 81,649 0.87

— 2,036,316 —
W W 4,211,215 W
— 3,105,643 W
— 6,011 —
W 9,359,185 100.00

19. Allowances for unused commitments

Unused commitments of December 31, 2010 and 2009 are as follows (Korean won in millions):

2010 2009

Commitments on loans in Korean won — 26,888,594
W — 23,049,442
W
Commitments on loans in foreign currencies 8,802,221 8,624,529
Commitments on off-shore loans in foreign currencies 2,378 11,181
Commitments on purchase of asset-backed commercial papers (*) 675,650 1,498,642
Commitments on credit lines on asset-backed securities (*) 152,912 278,726
Commitments on purchase of securities 386,356 459,156

— 36,908,111
W — 33,921,676
W

(*) The Bank has entered into credit line facilities and commercial paper (“CP”) purchase commitments with
several special purpose companies (the “SPCs”), which were established for asset-backed securitization,
to enhance the liquidity of the SPCs. In accordance with those commitments, the Bank is subject to
providing liquidity to these SPCs with an aggregate limit of —
W 152,912 million for asset-backed securities
or purchase CPs issued by the SPCs with an aggregate limit of W — 964,850 million when these SPCs are
not able to repay the principal or interest on the asset-backed securities and CPs. The Bank has
purchased CPs amounting to W — 289,200 million in connection with these commitments as of December 31,
2010.

As of December 31, 2010, in connection with real estate project financing, the Bank provides W
— 234,132 million
of commitments on loans denominated in Korean won (W — 401,611 million as of December 31, 2009) and
— 41,000 million of commitments on purchase of asset-back commercial papers (W
W — 174,200 million as of
December 31, 2009).

Historical ratios of allowance for losses on unused commitments to total unused commitments as of December
31, 2010, 2009 and 2008, are as follows (Korean won in millions):

2010 2009 2008

Unused commitments — 36,521,755
W — 33,462,520
W — 43,511,314
W
Allowance for possible losses on unused
commitments 135,574 129,464 160,551

Ratio (%) 0.37 0.39 0.37
HANA BANK

20. Other allowances

Changes in the other allowances for the years ended December 31, 2010 and 2009 are as follows (Korean won
in millions):

2010

Beginning Increase
Balance (decrease) Ending balance

Allowance for lawsuits W
— 55,300 W
— 5,534 W
— 60,834
Others 5,840 (2,189) 3,651

— 61,140
W W
— 3,345 W
— 64,485

2009

Beginning Increase Decrease due Ending
balance (decrease) to spin-off balance

Allowance for card mileage W
— 20,143 W
— 3,025 W
— (23,168) —
W-
Allowance for lawsuits 101,677 (46,377) — 55,300
Others 12,908 (6,201) (867) 5,840

— 134,728
W W
— (49,553) W
— (24,035) 61,140

21. Miscellaneous liabilities

Miscellaneous liabilities as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

2010 2009

Subscription deposits received (*) — 25,933
W — 6,082
W
Suspense receipts (*) 38,599 19,804
Account for agency business 105,885 105,204
Deposits for guarantees 70,079 136,462
Withholding taxes 51,693 50,752
Deposits held by agency relationship 683,278 589,648
Others 8,492 13,176

— 983,959
W — 921,128
W

(*) Subscription deposits received represent temporary security deposits required in subscribing for equity
securities or debt securities. Suspense receipts consist of teller ’s accounts surplus, fiscal stamp sales
and other transactions which were required to be recognized by the Bank in accordance with the
HANA BANK

22. Assets and liabilities denominated in foreign currencies

Significant assets and liabilities denominated in foreign currencies as of December 31, 2010 and 2009 are as
follows (Korean won in millions or U.S. dollar in thousands):

2010

Amount in
foreign
currency in Korean won
Account Currency units U.S. dollars (*) equivalent

Assets:
Cash on hand USD 33,316,407 US$ 33,316 — 37,944
W
JPY 2,965,670,213 36,380 41,433

EUR 22,896,625 30,430 34,656
Others 31,360 35,716

131,486 149,749
Due from banks USD 402,326,460 402,326 458,209
JPY 376,800,170 4,623 5,265

EUR 5,691,362 7,565 8,616
Others 9,075 10,336

423,589 482,426
Securities USD 1,069,673,743 1,069,674 1,218,251

EUR 198,320 264 300
Others 724,460 825,088

1,794,398 2,043,639
Loan receivables USD 4,702,490,733 4,702,491 5,355,667
(including domestic JPY 168,508,704,541 2,067,091 2,354,210
import usance)
EUR 163,693,514 217,549 247,767
Others 21,718 24,734

7,008,849 7,982,378
Bills purchased USD 1,401,597,792 1,401,597 1,596,279
JPY 1,700,558,719 20,861 23,758

EUR 215,209,281 286,013 325,741
Others 111,577 127,075

1,820,048 2,072,853
Factoring receivables USD & Others 23,996 27,329
Privately-placed debentures USD & Others 55,935 63,704
Call loans USD & Others 744,295 847,678
Others USD & Others 1,336,951 1,522,653

US$13,339,547 — 15,192,409
W
HANA BANK

2010

Amount in
foreign

Liabilities:
Deposits USD 2,223,059,915 US$ 2,223,060 — 2,531,843
W
JPY 27,807,794,339 341,116 388,497
EUR 123,493,532 164,125 186,922
Others 59,612 67,892

2,787,913 3,175,154
Borrowings, etc. USD 3,168,519,076 3,168,519 3,608,626
JPY 66,358,450,786 814,020 927,087
EUR 352,392,112 468,330 533,381
Others 14,614 16,644

4,465,483 5,085,738
Call money USD & Others 728,212 829,360
Debentures USD & Others 3,469,322 3,951,211
Unsettled foreign exchange liabilities USD 171,829,982 171,830 195,697
JPY 1,834,977,854 22,510 25,636
EUR 6,372,028 8,468 9,645
Others 1,149 1,309

203,957 232,287

US$13,540,044 — 15,420,755
W

Acceptances and USD 3,222,577,297 US$ 3,222,577 W
— 3,670,193
guarantees outstanding: JPY 7,985,930,948 97,963 111,570
EUR 53,780,727 71,475 81,403
Others 21,490 24,474

US$ 3,413,505 — 3,887,640
W
HANA BANK

2009

Amount in
foreign

Assets:
W
JPY 3,433,621,547 37,136 43,361

EUR 29,466,090 42,253 49,334
Others 29,238 34,138

148,804 173,744
JPY 385,232,214 4,166 4,864

EUR 1,182,559 1,696 1,980
Others 14,544 16,982

360,290 420,675
Securities USD 1,232,057,368 1,232,057 1,438,551
JPY 2,000,000,000 21,631 25,256

EUR 8,898,301 12,760 14,898
Others 344,716 402,491

1,611,164 1,881,196
Loan receivables USD 4,129,246,269 4,129,246 4,821,307
(including domestic JPY 160,609,608,368 1,737,101 2,028,239
import usance)
EUR 86,107,172 123,474 144,168
Others 26,085 30,457

6,015,906 7,024,171
JPY 2,414,183,193 26,111 30,487

EUR 232,766,884 333,776 389,717
Others 101,382 118,373

1,611,081 1,881,097
Privately-placed debentures USD & Others 95,528 111,538
Call loans USD & Others 427,200 498,799
Others USD & Others 737,153 860,699

US$11,007,126 — 12,851,919
W
HANA BANK

2009

Amount in
foreign

Liabilities:
Deposits USD 2,158,207,058 US$ 2,158,207 — 2,519,922
W
JPY 27,044,401,541 292,500 341,523
EUR 117,198,784 168,061 196,228
Others 463,889 541,637

3,082,657 3,599,310
JPY 31,286,401,101 338,379 395,091
EUR 210,660,141 302,076 352,704
Others 27,590 32,214

3,912,683 4,568,448
Call money USD & Others 1,478,899 1,726,763
Debentures USD & Others 2,896,036 3,381,412
JPY 861,089,542 9,313 10,874
EUR 1,332,215 1,912 2,232
Others 1,014 1,184

89,857 104,917

US$12,858,547 — 15,013,640
W

Acceptances and guarantees USD 3,399,449,045 US$ 3,399,449 W
— 3,969,197
outstanding: JPY 5,055,378,325 54,676 63,840
EUR 52,715,589 75,592 88,261
Others 77,010 89,917

US$ 3,606,727 W
— 4,211,215

(*) All foreign currencies other than the U.S. dollar are expressed in the equivalent of U.S. dollars at the
reporting date.

23. Commitments and contingencies

23-1. Derivative instruments

The Bank’s derivative instruments are divided into trading derivatives and hedge derivatives, based on the
nature of each transaction. The Bank enters into hedge transactions mainly for purposes of hedging the fair
value risk related to changes in fair value of the underlying assets and liabilities.

Trading derivatives include derivative instruments related to managing trading and asset-liability management
exposures to fluctuations in interest rates, foreign exchange risks, and stock prices and so on. In addition, future
contracts, forward contracts, swaps and options entered into by the Bank to meet the financing needs of its
customers and to generate profits from arbitrage transactions between customers and other banks are
accounted for as trading derivative transactions.
HANA BANK

Hedge derivatives mainly consist of interest rate swaps to hedge the fair value changes of debentures and other
obligations arising from interest rate fluctuations. However, for a hedge relationship where the hedged item is
an asset or a liability that is re-measured with the changes in fair value attributable to the hedged risk is credited
or charged to current operations, or where the hedged item cannot be specifically identified are treated as
trading derivative transactions.

The notional amounts of derivative contracts outstanding as of December 31, 2010 and 2009 are as follows

Notional amounts

2010 2009

Trading Hedging Total Trading Hedging Total

Currency:
Forward — 65,844,852
W ——
W W 65,844,852
— — 87,121,613
W —— —
W W 87,121,613
Futures 86,909 — 86,909 1,197,070 — 1,197,070
Swap 12,422,804 — 12,422,804 14,437,909 — 14,437,909
Options bought 1,658,393 — 1,658,393 2,785,674 — 2,785,674
Options sold 1,646,977 — 1,646,977 3,568,916 — 3,568,916

81,659,935 — 81,659,935 109,111,182 — 109,111,182
Interest:
Forward 3,484 — 3,484 6,743 — 6,743
Futures — — — 110,141 — 110,141
Swap 44,718,898 1,580,289 46,299,187 52,876,176 1,246,427 54,122,603
Options bought 1,135,000 — 1,135,000 2,050,000 — 2,050,000
Options sold 2,756,546 — 2,756,546 3,829,280 — 3,829,280

48,613,928 1,580,289 50,194,217 58,872,340 1,246,427 60,118,767
Stock:
Futures 13,700 — 13,700 35,600 — 35,600
Options bought 1,045,794 — 1,045,794 391,127 — 391,127
Options sold 2,511,060 — 2,511,060 1,058,766 — 1,058,766

3,570,554 — 3,570,554 1,485,493 — 1,485,493
Others:
Bought 58,641 — 58,641 197,689 — 197,689
Sold 58,641 — 58,641 180,175 — 180,175

117,282 — 117,282 377,864 — 377,864

— 133,961,699 W
W — 1,580,289 W
— 135,541,988 W
— 169,846,879 W
— 1,246,427 W
— 171,093,306

For a derivative transaction involving both Korean won and foreign currency, the fair value of unsettled amount
of such transaction is presented using the basic foreign exchange rate of the contract amount in foreign
currency. For a derivative transaction involving only foreign currency, the fair value of unsettled amount is
presented using the basic foreign exchange rate of the foreign currency purchased at the reporting date.
HANA BANK

Unsettled derivative contracts and the related unrealized valuation gains (losses) for the years ended December
31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010

Net valuation gain (loss) on
unsettled derivatives Fair value

Derivative Derivative
Trading Hedging Total assets liabilities

Currency:
Forwards — (178,510)
W W
—— W (178,510)
— — 992,689
W — 640,490
W
Swap 140,759 — 140,759 355,041 636,687
Options bought (11,416) — (11,416) 78,055 —
Options sold 6,066 — 6,066 — 49,329

(43,101) — (43,101) 1,425,785 1,326,506
Interest rate:
Forwards (12) — (12) — 12
Swap 63,063 27,793 90,856 482,115 560,681
Options bought (2,784) — (2,784) 26,273 —
Options sold 15,257 — 15,257 — 24,258

75,524 27,793 103,317 508,388 584,951
Stock:
Options bought 114,090 — 114,090 178,184 —
Options sold (106,928) — (106,928) — 205,486

7,162 — 7,162 178,184 205,486
Others:
Bought 1,564 — 1,564 5,854 —
Sold (1,564) — (1,564) — 5,854

— — — 5,854 5,854

— 39,585
W — 27,793
W — 67,378
W — 2,118,211
W — 2,122,797
W
HANA BANK

2009



Currency:
Forwards W
— (282,579) W
—— W (282,579)
— —
W 1,898,766 W
— 927,739
Swap 441,087 — 441,087 419,913 1,198,127
Options bought (166,364) — (166,364) 308,574 —
Options sold 130,949 — 130,949 — 157,850

123,093 — 123,093 2,627,253 2,283,716
Interest rate:
Forwards 11 — 11 11 —
Swap 85,138 (25,216) 59,922 520,721 844,493
Options bought (15,641) — (15,641) 33,463 —
Options sold 20,876 — 20,876 — 36,820

90,384 (25,216) 65,168 554,195 881,313
Stock:
Options bought 19,558 — 19,558 196,252 —
Options sold (15,087) — (15,087) — 67,848

4,471 — 4,471 196,252 67,848
Others:
Bought 911 — 911 13,702 —
Sold (1,534) — (1,534) — 14,345
(623) — (623) 13,702 14,345

— 217,325
W W
— (25,216) W
— 192,109 W
— 3,391,402 W
— 3,247,222

Unrealized gains and losses from fair value hedge accounting by type of the underlying assets or liabilities for
the years ended December 31, 2010 and 2009 are as follows (Korean won in millions):

2010 2009

Gains Losses Gains Losses

W 2,313 W—
— W 306
— W
— 1,278
Loans — — — 755
Deposits 2,397 9,312 12,369 1,183
Debentures 14,073 31,910 34,832 771

— 18,783
W W
— 41,222 W
— 47,507 W
— 3,987
HANA BANK

23-2. Lawsuits

As of December 31, 2010, the Bank is involved in 388 lawsuits as a plaintiff and 104 lawsuits as a defendant.
The aggregate amount of claims as a plaintiff and a defendant amounted to approximately W
— 123,249 million and
— 117,905 million, respectively. The Bank’s material lawsuits in progress as a defendant are as follows (Korean
W
won in millions):

2010

Status of lawsuit

Plaintiff Amount First trial On appeal content

LIG insurance W
— 33,058 Partially loss In-progress Payment of deposits (*)
BSE Co., Ltd. 14,508 In-progress — Disgorge of improper gains (*)
213 individuals 7,611 Partially loss In-progress Return of investments (*)
Dong-Ah Construction 7,621 In-progress — Return of deposits (*)
Industrial Co.,Ltd.

(*) The Bank recorded a provision for loss for this lawsuit as it has met the criteria of provisioning (refer to
Note 20).

23-3. Written-off loans

The Bank’s written-off loans and receivables, for which the claim rights have not expired, amount to W
— 1,140,635
million as of December 31, 2010 (W — 1,007,595 million as of December 31, 2009).

24. Capital stock

The Bank is authorized to issue 2,000 million shares of common stock with a par value of W
— 5,000 per share.
As of December 31, 2010, common shares issued amounted to —
W 1,147,404 million.

25. Capital surplus

Capital surplus as of December 31, 2010 and 2009 consists of the following (Korean won in millions):

2010 2009

Paid-in capital in excess of par value — 2,447,370
W — 2,447,370
W
Gain on business combination 97,992 97,992
Other capital surplus 180,797 178,787

— 2,726,159
W — 2,724,149
W

The gain on business combination represents the difference between the consideration paid and the net asset
value acquired from the merger with Boram Bank on January 1, 1999. Other capital surplus includes gain on
disposal of treasury stock, gain on extinguishment of share options granted by HFG and gain on acquisition of
additional equity interests in the Bank’s subsidiaries. Capital surplus may not be utilized for cash dividends but
may only be used to offset a future deficit, if any, or be transferred to capital stock.
HANA BANK

26. Comprehensive income

Comprehensive income for the years ended December 31, 2010 and 2009 is as follows (Korean won in millions):

2010 2009

Net income — 985,113
W W 273,930
—
Other comprehensive income:
Gain (loss) on valuation of available-for-sale securities, net
(Income taxes effect: —
W (50,621) and — W (67,552) for the years
ended December 31, 2010 and 2009) 179,474 237,396
Changes in gain on valuation of securities using the equity method
W 3,946 and —
W 3,246 for the years ended
December 31, 2010 and 2009) (13,989) (11,506)
Changes in loss on valuation of securities using the equity method
W 331 and —
W (32) for the years ended
December 31, 2010 and 2009) (1,173) 110

Comprehensive income —
W 1,149,425 W
— 499,930

Accumulated other comprehensive income as of December 31, 2010 and 2009 consists of the following (Korean
won in millions):

2010 2009

Net unrealized gains on available-for-sale securities — 475,329
W — 295,855
W
Equity method securities valuation adjustments 2,161 17,323

— 477,490
W — 313,178
W

27. Retained earnings

Retained earnings as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

2010 2009

Legal reserve:
Legal reserve (*1) — 695,800
W — 668,400
W
Other reserve (*2) 13,402 11,485

709,202 679,885
Voluntary reserve:
Reserve for business rationalization 10,600 10,600
Reserve for financial structure improvement (*3) 84,200 84,200
Other voluntary reserve 4,138,122 4,155,121

4,232,922 4,249,921

— 4,942,124
W — 4,929,806
W

(*1) The Banking Act requires the Bank to appropriate a minimum of 10% of annual net income as a legal
reserve when the Bank pays dividend from net income until the legal reserve equals paid-in capital. This
reserve is only available for transfer to capital stock or to be used to reduce an accumulated deficit.

(*2) The Tokyo branch of the Bank appropriates up to 10% of net income as legal reserve in accordance with
the relevant banking laws and regulation of Japan.
HANA BANK

(*3) Pursuant to the Financial Supervisory Service’s recommendation, since 2002, the Bank appropriates a
minimum of 10% of its net income (after offsetting any accumulated deficit) as a reserve for financial
structure improvement until the capital adequacy ratio reaches 5.5%. This reserve may not be utilized for
cash dividends but may only be used to offset a deficit, if any, or be transferred to capital.

Details of dividends declared for 2010 and 2009 are as follows:

2010 2009

Interim dividend Final dividend

Date of dividend December 20, 2010 December 31, 2009
Number of shares (A) 219,799,157 shares 219,799,157 shares
Dividend per share (B) —
W 8,800 W 400
—
Par value (C) — 5,000
W — 5,000
W
Dividends (A x B) W
— 1,934,232,581,600 —
W 87,919,662,800
Dividend ratio (B/C) 176% 8%

The dividends payout ratio for 2010 and 2009 are as follows:

2010 2009

Dividends (A) —
W 1,934,232,581,600 —
W 87,919,662,800
Net income (B) —
W 985,113,133,702 —
W 273,929,388,524

Dividend pay out ratio (A/B) 196.3% 32.1%

28. Share-based payment transaction

The Bank grants stock options (stock appreciation rights) to the Bank’s employees and directors which will be
settled by cash payment equal to the difference between market value and exercise price when exercised.
Accordingly, the Bank accounts for the expected compensation costs for stock options granted by the Bank as
a liability in accrued expenses.

The details of stock options granted by the Bank as of December 31, 2010 are summarized as follows:

Sixth

Grant date 2005.3.28
Settlement method Cash
Exercisable period (*)

(*) Exercisable within three years after the two years vesting period from the grant date.

Changes in stock options granted by the Bank for the year ended December 31, 2010 are summarized as follows
(Korean won and number of shares in units):

Granted options
Beginning Exercised Ending Exercise price

Sixth 423,000 (423,000) — —
W 28,300

In addition, HFG grants stock options and stock grants to the Bank’s employees and directors which may be
settled by issuance of additional shares of HFG or by cash payment at the discretion of HFG. The Bank accounts
for compensation costs for the stock options and stock grants granted by HFG as a liability in accrued expenses.
HANA BANK

The details of stock options granted by HFG as of December 31, 2009 are summarized as follows:

First Second Third

Grant date March 24, 2006 March 23, 2007 March 28, 2008
Settlement method (*1) (*1) (*1)
Exercisable period (*2) (*2) (*2)
All assumptions used estimation of fair value for
share options:
Fair value measurement model Black-Sholes Black-Sholes Black-Sholes
Risk free rate 5.00% 4.76% 5.18%
Expected exercise period 3.5 year 3.5 year 3.5 year
Estimated share volatility 50.45% 34.00% 30.40%
Estimated dividend W
—— W 2,792
— W
— 3,999
Stock price at grant date —
W 45,750 W
— 49,450 — 41,100
W
Fair value of share options —
W 19,633 W
— 13,430 — 9,659
W

(*1) HFG chooses one of the followings: new equity issue grant, treasury stock grant or cash settlement at its
discretion.

(*2) The above stock options will vest after a two-year vesting period and become exercisable within 3 years
after the vesting date, except if the Bank’s employees or directors retire at the regular retirement age or
for reasons not attributable to the fault of the employees or directors, such options will vest and become
exercisable immediately within six months from the retirement date (one year for the second granted
options), or if death of a Bank employee or director occurs, such options will vest and become exercisable
immediately within one year from the date of death. In addition, if a Bank employee or director is
terminated voluntarily after the options have become vested, such options should be exercised within 30
days from the termination date.

Changes in stock options granted by HFG for the year ended December 31, 2010 are summarized as follows

Granted shares

Beginning Extinguishment Ending Exercisable Exercise price

First 608,000 (10,000) 598,000 598,000 — 44,400
W
Second 728,600 (134,300) 594,300 594,300 — 49,900
W
Third 120,000 (6,000) 114,000 114,000 — 40,600
W

The details of stock grants granted by HFG as of December 31, 2010 are summarized as follows:

First

Grant date 2010.1.1
Settlement method (*1)
Settlement period (appraisal period) 2010.1.1 ~ 2012.12.31
Payment date 2012.12.31
Estimated vested shares as of December 31, 2010 1,770 shares (*2)

(*1) HFG chooses one of the followings: treasury stock grant or cash settlement at its discretion.

(*2) The maximum number of shares to be compensated is pre-determined on grant date, and vested shares
are determined by the fulfillment of performance goal.
HANA BANK

The Bank credited compensation costs of — W 414 million for stock options granted by the Bank and debited
compensation costs of W — 192 million for stock options and stock grants granted by HFG, which are measured
using the intrinsic value method and fair value method over the vesting period, respectively, to payroll expenses
for the year ended December 31, 2010.

The Bank’s share-based payment liability recorded in accrued expenses amounted to W — 21,379 million and W
—
25,898 million as of December 31, 2010 and 2009, respectively, and stock grant liability recorded in accrued
expenses amounted to W — 71 million as of December 31, 2010.

29. Income taxes

For the year ended December 31, 2010, the Bank is subject to corporate income taxes, including resident
surtax, at the aggregate rates of 12.1% on taxable income up to W— 200 million and 24.2% on taxable income in
excess of W — 200 million. The aggregate tax rate will be reduced to 22% from 2012 and thereafter on taxable
income in excess of W — 200 million.

The major components of income tax expense for the years ended December 31, 2010 and 2009 are as follows

2010 2009

Current income taxes (*1) —
W 370,202 W
— 243,961
Deferred income taxes:
Tax effect of temporary differences 40,516 (237,774)
Tax effect of tax loss carry forwards, etc. — 157,193
410,718 163,380
Current and deferred income taxes recognized directly to equity (47,731) (64,335)
Tax effect of consolidated tax returns (33,682) —
Income tax expense (*2) —

W 329,305 W
— 99,045

(*1) Any additional tax payment or refund was included in the current income taxes.

(*2) Income tax expense for the credit card business of the Bank, which was discontinued due to spin-off in
2009, amounting to —
W 11,242 million for the year ended December 31, 2009, was included.

Reconciliations of income tax expense applicable to income before income taxes at the Korea statutory tax rate
to income tax expense at the effective income tax rate of the Bank are as follows (Korean won in millions):

2010 2009

Income before income taxes (A) (*1) — 1,314,418
W — 372,975
W

Tax at the statutory income tax rate of 24.2% — 318,063
W — 90,236
W
Adjustments:
Income not subject to tax (987) (3,477)
Expenses not deductible for tax purposes 8,541 4,500
Deferred tax assets not recognized 365 2,835
Tax loss carryforward (6,717) —
Income tax expense of foreign branches 15,326 9,812
Additional payment (refund) of prior year ’s income tax 27,409 (18,380)
Effect of tax rates change (*2) 987 13,519
Tax effect of consolidated tax returns (33,682) —

Income tax expense (B) (*3) — 329,305
W — 99,045
W

Effective income tax rate (B)/(A) (%) 25.05 26.56
HANA BANK

(*1) Income before income taxes of the credit card business of the Bank, which was discontinued due to the
spin-off in 2009, amounting to —

(*2) The Korean government reduced the corporate income tax rate beginning in 2008. As a result, the income
tax rate of 24.2% and 22.0% is applied for calculation of deferred income tax assets or liabilities that will
be realized in 2010 and after 2012, respectively.

(*3) Income taxes of the credit card business of the Bank, which was discontinued due to the spin-off in 2009,
amounting to W
— 11,242 million for the year ended December 31, 2009, was included.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for corporate income tax reporting
purposes. Significant changes in cumulative temporary differences and deferred income tax assets and
liabilities for the years ended December 31, 2010 and 2009 are as follows (Korean won in millions):

2010

Deferred
income tax
assets
Beginning (*) Net changes Ending (liabilities)

Gain on valuation of trading securities —
W 66,014 —
W (6,850) —
W 59,164 —
W 13,017
Impairment loss on investments 99,703 (3,059) 96,644 21,261
Equity method valuation (7,051) (18,588) (25,639) (5,641)
Gain on valuation of derivatives (119,695) 175,291 55,596 12,231
Constructive dividends 271 270 541 118
Deferred loan fees and expenses (56,276) (19,686) (75,962) (16,712)
Accrued interest income (25,000) (179,407) (204,407) (44,969)
Allowance for temporary depreciation (429) 182 (247) (54)
Accrued expenses 56,091 8,271 64,362 14,160
Allowance for acceptance guarantees 56,702 2,977 59,679 13,129
Deposit for severance and retirement
benefits (184,498) (21,982) (206,480) (45,426)
Provision for severance and retirement
benefits 184,498 21,982 206,480 45,426
Allowance for other losses 190,605 9,454 200,059 44,013
Loans written-off 654,133 62,095 716,228 157,570
Depreciation 39,697 (7,647) 32,050 7,051
Fair value valuation resulting from merger (13,412) 15 (13,397) (2,947)
Completion of prescription deposit 12,472 4,511 16,983 3,736
Accounts payable other (117,849) — (117,849) (25,927)
Others (56,735) 28,178 (28,557) (6,282)
779,241 56,007 835,248 183,754

[Temporary differences not recognized]
Equity method valuation (610) 1,658 1,048 231

— 779,851
W W
— 54,349 W
— 834,200 — 183,523
W
HANA BANK

2009

Deferred
Decrease income tax
due to assets
Beginning (*) Net changes spin-off Ending (liabilities)

Gain on valuation of trading
securities W
— (89,260) —
W 73,003 W
—- W (16,257)
— —
W (3,577)
Impairment loss on investments 51,157 48,546 — 99,703 21,935
Equity method valuation (49,347) 42,296 — (7,051) (1,551)
Gain on valuation of derivatives (1,292,321) 1,173,824 — (118,497) (26,069)
Constructive dividends 1,406 (885) — 521 115
Deferred loan fees and expenses (54,812) (1,464) — (56,276) (12,381)
Accrued interest income (118,053) 92,885 — (25,168) (5,537)
Allowance for temporary
depreciation (460) (40) — (500) (110)
Accrued expenses 65,563 (3,539) — 62,024 13,645
Allowance for acceptance
guarantees 41,317 15,050 — 56,367 12,401
Deposit for severance and
retirement benefits (177,895) (6,603) — (184,498) (40,590)
Provision for severance and
retirement benefits 196,627 (11,510) (619) 184,498 40,590
Allowance for other losses 295,278 (19,238) (85,513) 190,527 41,916
Loans written-off 504,675 134,595 (560) 638,710 140,516
Depreciation 11,612 3,156 — 14,768 3,249
Fair value valuation resulting
from merger (14,087) 675 — (13,412) (2,951)
Completion of prescription
deposit 10,740 1,062 — 11,802 2,596
Accounts payable other (117,849) — — (117,849) (25,927)
Other 109,360 (165,846) — (56,486) (12,426)
(626,349) 1,375,967 (86,692) 662,926 145,844

[Temporary differences not
recognized]
Equity method valuation (13,496) 12,886 — (610) (134)
— (612,853)
W —
W 1,363,081 W
— (86,692) W
— 663,536 W
— (145,978)

(*) The income tax effect of temporary differences at the beginning of the period reflects the results of the
actual tax refund or additional payment of the Bank’s final tax return.
HANA BANK

Deferred income tax assets as of December 31, 2010 and 2009 consist of the following (Korean won in millions):

2010 2009

Cumulative temporary differences — 835,248
W — 662,926
W
Tax rate (%) (*1) (*1)

Tax effects arising from cumulative temporary differences 183,754 145,844
Unrealizable deferred income tax liabilities (assets) (231) 134

Deferred income tax assets arising from cumulative temporary
differences 183,523 145,978
Deferred income tax charged directly to equity (129,901) (82,170)
Deferred income tax arising from consolidated tax return 42 —

Deferred income tax assets 53,664 63,808
Deferred income tax of foreign branches (*2) 5,421 8,866

Net deferred income tax assets — 59,085
W — 72,674
W

(*1) Deferred income tax assets and liabilities are measured using the enacted tax rates and laws that will be
in effect when the differences are expected to reverse.

(*2) Deferred income tax assets of foreign branches are not offset against the deferred income tax liabilities
in accordance with the tax jurisdictions of the foreign branches.

Details of deferred income taxes charged directly to equity for the years ended December 31, 2010 and 2009

2010

Deferred
income tax
Before-tax-amount
assets
Beginning Net changes Ending (liabilities)

Gain on valuation of available-for-sale
securities —
W 379,895 —
W 229,501 —
W 609,396 —
W (134,067)
Capital surplus 41 — 41 (9)
Capital adjustments (1,676) (2,136) (3,812) 839
Gain on valuation of equity method
investments 22,468 (17,935) 4,533 (997)
Loss on valuation of equity method
investments (259) (1,504) (1,763) 388
Retained earnings (29,071) 11,140 (17,931) 3,945

— 371,398
W W
— 219,066 W
— 590,464 W
— (129,901)
HANA BANK

2009

Deferred
income tax
Before-tax-amount
assets

securities —
W 74,947 —
W 304,948 —
W 379,895 —
W (84,040)
Capital adjustments (1,667) (9) (1,676) 369
investments 37,219 (14,751) 22,468 (4,943)
investments (400) 141 (259) 57
Retained earnings (29,071) — (29,071) 6,396

— 81,069
W W
— 290,329 W
— 371,398 W
— (82,170)

Income taxes payable and prepaid income taxes as of December 31, 2010 and 2009 are as follows (Korean won
in millions):

2010 2009

Prepaid income taxes — 172,800
W — 47,163
W
Income taxes payable 301,643 256,789

Net income taxes payable (*) — 128,843
W — 209,626
W

(*) As the Bank adopted the Consolidated Tax Return, the net income taxes payable includes income taxes
payable to HFG amounting to W
— 41,101 million.

30. Per share amounts

The Bank’s per share amounts for the years ended December 31, 2010 and 2009 are computed as follows

Weighted
averaged
Shares of Accumulated number of
Fixed date common stock Outstanding shares common shares

Shares 2010.01.01 219,799,157 365 80,226,692,305 219,799,157

2010 2009

Income from continuing operations —
W 985,113,133,702 W
— 241,743,576,609
Income from a discontinuing operation — 32,185,811,915

Net income 985,113,133,702 273,929,388,524
Weighted averaged number of common shares outstanding 219,799,157 226,214,915

Basic earnings per share for profit from continuing operations W
— 4,482 — 1,069
W

Basic earnings per share W
— 4,482 — 1,211
W

Diluted earnings per share for the years ended December 31, 2010 and 2009 are identical to the basic earnings
per share since there is no dilutive effect of the stock appreciation rights during both years.
HANA BANK

31. Related parties

Ownership percentages among the Bank and its affiliates as of December 31, 2010 and 2009 are summarized
as follows:

2010 2009

Number of Ownership Number of Ownership

Investor Investee shares (%) shares (%)

HFG Hana Bank 219,799,157 100.00 219,799,157 100.00
Hana Daetoo Securities 35,060,263 100.00 35,060,263 100.00
Hana SK Card Co., Ltd. 60,000,000 51.00 60,000,000 100.00
Hana Capital 7,261,199 50.13 7,261,199 50.13
Hana HSBC Insurance 6,020,101 50.00 6,020,101 50.00
Hana Daol Trust 5,800,000 58.00 — —
Hana INS 1,600,000 100.00 1,600,000 100.00
HIF 640,000 100.00 640,000 100.00
Hana Bank Trust Accounts — — — —
Hana Funding Ltd. 1 100.00 1 100.00
Hana Bank China (*) — 100.00 — 100.00
PT Bank Hana 37,550 75.10 36,050 72.10

(*) Hana Bank China was incorporated as a partnership.

Transactions with related parties (including transactions among the Bank and its affiliates) for the years ended
December 31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010 2009

Related parties Income Expense Income Expense

HFG W 1,381
— W
— 2,284 W
— 1,342 W 481
—
Hana Daetoo Securities 18,376 44,385 18,362 35,078
Hana SK Card Co., Ltd. 48,697 859 — —
Hana Capital 655 109 255 289
Hana HSBC Life Insurance 14,535 323 14,712 334
Hana Daol Trust 2 53 — —
Hana INS 631 26,420 91 25,536
HIF 6 4,337 6 4,645
Trust Accounts 11,613 675 11,793 1,063
Hana Funding Ltd. — 19,926 — 20,428
Hana Bank China 4,336 1,142 9,394 2,804
PT Bank Hana — 70 6 65
MCIS — 227 14 248
Korea Credit Bureau — 57 — 63
Darby-Hana Infrastructure Fund 1 109 1 123
UAM Co., Ltd. 43,784 17,094 — —
UBS Hana Asset Management — 841 — 941
Korea Travels 481 262 351 353
Daol Fund — 39 — —
— 144,498
W W
— 119,212 W
— 56,327 W
— 92,451
HANA BANK

Outstanding balances with related parties (including balances among the Bank and its affiliates) arising from the
above transactions as of December 31, 2010 and 2009 are summarized as follows (Korean won in millions):

2010 2009

Related parties Assets Liabilities Assets Liabilities

HFG —
W— W 2,239,607
— W
—— W 29,896
—
Hana SK Card Co., Ltd. 261 61,736 — 95,644
Hana Capital 84,291 8,163 180,015 12,645
Hana HSBC Life Insurance 523 16,420 921 16,908
Hana Daol Trust 22 7,135 — —
Hana INS — 9,894 — 7,836
HIF — 2,370 — 2,170
Trust Accounts 7,000 26,814 7,000 193,411
Hana Funding Ltd. — 228,612 — 234,373
Hana Bank China 240,079 — 233,520 145,950
PT Bank Hana — — — 5,838
MCIS — 8,643 — 7,351
Korea Credit Bureau — 4,005 — 1,504
Darby-Hana Infrastructure Fund — 3,902 — 3,229
UAM Co., Ltd. 15,309 3 — —
UBS Hana Asset Management — 20,194 — 22,107
Korea Travels — 5,909 — 8,373
Daol Fund — 3,468 — —
— 378,350
W W
— 2,712,218 W
— 454,046 W
— 1,071,521

Guarantee and collateral provided among the Bank and its related parties as of December 31, 2010 and 2009

Related parties

Benefactor Beneficiary Guarantee/ collateral 2010 2009

Hana Bank Hana Funding Ltd. Guarantee for F/X — 227,780
W — 233,520
W
Hana Bank Hana SK Card Co., Ltd. Guarantee for F/X 6,606 —
Hana Capital Hana Bank Collateral 395,694 395,694
Hana Daetoo Securities Hana Bank Collateral 71,636 85,156
Hana SK Card Co., Ltd. Hana Bank Collateral 10,530 —

32. Employee welfare

The Bank provides housing loans for employees at favorable interest rates and reimburses certain medical
expenses as part of the Bank’s employee benefits.
HANA BANK

33. Information on operating segments

The Bank’s service lines consist of the Corporate Banking Group, Retail Banking Group, Choong-Chung
Banking Group, Young-Nam Banking Group, Treasury Group and others (including administrative and trust
segments). Financial information for each operating segment as of and for the years ended December 31, 2010
and 2009 is as follows (Korean won in millions):

2010
Choong-
Corporate Retail Chung Young-Nam Treasury
Banking Banking Banking Banking Group and
Group Group(*1) Group Group others Total

Operating revenue — 1,005,831
W — 3,058,347
W — 443,272
W — 330,476 W
W — 13,346,481 W
— 18,184,407
Loans receivable 51,829,374 18,478,732 7,565,184 5,655,811 20,102,223 103,631,324
Securities — — 741 — 21,277,876 21,278,617
Deposits/borrowings 36,298,684 17,603,728 8,944,246 4,828,873 50,434,312 118,109,843

2009
Choong-
Group Group Group Group others Total

Operating revenue (*2) — 2,111,863
W — 3,387,693
W — 459,198
W — 335,417 W
W — 18,613,360 W
— 24,907,531
Securities — — 657 — 21,309,000 21,309,657

(*1) Classification of 60 branches was changed from corporate banking group to retail banking group due to
reorganization in 2010.

(*2) Operating revenue of the credit card business of the Bank, which was discontinued due to the spin-off in
2009, amounting to —
HANA BANK

HANA BANK

34. General and administrative expenses

The Bank’s general and administrative expenses for the years ended December 31, 2010 and 2009 are as

2010 2009

Salaries (*) — 485,360
W — 454,078
W
Provision for severance and retirement benefits (*) 47,550 60,540
Early retirement benefits (*) 6,264 69,578
Employee benefits (*) 114,930 102,331
Rental expenses (*) 89,631 90,361
Entertainment expenses 22,912 19,213
Depreciation (*) 81,482 105,945
Amortization (*) 59,793 39,338
Tax and dues (*) 56,512 58,031
Advertisement expenses 61,794 42,396
Servicing expenses 114,358 139,323
Supplies expenses 8,306 9,739
Printing expenses 5,205 8,266
Communication expenses 10,692 13,439
Office rental and maintenance expenses 5,168 6,092
Vehicle maintenance expenses 6,223 5,670
Utilities expenses 9,032 9,444
Other expenses 56,910 58,966

— 1,242,122
W — 1,292,750
W

(*) These accounts amounting to W
— 980,202 million for the years ended December 31,
2010 and 2009, respectively, are related to the “added value” disclosure items of the Bank’s operations
as required by SKAS 21.

General and administrative expenses of the credit card business of the Bank, which was discontinued due to
the spin-off in 2009, amounting to —
W 20,132 million for the year ended December 31, 2009, were included.

35. Information of trust business

The operations of the trust accounts for the years ended December 31, 2010 and 2009 are as follows (Korean
won in millions):

2010 2009

O perating revenue of trust operations:
Fees on trust accounts —
W 40,513 W
— 37,362

Early termination fees 785 275

— 41,298
W — 37,637
W

O perating expenses of trust operations:
Interest due to trust accounts —
W 24,615 W
— 36,849
HANA BANK

Book value and fair value of principal or dividend guaranteed trust accounts as of December 31, 2010 and 2009

2010

Book value Fair value

Principal guaranteed trust accounts — 912,017
W — 912,022
W
Principal and dividend guaranteed trust accounts 10,246 10,262

— 922,263
W — 922,284
W

2009


Principal guaranteed trust accounts — 1,106,027
W — 1,106,115
W

— 1,116,397
W — 1,116,485
W

As of December 31, 2010 and 2009, the Bank is not required to bear the difference between book value and fair
value of principal or dividend guaranteed trust accounts as the difference will be appropriated using a special
reserve trust account.

36. Cash flow information

Significant non-cash transactions for the years ended December 31, 2010 and 2009 are as follows (Korean won
in millions):

2010 2009

Changes in the unrealized gain (loss) of available-for-sale securities — 179,474
W — 237,396
W
Write-off of all or part of loan balances 258,631 686,201
Decrease in allowance for possible loan losses due to sale of NPL 85,432 134,974
Credited to the reserve by appropriation of retained earnings 28,031 48,086

37. Credit card business spin-off

The result of the credit card operations for the period ended October 31, 2009 is as follows (Korean won in
millions):

2009

Operating revenue — 361,097
W
Operating expenses 317,712

Operating income 43,385
Non-operating income 171
Non-operating expenses 129

Income before income taxes 43,427
Income tax expense 11,242

Income from a discontinuing operation —
W 32,185
HANA BANK

38. Operating result of the final interim period (unaudited)

A summary of operating results for the three months ended December 31, 2010 and 2009 is as follows (Korean
won in millions except for per share amounts):

Three months ended December 31,

2010 2009

Operating revenue —
W 3,668,283 W
— 4,658,624
Operating expenses 3,288,515 4,388,917

Operating income 379,768 269,707
Loss from a discontinuing operation — (4,598)

Net income 268,235 197,969
— 1,220 W
— 911

— 1,220 W 890
—

39. Approval of financial statements

The 2010 financial statements were approved by the Board of Directors on March 7, 2011.

40. Introduction of Korea International Financial Reporting Standards (“K-IFRS”)

40-1. Plan and progress of K-IFRS adoption

According to the roadmap on the introduction of K-IFRS announced in March 2007, the Bank will adopt K-IFRS
for the first time for the financial period beginning January 1, 2011. The holding company of the Bank, HFG, and
HFG’s consolidated subsidiary companies, including the Bank, formed a task force team and devised a strategic
plan to transition to K-IFRS. In July 2007, the team completed its preliminary impact assessment of K-IFRS and
developed a detailed master plan for the implementation of K-IFRS accounting information system. Following
this plan, HFG analyzed the effects of alternative accounting treatments within K-IFRS on each entity’s financial
statements and the related impact on HFG’s operations in detail. HFG has also finalized the K-IFRS accounting
policies to be adopted and mapped out changes to HFG’s accounting information system to capture and produce
information under K-IFRS. As of December 31, 2010, HFG has substantially completed the process of
developing its accounting information system and modifying its processes that are affected by the adoption of
K-IFRS, and the related internal control processes have been reassessed for a smooth transition to K-IFRS.

The Bank has been preparing its financial statements under K-IFRS since the date of transition and onwards,
and management of the Bank expects that financial information for the fiscal year 2010 and after will be
conformed to K-IFRS.

40-2. First-time adoption of K-IFRS

(1) The Bank’s transition and adoption dates of K-IFRS are January 1, 2010 and 2011, respectively.
Therefore, the Bank has prepared its opening K-IFRS statement of financial position in accordance with
K-IFRS 1101 First- time Adoption of K-IFRS as of January 1, 2010.

(2) When preparing the Bank’s opening K-IFRS statement of financial position, some exemptions from other
K-IFRS and exceptions to the retrospective application of other K-IFRS have been applied.
HANA BANK

(2-1) Exemptions from other K-IFRS that the Bank has applied are as follows:

Deemed cost for property and equipment has been measured at fair value at the date of transition to
K-IFRS.

The cumulative translation differences, which arise when financial statements of foreign subsidiaries and
associates are converted to ones denominated in Korean won, have been deemed to be zero at the date
of transition to K-IFRS.

Investment in subsidiaries, jointly controlled entities and associates at the date of transition to K-IFRS has
been measured at K-GAAP carrying amount.

Fair value measurement of financial assets or financial liabilities at initial recognition has been applied
only for the transactions entered into on or after January 1, 2010.

(2-2) Exceptions to the retrospective application that the Bank has applied are as follows:

Derecognition under K-IFRS 1039 Financial Instruments: Recognition and Measurement has been applied
only for the transactions entered into on or after January 1, 2010.

Hedge accounting was applied only for the qualified transactions in accordance with K-IFRS 1039
Financial Instruments: Recognition and Measurement at the date of transition to K-IFRS.

(3) When preparing the Bank’s statement of financial position as of January 1, 2010, estimates were made
consistently with the estimates made for the preparation of K-GAAP financial statements on the same
date.

40-3. Significant differences in accounting policies

The table below describes the major differences that are expected to give rise to a significant impact on the
Bank’s financial statements under K-IFRS that are effective as of December 31, 2010. The differences listed
below are not exhaustive, and additional areas may be identified in the future as a result of further assessment.

Section K-IFRS K-GAAP

Allowance for For loans and receivables of which The Bank provides an allowance for
possible loan impairment has been objectively incurred, possible loan losses using the minimum
losses the allowance for possible loan losses is required provision percentage given by
measured at the difference between the the Regulation on the Supervision of
carrying amount and the present value of Banking Industry. For large corporate
estimated future cash flows discounted at loans categorized as substandard or

the financial asset’s original effective below, the allowance for possible loan

interest rate. For loans and receivables of losses is determined at the greater of the
which impairment incurred but not loss calculated using the present value
reported, formula-based approaches or method or the loss calculated using the
statistical methods may be used to minimum required provision rate. But, if
determine the allowance. the abovementioned allowance for
possible loan losses is less than the
amount calculated by the EL method, the
Bank determines the amount calculated
by EL method.

Recognition of Interest revenue shall be recognized Interest revenue shall be recognized
accrued interest when the economic benefits associated when the economic benefits associated
with the transaction is probable and the with the transaction is highly probable
amount of the revenue can be measured and the amount of the revenue can be
reliably. measured reliably.

Hybrid bond If an entity has an unconditional right to If the Bank makes a contract for payment
avoid delivering cash or another financial of principal and interest, it is accounted
asset to settle a contractual obligation, it for as liability.
should be accounted for as equity.
HANA BANK


Impairment losses If there is a significant or prolonged If there is a significant and prolonged
for decline in an available-for-sale equity decline in an available-for-sale equity
available-for-sale instruments below its cost, an impairment instruments below its cost, an impairment
equity instruments loss should be recognized in the loss should be recognized in the
statement of income. Impairment losses statement of income. Impairment losses
shall not be reversed through profit or may be reversed through profit or loss.
loss.

Fair value of The fair value of derivative assets and The fair value of derivative assets and
derivative assets liabilities reflects bid-ask spread and the liabilities is measured at closing price. In
and liabilities credit risk of the counter parties. order to reflect the credit risk of counter
parties, an allowance for possible losses
for derivative assets is provided.

Investments in a Cost method is applied for the Equity method is applied for the
subsidiary, a joint investments in a subsidiary, a joint Investments in a subsidiary, a joint
venture, and an venture, and an associate, which are not venture, and an associate, which are not
associate held-for-sale (separate financial held-for-sale (non-consolidated financial
statement). statement).

Employee benefits The liability for severance and retirement In accordance with the Employee
benefits is estimated based on actuarial Retirement Benefit Security Act and the
assumptions and on a discounted basis. Bank’s regulations, employees and
directors terminating their employment
with at least one year of service are
entitled to severance and retirement
benefits. An allowance for employee
retirement benefits is measured based on
the assumption that all employees will
leave as of the reporting date.

40-4. Changes in in-scope entities for consolidation

A comparison of in-scope entities, when the Bank prepares consolidated financial statements under K-IFRS, is
as follows:

Consolidated subsidiaries under Consolidated subsidiaries under
K-GAAP K-IFRS Reason for differences

Hana Bank China Hana Bank China —
PT Bank Hana PT Bank Hana —
Hana Funding Ltd. Hana Funding Ltd. —
General unspecified money trusts General unspecified money trusts —
Development trusts Development trusts —
Old-age living pension trusts and 7 — Excluded because the Bank only
other trusts guarantees the principal.

— TD Soleil Co., Ltd. and 11 other Included because the Bank has the
SPEs majority of risks and rewards due

to its credit line facilities provision.

— Hana UBS Power PEF and 4 other Included because the Bank has the
PEFs majority of risks and reward by
owning more than 50 percent
shares.
HANA BANK

40-5. Financial impact

(Financial impact by adopting K-IFRS could change due to results of further analysis, revision of K-IFRS, and
others.)

Reconciliation between non-consolidated statement of financial position of the Bank at January 1, 2010 under
K-GAAP and K-IFRS is summarized as follows (Korean won in millions):

Description Assets Liabilities Equity

K-GAAP 135,508,789 126,296,553 9,212,236
Reconciliations:
Allowance for possible loan losses 705,545 (103,006) 808,551
Fair value of derivative assets and liabilities 166,875 255,455 (88,580)
Hybrid bond (*1)
— (632,325) 632,325
Revaluation of property (land and
buildings) (*2) 597,039 15,616 581,423
Tax effects (64,567) 252,792 (317,359)
Others (14,677) (566) (14,111)
Total reconciliations 1,390,215 (212,034) 1,602,249
K-IFRS 136,899,004 126,084,519 10,814,485

(*1) Hybrid bond is accounted for as equity under K-IFRS due to its economic substance.

(*2) The Bank revalued its property (land and building) at fair value on the date of transition to K-IFRS and
used the revalued amount as its deemed cost.

Reconciliation between non-consolidated statements of financial position and financial performance of the Bank
as of and for the year ended December 31, 2010 under K-GAAP and K-IFRS is summarized as follows (Korean
won in millions):

Description Assets Liabilities Equity Net income

K-GAAP 138,965,273 130,624,034 8,341,239 985,113
Reconciliations:
Allowance for possible loan losses 597,179 (98,831) 696,010 (226,216)
Fair value of derivative assets and
liabilities 53,200 43,521 9,679 211,934
Hybrid bond — (626,973) 626,973 40,703
Revaluation of property
(land and buildings) 599,286 18,855 580,431 (992)
Tax effect (53,664) 240,169 (293,833) 22,674
Others (47,773) (11,862) (35,911) (30,746)
Total reconciliations 1,148,228 (435,121) 1,583,349 17,357
K-IFRS 140,113,501 130,188,913 9,924,588 1,002,470

Independent auditors’ report

The Board of Directors and Shareholder
Hana Bank

We have audited the accompanying non-consolidated statements of financial position of Hana
Bank (the “Bank”) as of December 31, 2009 and 2008, and the related non-consolidated
statements of income, appropriation of retained earnings, changes in equity and cash flows for
the years then ended. These non-consolidated financial statements are the responsibility of
the Bank’s management. Our responsibility is to express an opinion on these non-consolidated
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the
Republic of Korea. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the non-consolidated financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the non-consolidated financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall non-consolidated financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the non-consolidated financial statements referred to above present fairly, in all
material respects, the non-consolidated financial position of the Bank as of December 31,
2009 and 2008, and the non-consolidated results of its operations, its changes in retained
earnings and equity and its cash flows for the years then ended in conformity with accounting
principles generally accepted in the Republic of Korea.

Accounting principles and auditing standards and their application in practice vary among
countries. The accompanying non-consolidated financial statements are not intended to
present the financial position, results of operations, and changes in retained earnings and
equity, and cash flows in accordance with accounting principles and practices generally
accepted in countries other than the Republic of Korea. In addition, the procedures and
practices utilized in the Republic of Korea to audit such financial statements may differ from
those generally accepted and applied in other countries. Accordingly, this report and the
accompanying non-consolidated financial statements are for use by those who are
knowledgeable about Korean accounting principles and auditing standards and their
application in practice.

February 10, 2010

This audit report is effective as of February 10, 2010, the independent auditors’ report date. Accordingly, certain
material subsequent events or circumstances may have occurred during the period from the auditors’ report date
to the time this audit report is used. Such events and circumstances could significantly affect the accompanying
non-consolidated financial statements and may result in modifications to this report.
Hana Bank
Non-consolidated statements of financial position

2009 2008

Assets
Cash and due from banks (Notes 3 and 22) W 6,128,872
— W 7,630,092
—
Securities:
Trading securities (Notes 4, 9 and 22) 1,312,165 1,198,031
Available-for-sale securities (Notes 5, 6, 8, 9 and 22) 15,706,104 14,560,702
Held-to-maturity securities (Notes 7, 8, 9 and 22) 3,878,531 4,107,576
Equity method investments (Notes 10 and 22) 412,857 491,906

21,309,657 20,358,215
Loans receivable, less allowance for possible losses of
W
W
— (2,047,957 million as of December 31, 2008) and plus
deferred loan fees of —
W 56,276 million as of December 31,
2009 —W (54,812 million as of December 31, 2008)
(Notes 11 and 22) 98,839,085 99,649,253
Tangible assets (Note 12) 1,082,843 1,130,251
Other assets:
Guarantee deposits 833,056 766,447
Accounts receivable 1,095,496 3,162,440
Deferred income tax assets (Note 29) 72,674 21,143
Exchange receivables 1,828,644 3,060,622
Prepaid tax expenses 1,765 130,584
Derivative assets (Note 23) 3,391,402 9,544,097
Intangible assets (Note 13) 195,258 65,305
Miscellaneous assets (Note 14) 122,309 351,550

8,148,332 17,829,196

Total assets W 135,508,789 —
— W 146,597,007

See accompanying notes.
Hana Bank
Non-consolidated statements of financial position (Continued)

2009 2008

Liabilities and equity
Liabilities:
Deposits (Notes 15 and 22) — 89,884,425
W W 91,201,491
—
Borrowing liabilities (Notes 16 and 22) 25,448,303 29,121,272
Other liabilities:
Severance and retirement benefits, net (Note 17) 17,682 49,667
guarantees (Note 18) 56,702 41,317
and cash advance commitments (Note 19) 129,464 160,551
Due to trust accounts (Note 35) 1,005,307 1,123,490
Exchange payable (Note 22) 2,335,789 1,385,543
Income taxes payable (Note 29) 209,626 4,825
Accounts payable 1,162,651 3,014,176
Accrued expenses (Note 28) 1,733,995 2,326,467
Unearned revenues 83,119 118,600
Deferred income tax liabilities (Note 29) — 8,805
Derivative liabilities (Note 23) 3,247,222 8,102,646
Other allowances (Note 20) 61,140 134,728
Miscellaneous liabilities (Note 21) 921,128 891,434

10,963,825 17,362,249

Total liabilities 126,296,553 137,685,012

Equity:
Capital stock - par value —W 5,000 (Korean won in units,
Note 24)
Authorized common stock - 2,000,000,000 shares
Issued and outstanding - 219,799,157 shares as of
December 31, 2009 and 225,250,483 shares as of
December 31, 2008 1,147,404 1,174,661
Capital surplus (Note 25) 2,724,149 2,720,169
Capital adjustments (176,338) (1,300)
Accumulated other comprehensive income (Note 26) 313,178 87,178
Retained earnings (Note 27):
Legal reserve 679,885 632,989
Voluntary reserve 4,249,921 3,838,405
Unappropriated retained earnings 274,037 459,893

5,203,843 4,931,287

Total equity 9,212,236 8,911,995

Total liabilities and equity W 135,508,789 —
— W 146,597,007

Hana Bank
Non-consolidated statements of income

2009 2008
Operating revenue:
Interest income:
Interest on due from banks — 110,670
W — 168,289
W
Interest on securities 841,093 819,699
Interest on loans receivable 5,507,513 6,651,613
Others 16,350 28,930

6,475,626 7,668,531
Gain on valuation and disposal of securities:
Gain on valuation of trading securities 363 31,227
Gain on disposal of trading securities 25,663 34,728
Gain on disposal of available-for-sale securities
(Note 5) 371,552 174,436
Reversal of impairment on
held-to-maturity securities (Note 7) — 52
397,578 240,443
Gain on disposal of loans receivable (Note 11) 14,135 642
Gain on foreign currency transactions 1,973,600 2,381,952
Fees and commission income from banking operations
(Note 35) 462,047 472,733
Fees and commission from trust accounts (Note 35) 37,362 39,646
Dividends income 24,021 150,171
Other operating income:

Gain on valuation and transactions of derivatives
(Note 23) 15,114,003 24,010,595
48,062 3,377
15,162,065 24,013,972
Total operating revenue 24,546,434 34,968,090

Operating expenses:
Interest expense:
Interest on deposits 3,291,113 4,045,513
Interest on borrowings 1,112,926 1,184,543
Others 44,850 71,683

4,448,889 5,301,739
Loss on valuation or disposal of securities:
Loss on valuation of trading securities 9,892 8,351
Loss on disposal of trading securities 8,238 69,107
Impairment on available-for-sale securities (Note 5) 55,762 35,353
Loss on disposal of available-for-sale securities
(Note 5) 118,155 23,962
Impairment loss on held-to-maturity securities (Note 7) 25,845 —
217,892 136,773

Hana Bank
Non-consolidated statements of income (Continued)

2009 2008

Provision of allowance for possible loan losses (Note 11) — 595,227
W W 1,155,526
—
Loss on disposal of loans receivable (Note 11) 145,713 53,781
Loss on retirement of bonds 1,478 —
Loss on foreign currency transactions 2,233,863 2,129,475
Fees and commission expenses 95,118 105,040
General and administrative expenses (Note 34) 1,272,618 1,235,457
Other operating expenses:
Loss on valuation and transactions of derivatives
(Note 23) 14,854,227 23,951,708
Loss on fair value of hedged items (Note 23) 4,557 141,487
Contributions to credit management fund 156,207 140,285
Insurance fees on deposits 117,869 114,779
Provision of allowance for possible losses
on acceptances and guarantees 16,877 11,633

Provision of allowances for unused credit lines
and cash advance commitments 1,409 5,759
22,274 23,082
15,173,420 24,388,733
Total operating expenses 24,184,218 34,506,524


Non-operating income (expense):
Gain (loss) on disposal of tangible assets, net (1,327) 13,024
Rental income 6,682 2,762
Gain on valuation of equity method investments, net
(Note 10) 13,035 32,768
Gain on disposal of equity method investments, net
(Note 10) 27,077 —
Others, net (78,135) 9,208
(32,668) 57,762

Income before income taxes from continuing operations 329,548 519,328
Income tax expense from continuing operations (Note 29) 87,803 119,486

Income from a discontinuing operation, net of tax
(tax effect of —
W 11,242 million in 2009 and
W
— 26,855 million in 2008) (Note 37) 32,185 74,519

— W 474,361
—

Earnings per share (Note 30):
Basic and diluted, for profit from continuing operations W 1,069
— W 2,111
—

Basic and diluted, for profit for the period W 1,211
— W 2,504
—

Hana Bank
Non-consolidated statements of appropriations of retained earnings
Years ended December 31, 2009 and 2008

2009 2008
Proposed Proposed

March 25, March 26,
Date of appropriations 2010 2009

2009 2008

Retained earnings before appropriations:
Unappropriated retained earnings carried forward from the
prior year W 107
— W 130
—
Retained earnings adjustment arising from equity method
investments — (14,598)
Net income 273,930 474,361
274,037 459,893
Transfer from other reserves
Voluntary reserve 17,100 —

291,137 459,893
Appropriations
Legal reserve (Note 27) 28,031 48,086
Losses on capital reduction 175,031 —
Cash dividends (Note 27)
(W
— 400 per share: 8% for common stock in 2009) 87,920 —
Other reserves — 411,700

290,982 459,786

Unappropriated retained earnings to be
carried forward to the next year W
— 155 W 107
—

Hana Bank
Non-consolidated statements of changes in equity

Accumulated
other

As of January 1, 2008
(as previously stated) — 987,161 W
W — 1,406,497 ——
W — 727,402
W — 4,595,619
W — 7,716,679
W
Cumulative effect of changes in
accounting policy — — (1,208) 1,208 — —

As of January 1, 2008
(as restated) 987,161 1,406,497 (1,208) 728,610 4,595,619 7,716,679
Cash dividends (131,425) (131,425)

Retained earnings after
appropriations 4,464,194 7,585,254
consideration 187,500 1,311,578 — — — 1,499,078
Net income — — — — 474,361 474,361
Gain on share-based payment
transactions (Note 28) — 2,062 — — — 2,062
adjustments — — — — 7,330 7,330
subsidiaries — 32 — — — 32
available-for-sale securities
(Notes 5 and 26) — — — (654,390) — (654,390)
Changes in unrealized gain
on valuation of equity
method investments
(Notes 10 and 26) — — — 12,561 — 12,561
Changes in unrealized loss
on valuation of equity
method investments
(Notes 10 and 26) — — — 397 (13,985) (13,588)
Other — — (92) — (613) (705)

As of December 31, 2008 W 1,174,661 W
— —2,720,169 W
—(1,300) W
—87,178 W
—4,931,287 — 8,911,995
W

Hana Bank
Non-consolidated statements of changes in equity (Continued)

Accumulated
other

As of January 1, 2009 — 1,174,661 W
W —2,720,169 W
—(1,300) W
—87,178 W
—4,931,287 — 8,911,995
W
consideration 12,500 87,434 — — — 99,934
Changes from credit card
business spin-off (39,757) (88,535) (175,031) — — (303,323)
Net income — — — — 273,930 273,930
Gain on share-based payment
transactions (Note 28) — 5,081 — — — 5,081
adjustments — — — — (1,374) (1,374)
subsidiaries — — (7) — — (7)
available-for-sale securities
(Notes 5 and 26) — — — 237,396 — 237,396
investments (Notes 10 and 26) — — — 110 — 110

W—1,147,404 W—2,724,149 W—(176,338) W—313,178 W—5,203,843 — 9,212,236
W

Hana Bank
Non-consolidated statements of cash flows

2009 2008

Cash flows from operating activities:
— W 474,361
—
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Loss (gain) on valuation of trading securities, net 9,529 (22,876)
Impairment losses on available-for-sale securities 55,762 35,353
Impairment losses on held-to-maturity securities 25,845 —
Reversal of impairment losses on held-to-maturity
securities — (52)
Gain on valuation of equity method investments, net (13,035) (32,768)
Provision of allowance for possible loan losses 624,680 1,179,282
Depreciation 105,945 107,843
Amortization of intangible assets 39,338 18,456
Loss (gain) on disposal of tangible assets, net 1,327 (13,024)
Provision of allowance for acceptances and guarantees
losses 16,877 11,633
Provision of allowances for unused credit lines
and cash advance commitments 30,391 7,865
Gain on valuation of derivative instruments, net (192,109) (1,418,935)
Loss (gain) on fair value hedged items, net (43,505) 138,110
Others, net 90,419 55,679
Changes in operating assets and liabilities:
Trading securities (117,214) (396,359)
Available-for-sale securities (858,994) (3,069,152)
Held-to-maturity securities 194,694 58,598
Loans receivable (1,121,189) (15,030,524)
Accrued income 58,590 (90,042)
Prepaid expenses 55,804 (131,831)
Deferred income tax liabilities (assets) (144,291) 165,277
Exchange receivables 1,231,978 (1,544,956)
Prepaid income taxes 128,819 (130,584)
Derivative assets 1,489,380 (8,823)
Income taxes payable 204,801 (160,517)
Payment of severance and retirement benefits (80,745) (105,218)
Other Allowance (84,048) (12,110)
Accrued expenses (564,128) 359,185
Exercise on stock option (1,333) (5,127)
Unearned revenues (35,481) 12,160
Others, net 99,685 (75,748)

Total adjustments 1,302,827 (20,024,479)

Net cash provided by (used in) operating activities W 1,576,757 —
— W (19,550,118)

Hana Bank
Non-consolidated statements of cash flows (Continued)

2009 2008

Cash flows from investing activities:
Dividend income from equity method investments — 6,548
W W 812
—
Acquisition of equity method investments (30,845) (14,340)
Proceeds from disposal of equity method investments 99,797 —
Proceeds from disposal of tangible assets 6,121 18,086
Acquisition of tangible assets (73,182) (157,755)
Acquisition of intangible assets (177,365) (38,896)
Increase in guarantee deposits (69,360) (51,565)
Decrease (increase) in accounts receivable 2,066,681 (2,144,744)
Net cash provided by (used in) investing activities 1,828,395 (2,388,402)

Cash flows from financing activities:
Placement (withdrawal) of deposits, net (1,305,880) 12,796,103
Proceeds from (repayment of) borrowings, net (2,411,213) 1,020,520
Proceeds from in debentures, net 814,204 3,032,580
Proceeds from (redemption of) bonds sold under
repurchase agreements, net (368,666) 376,062
Proceeds from (repayment of) bills sold, net (389,665) 149,093
Increase (decrease) in due to trust accounts, net (118,183) 217,345
Increase in exchanges payable, net 950,246 817,459
Increase (decrease) in accounts payable, net (1,851,525) 1,963,615
Placement (withdrawal) of call money, net (126,568) 544,963
Payment of cash dividends — (131,425)
Proceeds from issuarance of capital stock 99,934 1,499,078
Net cash provided by (used in) financing activities (4,707,316) 22,285,393

Net decrease in cash and due from banks from credit
card business spin-off (199,056) —

Net increase (decrease) in cash and due from banks (1,302,164) 346,873
Cash and due from banks at the beginning of the year 7,630,092 7,283,219

Cash and due from banks at the end of the year W
— 6,128,872 W 7,630,092
—

HANA BANK
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and business

Hana Bank (“the Bank”) was incorporated in November 1959 under the name of Seoul Bank. Seoul Bank
acquired Korea Trust Bank in August 1976. On September 27, 2002, Seoul Bank entered into a combination
contract with the former Hana Bank as approved by Seoul Bank’s shareholders on November 14, 2002. On
December 1, 2002, upon completion of the merger, with Seoul Bank as the surviving entity, Seoul Bank changed
its name to Hana Bank.

The Bank is engaged in commercial and consumer banking, investment trust business and foreign currency
exchange business, and other related operations as permitted under the Banking Act, the Capital Market and
Financial Investment Business Act and other relevant laws and regulations in the Republic of Korea. The Bank
is also engaged in bancassurance business since September 26, 2003, after the revision of the Insurance Act.
The Bank has 650 domestic branches and 4 overseas branches as of December 31, 2009.

On December 1, 2005, the Bank became a subsidiary of Hana Financial Group Inc. (“HFG”) through a stock
exchange with HFG. As a result, the Bank was delisted from the Korea Exchange (“KRX”) on December 12,
2005. The Bank is authorized to issue 2,000,000,000 shares of common stock with a par value of —W 5,000 per
share, and has 219,799,157 shares issued and outstanding amounting to W
— 1,147,404 million as of December
31, 2009. The Bank has offset 9,681,720 shares of treasury stock against the retained earnings through
December 31, 2009, according to the resolutions passed at the meetings of the Board of Directors.

2. Summary of significant accounting policies

Basis of financial statement presentation

The Bank maintains its official accounting records in Korean won and prepares statutory financial statements
in the Korean language in conformity with accounting principles generally accepted in the Republic of Korea
(henceforth “Korean GAAP”) with the exception of overseas branches, where the Bank used financial
statements prepared in accordance with the financial accounting standards generally accepted in their
jurisdictions, with adjustments to align with Korean GAAP if the adjustments materially effects the Bank’s
financial statements. Certain accounting principles applied by the Bank that conform with financial accounting
standards and accounting principles in the Republic of Korea may not conform with generally accepted
accounting principles in other countries. Accordingly, these financial statements are intended for use by those
who are informed about Korean accounting principles and practices. In the event of any differences in
interpreting the non-consolidated financial statements or the independent auditors’ report thereon, the Korean
version, which is used for regulatory reporting purposes, shall prevail. The accompanying non-consolidated
financial statements have been condensed, restructured and translated into English (with certain expanded
descriptions) from the Korean language financial statements.

The significant accounting policies followed by the Bank in preparing the accompanying non-consolidated
financial statements are summarized below.

Recognition of interest income

Interest income on loans and investments is recognized on an accrual basis. However, interest income on loans
overdue or dishonoured is recognized on a cash basis except for those secured and guaranteed by financial
institutions for which the interest is recognized on an accrual basis.

Securities

Securities within the scope of Statements of Korea Accounting Standards (“SKAS”) 8 investments in Security,
are classified as either trading, held-to-maturity or available-for-sale securities, as appropriate, and are initially
measured at cost, including incidental expenses. The Bank determines the classification of its investments after
initial recognition, and, where allowed and appropriate, re-evaluates this designation at each fiscal period end.

Securities that are acquired and held principally for the purpose of selling them in the near term are classified
as trading securities. Debt securities which carry fixed or determinable principal payments and a fixed maturity
are classified as held-to-maturity, if the Bank has the positive intention and ability to hold to maturity. Securities
that are not classified as either trading or held-to-maturity are classified as available-for-sale securities.
HANA BANK

After initial measurement, available-for-sale securities are measured at fair value with unrealized gains or
losses being recognized as other comprehensive income in equity. Likewise, trading securities are also
measured at fair value after initial measurement, but with unrealized gains or losses reported as part of net
income. Held-to-maturity securities are measured at amortized cost after initial measurement. The cost is
computed as the amount initially recognized minus principal repayments, plus or minus the cumulative
amortization using the effective interest method, of any difference between the initially recognized amount and
the maturity amount.

The fair value of trading and available-for-sale securities that are traded actively in the open market (marketable
securities) is measured at the closing price of those securities at the reporting date. Non-marketable equity
securities are carried at a value announced by a public independent credit rating agency. If application of such
measurement method is not feasible, non-marketable equity securities are measured at cost less impairment,
if any, subsequent to initial recognition. Non-marketable debt securities are carried at the present value of their
future cash flows discounted using an appropriate interest rate which reflects the issuer ’s credit rating, as
announced by a public independent credit rating agency.

When held-to-maturity securities are reclassified to available-for-sale, those securities are accounted for at fair
value on the reclassification date and the difference between the fair value and book value is reported in other
comprehensive income as a gain or loss on valuation of available-for sale securities. When available-for-sale
securities are reclassified to held-to-maturity, gains or losses on valuation of these available-for-sale securities,
which had been recorded until the reclassification date, continue to be included in accumulated other
comprehensive income and are amortized using the effective interest rate method. Such amortization amount
is charged to interest income until maturity. Once the reclassification is made, trading securities cannot be
reclassified to available-for-sale securities or held-to-maturity securities and vice versa, except in rare
circumstances only. In addition, when certain trading securities become non-marketable, such securities are
reclassified to available-for-sale at fair value as of the reclassification date.

If the recoverable amount of a held-to-maturity security and available-for-sale security is less than acquisition
cost or carrying value, and such decline is deemed other than temporary, such security is adjusted to its
recoverable amount with an impairment loss charged to the statement of income after eliminating any gains and
losses previously recorded in accumulated other comprehensive income for temporary changes. A subsequent
recovery is also recorded in the statement of income to the extent of the previously recorded impairment losses
if such recovery is attributable to an event occurring subsequent to the recognition of the impairment losses.

Equity method investments

Investments in entities over which the Bank has control or significant influence are accounted for using the
equity method.

Under the equity method of accounting, the Bank’s initial investment in an investee is recorded at acquisition
cost. Subsequently, the carrying amount of the investment is adjusted to reflect the Bank’s share of income or
loss of the investee in the statement of income and share of changes in equity that have been recognized
directly in the equity of the investee in the related equity account of the Bank on the statement of financial
position. If the Bank’s share of losses of the investee equals or exceeds its interest in the investee, it suspends
recognizing its share of further losses. However, if the Bank has other long-term interests in the investee, it
continues recognizing its share of further losses to the extent of the carrying amount of such long-term interests.
The Bank resumes the application of the equity method if the Bank’s share of income or change in equity of an
investee exceeds the Bank’s share of losses accumulated during the period of suspension of the equity method
of accounting.

At the date of acquisition, the excess of the cost of the investment over the Bank’s share of the net fair value
of the investee’s identifiable assets and liabilities is accounted for as goodwill or negative goodwill. Goodwill is
amortized over its useful life of five years using the straight-line method and the amortization expense is
included as part of valuation gain or loss on equity method investments in the statement of income.

Further, the Bank’s share of any difference between the net fair value of the investee’s identifiable assets and
liabilities, and net book value of such assets and liabilities is amortized based on the investee’s accounting
treatments on the related assets and liabilities and charged or credited to valuation gain or loss on equity
method investments in the statement of income.
HANA BANK

The Bank’s share in the investee’s unrealized profits and losses resulting from transactions between the Bank
and its investee are eliminated to the extent of the interest in the investee.

Allowance for possible loan losses

The Bank provides an allowance for possible loan losses for corporate loans using the minimum required
provision percentage given by the Regulation on the Supervision (“FSS”) of Banking Industry. Further, for large
corporate loans categorized as substandard or below, the allowance for possible loan losses is determined by
the greater of the loss by the present value method (“PV method”) or the loss by the minimum required provision
rate. But, if the abovementioned allowance for possible loan losses is less than the amount by the expected loss
method (“EL method”), the Bank uses the EL method.

The PV method computes the collectible amount of a loan expected future cash flows by discounting the cash
flows using the effective interest rate, and determining the present value of the future cash flows.

The EL method analyzes factors of estimated loss based on probability of default (“PD”) and loss given default
(“LGD”), according to a loan credit rating classification. This credit rating model considers the industry risk, the
individual risk and the financial risk of a borrower and classifies the borrower ’s credit risk within 17 ratings to
assess the PD based on historical data for the past five years. The 14 ratings of LGD are determined by the type
of loan and collateral and historical data for the past seven years. The provision rate is calculated by multiplying
the PD and LGD.

For household loans and credit card loans, provision rates are determined by a PD based on historical data for
the past five years and LGD based on historical data for the past five years. The minimum provision rate for
household and credit card loans should be at least the minimum required provision percentage given by the

The Bank provides the allowance for possible losses for all loans except for call loans, bonds purchased under
resale agreements, loans to banks and loans to the Korean government which are classified as “Normal”.

Troubled debt restructuring

If the present value of a loan is different from its book value due to a rescheduling of terms as agreed by the
related parties (as in the case of court receivership, court mediation or workout), the difference in present value
of the restructured loan payments and book value of the loan is recorded as an allowance for possible loan loss.
The difference recorded as an allowance is amortized to current earnings over the related period using the
effective interest rate method. The amortization is recorded as interest income.

Deferred loan fees and expenses

The Bank defers and amortizes certain fees received from borrowers and expenses paid to third parties
associated with originating certain loans. Such fees and expenses are amortized over the life of the associated
loans using the straight-line method.

Valuation of long-term receivables (payables) at present value

Receivables or payables arising from long-term instalment transactions are stated at present value. The
difference between the carrying amount of these receivables or payables and their present value is amortized
using the effective interest rate method and credited or charged to the statement of income over the installment
period.

Tangible assets

Tangible assets are stated at cost less accumulated depreciation. Maintenance and repairs are expensed in the
year in which they are incurred. Expenditures which enhance the value or extend the useful lives of the related
assets are capitalized as additions to tangible assets.
HANA BANK

Depreciation of tangible assets is provided using the straight-line method for buildings and the declining balance
method for all other tangible assets over the following estimated useful life of assets:

Years

Buildings 4 to 60
Leasehold improvement 5
Vehicles, furniture and fixtures 5

Intangible assets
Intangible assets of the Bank consist of goodwill, trademarks, development costs and software, which are stated
at cost less accumulated amortization. Amortization is recognized as an expense based on the straight-line
method over the estimated useful life of 5 years.

Impairment of assets
When the recoverable amount of an asset is less than its carrying amount, the decline in value, if material, is
deducted from the carrying amount and recognized as an asset impairment loss in the current year.

Bonds purchased under resale agreements and bonds sold under repurchase agreements
Bonds purchased under resale agreements and bonds sold under repurchase agreements are included in loans
and borrowings, respectively, in the accompanying statements of financial position.

Stock issuance costs and debenture issuance costs
New stock issuance costs are deducted from paid-in capital in excess of par value, which is a component of
capital surplus. Debenture issuances costs are deducted from the amount of the proceeds from the debenture
issued, and are amortized as interest expense over the redemption term using the effective interest rate
method.

Accrued severance and retirement benefits
In accordance with the Employee Retirement Benefit Security Act and the Bank’s regulations, employees and
directors terminating their employment with at least one year of service are entitled to severance and retirement
benefits, based on the rates of pay in effect at the time of termination, years of service and certain other factors.
The provision for the years ended December 31, 2009 and 2008 is sufficient to, state the liability at the
estimated obligation arising from services performed to, and at rates of pay in effect as of the reporting dates.
Funding of this liability is not required by Korean law.

The Bank has deposited a portion of its severance and retirement benefits obligation with insurance companies
in Citibank Korea Inc. Since the Bank’s employees are individually nominated as the vested beneficiaries of the
deposits in respect of what is due to them as of December 31, 2009 and 2008, those amounts have been offset
against the Bank’s liability for severance and retirement benefits as of such dates.

In accordance with the Korean National Pension Law prior to revision, the Bank had prepaid a portion of its
severance and retirement benefits obligation to the Korean National Pension Corporation (“KNPC”) at the rate
of 3% of payroll expense up through June 30, 1999. Such prepayments have been offset against the Bank’s
liability for severance and retirement benefits. In accordance with a revision in the Korean National Pension
Law, additions to these prepayments were no longer required effective from April 1, 1999.

Provisions and contingent liabilities
Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made on the amount of the obligation. The provision is used only for
expenditures for which the provision was originally recognized. If the effect of the time value of money is
material, provisions are stated at present value.

Confirmed acceptances and guarantees, unconfirmed acceptances and guarantees and bills endorsed are not
recognized on the statement of financial position, but are disclosed as off-statement of financial position items
in the notes to the financial statements. The Bank provides a provision for such off-statement of financial
position items, applying a Credit Conversion Factor (“CCF”) and provision rates, and records the provision as
a reserve for possible losses on acceptances and guarantees.
HANA BANK

The Bank records reserves for a certain portion of unused credit line and cash advance commitments on credit
cards. The Bank records the provision for such unused balances as a reserve for possible losses on unused
commitments and cash advance commitments which are calculated by applying a CCF and the minimum
required provision percentage given by the Regulation on the Supervision of Banking Business.

Income taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from, or paid to, the tax authorities. Deferred income taxes are provided using the liability method for
the tax effect of temporary differences between the tax bases of assets and liabilities and their reported amounts
in the accompanying financial statements. Deferred tax assets and liabilities are measured using the enacted
tax rates and laws that will be in effect when the differences are expected to reverse. In addition, current tax
and deferred tax are charged or credited directly to equity if the tax relates to items that are charged or credited
directly to equity.

Translation of foreign currency and financial statements of overseas branches
Transactions involving foreign currencies are recorded at the exchange rates prevailing at the time the
transactions are made.

Assets and liabilities denominated in foreign currencies are translated into Korean won using the exchange
rates of —
W 1,167.6 to US$1 and W — 1,275.5 to US$1, the rates in effect as of December 31, 2009 and 2008,
respectively. The resulting translation gains and losses are credited or charged to current operations.
Accounting records of the overseas branches are maintained in foreign currencies. In translating financial
statements of overseas branches, the Bank applies the appropriate rate of exchange at the reporting date.

Derivative financial instruments
Derivative financial instruments include futures, forwards, options, and swap contracts and are principally linked
to interest rates and foreign exchange rates. Derivative financial instruments are presented as assets or
liabilities valued principally at the fair value of the rights or obligations associated with the derivative contracts.
The unrealized gain or loss from a derivative transaction with the purpose of hedging the exposure to changes
in the fair value of a recognized asset or liability or unrecognized firm commitment is recognized in current
operations. For a derivative instrument with the purpose of hedging the exposure to the variability of cash flows
of a recognized asset or liability or a forecasted transaction, the hedge-effective portion of the derivative
instrument’s gain or loss is deferred as other comprehensive income in equity. The ineffective portion of the gain
or loss is charged or credited to current operations. Derivative instruments that do not meet the criteria for
hedge accounting, or contracts for which the Bank has not elected hedge accounting are measured at fair value
with unrealized gains or losses reported in current operations.

Share-based payment transactions
The Bank granted stock appreciation rights to the Bank’s employees and directors, and HFG also granted stock
options which may be settled by issuance of additional shares of HFG or by cash payment at the discretion of
HFG.

For cash-settled share-based payment transactions, the Bank measures the goods or services acquired and the
liability incurred at the fair value of the liability, and re-measures the fair value of the liability at each reporting
date, with any changes in value recognized in profit or loss for the period. For share-based payment
transactions in which the terms of the arrangement provide the supplier of goods or services with a choice of
whether the Bank settles the transaction in cash or by issuing equity instruments, the Bank accounts for that
transaction, or the components of that transaction, as a cash-settled share-based payment transaction if, and
to the extent that, the Bank has incurred a liability to settle in cash (or other assets), or as an equity-settled
share-based payment transaction if, and to the extent that, no such liability has been incurred.

Share-based payment transactions implemented before the effective date of SKAS 22 Share-Based Payment
are accounted for in accordance with Korea Financial Accounting Standards (“KFAS”) Interpretations 39-35
Accounting for Stock Options.

Accounting for the trust accounts
The Bank recognizes, in accordance with Capital Market and Financial Investment Business Act, trust fees
earned from the trust accounts as income from trust operations. If a loss is incurred on a trust account that has
a guarantee of principal repayment, the loss is recognized as a loss from trust operations.
HANA BANK

Per share amounts

Basic earnings per share are computed by dividing net income by the weighted average number of shares of
common stock outstanding during the year.

Income from a discontinuing operation

The Bank presents the post-tax profit or loss of a discontinuing operation as a single line item on the face of
the statement of income under SKAS 11 Discontinuing Operations. Pursuant to SKAS 11 Discontinuing
Operations, all income and expenses relating to a discontinuing operation for the year ended December 31,
2008 were reclassified for comparative purposes (refer to Note 37).

Significant judgments and accounting estimates

The preparation of financial statements in accordance with Korean GAAP requires management to make
judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Such significant judgments and accounting estimates include
valuation of tangible assets’ book value, loan receivables, securities, deferred income tax assets and liabilities
and derivative instruments. Actual results could differ from those estimates.

3. Due from banks

Due from banks as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

Annual
interest rate
Counterparty (%) 2009 2008

Korean won:
Reserve deposits with BOK Bank of Korea (“BOK”) — — 1,896,344
W — 1,567,351
W
Certificates of deposits Other banks 3.0~3.4 277,786 938,262
Other deposits Other financial institutions 0.0~3.1 1,922,110 1,265,792

4,096,240 3,771,405
Foreign currencies: BOK and others 0.0~2.0 420,675 2,076,194

— 4,516,915
W — 5,847,599
W

Restricted balances in due from banks as of December 31, 2009 and 2008 are summarized as follows (Korean
won in millions):

2009 2008 Restriction

Reserve deposits with BOK — 1,896,344
W — 1,567,351 Reserve for payment of deposits
W
Other deposits in Korean won 503,185 1,296 (*)
Due from banks on demand 49,375 562,528 Reserve for payment of deposits
Due from others on demand 301,602 1,158,328 OTC derivative contracts

— 2,750,506
W — 3,289,503
W

(*) Capital Market and Financial Investment Business Act, etc.
HONGKONG:165547.1 F-
HANA BANK

The maturities of due from banks outstanding as of December 31, 2009 and 2008 are as follows (Korean won
in millions):

2009

Foreign

Within 1 month —
W 3,862,616 W
— 414,837 W
— 4,277,453
After 3 months but no later than 6 months 128,355 — 128,355
After 1 year but no later than 3 years — — —
After 3 years but no later than 5 years 65,838 — 65,838

— 4,096,240
W W
— 420,675 W
— 4,516,915

2008

Foreign

Within 1 month —
W 414,459 W
— 2,058,966 W
— 2,473,425
After 3 months but no later than 6 months 1,710,029 — 1,710,029
After 1 year but no later than 3 years 250 — 250
After 3 years but no later than 5 years — — —
— 3,771,405
W W
— 2,076,194 W
— 5,847,599

Due from banks by financial institution as of December 31, 2009 and 2008 are as follows (Korean won in
millions):

2009

Foreign

BOK W 1,896,344
— W
— 40,328 W
— 1,936,672
Other banks 277,786 78,715 356,501
Others 1,922,110 301,632 2,273,742

— 4,096,240
W W
— 420,675 W
— 4,516,915

2008

Foreign

BOK W 1,567,351
— W
— 556,869 W
— 2,124,220
Other banks 938,262 360,460 1,298,722
Others 1,265,792 1,158,865 2,424,657

— 3,771,405
W W
— 2,076,194 W
— 5,847,599
HANA BANK

4. Trading securities

Trading securities as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

Annual interest
rate (%) 2009 2008

— 976,684 W
— 747,942
Finance bonds 3.7~6.3 335,481 450,089

— 1,312,165
W — 1,198,031
W

Debt securities included in trading securities as of December 31, 2009 and 2008 consist of the following (Korean
won in millions):

2009

Acquisition Amortized Fair value
Par value cost cost (Book value)

— 964,000 W
— 985,339 W
— 985,824 W
— 976,684
Finance bonds 340,000 335,701 335,869 335,481

— 1,304,000
W W
— 1,321,040 W
— 1,321,693 W
— 1,312,165

2008

Amortized Acquisition Fair value
Par value cost cost (Book value)

— 719,000 W
— 720,418 W
— 719,873 W
— 747,942
Finance bonds 450,000 440,908 447,157 450,089

— 1,169,000
W W
— 1,161,326 W
— 1,167,030 W
— 1,198,031

The fair value for trading debt securities is determined based on the lower of the valuation provided by KIS
Pricing Inc. or the Korea Bond Pricing Co.

Trading securities amounting to —W 72,163 million and W — 350,080 million as of December 31, 2009 and 2008,
respectively, are provided as collateral for borrowings from BOK and other financial institutions.
HANA BANK

5. Available-for-sale securities

Available-for-sale securities as of December 31, 2009 and 2008 consist of the following (Korean won in
millions):

Annual interest
rate (%) 2009 2008

Equity securities — W
— 1,297,942 W
— 1,029,421
Investments in partnerships — 147,859 142,216
Government and public bonds 3.0~7.7 6,478,944 2,539,208
Finance bonds 2.7~7.8 2,151,212 5,850,580
Corporate bonds 2.0~7.5 2,855,378 2,647,718
Beneficiary certificates — 1,313,041 1,194,245
Securities denominated in foreign currencies 0.0~6.3 1,457,746 1,150,384
Other securities — 3,982 6,930

— 15,706,104
W — 14,560,702
W

Equity securities (including equity securities denominated in foreign currencies) as of December 31, 2009 and

2009

Accumulated
other

— 443,560 W
— 189,790 W
— 633,350

— 1,054,483
W W
— 264,729 W
— 1,319,212

2008

Accumulated
other

— 1,232,369 W
— (613,889) W
— 618,480
Non-marketable equity securities 620,291 (141,331) 478,960

— 1,852,660
W W
— (755,220) W
— 1,097,440
HANA BANK

Details of marketable equity securities (including equity securities denominated in foreign currencies) as of
millions):

2009 2008

Accumulated
Book value other Fair value Fair value
Number of Ownership before comprehensive (Book (Book
Company shares (%) valuation income value) value)

POSCO 500 0.6 —
W 190,188 W
— 119,118 — 309,306
W W
— 265,048
Daewoo E&C Co., Ltd. 7,311 2.2 64,920 28,658 93,578 67,022
SK Networks Co., Ltd. 7,924 3.3 63,197 20,009 83,206 46,405
SK Corp. 713 1.5 67,334 (3,919) 63,415 67,334
SK C&C 1,121 2.2 33,638 16,595 50,233 —
Dongbu Insurance 384 0.5 5,568 6,874 12,442 11,600
Others 18,715 2,455 21,170 161,071

— 443,560
W W
— 189,790 W
— 633,350 W
— 618,480

Details of non-marketable equity securities (including equity securities denominated in foreign currencies) as of
millions):

2009 2008

Accumulated

Book value other

Number of Ownership before comprehensive Fair value Fair value

Company shares (%) valuation income (Book value) (Book value)

Consumer Credit

Assistant Fund 39 5.4 W
— 117,849 W
—— —
W 117,849 W
——

Hyundai E&C Co.,
Ltd.(*1) 1,579 1.4 80,467 22,417 102,884 114,160
Taesan LCD Co., Ltd.

(*1, *2) 49,300 59.6 80,901 18,143 99,044 —

Korea Housing
Guarantee 16,942 2.6 67,988 9,589 77,577 67,988
Hyundai Merchant Marine
(Preferred stock) 3,834 2.5 59,510 9,343 68,853 59,510
Emerging Infrastructure 6,895 11.7 34,644 1,015 35,659 23,228
Panteck 73,706 4.5 16,698 13,964 30,662 632
Korea Securities Corp. 2,506 3.7 17,641 3,231 20,872 17,641
HJC Corp. 492 7.2 17,979 10 17,989 —
Samsung Life Insurance
Co., Ltd 48 0.2 15,836 — 15,836 15,836
Daol Real Estate Trust 1,500 15.0 14,648 (2,810) 11,838 14,648
Dong Bang (preferred
stock) 1,437 6.0 10,000 1,283 11,283 10,000
SK E&C (preferred stock) 500 14.3 10,316 (110) 10,206 10,316
Korea Asset Management
Corp. 1,784 1.0 9,407 — 9,407 9,407
ASIABRIDGE 66 15.6 7,723 — 7,723 4,979
Sindo Investment 100 10.0 6,191 (970) 5,221 6,191
Kyung Won Construction
Co., Ltd. 7 4.9 4,923 22 4,945 4,923
HANA BANK

2009 2008

Accumulated
Book value other
Number of Ownership before comprehensive Fair value Fair value
Company shares (%) valuation income (Book value) (Book value)

BC Card Co., Ltd 44 1.0 6,099 (2,512) 3,587 —
Daewoo Capital CRV Co.,
Ltd. 180 1.5 2,823 656 3,479 2,823
Others 29,280 1,668 30,948 116,678

W
— 610,923 W
— 74,939 W
— 685,862 W
— 478,960

(*1) Listed shares with disposal restrictions are valued using data provided by independent valuers.

(*2) According to SKAS 15 Investment in Associates, Taesan LCD Co., Ltd., which is under a joint
management by the creditor financial institutes committee, is excluded from being accounted for as an
equity method investment.

Non-marketable equity securities, including Consumer Credit Assistant Fund amounting to W — 150,492 million
were valued at cost as of December 31, 2009 as the fair value could not currently be reasonably estimated.

The fair value of the available-for-sale non-marketable equity securities such as Hyundai E&C Co., Ltd. was
measured by an independent valuer using certain assumptions. The fair value was determined based on more
than one valuation model such as the discounted cash flow (DCF) model, imputed market value (IMV) model,
and risk adjusted discounted cash flow (RADCF) model, depending on the characteristic of the equity securities
as appropriate.

Shares held by the Bank with disposal restrictions as of December 31, 2009 are summarized as follows (Korean
won in millions):

2009

Number of shares Book value Disposal restriction

Hyundai E&C Co., Ltd. 1,579,000 —
W 102,884 Until completion of M&A
Taesan LCD Co., Ltd. 49,300,392 99,044 Until December 31, 2013
Pantech 73,705,677 30,662 Until December 31, 2011
HJC Corp. 491,714 17,989 Until December 31, 2010
Until completion of the selling
Ssangyong E&C Co., Ltd. 292,180 2,191 process
Daewoo Electronics Co., Ltd. 1,800,780 1,406 Until March 31, 2010
Saehan Media Inc. 358,819 782 Until December 31, 2010
Enertech Co., Ltd. 45,800 202 Until December 31, 2012
Others 6,141,542 — (*)
— 255,160
W

(*) Of the shares (included in others) that are restricted for disposal, 4,297,142 shares of Daewoo Electronics
Co., Ltd. are restricted unless bankruptcy occurs, and 1,844,400 shares of Kohap Corp. are restricted until
its liquidation is completed.
HANA BANK

Investments in partnerships (including investments in partnerships in foreign currencies) as of December 31,
2009 and 2008 consist of the following (Korean won in millions):

2009

Accumulated
other

— 56,366 W
—— W 56,366
—
Consus Investment Private Equity Fund 3 11,949 3,117 15,066
GS CAP 14,361 — 14,361
Sangam DMC Consortium 9,460 — 9,460
Sky-Lake Global Investment Private Equity
Fund 2 8,159 (81) 8,078
Others 29,144 (526) 28,618

— 176,104
W W
— (1,741) —
W 174,363

2008

Accumulated
other

— 69,200 W
—— W 69,200
—
Consus Investment Private Equity Fund 3 11,163 (709) 10,454
Sky-Lake Global Investment Private Equity
Fund 2 12,682 (3,662) 9,020
Others 43,895 (7) 43,888

— 182,231
W W
— (14,144) W
— 168,087

Investments in partnerships amounting to —W 100,209 million and W — 108,846 million as of December 31, 2009 and
2008, respectively, were stated at acquisition cost as their fair value cannot currently be reasonably estimated.

Debt securities as of December 31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009


— 6,433,000 W
— 6,496,620 W
— 6,544,102 W
— 6,478,944
Finance bonds 2,160,000 2,150,942 2,157,647 2,151,212
Corporate bonds 2,846,000 2,873,623 2,867,840 2,855,378

— 12,818,074
W W
— 12,890,165 W
— 12,947,756 W
— 12,895,506
HANA BANK

2008


— 2,440,000 W
— 2,443,341 W
— 2,453,377 W
— 2,539,208
Finance bonds 5,830,000 5,766,748 5,801,935 5,850,580
Corporate bonds 2,685,000 2,675,212 2,679,637 2,647,718

— 12,135,793
W W
— 12,048,265 W
— 12,098,180 W
— 12,094,000

The fair value of available-for-sale debt securities is measured based on the lower of the valuation provided by
KIS Pricing Inc. or the Korea Bond Pricing Co.

Debt securities of W
— 3,018,144 million as of December 31, 2009 and 2008, respectively,
are provided as collateral for borrowings from BOK and other financial institutions.

Beneficiary certificates and other securities as of December 31, 2009 and 2008 are summarized as follows

2009

Accumulated
Book value other
Cost valuation income Book value

— 1,296,406 W
— 1,297,004 W
— 16,037 W
— 1,313,041

— 1,301,468
W W
— 1,303,934 W
— 13,089 W
— 1,317,023

2008

Accumulated
Book value other

— 1,196,406 W
— 1,196,406 W
— (2,161) —
W 1,194,245

— 1,201,468
W W
— 1,205,246 W
— (4,071) —
W 1,201,175
HANA BANK

The underlying net assets of the Bank’s beneficiary certificates as of December 31, 2009 and 2008 consist of
the following (Korean won in millions):

2009 2008

Balance Ratio (%) Balance Ratio (%)

Due from banks — 27,874
W 2.1 — 249,058
W 20.9
Equity securities 26,312 2.0 1,241 0.1
Government and public bonds 65,793 5.0 97,612 8.2
Finance bonds 732,928 55.9 524,638 43.9
Corporate bonds 58,385 4.4 118,496 9.9
Call loans 115,450 8.8 162,414 13.6
Others 320,881 24.4 42,237 3.5

Total assets 1,347,623 102.6 1,195,696 100.1
Total liabilities (34,582) (2.6) (1,451) (0.1)

— 1,313,041
W 100.0 — 1,194,245
W 100.0

Changes in the unrealized gain (loss) of the Bank’s available-for-sale securities for the years ended December

2009


W — 260,629
W — 12,938
W — (60,185)
W — 291,199
W
Government and public bonds 66,950 (74,173) (76,818) 33,218 (50,823)
Finance bonds 37,218 (5,668) (48,483) 11,913 (5,020)
Corporate bonds (24,897) 13,743 8,101 (4,806) (7,859)
Beneficiary certificates (1,686) 16,036 2,761 (4,135) 12,976
Other securities 1,456 (2,948) — 649 (843)
foreign currencies (139,263) 122,056 89,887 (47,091) 25,589

— 58,459
W — 327,934
W — (22,986)
W — (67,552)
W — 295,855
W

2008

Beginning Unrealized Realized gain Tax Ending
balance gain (loss) (loss) effect balance

W — (690,043)
W — (289,140)
W — 274,762
W — 77,817
W
Investments in partnerships 48,128 (14,143) 150 6,729 40,864
Government and public bonds (13,532) 101,155 3,341 (24,014) 66,950
Finance bonds (41,074) 95,104 9,264 (26,077) 37,217
Corporate bonds (53,157) 37,445 3,955 (13,140) (24,897)
Beneficiary certificates 163 (2,161) (224) 537 (1,685)
Other securities 2,739 (1,910) — 627 1,456
foreign currencies (12,656) (168,002) 6,916 34,479 (139,263)

— 712,849
W — (642,555)
W — (265,738)
W — 253,903
W — 58,459
W
HANA BANK

Realized gain and loss from disposal of available-for-sale securities for the years ended December 31, 2009 and

2009 2008

Gain Loss Gain Loss

Equity securities W
— 163,701 W
— 34,576 W
— 103,895 W
— 859
Government and public bonds 57,692 59 18,228 663
Finance bonds 62,812 93 2,878 834
Corporate bonds 33,495 106 4 8
Beneficiary certificates 31,281 444 40,384 12,260
Securities denominated in foreign
currencies 22,571 82,877 9,047 9,338

— 371,552
W — 118,155
W W 174,436
— W
— 23,962

Impairment losses on available-for-sale securities for the years ended December 31, 2009 and 2008 are as

2009 2008

W — 35,353
W
Investment in partnerships 544 —
Debt securities 2,386 —

— 55,762
W — 35,353
W

Structured securities included in available-for-sale securities as of December 31, 2009 and 2008 are
summarized as follows (Korean won in millions and U.S. dollar in thousands):

2009


Korean won:
— W 20,035
— Interest
W
—150,000 W
—149,254

Foreign currencies:
— Interest

US$15,000 W 16,004
—
— Stock index

US$95,000 W
—118,760

US$110,000 W
—134,764
HANA BANK

2008


Korean won:
— W 20,709
— Interest
W
—170,000 W
—170,307

Foreign currencies:
Interest Interest index linked Barclays US$10,000 2006.07.19 2016.07.19 US$10,453 Interest
note
Interest index linked Barclays 10,000 2006.12.04 2016.12.04 10,490 Interest
note
Interest SIFMA Citigroup 5,000 2007.03.02 2017.03.02 4,777 Interest
linked note Funding Inc.
Range accrual note CBA 10,000 2008.07.21 2018.07.21 12,614 Interest
Range accrual note ANZ 10,000 2008.07.21 2018.07.21 12,614 Interest
Range accrual note CBA 10,000 2008.07.31 2018.07.31 12,240 Interest

US$65,000 — 75,461
W
— Stock index
Convertible bond LG Philips LCD 20,000 2007.06.01 2012.04.18 22,838 Stock index
US$110,000 W
—123,354

Other Credit linked notes Nomura Bank
US$20,000 2008.04.21 2010.12.07 W 22,907
— Credit

US$195,000 W 221,722
—

6. Reclassifications of investment securities

Pursuant to the revised SKAS 8, the Bank retroactively reclassified certain trading securities which were no
longer held for the purpose of short-term trading to available-for-sale securities as of July 1, 2008. The following
table shows the book value on reclassification date and fair value of such reclassified trading securities (Korean
won in millions):

2009 2008

Book value on Book value on
reclassification reclassification
date Fair Value date Fair value

W 14,521 W
— 22,148 W 113,312
— W
— 81,798

Among the securities reclassified during the previous year, 22,152 shares of SK Energy Co., Ltd. , 411,990
shares of Dongbu Insurance and 156,738 shares of POSCO have been disposed of during the year ended
December 31, 2009. From such disposals, gain on disposal amounting to W— 31,737 million and loss on disposal
amounting to W
— 2,913 were recorded as operating revenue and operating expense, respectively.

If the reclassification had not been made, net unrealized valuation gain amounting to — W 7,627 million and net
unrealized valuation loss amounting to —
W 31,649 million on trading securities would have been recognized in the
Bank’s statements of income for the years ended December 31, 2009 and 2008, respectively.
HANA BANK

7. Held-to-maturity securities

Held-to-maturity securities as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

Annual interest

rate (%) 2009 2008

Government and public bonds 2.5~6.6 — 634,563
W — 680,111
W
Finance bonds 5.0~8.4 1,409,828 1,614,262
Corporate bonds 3.9~15.0 1,800,570 1,744,315
Bonds denominated in foreign currencies 0.0~3.1 33,570 68,888

— 3,878,531
W — 4,107,576
W

Details of held-to-maturity securities as of December 31, 2009 and 2008 are summarized as follows (Korean
won in millions):

2009

Acquisition Amortized Impairment

W — 612,531
W — 634,563
W ——
W W 634,563
—
Finance bonds 1,410,000 1,408,777 1,409,828 — 1,409,828
Corporate bonds 1,830,788 1,824,721 1,826,415 (25,845) 1,800,570
currencies 33,576 33,567 33,570 — 33,570

— 3,922,780
W — 3,879,596
W — 3,904,376
W — (25,845)
W — 3,878,531
W

2008

Reversal of
Acquisition Amortized impairment

W — 662,572
W — 680,111
W W—
— W 680,111
—
Finance bonds 1,615,000 1,613,541 1,614,262 — 1,614,262
Corporate bonds 1,747,440 1,740,821 1,744,263 52 1,744,315
currencies 68,894 68,886 68,888 — 68,888

— 4,128,288
W — 4,085,820
W — 4,107,524
W — 52
W W 4,107,576
—

Held-to-maturity securities amounting to W
and 2008, respectively, are provided as collateral for borrowings from BOK and other financial institutions.
HANA BANK

Structured securities, included in held-to-maturity securities, as of December 31, 2009 and December 31, 2008

2009


Korean won:
— W 50,000
— interest
Range accrual note Sh Bank inhan 50,000 2006.10.02 2011.10.02 50,000 Interest
W
—220,000 W
—220,000

2008


Korean won:
— W 50,000
— Interest
Range accrual note Korea 30,000 2007.07.13 2009.07.13 30,000 Interest
Development
Bank
Range accrual note Kookmin Bank 20,000 2008.06.27 2009.06.27 20,000 Interest

— 270,000
W —270,000
W

In addition, the Bank holds structured securities included in loans (privately-placed convertible securities)
amounting to W
— 6,120 million as of December 31, 2009 and 2008, respectively.
HANA BANK

8. Maturities of debt securities

The maturities of debt securities included in available-for-sale securities and held-to-maturity securities as of
December 31, 2009 and 2008 are as follows (Korean won in millions):

2009

Bonds

Available-for-sale
securities
Within 1 month —
W— W 9,996
— W—
— W—
— W 9,996
—
later than 1 year 10,209 357,188 20,383 110,301 498,081
than 3 years 2,835,271 1,258,236 1,910,343 383,254 6,387,104
than 5 years 2,992,120 69,253 784,567 491,011 4,336,951
than 10 years 514,706 — 69,937 284,446 869,089
Later than 10 years 106,637 — — 58,240 164,877

— 6,478,944
W W
— 2,151,212 W
— 2,855,378 W
— 1,409,972 W
— 12,895,506

Bonds

Held-to-maturity
securities
Within 1 month —
W 10,011 W 40,000
— W
— 68,358 W
—— W 118,369
—
later than 1 year 148,593 699,884 272,146 — 1,120,623
than 3 years 158,880 90,000 664,626 — 913,506
than 5 years 188,082 150,000 389,034 — 727,116
than 10 years 69,366 150,000 244,934 — 464,300
Later than 10 years 19,674 — — — 19,674

— 634,563
W W
— 1,409,828 W
— 1,800,570 W
— 33,570 W
— 3,878,531
HANA BANK

2008

Bonds

Available-for-sale
securities
Within 1 month —
W— W 379,698
— W
—— W—
— W 379,698
—
later than 6 months 130,709 2,188,106 140,451 49,714 2,508,980
later than 1 year 130,760 758,295 218,862 66,723 1,174,640
than 3 years 1,103,576 1,690,996 1,819,937 341,382 4,955,891
than 5 years 782,064 — 379,967 236,431 1,398,462
than 10 years 269,538 43,134 78,465 301,993 693,130
Later than 10 years 22,139 — — 55,214 77,353

— 2,539,208
W W
— 5,850,580 W
— 2,647,718 W
— 1,056,494 W
— 12,094,000

Bonds

Held-to-maturity
securities
Within 1 month —
W 15,030 W
—— W—
— W 4,401
— W
— 19,431
later than 1 year 39,915 89,907 64,962 27,878 222,662
than 3 years 283,048 1,079,358 685,394 27,878 2,075,678
than 5 years 165,500 30,000 589,295 — 784,795
than 10 years 126,873 345,000 334,679 — 806,552
Later than 10 years 19,655 — — — 19,655

— 680,111
W W 1,614,262
— W
— 1,744,315 W
— 68,888 W
— 4,107,576
HANA BANK

9. Securities concentrations

Information of securities by country of issuance or origination as of December 31, 2009 and 2008 is summarized

2009



W 100.0 ——
W —

W 100.0 — 1,265,347
W 86.7
UK — — 11,189 0.8
Japan — — 10,451 0.7
Germany — — 8,161 0.6
Other — — 111,606 7.7

— 14,248,358
W 100.0 — 1,457,746
W 100.0

W 100.0 — 25,256
W 75.2
securities Singapore — 8,314 24.8

— 3,844,961
W 100.0 — 33,570
W 100.0

2008



W 100.0 ——
W —

W 100.0 — 792,243
W 68.9
UK — — 59,215 5.1
Hong Kong — — 6,334 0.6
Singapore — — 3,283 0.3
Other — — 176,109 15.3

— 13,410,318
W 100.0 — 1,150,384
W 100.0

W 100.0 — 55,756
W 80.9
Other — — 4,401 6.4

— 4,038,688
W 100.0 — 68,888
W 100.0
HANA BANK

Information of securities by industry as of December 31, 2009 and 2008 is summarized as follows (Korean won
in millions):

2009



W 25.6 ——
W —
— 1,312,165
W 100.0 ——
W —

W 35.7 — 544,047
W 37.3

Public sector 6,774,219 47.6 242,877 16.7
Construction 276,293 1.9 57,894 4.0
retail
Other 1,342,193 9.4 253,698 17.4

— 14,248,358
W 100.0 — 1,457,746
W 100.0

W 61.3 W—
— —
Construction 1,593 — — —
Other 802,653 20.9 25,256 75.2

— 3,844,961
W 100.0 — 33,570
W 100.0

2008



W 37.6 ——
W —
— 1,198,031
W 100.0 ——
W —

W 64.8 — 565,661
W 49.1
securities
Manufacturing 621,534 4.6 436,732 38.0
Public sector 2,746,851 20.5 56,085 4.9
Construction 394,701 2.9 36,300 3.2
Wholesale and 373,049 2.8 26,253 2.3

retail
Other 586,758 4.4 29,353 2.5
— 13,410,318
W 100.0 — 1,150,384
W 100.0

W 62.8 — 4,401
W 6.3
Construction 191,561 4.7 27,878 40.5
Other 591,809 14.7 27,878 40.5
— 4,038,688
W 100.0 — 68,888
W 100.0
HANA BANK

Information of securities by type of instrument as of December 31, 2009 and 2008 is summarized as follows

2009



Trading securities Fixed rate bonds —
W 1,312,165 100.0 W
—— —

Available-for-sale Equity securities W
— 1,297,942 9.1 W
— 21,270 1.5
securities Investments in 147,859 1.0 26,504 1.8
partnerships
Fixed rate bonds 11,336,281 79.6 1,028,033 70.5
Floating rate 149,253 1.0 365,935 25.1
bonds
Beneficiary 1,313,041 9.2 — —
certificates
Other 3,982 0.1 16,004 1.1

— 14,248,358
W 100.0 W
— 1,457,746 100.0

Held-to-maturity Fixed rate bonds —
W 3,624,961 94.3 W
— 33,570 100.0
bonds

— 3,844,961
W 100.0 W
— 33,570 100.0

2008



Trading securities Fixed rate bonds —
W 1,198,031 100.0 W
—— —

Available-for-sale Equity securities W
— 1,029,421 7.7 W
— 68,019 5.9
securities Investments in 142,216 1.0 25,871 2.2
partnerships
Fixed rate bonds 10,867,200 81.0 356,413 31.0
Floating rate 170,306 1.3 518,191 45.0
bonds
Beneficiary 1,194,245 8.9 — —
certificates
Other 6,930 0.1 181,890 15.9

— 13,410,318
W 100.0 W
— 1,150,384 100.0

Held-to-maturity Fixed rate bonds —
W 3,768,688 93.3 W
— 32,279 46.9
securities Floating rate 270,000 6.7 36,609 53.1
bonds

— 4,038,688
W 100.0 W
— 68,888 100.0
HANA BANK

10. Equity method investments

Equity method investments as of December 31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009


Book value

Hana Bank (China) Co., Ltd. (“Hana
Bank China”) (*1) 100.0 W
— 346,608 W
—— W (4,254)
— —
W 342,354 W
— 1,832 W (102)
— —
W— W 344,084
— W
— 344,084
PT Bank Hana (*1) (Fomerly. “BIMA”) 72.1 26,931 18,595 — 45,536 (87) 299 — 45,738 44,424
F-118
Hana Funding Ltd. (*1) 100.0 58 — — 58 — — — 58 58

BC Card (*2) — 83,619 — (2,222) 81,397 10,731 10,531 (102,659) — —
Corp. (“MCIS”) (*3) 12.0 2,015 — (72) 1,943 474 (2) — 2,415 2,415
Korea Credit Bureau (Formerly.
“Korea Personal Credit
Information”) (*3) 9.0 2,710 — — 2,710 59 — — 2,769 2,769
Hana Cambridge IMM (*3) 14.9 5,150 — — 5,150 253 — — 5,403 5,383
Management Fund (*3) 9.9 367 — — 367 31 — — 398 398
UAM Co.,Ltd 17.5 — 12,250 — 12,250 (258) — — 11,992 11,992
— 467,458
W W
— 30,845 W
— (6,548) — 491,755
W W
— 13,035 — 10,726
W W
— (102,659) W
— 412,857 — 411,523
W


(*2) The Bank disposed of a considerable portion of its investment in BC Card during the year ended December 31, 2009. Accordingly, the remaining shares were reclassified
as available-for-sale securities.


HONGKONG:165547.1
HANA BANK

2008


Book value Other Proportionate

Beginning before equity comprehensive net asset
Ownership (%) balance Acquisition Dividend method Earnings (loss) income Carrying value value

— 371,506 W
—— W—
— W 371,506
— W
— 13,980 W
— (12,477) —
W 373,009 W
— 373,009
PT Bank Hana (*1)
(Fomerly. “BIMA”) 70.1 12,999 13,493 — 26,492 (1,384) (135) 24,973 23,337
Hana Funding Ltd. (*1) 100.0 63 — — 63 — — 63 63
BC Card 16.8 53,924 — (740) 53,184 20,671 9,764 83,619 83,619
Mirae Credit Information
F-119
Service Corp. (“MCIS”) (*2) 12.0 1,656 — (72) 1,584 432 — 2,016 2,355
Korea Credit Bureau
(Formerly. “Korea Personal
Credit Information”) (*2) 9.0 2,836 — — 2,836 (126) — 2,710 2,710
Hana Cambridge IMM (*2) 14.9 5,247 748 — 5,995 (846) — 5,149 5,120
Management Fund (*2) 9.9 229 99 — 328 41 (2) 367 367

— 448,460
W — 14,340
W — (812)
W — 461,988
W — 32,768
W — (2,850)
W — 491,906
W — 490,580
W



HONGKONG:165547.1
HANA BANK

The Bank suspended applying the equity method accounting for Korea Travels and Korea Lease Financing as
the Bank’s share of losses in the investees exceeded its share of net assets. The Bank’s unrecognized share
of the earnings for Korea Travels for the year ended December 31, 2009 and the accumulated losses as of
December 31, 2008 were W — 29 million and W— 1,696 million, respectively. The Bank’s unrecognized share of
earnings for Korea Lease Financing for the year ended December 31, 2009 and the accumulated losses as of
December 31, 2008 were W — 698 million and —W 40,506 million, respectively.

For the years ended December 31, 2009 and 2008, the unamortized difference between the Bank’s acquisition
cost and the Bank’s portion of the investee’s net asset value at the acquisition date representing goodwill
(negative goodwill) are summarized as follows (Korean won in millions):

2009

Beginning

PT Bank Hana —
W 1,764 W (450)
— —
W 1,314
MCIS (339) 339 —
Hana Cambridge IMM 29 (9) 20

— 1,454
W W (120)
— —
W 1,334

2008

Beginning

Hana Bank China —
W (1,141) —
W 1,141 W—
—
PT Bank Hana 2,025 (419) 1,636
MCIS (679) 340 (339)
Hana Cambridge IMM 39 (10) 29

— 274
W W 1,052
— W
— 1,326

(*) Beginning balances were translated using the exchange rate at the reporting date.

Details on individual investees’ net asset values per their unaudited financial statements are summarized as

Investee’s net Proportionate net
Closing date asset value asset value

Hana Bank China December 31, 2009 —
W 344,084 —
W 344,084
PT Bank Hana December 31, 2009 61,614 44,424
Hana Funding Ltd. December 31, 2009 233,578 58
MCIS December 31, 2009 20,122 2,415
Korea Credit Bureau December 31, 2009 30,767 2,769
Hana Cambridge IMM December 31, 2009 36,013 5,383
Management Fund December 31, 2009 4,018 398
UAM Co.,Ltd December 31, 2009 68,525 11,992
Korea Lease Financing (*) December 31, 2009 (210,462) —
Korea Travels (*) December 31, 2009 (112,08) —
— 577,051
W — 411,523
W
HONGKONG:165547.1 F-120
HANA BANK

(*) The Bank suspended applying the equity method as the Bank’s share of losses in the investees exceeded
its interests in the investees.

The Bank obtained the unaudited financial statements signed by the internal auditors and representative
directors of the investees. The Bank confirmed that the investees’ unaudited financial statements reflected all
significant transactions or resolution of accounting issues which the Bank identified.

The condensed financial position and the results of operations of the Bank’s equity method investees subject
to equity method of as of and for the years ended December 31, 2009 and 2008 are summarized as follows

2009


Hana Bank China —
W 1,919,408 —
W 1,575,324 —
W (144) —
W 1,832
PT Bank Hana 228,448 166,834 428 507
MCIS 27,683 7,561 1,537 1,115
Korea Credit Bureau 36,807 6,040 192 655
Hana Cambridge IMM 36,013 — 117 1,762
UAM Co.,Ltd 68,710 185 (1,925) (1,475)
Korea Lease Financing 93,272 303,734 636 (1,738)
Korea Travels 14,241 25,449 (272) 192
— 2,663,616
W W
— 2,086,565 W
— 891 W
— 3,163

2008


Hana Bank China —
W 2,322,780 W
— 1,949,771 W
— 17,365 W
— 12,839
PT Bank Hana 114,838 81,547 (1,343) (1,369)
BC Card 1,811,364 1,314,520 130,445 122,825
MCIS 27,204 7,578 962 770
Korea Credit Bureau 35,316 5,204 (1,753) (1,403)
Hana Cambridge IMM 34,262 10 (604) (5,589)
Darby Hana Infrastructure Management
Fund 4,048 342 392 408
Korea Lease Financing 81,360 295,509 (35,398) (35,629)
Korea Travels 16,467 27,867 (198) 1,176
— 4,700,058
W W
— 3,683,204 W
— 109,868 W
— 94,028
HONGKONG:165547.1 F-121
HANA BANK

11. Loans receivable

Total loans receivable as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

2009 2008

Loans in Korean won — 84,576,163
W — 81,445,987
W
Bills bought in Korean won 2,430,040 2,145,796
Bills bought in foreign currencies 1,881,097 2,744,109
Domestic import usance 2,423,755 2,744,123
Advance payments on acceptances and guarantees 5,893 33,134
Factoring receivables 143,514 110,363
Credit card loans 780,543 2,741,303
Bonds purchased under resale agreements 793,900 1,187,300
Call loans 498,799 304,092
Privately-placed corporate bonds 2,193,126 1,552,512

100,327,246 101,642,398
Less allowance for possible loan losses (1,544,437) (2,047,957)
Plus deferred loan fees 56,276 54,812

W — 99,649,253
W

Loans in Korean won and loans in foreign currencies as of December 31, 2009 and 2008 consist of the following

2009 2008

Loans in Korean won:
Corporate loans:
Corporate loans for operations —
W 28,805,940 — 29,296,260
W
Corporate loans for facilities 8,810,204 8,515,440

37,616,144 37,811,700
Household loans 45,375,333 42,136,280
Public sector and others 1,025,047 974,080
Inter-bank loans 559,639 523,927

84,576,163 81,445,987
Loans in foreign currencies:
Off-shore loans in foreign currencies 81,459 118,330
Inter-bank loans in foreign currencies 159,961 514,569

4,600,416 6,633,679

— 89,176,579
W — 88,079,666
W
HONGKONG:165547.1 F-122
HANA BANK

Loans to banks and other financial institutions as of December 31, 2009 and 2008 are summarized as follows

2009

Other financial

— 559,639 W
— 2,192,669 W
— 2,752,308
Call loans 498,799 — 498,799

— 1,818,399
W W
— 2,760,776 W
— 4,579,175

2008

Other financial

— 523,927 W
— 1,972,132 W
— 2,496,059
Loans in foreign currencies 514,569 906,393 1,420,962
Call loans 204,092 100,000 304,092
Bonds purchased under resale agreement 1,020,000 167,300 1,187,300

— 2,262,588
W W
— 3,225,825 W
— 5,488,413

Concentrations of loans in Korean won and loans in foreign currencies by customer and industry as of December
31, 2009 and 2008 are listed as follows (Korean won in millions):

2009

Foreign

Corporate loans:
Manufacturing W
— 13,033,580 W
— 1,714,080 W
— 14,747,660 16.54
Construction 1,921,936 14,826 1,936,762 2.17
Other 9,471,299 1,696,200 11,167,499 12.53

37,616,144 4,440,455 42,056,599 47.16
Household loans 45,375,333 — 45,375,333 50.88
Inter-bank loans 559,639 159,961 719,600 0.81

— 84,576,163
W W
— 4,600,416 W
— 89,176,579 100.00
HONGKONG:165547.1 F-123
HANA BANK

2008

Foreign

Corporate loans:
Manufacturing W
— 13,709,237 W
— 2,139,530 W
— 15,848,767 17.99
Construction 2,607,737 22,488 2,630,225 2.99
Other 9,031,484 2,052,388 11,083,872 12.58

37,811,700 6,119,110 43,930,810 49.87
Household loans 42,136,280 — 42,136,280 47.84
Public sector and others 974,080 — 974,080 1.11
Inter-bank loans 523,927 514,569 1,038,496 1.18

— 81,445,987
W W
— 6,633,679 W
— 88,079,666 100.00

Concentrations of loans in Korea won and loans in foreign currencies by country as of December 31, 2009 and
2008 are summarized as follows (Korean won in millions):

2009

Foreign

Korea W
— 84,576,163 W
— 2,435,344 W
— 87,011,507 97.57
Japan — 239,559 239,559 0.27
Singapore — 302,112 302,112 0.34
Hong Kong — 233,087 233,087 0.26
US — 547,216 547,216 0.61
China — 270,804 270,804 0.30
Other — 572,294 572,294 0.65

— 84,576,163
W W
— 4,600,416 W
— 89,176,579 100.00

2008

Foreign

Korea W
— 81,445,987 W
— 3,633,291 W
— 85,079,278 96.59
Japan — 309,013 309,013 0.35
Singapore — 388,951 388,951 0.44
Hong Kong — 411,508 411,508 0.47
US — 762,905 762,905 0.87
China — 45,270 45,270 0.05
Other — 1,082,741 1,082,741 1.23

— 81,445,987
W W
— 6,633,679 W
— 88,079,666 100.00
HONGKONG:165547.1 F-124
HANA BANK

The maturity of loans in Korean won and loans in foreign currencies as of December 31, 2009 and 2008 is

2009

Foreign

Within 1 month —
W 3,565,006 W
— 403,594 W
— 3,968,600
Later than 5 years 15,766,570 484,956 16,251,526

— 84,576,163
W W
— 4,600,416 W
— 89,176,579

2008

Foreign

Within 1 month —
W 3,052,636 W
— 526,406 W
— 3,579,042
After 1 month but no later than 3 months 9,008,731 1,091,480 10,100,211
After 6 months but no later than 1 year 18,501,251 1,291,997 19,793,248
Later than 5 years 16,054,697 594,480 16,649,177

— 81,445,987
W W
— 6,633,679 W
— 88,079,666
HONGKONG:165547.1 F-125
HANA BANK

Details on the classification of total loans receivable and the related allowance for possible loan losses as of
December 31, 2009 and 2008 (in accordance with the criteria set forth by the FSS) are as follows (Korean won
in millions):

2009

Loans receivable

Pre- Estimated
Normal cautionary Substandard Doubtful loss Total

Loans in Korean won —
W 81,644,548 W
— 1,446,392 W
— 687,243 W
— 128,735 W
— 109,606 W
— 84,016,524
Loans in foreign
currencies 4,179,874 201,633 46,870 5,292 6,786 4,440,455
Bills bought in Korean
won 2,410,040 20,000 — — — 2,430,040
currencies 1,879,520 332 — — 1,245 1,881,097
Domestic import usance 2,397,237 6,703 19,815 — — 2,423,755
Advance payments on
acceptances and
guarantees — 307 1,254 165 4,167 5,893
Credit card loans 780,444 81 1 4 13 780,543
Privately-placed
corporate bonds 2,161,582 15,074 16,000 — 470 2,193,126
Others 1,145,533 36,085 234,149 129,139 1,656 1,546,562

Total loans W
— 96,740,089 W
— 1,726,607 —
W 1,005,332 W
— 263,335 — 126,146 W
W — 99,861,509

receivable (%) 96.87 1.73 1.01 0.26 0.13 100.00
HONGKONG:165547.1 F-126
HANA BANK

2009

Allowance
Pre- Estimated

Loans in Korean won — 774,293
W — 107,769
W — 137,449
W — 71,319
W — 109,606
W — 1,200,436
W
Loans in foreign
Currencies 35,959 14,114 9,374 3,268 6,786 69,501
won 20,768 1,400 — — — 22,168
currencies 16,205 23 — — 1,245 17,473
Domestic import usance 20,601 469 3,963 — — 25,033
Advance payments on
acceptances and
guarantees — 22 251 83 4,166 4,522
Credit card loans 11,707 12 — 2 13 11,734
Privately-placed
corporate bonds 18,543 1,055 3,200 — 470 23,268
Others 9,747 2,527 65,545 87,400 1,656 166,875

W — 127,391
W — 219,782
W — 162,072
W — 126,146
W — 1,544,437
W

Allowance ratio (%) 0.94 7.38 21.86 61.55 100.00 1.55

2008

Loans receivable

Pre- Estimated

— 78,216,725 W
— 1,649,098 W
— 708,611 W 185,598
— W
— 162,029 W
— 80,922,061
Loans in foreign
currencies 6,005,342 75,290 19,333 10,875 8,269 6,119,109
won 2,130,796 — 15,000 — — 2,145,796
currencies 2,740,080 658 426 — 2,945 2,744,109
Domestic import usance 2,713,825 24,026 85 1,184 5,003 2,744,123
Advance payments on
acceptances and
guarantees 2,490 18,296 811 1,641 9,896 33,134
Factoring receivables 110,363 — — — — 110,363
Credit card loans 2,678,072 35,676 488 17,331 9,736 2,741,303
Privately-placed
corporate bonds 1,546,492 74 4,548 1,362 36 1,552,512
Others 18,010 4,305 76,640 625,671 24,764 749,390

Total loans W
— 96,162,195 W
— 1,807,423 W
— 825,942 W
— 843,662 — 222,678 W
W — 99,861,900

receivable (%) 96.30 1.81 0.83 0.84 0.22 100.00
HONGKONG:165547.1 F-127
HANA BANK

2008

Allowance
Pre- Estimated

Loans in Korean won — 734,217
W — 123,441
W — 141,722
W — 103,779
W — 162,029
W — 1,265,188
W
Loans in foreign
currencies 51,608 5,270 3,867 6,562 8,269 75,576
won 18,483 — 3,000 — — 21,483
currencies 23,544 46 85 — 2,945 26,620
Domestic import usance 23,246 1,682 17 592 5,003 30,540
Advance payments on
acceptances and
guarantees 22 1,281 162 820 9,896 12,181
Factoring receivables 958 — — — — 958
Credit card loans 40,170 5,351 98 10,437 9,736 65,792
Privately-placed
corporate bonds 13,302 5 910 681 36 14,934
Others 153 303 15,328 494,137 24,764 534,685

W — 137,379
W — 165,189
W — 617,008
W — 222,678
W — 2,047,957
W

Allowance ratio (%) 0.94 7.60 20.00 73.13 100.00 2.05

Details of total loans receivable requiring classification as part of the determination of the allowance for possible
losses as of December 31, 2009 and 2008 are as follows (Korean won in millions):

2009 2008

Loans — 100,327,246
W — 101,642,398
W
Derivative instruments 1,529,604 661,234
Prepayments regarded as loans 16,958 88,156
Call loans (498,799) (304,092)
Inter-bank loans (719,600) (1,038,496)
Bonds purchased under resale agreement (793,900) (1,187,300)

W — 99,861,900
W

Historical ratios of the allowance for possible loan losses to total loans receivable as of December 31, 2009,
2008, and 2007, are as follows (Korean won in millions):

2009 2008 2007

W — 99,861,900
W — 85,103,196
W
Allowance for possible loan losses 1,544,437 2,047,957 1,139,857

Ratio (%) 1.55 2.05 1.34
HONGKONG:165547.1 F-128
HANA BANK

Details of changes in the allowance for possible loan losses for the years ended December 31, 2009 and 2008

2009 2008

Beginning balance — 2,047,957
W — 1,139,857
W
Changes in present value discounts (571) 4
Debt-to-equity swap (285,022) —
Disposal of non-performing loans (134,974) (45,241)
Write-offs (686,201) (280,627)
Collection of loans written-off in prior periods 34,331 29,884
Provisions of allowance of possible loan losses, net (*) 624,680 1,179,282
Decrease due to spin-off (46,285) —
Others (9,478) 24,798

Ending balance — 1,544,437
W — 2,047,957
W

(*) Provisions on allowance of possible loan losses on the credit card business of the Bank, which was
discontinued due to the spin-off, amounting to W
— 23,756 million for the years ended
December 31, 2009 and 2008, respectively, was included.

Details of restructured loans as of December 31, 2009 and 2008 are as follows (Korean won in millions):

2009



Workout W
— 739,267 W
— (403,642) W
—— W 335,625
—
Others (*) 46,164 (101) (1,976) 44,087

— 785,431
W W
— (403,743) W
— (1,976) —
W 379,712

2008



Workout W
— 71,023 W
— (26,781) W
—— W 44,242
—
Court mediation 248 — — 248
Others (*) 15,386 (101) (1,753) 13,532

— 86,657
W W
— (26,882) — (1,753)
W —
W 58,022

(*) Others represent restructured loans to leasing companies and to companies for which the restructuring
process was completed.

The Bank provided an allowance for possible losses for the restructured loans considering each borrower ’s
repayment ability.
HONGKONG:165547.1 F-129
HANA BANK

Changes in present value discounts originated from troubled debt restructuring for the years ended December

2009 2008

W — 53
W
Increase 794 1,696
Interest income, etc. (571) 4

W — 1,753
W

The Bank sold non-performing loans (“NPL”) with a book value of W
— 990,071 million through several bidding
processes and recognized gross gains of —
W 28,389 million and losses of W
— 132,184 million from the NPL sales
for the year ended December 31, 2009. In addition, the Bank sold mortgage loans with a book value of
— 105,295 million to Korea Asset Management Corporation (“KAMCO”) in 2007 under the condition that the
W
Bank and KAMCO will finalize the selling price based on the valuation results of the mortgage loans. The Bank
recognized losses of —
W 13,529 million for the year ended December 31, 2009 relating to the valuation changes
arising from the mortgage loans sold.

In the aforementioned gains and losses, gain on disposal of loans receivable of the credit card business of the
Bank amounting to W— 14,254 million, which was discontinued due to the spin-off as disclosed in Note 37, was
included.

Changes in deferred loan fees, net of expenses for the years ended December 31, 2009 and 2008 are

2009

Beginning Ending

Deferred loan fees, net of expenses W
— 54,812 W
— 32,024 W
— (30,560) W
— 56,276

2008

Beginning Ending

Deferred loan fees, net of expenses W
— 50,417 W
— 26,287 W
— (21,892) W
— 54,812
HONGKONG:165547.1 F-130
HANA BANK

12. Tangible assets

Changes in tangible assets for the years ended December 31, 2009 and 2008 are as follows (Korean won in
millions):

2009

Decrease
Beginning Transfer in due to Ending
balance Acquisition Disposal (out) Other spin-off balance

Acquisition cost:
Land W
—519,335 W
—16 W
—(3,854) W
—8,977 W
—— W
—— W
—524,474
Buildings 500,098 5,458 (1,582) 5,840 (53) — 509,761
Leasehold improvements 139,863 10,115 (8,646) 38 (118) — 141,252
fixtures 559,531 48,354 (26,096) 3,565 (122) (23,773) 561,459
Construction in-progress 22,373 9,239 — (18,420) — — 13,192

1,741,200 73,182 (40,178) — (293) (23,773) 1,750,138
Buildings 88,518 14,717 (304) — (4) — 102,927
Leasehold improvements 102,955 19,026 (6,948) — (72) — 114,961
fixtures 419,476 72,202 (25,481) — (88) (16,702) 449,407

610,949 105,945 (32,733) — (164) (16,702) 667,295

— 1,130,251
W W (32,763)
— W
—(7,445) W
—- W
—(129) — (7,071) W
W —1,082,843

2008

Beginning Transfer in Ending
balance Acquisition Disposal (out) Other balance

Acquisition cost:
Land W
— 506,812 W
— 4,072 W
— (1,803) —
W 10,254 W
—— W 519,335
—
Buildings 470,064 11,180 (2,459) 21,085 228 500,098
Leasehold improvements 124,047 21,855 (6,541) — 502 139,863
fixtures 518,131 84,739 (45,647) 1,798 510 559,531
Construction in-progress 19,601 35,909 — (33,137) — 22,373

1,638,655 157,755 (56,450) — 1,240 1,741,200
Buildings 75,384 13,377 (244) — 1 88,518
Leasehold improvements 86,962 21,993 (6,256) — 256 102,955
fixtures 391,581 72,473 (44,888) — 310 419,476

553,927 107,843 (51,388) — 567 610,949

— 1,084,728
W W
— 49,912 W
— (5,062) —
W— W 673 —
— W 1,130,251

The value of the Bank’s domestic land, as determined by the government of the Republic of Korea for tax
administration purposes, amounted to W
— 700,686 million as of December 31, 2009.
HONGKONG:165547.1 F-131
HANA BANK

Insured property and equipment as of December 31, 2009 are summarized as follows (Korean won in millions):

2009

Insured amount Insurance period

Buildings — 410,089
W 2009.03.30~2010.03.30
Leasehold improvements 144,648 2009.03.30~2010.03.30
Vehicles, furniture and fixtures 2009.03.30~2010.03.30
35,356
— 590,093
W

13. Intangible assets

Changes in intangible assets for the years ended December 31, 2009 and 2008 are as follows (Korean won in
millions):

2009
Decrease
Beginning due to Ending
balance Acquisition Amortization spin-off balance

Trademark — 33
W W 12
— W (11)
— W—
— W 34
—
Software 62,071 174,945 (37,066) (8,074) 191,876
Other 3,201 2,408 (2,261) — 3,348

— 65,305
W — 177,365
W — (39,338)
W — (8,074)
W — 195,258
W

2008

Beginning Ending
balance Acquisition Amortization balance

Trademark W
— 15 W 37
— W (19)
— W 33
—
Software 44,073 35,236 (17,238) 62,071
Other 777 3,623 (1,199) 3,201

— 44,865
W W
— 38,896 W
— (18,456) W
— 65,305

14. Miscellaneous assets

Details of miscellaneous assets as of December 31, 2009 and 2008 are as follows (Korean won in millions):

2009 2008

Non-business use properties — 13,833
W — 13,833
W
Suspense accounts 81,022 305,751
Deposits to court 3,787 20,687
Receivables from spot exchange 21,782 9,555
Others 1,885 1,724

— 122,309
W — 351,550
W
HONGKONG:165547.1 F-132
HANA BANK

15. Deposits

Deposits as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

Deposit type 2009 2008

Demand deposits: Korean won deposits — 2,954,118
W — 3,966,454
W

4,141,732 5,955,313
Time and savings deposits: Korean won deposits 74,758,232 73,232,269

77,169,928 75,409,450
Certificates of deposits 8,572,765 9,836,728

— 89,884,425
W — 91,201,491
W

Deposits received from financial institutions, excluding BOK deposits, as of December 31, 2009 and 2008 are

2009

Other financial

Demand deposits:
— 3,479 W 148,569
— W
— 152,048

3,479 178,675 182,154

2,541,618 11,638,041 14,179,659
Certificates of deposits 73,775 1,664,784 1,738,559

— 2,618,872
W W
— 13,481,500 — 16,100,372
W

2008

Other financial

Demand deposits:
— 3,359 W 844,637
— W
— 847,996

3,359 884,587 887,946

5,511,686 5,883,431 11,395,117
Certificates of deposits 99,132 804,842 903,974

— 5,614,177
W W
— 7,572,860 — 13,187,037
W
HONGKONG:165547.1 F-133
HANA BANK

Maturities of deposits as of December 31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009

Time and

Within 1 month —
W 969,418 W
— 10,446,764 W
— 2,421,483 W
— 13,837,665
Later than 5 years — 513,390 — 513,390

— 4,141,732
W W
— 77,169,928 W
— 8,572,765 W
— 89,884,425

2008

Time and

Within 1 month —
W 2,425,813 W
— 14,397,722 W
— 1,373,303 W
— 18,196,838
Later than 5 years — 416,735 — 416,735

— 5,955,313
W W
— 75,409,450 W
— 9,836,728 W
— 91,201,491

16. Borrowing liabilities

Borrowing liabilities as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

2009 2008

Borrowings — 6,008,757
W — 8,419,970
W
Debentures, net 15,206,963 15,583,820
Other borrowings 4,232,583 5,117,482

— 25,448,303
W — 29,121,272
W
HONGKONG:165547.1 F-134
HANA BANK

16-1. Borrowings

Borrowings as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

Annual interest
Lender rate (%) 2009 2008

BOK borrowings BOK 1.3 —
W 494,366 W
— 588,801
Financial fund borrowings Korean gov. 2.0~4.6 75,424 106,010
Other borrowings Small corporations, etc. 0.0~5.5 1,163,391 1,181,833
Bank overdrafts Foreign banks, etc. — 37,528 69,646
Bank borrowings LBBW, etc. 0.9~6.8 4,238,048 6,443,500
Offshore — 30,180

— 6,008,757
W — 8,419,970
W

16-2. Debentures and other borrowings

Debentures as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

Annual interest

Korean won:
Subordinated bonds Various investors 5.1~8.4 W
— 3,443,699 W
— 3,293,618
Other bonds Financial institutions 2.8~8.0 8,401,372 9,821,078

11,845,071 13,114,696
Less present value
discounts (5,510) (85,446)

11,839,561 13,029,250
Foreign currencies:
Debentures(*) Citibank Korea, etc. 3.0~6.5 1,573,369 988,040
Subordinated bonds JP Morgan, etc. 5.4~8.7 1,353,170 1,489,970
Floating rate bonds RBS, Barclays, etc. 3M Hibor+1.02 30,112 32,443
3M Libor+0.45 23,352 25,150
3M Libor+1.20 23,352 25,150
6M Libor+1.84~2.66 263,866 —
1Y Libor+2.15~4.35 114,191 —

3,381,412 2,560,753
Less present value
discounts (14,010) (6,183)

3,367,402 2,554,570

— 15,206,963
W — 15,583,820
W

(*) The Korean government provides the Bank with a guarantee of USD1,291,900 thousand.
HONGKONG:165547.1 F-135
HANA BANK

Details of subordinated bonds as of December 31, 2009 and 2008 are as follows (Korean won in millions):

Annual interest

Korean won:
Subordinated bonds Over due 5.2~7.7 W
— 1,156 —
W 1,082
Within 3 months 5.2~5.3 99,999 100,000
After 3 months but no — — —
later than 6 months
After 6 months but no — — 149,993
later than 1 year
After 1 year but no later 5.1~5.2 599,544 99,999
than 2 years
After 2 years but no 5.3~5.4 1,000,000 599,544
later than 3 years
After 3 years but no — — 1,000,000
later than 4 years
After 4 years but no 6.1~8.4 742,500 —
later than 5 years
Later than 5 years 6.5~8.0 1,000,500 1,343,000

3,443,699 3,293,618

Foreign currencies:
Subordinated bonds After 1 years but no 5.9 495,127 —
later than 2 years
After 2 years but no 5.4~8.7 858,043 546,108
later than 3 years
After 3 years but no — — 943,862
later than 4 years

1,353,170 1,489,970

— 4,796,869
W — 4,783,588
W

Other borrowings as of December 31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009 2008

Bonds sold under repurchase agreements:
W — 1,286,511
W
Foreign currencies 292,872 305,576

1,223,421 1,592,087
Bills sold:
Notes sold 674,499 1,064,164

674,499 1,064,164
Call money:
Korean won 607,900 —
Foreign currencies 1,726,763 2,461,231

2,334,663 2,461,231

— 4,232,583
W — 5,117,482
W
HONGKONG:165547.1 F-136
HANA BANK

16-3. Borrowing liabilities concentrations
Concentrations of borrowings from financial institutions as of December 31, 2009 and 2008 consist of the
following (Korean won in millions):

2009

Other financial

Borrowings W
— 494,366 W
— 4,320,162 W
— 42,078 W
— 4,856,606
Debentures — 3,003,355 11,401,930 14,405,285

— 642,566
W W
— 9,283,660 W
— 12,091,401 W
— 22,017,627

2008

Other financial

Borrowings W
— 588,801 W
— 6,591,397 W
— 34,954 W
— 7,215,152
Debentures — 2,512,968 12,091,363 14,604,331

— 737,001
W W
— 11,997,429 W
— 12,453,099 W
— 25,187,529

16-4. Maturity of borrowing liabilities

Maturities of borrowing liabilities as of December 31, 2009 and 2008 are as follows (Korean won in millions):

2009

Other
Borrowings Debentures orrowings Total

Within 1 month —
W 1,311,273 W
— 241,156 W
— 2,240,292 W
— 3,792,721
After 1 month but no later than 3 months 1,660,890 857,136 1,199,478 3,717,504
Later than 5 years 545,895 1,411,961 — 1,957,856

— 6,008,757
W W
— 15,226,483 4,232,583 W
— 25,467,823

2008

Other

Within 1 month —
W 2,529,968 W
— 644,868 W
— 872,747 W
— 4,047,583
After 1 month but no later than 3 months 2,541,041 2,055,039 2,787,204 7,383,284
After 3 years but no later than 5 years 299,627 2,673,249 — 2,972,876
Later than 5 years 703,089 1,799,311 — 2,502,400

— 8,419,970
W W
— 15,675,449 W
— 5,117,482 W
— 29,212,901
HONGKONG:165547.1 F-137
HANA BANK

17. Severance and retirement benefits

Changes in severance and retirement benefits for the years ended December 31, 2009 and 2008 are as follows

2009 2008

W — 272,135
W
Payments during the year (80,745) (105,237)
Other (5) 19
Decrease due to spin-off (677) —

Ending balance 207,040 227,927
Deposits for severance and retirement (189,135) (177,895)
Prepayment to the NPS (223) (365)

W — 49,667
W

18. Acceptances and guarantees

Acceptances and guarantees as of December 31, 2009 and 2008 are as follows (Korean won in millions):

2009 2008

Confirmed acceptances and guarantees in Korean won:
Corporate debentures —
W 630 W
— 1,176
Collateral for loans 20,001 55,773
Others (*) 2,015,685 1,947,411

2,036,316 2,004,360
Confirmed acceptances and guarantees in foreign currencies:
Acceptances on letters of credit 931,974 820,559
Acceptances for letters of guarantee for importers 48,796 44,103
Others (*) 3,230,445 2,727,013

4,211,215 3,591,675
Contingent acceptances and guarantees:
Letters of credit and others 3,105,643 3,337,095
Bills endorsed 6,011 1,572

— 9,359,185
W — 8,934,702
W

(*) thers consist of acceptances and guarantees for the return of advances related to export, overseas
bidding, and contractual obligations.

Details of classification of acceptances and guarantees and allowance for possible losses on acceptances and
guarantees as of December 31, 2009 and 2008 are summarized as follows (Korean won in millions):
HONGKONG:165547.1 F-138
HANA BANK

2009



amount Allowance amounts Allowance amount Allowance amount Allowance (%)

Normal W
—2,030,733 W
—16,254 W
—7,182,369 W
—24,795 W
—6,011 W
— 54 W
— 9,219,113 W
—41,103 0.45
Precautionary 4,284 289 62,613 412 — — 66,897 701 1.05
Substandard 1,297 259 71,549 14,310 — — 72,846 14,569 20.00
Doubtful — — — — — — — — —
Estimated loss 2 2 327 327 — — 329 329 100.00

W
—2,036,316 W
—16,804 W
—7,316,858 W
—39,844 W
—6,011 W
— 54 W
— 9,359,185 W
—56,702 0.61

2008



amount Allowance amounts Allowance amount Allowance amount Allowance (%)

Normal W
—2,001,687 W
—16,687 W
—6,892,925 W
—18,536 W
—1,572 W
— 13 W
— 8,896,184 W
—35,236 0.40
Precautionary 2,436 151 4,795 98 — — 7,231 249 3.44
Substandard 148 30 24,109 4,792 — — 24,257 4,822 19.88
Doubtful — — 3,964 672 — — 3,964 672 16.95
Estimated loss 89 89 2,977 249 — — 3,066 338 11.02

W
—2,004,360 W
—16,957 W
—6,928,770 W
—24,347 W
—1,572 W
— 13 W
— 8,934,702 W
—41,317 0.46

Historical ratios of allowance for possible losses on acceptances and guarantees to total acceptances and
guarantees as of December 31, 2009, 2008, and 2007 are as follows (Korean won in millions):

2009 2008 2007

Total acceptances and guarantees — 9,359,185
W — 8,934,702
W — 6,599,579
W
Allowance for possible losses on acceptances
and guarantees 56,702 41,317 24,265

Ratio (%) 0.61 0.46 0.37
HONGKONG:165547.1 F-139
HANA BANK

Concentrations of acceptances and guarantees by country as of December 31, 2009 and 2008 are summarized

2009

Confirmed acceptances
Contingent Total
and guarantees
acceptances
Korean Foreign and Bills Ratio
won currencies guarantees endorsed Amounts (%)

Korea — 2,036,316 W
W — 3,318,260 W
— 2,977,185 — 6,011 —
W W 8,337,772 89.09
US — 21,349 2,766 —
24,115 0.26
Singapore — 254,875 116,055 — 370,930 3.96
Hong Kong — 381,239 8,319 — 389,558 4.16
Japan — 1,745 1,318 — 3,063 0.03
Others — 233,747 — — 233,747 2.50

— 2,036,316 W
W — 4,211,215 W
— 3,105,643 — 6,011
W W 9,359,185
— 100.00

2008

Contingent Total
and guarantees
acceptances

Korea — 2,004,360 W
W — 2,881,704 W
— 3,201,835 — 1,572 W
W — 8,089,471 90.54
US — 18,087 22,798 —
40,885 0.46
Singapore — 376,870 85,516 — 462,386 5.18
Hong Kong — 60,494 23,761 — 84,255 0.94
Japan — 2,538 3,185 — 5,723 0.06
Others — 251,982 — — 251,982 2.82

— 2,004,360 W
W — 3,591,675 W
— 3,337,095 — 1,572
W — 8,934,702
W 100.00

Concentrations of acceptances and guarantees by industry as of December 31, 2009 and 2008 are summarized

2009

Contingent Total
and guarantees
acceptances

Manufacturing W
— 1,097,270 W
— 2,382,276 W
— 2,206,412 — 1,112 W
W — 5,687,070 60.77
Construction 42,833 239,252 93,093 — 375,178 4.01
Wholesale and retail 415,971 1,196,360 671,668 4,899 2,288,898 24.46
Transport and storage 13,484 67,433 732 — 81,649 0.87

— 2,036,316 —
W W 4,211,215 W
— 3,105,643 W
— 6,011 W
— 9,359,185 100.00
HONGKONG:165547.1 F-140
HANA BANK

2008

Contingent Total
and guarantees
acceptances

Manufacturing W
— 887,718 W
— 2,547,484 W
— 2,676,617 W
— 1,534 —
W 6,113,353 68.42
Construction 144,281 72,437 87,748 — 304,466 3.41
Wholesale and retail 401,585 560,125 393,151 38 1,354,899 15.16
Financial services 8,259 272,173 606 — 281,038 3.15
Transport and storage 13,951 65,540 11,555 — 91,046 1.02

— 2,004,360 W
W — 3,591,675 W
— 3,337,095 W
— 1,572 —
W 8,934,702 100.00

19. Allowances for unused commitments

Unused commitments of December 31, 2009 and 2008 are as follows (Korean won in millions):

2009 2008

Commitments on loans in Korean won — 23,049,442
W — 29,740,306
W
Commitments on loans in foreign currencies 8,624,529 10,401,451
Commitments on off-shore loans in foreign currencies 11,181 13,497
Commitments on purchase of asset-backed commercial papers (*) 1,498,642 2,900,060
Commitments on credit lines on asset-backed securities (*) 278,726 456,000
Commitments on purchase of securities 459,156 296,406

— 33,921,676
W — 43,807,720
W

(*) The Bank has entered into credit line facilities and commercial paper (“CP”) purchase commitments with
several special purpose companies (the “SPCs”), which were established for asset-backed securitization,
to enhance the liquidity of the SPCs. In accordance with those commitments, the Bank is subject to
providing liquidity to these SPCs with an aggregate limit of —
W 278,726 million for asset-backed securities
or purchase CPs issued by the SPCs with an aggregate limit of W — 2,416,200 million when these SPCs are
not able to repay the principal or interest on the asset-backed securities and CPs. The Bank has
purchased CPs amounting to W
— 917,558 million in connection with these commitments as of December 31,
2009.

Historical ratios of allowance for losses on unused commitments to total unused commitments as of December
31, 2009, 2008 and 2007, are as follows (Korean won in millions):

2009 2008 2007

Unused commitments — 33,462,520
W — 43,511,314
W — 43,946,015
W
Allowance for possible losses on unused
commitments 129,464 160,551 152,686

Ratio (%) 0.39 0.37 0.35
HONGKONG:165547.1 F-141
HANA BANK

20. Other allowances

Changes in the other allowances for the years ended December 31, 2009 and 2008 are as follows (Korean won
in millions):

2009

Beginning Increase Decrease due Ending
balance (decrease) to spin-off balance

— 20,143 W
— 3,025 W
— (23,168) —
W—
Allowance for lawsuits 101,677 (46,377) — 55,300
Others 12,908 (6,201) (867) 5,840

— 134,728
W W
— (49,553) W
— (24,035) 61,140

2008

Beginning Increase Ending
balance (decrease) balance

— 40,561 W
— (20,418) W
— 20,143
Allowance for lawsuits 87,601 14,076 101,677
Others 4,960 7,948 12,908

— 133,122
W W
— 1,606 W
— 134,728

21. Miscellaneous liabilities

Miscellaneous liabilities as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

2009 2008

Subscription deposits received (*) — 6,082
W — 21,198
W
Suspense receipts (*) 19,804 93,509
Account for agency business 105,204 107,960
Deposits for guarantees 136,462 101,373
Withholding taxes 50,752 74,354
Deposits held by agency relationship 589,648 463,796
Other 13,176 29,244

— 921,128
W — 891,434
W

(*) Subscription deposits received represent temporary security deposits required in subscribing for equity
securities or debt securities. Suspense receipts consist of teller ’s accounts surplus, fiscal stamp sales
and other transactions which were required to be recognized by the Bank in accordance with the
HONGKONG:165547.1 F-142
HANA BANK

22. Assets and liabilities denominated in foreign currencies

Significant assets and liabilities denominated in foreign currencies as of December 31, 2009 and 2008 are as
follows (Korean won in millions or U.S. dollar in thousands):

2009
Amount in
foreign
currency Korean won
Account Currency in units U.S. dollars (*) equivalent

Assets:
W
JPY 3,433,621,547 37,136 43,361
EUR 29,466,090 42,253 49,334
Others 29,238 34,138

148,804 173,744
JPY 385,232,214 4,166 4,864
EUR 1,182,559 1,696 1,980
Others 14,544 16,982

360,290 420,675
Securities USD 1,232,057,368 1,232,057 1,438,551
JPY 2,000,000,000 21,631 25,256
EUR 8,898,301 12,760 14,898
Others 344,716 402,491

1,611,164 1,881,196
Loan receivables (including domestic USD 4,129,246,269 4,129,246 4,821,307
import u JPY 160,609,608,368 1,737,101 2,028,239
EUR 86,107,172 123,474 144,168
Others 26,085 30,457

6,015,906 7,024,171
JPY 2,414,183,193 26,111 30,487
EUR 232,766,884 333,776 389,717
Others 101,382 118,373

1,611,081 1,881,097

Privately-placed debentures USD & Other 95,528 111,538
Call loans USD & Other 427,200 498,799
Others USD & Other 737,153 860,699

US$11,007,126 — 12,851,919
W
HONGKONG:165547.1 F-143
HANA BANK

2009

Liabilities:
Deposits USD 2,158,207,058 US$ 2,158,207 — 2,519,922
W
JPY 27,044,401,541 292,500 341,523
EUR 117,198,784 168,061 196,228
Others 463,889 541,637

3,082,657 3,599,310
JPY 31,286,401,101 338,379 395,091
EUR 210,660,141 302,076 352,704
Others 27,590 32,214

3,912,683 4,568,448
Call money USD & Other 1,478,899 1,726,763
Debentures USD & Other 2,896,036 3,381,412
JPY 861,089,542 9,313 10,874
EUR 1,332,215 1,912 2,232
Others 1,014 1,184

89,857 104,917
Others USD & Other 1,398,415 1,632,790

US$12,858,547 — 15,013,640
W

Acceptances and guarantees outstanding: USD 3,399,449,045 US$ 3,399,449 — 3,969,197
W
JPY 5,055,378,325 54,676 63,840
EUR 52,715,589 75,592 88,261
Others 77,010 89,917

US$ 3,606,727 — 4,211,215
W
HONGKONG:165547.1 F-144
HANA BANK

2008
Amount in
foreign
currency Korean won
Account Currency in units U.S. dollars (*) equivalent

Assets:
W
JPY 4,191,221,368 46,460 58,421
EUR 29,163,200 41,193 51,800
Others 21,231 26,700

150,986 189,864
Due from banks USD 1,610,077,008 1,610,077 2,024,672
JPY 926,582,014 10,270 12,914
EUR 2,728,616 3,857 4,851
Others 26,845 33,757

1,651,049 2,076,194
Securities USD 915,079,666 915,080 1,150,713
JPY 4,000,000,000 44,338 55,756
EUR 67,610 95 120
Others 326,546 410,728

1,286,059 1,617,317
Loan receivables(including domestic USD 5,345,627,496 5,345,627 6,722,127
import u JPY 178,083,607,246 1,973,938 2,482,227
EUR 79,978,502 112,906 141,979
Others 25,026 31,469

7,457,497 9,377,802
JPY 7,934,044,320 87,946 110,592
EUR 154,807,537 218,666 274,972
Others 134,582 169,237

2,182,194 2,744,109

Privately-placed debentures USD & Other 149,938 188,547
Call loans USD 162,300 204,092
Others USD & Other 3,175,553 3,993,258

US$16,215,576 — 20,391,183
W
HONGKONG:165547.1 F-145
HANA BANK

2008

Amount in
foreign

Liabilities:
Deposits USD 2,805,049,290 US$ 2,805,049 — 3,527,349
W
JPY 20,327,132,757 225,324 283,337

EUR 160,469,670 226,665 285,031
Others 55,922 70,323

3,312,960 4,166,040
JPY 46,438,198,213 514,765 647,297

EUR 282,347,168 398,668 501,325
Others 10,977 13,804

5,446,458 6,848,902
Call money USD & Other 1,957,241 2,461,231
Debentures USD & Other 2,036,374 2,560,753
JPY 828,782,993 9,187 11,552

EUR 1,789,981 2,528 3,179
Others 14,135 17,775

122,515 154,063
Others USD & Other 2,675,496 3,364,437

US$15,551,044 — 19,555,426
W

Acceptances and guarantees outstanding: USD 2,707,770,004 US$ 2,707,770 — 3,405,021
W

JPY 5,141,241,976 56,989 71,663
EUR 25,895,778 36,578 45,997

Others 54,866 68,994

US$ 2,856,203 — 3,591,675
W

(*) All foreign currencies other than the U.S. dollar are expressed in the equivalent of U.S. dollars at the
reporting date.

23. Commitments and contingencies

23-1. Derivative instruments

The Bank’s derivative instruments are divided into trading derivatives and hedge derivatives, based on the
nature of each transaction. The Bank enters into hedge transactions mainly for purposes of hedging the fair
value risk related to changes in fair value of the underlying assets and liabilities.

Trading derivatives include derivative instruments related to managing trading and asset-liability management
exposures to fluctuations in interest rates, foreign exchange risks, and stock prices and so on. In addition, future
contracts, forward contracts, swaps and options entered into by the Bank to meet the financing needs of its
customers and to generate profits from arbitrage transactions between customers and other banks are
accounted for as trading derivative transactions.
HONGKONG:165547.1 F-146
HANA BANK

Hedge derivatives mainly consist of interest rate swaps to hedge the fair value changes of debentures and other
obligations arising from interest rate fluctuations. However, for a hedge relationship where the hedged item is
an asset or a liability that is re-measured with the changes in fair value attributable to the hedged risk is credited
or charged to current operations, or where the hedged item cannot be specifically identified are treated as
trading derivative transactions.

The notional amounts of outstanding for derivative contracts as of December 31, 2009 and 2008 are as follows

Notional amounts

2009 2008

Trading Hedging Total Trading Hedging Total

Currency:
Forward W
— 87,121,613 W
—— W 87,121,613
— W
— 770,025,57 W
—— —
W 770,025,570
Futures 1,197,070 — 1,197,070 1,604,318 — 1,604,318
Swap 14,437,909 — 14,437,909 17,039,325 — 17,039,325
Options bought 2,785,674 — 2,785,674 9,122,818 — 9,122,818
Options sold 3,568,916 — 3,568,916 10,930,256 — 10,930,256

109,111,182 — 109,111,182 115,722,287 — 115,722,287
Interest:
Forward 6,743 — 6,743 — — —
Futures 110,141 — 110,141 280,511 — 280,511
Swap 52,876,176 1,246,427 54,122,603 48,370,922 2,706,882 51,077,804
Options bought 2,050,000 — 2,050,000 3,000,000 — 3,000,000
Options sold 3,829,280 — 3,829,280 1,735,980 — 1,735,980

58,872,340 1,246,427 60,118,767 53,387,413 2,706,882 56,094,295
Stock:
Futures 35,600 — 35,600 11,752 — 11,752
Options bought 391,127 — 391,127 331,851 — 331,851
Options sold 1,058,766 — 1,058,766 639,329 — 639,329

1,485,493 — 1,485,493 982,932 982,932
Credit derivatives:
Bought — — — 27,575 — 27,575
Sold — — — 16,976 — 16,976

— — — 44,551 — 44,551
Others:
Bought 197,689 — 197,689 180,688 — 180,688
Sold 180,175 — 180,175 117,813 — 117,813

377,864 — 377,864 298,501 — 298,501

— 169,846,879 W
W — 1,246,427 W
— 171,093,306 W
— 170,435,684 W
— 2,706,882 W
— 173,142,566

For a derivative transaction involving both Korean won and foreign currency, the fair value of unsettled amount
of such transaction is presented using the basic foreign exchange rate of the contract amount in foreign
currency. For a derivative transaction involving only foreign currency, the fair value of unsettled amount is
presented using the basic foreign exchange rate of the foreign currency purchased at the reporting date.
HONGKONG:165547.1 F-147
HANA BANK

Unsettled derivative contracts and the related unrealized valuation gains (losses) for the years ended December
31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009



Currency:
Forwards — (282,579)
W W
—— W (282,579)
— — 1,898,766
W — 927,739
W
Swap 441,087 — 441,087 419,913 1,198,127
Options bought (166,364) — (166,364) 308,574 —
Options sold 130,949 — 130,949 — 157,850

123,093 — 123,093 2,627,253 2,283,716
Interest rate:
Forwards 11 — 11 11 —
Swap 85,138 (25,216) 59,922 520,721 844,493
Options bought (15,641) — (15,641) 33,463 —
Options sold 20,876 — 20,876 — 36,820

90,384 (25,216) 65,168 554,195 881,313
Stock:
Options bought 19,558 — 19,558 196,252 —
Options sold (15,087) — (15,087) — 67,848

4,471 — 4,471 196,252 67,848
Others:
Bought 911 — 911 13,702 —
Sold (1,534) — (1,534) — 14,345

(623) — (623) 13,702 14,345

— 217,325
W — (25,216)
W — 192,109
W — 3,391,402
W — 3,247,222
W
HONGKONG:165547.1 F-148
HANA BANK

2008



Currency:
Forwards W
— 2,881,070 W
—— W 2,881,070
— W
— 6,427,729 W
— 3,526,638
Swap (1,731,863) — (1,731,863) 682,145 2,386,123
Options bought 1,003,129 — 1,003,129 1,283,336 —
Options sold (518,029) — (518,029) — 763,139

1,634,307 — 1,634,307 8,393,210 6,679,900
Interest rate:
Swap (462,033) 133,537 (328,496) 897,218 1,335,386
Options bought 28,927 — 28,927 56,720 —
Options sold (24,853) — (24,853) — 39,973

(457,959) 133,537 (324,422) 953,938 1,375,359
Stock:
Options bought 112,585 — 112,585 181,661 —
Options sold 9,067 — 9,067 — 31,888

121,652 — 121,652 181,661 31,888
Credit derivatives:
Bought 1,934 — 1,934 2,172 —
Sold (1,948) — (1,948) — 2,387

(14) — (14) 2,172 2,387
Others:
Bought (20,526) — (20,526) 13,116 —
Sold 7,938 — 7,938 — 13,112
(12,588) — (12,588) 13,116 13,112

— 1,285,398
W W
— 133,537 W
— 1,418,935 W
— 9,544,097 W
— 8,102,646

Unrealized gains and losses from fair value hedge accounting by type of the underlying assets or liabilities for
the years ended December 31, 2009 and 2008 are as follows (Korean won in millions):

2009 2008

Gains Losses Gains Losses

W 306 W
— 1,278 W
— 2,731 W 125
—
Loans — 755 — 204
Deposits 12,369 1,183 — 22,788
Debentures 34,832 771 646 118,370

— 47,507
W W
— 3,987 W
— 3,377 W
— 141,487
HONGKONG:165547.1 F-149
HANA BANK

23-2. Lawsuits

As of December 31, 2009, the Bank is involved in 395 lawsuits as a plaintiff and 128 lawsuits as a defendant.
The aggregate amount of claims as a plaintiff and a defendant amounted to approximately W — 172,686 million and
— 117,492 million, respectively. The Bank’s material lawsuits in progress as a defendant are as follows (Korean
W
won in millions):

2009

Status of lawsuit

Plaintiff Amount First trial On appeal Content

LIG insurance — 33,058
W In-progress — Payment of deposit (*)
Mr. Park 17,839 Partially loss In-progress Damages (*)
BSE Co., Ltd. 14,508 In-progress — Disgorge of improper gains
217 individuals 7,611 Partially loss In-progress Return of investments (*)

(*) The Bank recorded a provision for loss for this lawsuit as it has met the criteria of provisioning (refer to
Note 20).

23-3. Written-off loans

The Bank’s written-off loans and receivables, for which the claim rights have not expired, amount to W
— 1,007,595
million as of December 31, 2009 (W — 625,040 million as of December 31, 2008).

24. Capital stock

The Bank is authorized to issue 2,000 million shares of common stock with a par value of W
— 5,000 per share.
As of December 31, 2009, common shares issued amounted to — W 1,147,404 million.

The Bank issued additional capital stock during the year ended December 31, 2009. In addition, the Bank’s
capital stock was reduced by —
W 39,757 million due to credit card business spin-off (refer to Note 37). The
changes during the year ended December 31, 2009 are as follows (Korean won in millions):

2009

Paid-in capital in
Number of shares excess of par
Extraordinary shareholders meeting approval date issued (reduced) Capital stock value

2009.1.20 2,500,000 W
— 12,500 W
— 87,434
2009.5.8 (7,951,326) (39,757) (88,535)

(5,451,326) W
— (27,257) W
— (1,101)

25. Capital surplus

Capital surplus as of December 31, 2009 and 2008 consists of the following (Korean won in millions):

2009 2008

Paid-in capital in excess of par value — 2,447,370
W — 2,448,471
W
Gain on business combination 97,992 97,992
Other capital surplus
178,787 173,706

— 2,724,149
W — 2,720,169
W
HONGKONG:165547.1 F-150
HANA BANK

The gain on business combination represents the difference between the consideration paid and the net asset
value acquired from the merger with Boram Bank on January 1, 1999. Other capital surplus includes gain on
disposal of treasury stock, gain on stock option transactions related to HFG common shares and gain on
acquisition of additional equity interests in the Bank’s subsidiaries. Capital surplus may not be utilized for cash
dividends but may only be used to offset a future deficit, if any, or be transferred to capital stock.

26. Comprehensive income

Comprehensive income for the years ended December 31, 2009 and 2008 is as follows (Korean won in millions):

2009 2008

Net income — 273,930
W W
— 474,361
Other comprehensive income:
Gain (loss) on valuation of available-for-sale securities, net
W (67,552) and — W 253,903 for the years
ended December 31, 2009 and 2008) 237,396 (654,390)
Changes in gain on valuation of securities using the equity method
W 3,246 and —
W (1,940) for the years ended
December 31, 2009 and 2008) (11,506) 12,561
Changes in loss on valuation of securities using the equity method
W (32) and —
W (181) for the years ended
December 31, 2009 and 2008) 110 397

Comprehensive income (loss) —
W 499,930 W
— (167,071)

Accumulated other comprehensive income as of December 31, 2009 and 2008 consists of the following (Korean
won in millions):

2009 2008

Net unrealized gains on available-for-sale securities — 295,855
W — 58,459
W
Equity method securities valuation adjustments 17,323 28,719

— 313,178
W — 87,178
W

27. Retained earnings

Retained earnings as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

2009 2008

Legal reserve:
Legal reserve (*1) — 668,400
W — 620,900
W
Other reserve (*2) 11,485 12,089

679,885 632,989
Voluntary reserve:
Reserve for business rationalization 10,600 10,600
Reserve for financial structure improvement (*3) 84,200 84,200
Other voluntary reserve 4,155,121 3,743,605

4,249,921 3,838,405

— 4,929,806
W — 4,471,394
W

(*1) The Banking Act requires the Bank to appropriate a minimum of 10% of annual net income as a legal
reserve when the Bank pays dividend from net income until the legal reserve equals paid-in capital. This
reserve is only available for transfer to capital stock or to be used to reduce an accumulated deficit.
HONGKONG:165547.1 F-151
HANA BANK

(*2) The Tokyo branch of the Bank appropriates up to 10% of net income as legal reserve in accordance with
the relevant banking laws and regulation of Japan.

(*3) Pursuant to the Financial Supervisory Service’s recommendation, since 2002, the Bank appropriates a
minimum of 10% of its net income (after offsetting any accumulated deficit) as a reserve for financial
structure improvement until the capital adequacy ratio reaches 5.5%. This reserve may not be utilized for
cash dividends but may only be used to offset a deficit, if any, or be transferred to capital.

Details of dividends declared for 2009 are as follows:

Final dividend

Date of dividend December 31, 2009
Number of shares (A) 219,799,157 shares
Dividend ratio (B/C) 8%
Dividend per share (B) —
W 400
Par value (C) —
W 5,000
Dividends (A x B) W
— 87,919,662,800

The dividend payout ratio for 2009 is as follows:

2009

Dividends (A) —
W 87,919,662,800
Net income (B) W
— 273,929,388,524

Dividend pay out ratio (A/B) 32.1%

The 2009 final dividend will be proposed for the shareholder ’s approval at the annual general meeting to be held
on March 25, 2010.

28. Share-based payment transaction

The Bank granted stock options (stock appreciation rights) to the Bank’s employees and directors which will be
settled by cash payment equal to the difference between market value and exercise price when exercised.
Accordingly, the Bank accounted for the expected compensation costs for stock options granted by the Bank as
a liability in accrued expenses.

The details of stock options granted by the Bank as of December 31, 2009 are summarized as follows:

Fifth Sixth

Grant date 2004.3.26 2005.3.28
Settlement method Cash Cash
Exercisable period (*) (*)

(*) Exercisable within three years after the two years vesting period from the grant date.
HONGKONG:165547.1 F-152
HANA BANK

Changes in stock options granted by the Bank for the year ended December 31, 2009 are summarized as follows

Granted options

Exercise
Beginning Exercised Extinguishment Ending Exercisable price

Fifth 230,580 — (230,580) — — —-
W
Sixth 651,000 (205,000) (23,000) 423,000 423,000 — 28,300
W

In addition, HFG granted stock options to the Bank’s employees and directors which may be settled by issuance
of additional shares of HFG or by cash payment at the discretion of HFG. The Bank accounted for the
compensation costs for stock options granted by HFG as a liability in accrued expenses.

The details of share options granted by HFG as of December 31, 2009 are summarized as follows:

First Second Third

Grant date March 24, 2006 March 23, 2007 March 28, 2008
Settlement method (*1) (*1) (*1)
Exercisable period (*2) (*2) (*2)
All assumptions used estimation of fair value for
share options:
Fair value measurement model Black-Sholes Black-Sholes Black-Sholes
Risk free rate 5.00% 4.76% 5.18%
Expected exercise period 3.5 year 3.5 year 3.5 year
Estimated share volatility 50.45% 34.00% 30.40%
Estimated dividend W
—— W 2,792
— W
— 3,999
Stock price at grant date —
W 45,750 W
— 49,450 — 41,100
W
Fair value of share options —
W 19,633 W
— 13,430 — 9,659
W

(*1) HFG chooses one of the followings: new equity issue grant, treasury stock grant or cash settlement at its
discretion.

(*2) The above stock options will vest after a two-year vesting period and become exercisable within 3 years
after the vesting date, except if the Bank’s employees or directors retire at the regular retirement age or
for reasons not attributable to the fault of the employees or directors, such options will vest and become
exercisable immediately within six months from the retirement date (one year for the second granted
options), or if death of a Bank employee or director occurs, such options will vest and become exercisable
immediately within one year from the date of death. In addition, if a Bank employee or director is
terminated voluntarily after the options have become vested, such options should be excercised within 30
days from the termination date.

Changes in share options granted by HFG for the year ended December 31, 2009 are summarized as follows

Granted shares

Exercise
Beginning Transfer Extinguishment Ending Exercisable price

First 760,000 — (152,000) 608,000 608,000 — 44,400
W
Second 884,840 (23,600) (132,640) 728,600 728,600 — 49,900
W
Third 257,000 — (137,000) 120,000 — —
HONGKONG:165547.1 F-153
HANA BANK

The Bank debited compensation costs of —
W 3,962 million for share options granted by the Bank and W
— 1,089
million for share options granted by HFG, which are measured using the intrinsic value method and fair value
method over the vesting period, respectively, to payroll expenses for the year ended December 31, 2009.
Compensation cost to be recognized within 1 year after December 31, 2009 is —W 145 million.

The Bank’s share-based payment liability recorded in accrued expenses amounted to —
W 25,898 million and
— 27,260 million as of December 31, 2009 and 2008, respectively.
W

29. Income taxes

For the year ended December 31, 2009, the Bank is subject to corporate income taxes, including resident
surtax, at the aggregate rates of 12.1% on taxable income up to W
— 200 million and 24.2% on taxable income in
excess of W
— 200 million. The aggregate tax rate will be reduced to 22% from 2012 and thereafter on taxable
income in excess of W
— 200 million.

The major components of income tax expense for the years ended December 31, 2009 and 2008 are as follows

2009 2008

Current income taxes (*1) — 243,961
W — (14,311)
W

Deferred income taxes:
- Tax effect of temporary differences (237,774) 34,109
- Tax effect of tax loss carry forwards, etc. 157,193 (125,989)

163,380 (106,191)
Current and deferred income taxes recognized directly to equity (64,335) 255,012

Income tax expense (*2) — 99,045
W — 148,821
W

(*1) Any additional tax payment or refund was included in the current income taxes.

(*2) Income tax expense for the credit card business of the Bank, which was discontinued due to spin-off,
amounting to W — 11,242 million and W
— 29,335 million for the years ended December 31, 2009 and 2008,
respectively, was included.

Reconciliations of income tax expense applicable to income before income taxes at the Korea statutory tax rate
to income tax expense at the effective income tax rate of the Bank are as follows (Korean won in millions):

2009 2008

Income before income taxes (A) (*1) — 372,975
W — 623,182
W

Tax at the statutory income tax rate of 24.2% — 90,236
W — 171,344
W
Adjustments:
Income not subject to tax (3,477) (1,693)
Expenses not deductible for tax purposes 4,500 5,084
Deferred tax assets (liabilities) not recognized 2,835 (16,672)
Income tax expense of foreign branches 9,812 4,360
Refund of prior year ’s income tax (18,380) (18,670)
Effect of tax rates change (*2) 13,519 5,068

Income tax expense (B) (*3) — 99,045
W — 148,821
W

Effective income tax rate (B)/(A) (%) 26.56 23.88
HONGKONG:165547.1 F-154
HANA BANK

(*1) Income before income taxes of the credit card business of the Bank, which was discontinued due to the
spin-off, amounting to W
— 103,854 million for the years ended December 31, 2009 and
2008, respectively, was included.

(*2) The Korean government reduced the corporate income tax rate beginning in 2008. As a result, the income
tax rate of 24.2% and 22.0% is applied for calculation of deferred income tax assets or liabilities that will
be realized in 2009 and after 2012, respectively.

(*3) Income taxes of the credit card business of the Bank, which was discontinued due to the spin-off,
amounting to W — 11,242 million and 29,335 million for the years ended December 31, 2009 and 2008,

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for corporate income tax reporting
purposes. Significant changes in cumulative temporary differences and deferred income tax assets and
liabilities for the years ended December 31, 2009 and 2008 are as follows (Korean won in millions):

2009

Deferred
Decrease income tax
due to assets
Beginning (*) Net changes spin-off Ending (liabilities)

Gain on valuation of trading
securities W
— (89,260) —
W 73,003 W
—— W (16,257)
— —
W (3,577)
Impairment loss on investments 51,157 48,546 — 99,703 21,935
Equity method valuation (49,347) 42,296 — (7,051) (1,551)
Gain on valuation of derivatives (1,292,321) 1,173,824 — (118,497) (26,069)
Constructive dividends 1,406 (885) — 521 115
Deferred loan fees and expenses (54,812) (1,464) — (56,276) (12,381)
Accrued interest income (118,053) 92,885 — (25,168) (5,537)
Allowance for temporary
depreciation (460) (40) — (500) (110)
Accrued expenses 65,563 (3,539) — 62,024 13,645
Allowance for acceptance
guarantees 41,317 15,050 — 56,367 12,401
Deposit for severance and
retirement benefits (177,895) (6,603) — (184,498) (40,590)
Provision for severance and
retirement benefits 196,627 (11,510) (619) 184,498 40,590
Allowance for other losses 295,278 (19,238) (85,513) 190,527 41,916
Loans written-off 504,675 134,595 (560) 638,710 140,516
Depreciation 11,612 3,156 — 14,768 3,249
Fair value valuation resulting
from merger (14,087) 675 — (13,412) (2,951)
Completion of prescription
deposit 10,740 1,062 — 11,802 2,596
Accounts payable other (117,849) — — (117,849) (25,927)
Other 109,360 (165,846) — (56,486) (12,426)
(626,349) 1,375,967 (86,692) 662,926 145,844

[Temporary differences not
recognized]
Equity method valuation (13,496) 12,886 — (610) (134)
— (612,853)
W —
W 1,363,081 W
— (86,692) W
— 663,536 W
— (145,978)
HONGKONG:165547.1 F-155
HANA BANK

2008

Deferred
income tax
assets
Beginning (*) Net changes Ending (liabilities)

Gain on valuation of trading securities —
W (92,646) —
W 9,203 —
W (83,443) —
W (20,193)
Impairment loss on investments 60,622 (9,465) 51,157 12,380
Loss (gain) on valuation of derivatives 15,300 (1,307,621) (1,292,321) (305,635)
Constructive dividends 1,404 — 1,404 309
Deferred loan fees and expenses (35,863) (4,395) (40,258) (9,743)
Accrued interest income (161,879) 43,826 (118,053) (27,713)
Accrued dividends 7,341 — 7,341 1,615
Accrued expenses 68,104 (2,541) 65,563 15,266
Allowance for acceptance guarantees 24,265 17,052 41,317 9,090
Deposit for severance and retirement
benefits (176,331) — (176,331) (38,793)
Provision for severance and retirement
benefits 176,331 — 176,331 38,793
Allowance for other losses 285,808 9,470 295,278 64,961
Loans written-off 458,611 62,141 520,752 122,561
Depreciation 9,849 1,763 11,612 2,555
Fair value valuation resulting from merger (14,241) 154 (14,087) (3,099)
Completion of prescription deposit 16,287 (5,547) 10,740 2,599
Accounts payable other 45,499 (45,499) — —
Other 2,102 107,287 109,389 25,975
673,173 (1,156,129) (482,956) (119,928)

[Temporary differences not recognized]
Accrued dividends 7,341 (7,341) — —
Share-based payment 47,196 (47,196) — —
47,128 (60,624) (13,496) (2,969)
— 626,045
W W
— (1,095,505) —
W (469,460) W
— (116,959)

(*) The income tax effect of temporary differences at the beginning of the period reflects the results of the
actual tax refund or additional payment of the Bank’s final tax return.
HONGKONG:165547.1 F-156
HANA BANK

Deferred income tax assets as of December 31, 2009 and 2008 consist of the following (Korean won in millions):

2009 2008

Cumulative temporary differences — 662,926
W — (482,956)
W
Tax rate (%) (*1) (*2)

Tax effects arising from cumulative temporary differences 145,844 (119,928)
Unrealizable deferred income tax liabilities 134 2,969
Deferred income tax assets arising from cumulative temporary
differences 145,978 (116,959)
Deferred income tax charged directly to equity (82,170) (17,835)
Tax loss carryforward — 112,075
Deduction for donations — 13,914

Deferred income tax assets (liabilities) 63,808 (8,805)
Deferred income tax of foreign branches (*3) 8,866 21,143

Net deferred income tax assets — 72,674
W — 12,338
W

in effect when the differences are expected to reverse (the income tax rate of 24.2% and 22% is applied
for calculation until 2011 and after 2012, respectively).

in effect when the differences are expected to reverse (the income tax rate of 24.2% and 22% is applied
for calculation in 2009 and after 2010, respectively).

(*3) Deferred income tax assets of foreign branches are not offset against the deferred income tax liabilities
in accordance with the tax jurisdictions of the foreign branches.

Details of deferred income taxes charged directly to equity for the years ended December 31, 2009 and 2008

2009

Deferred
income tax
Before-tax-amount
assets

securities —
W 74,947 —
W 304,948 —
W 379,895 —
W (84,040)
Capital adjustments (1,667) (9) (1,676) 369
investments 37,219 (14,751) 22,468 (4,943)
investments (400) 141 (259) 57
Retained earnings (29,071) — (29,071) 6,396

— 81,069
W W
— 290,329 W
— 371,398 W
— (82,170)
HONGKONG:165547.1 F-157
HANA BANK

2008

Deferred
income tax
Before-tax-amount
assets

securities —
W 983,240 —
W (908,293) —
W 74,947 —
W (16,488)
Capital surplus — 41 41 (9)
Capital adjustments (1,667) — (1,667) 367
investments 22,718 14,501 37,219 (8,188)
investments (978) (578) (400) 88
Retained earnings (11,141) (17,930) (29,071) 6,395

— 992,172
W W
— (911,103) W
— 81,069 W
— (17,835)

Income taxes payable and prepaid income taxes as of December 31, 2009 and 2008 are as follows (Korean won
in millions):

2009 2008

Prepaid income taxes — 47,163
W — 130,584
W
Income taxes payable 259,789 135,409

Net income taxes payable — 209,626
W — 4,825
W

30. Per share amounts

The Bank’s per share amounts for the years ended December 31, 2009 and 2008 are computed as follows

Weighted
averaged
Shares of number of
common Accumulated common
Fixed date stock Outstanding shares shares

Beginning 2009.01.01 225,250,483 365 82,216,426,295 225,250,483
Issuances 2009.01.28 2,500,000 338 845,000,000 2,315,068
Spin-off 2009.10.31 (7,951,326) 62 (492,982,212) (1,350,636)

End 2009.12.31 219,799,157 82,568,444,083 226,214,915

2009 2008

Income from continuing operations —
W 241,743,576,609 W
— 399,841,898,164
Income from a discontinuing operation 32,185,811,915 74,518,661,132

Net income 273,929,388,524 474,360,559,296
Weighted averaged number of common shares outstanding 226,214,915 189,423,980

— 1,069 W
— 2,111

— 1,211 W 2,504
—

Diluted earnings per share for the years ended December 31, 2009 and 2008 are identical to the basic earnings
per share since there is no dilutive effect of the stock appreciation rights during both years.
HONGKONG:165547.1 F-158
HANA BANK

31. Related parties

Ownership percentages among the Bank and its affiliates as of December 31, 2009 and 2008 are summarized
as follows:

2009 2008

Ownership Number of Ownership
Investor Number of Investee shares (%) shares (%)

HFG Hana Bank 219,799,157 100.00 225,250,483 100.00
Hana Daetoo Securities 35,060,263 100.00 32,560,263 100.00
Hana Card Co., Ltd. 60,000,000 100.00 — —
Hana Capital 7,261,199 50.13 7,261,199 50.13
Hana HSBC Life Insurance 6,020,101 50.00 6,020,101 50.00
Hana INS 1,600,000 100.00 1,600,000 100.00
HIF 640,000 100.00 640,000 100.00
Hana Bank HFL 1 100.00 1 100.00
Hana Bank China (*) — 100.00 — 100.00
PT Bank Hana 36,050 72.10 21,030 70.10

(*) Hana Bank China was incorporated as a partnership.

Transactions with related parties (including transactions among the Bank and its affiliates) for the years ended
December 31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009 2008

Related parties Income Expense Income Expense

HFG W 1,342
— W 481
— W 272
— W
— 3,564
Hana Capital 255 289 333 503
HFL — 20,428 — 22,001
Hana Bank China 9,394 2,804 14,533 2,411
PT Bank Hana 6 65 105 —
Hana HSBC Life Insurance 14,712 334 16,556 419
Hana Card Co., Ltd. 6,333 30 — —
MCIS 14 248 — 320
Korea Lease Financial — 18 — —
Korea Travels 351 353 10 166
Korea Credit Bureau — 63 — 34
Darby-Hana Infrastructure Fund 1 123 — 134
UBS Hana Asset Management — 941 — 1,234
HIF 6 4,645 6 6,003
Hana INS 91 25,536 40 12,352

— 50,867
W W
— 91,436 W
— 38,523 W
— 62,818
HONGKONG:165547.1 F-159
HANA BANK

Outstanding balances with related parties (including balances among the Bank and its affiliates) arising from the
above transactions as of December 31, 2009 and 2008 are summarized as follows (Korean won in millions):

2009 2008

Related parties Assets Liabilities Assets Liabilities

HFG —
W— W 29,896
— W
—— W 74,481
—
Hana Capital 180,015 12,645 100,000 52,743
HFL — 234,373 — 252,418
Hana Bank China 233,520 145,950 450,437 171,021
PT Bank Hana — 5,838 2,892 —
Hana HSBC Life Insurance 921 16,908 995 14,049
Hana Card Co., Ltd. — 95,644 — —
MCIS — 7,351 — 7,548
Korea Lease Financial — 4,988 — —
Korea Travels — 8,373 1,521 6,977
Korea Credit Bureau — 1,504 — 2,001
Darby-Hana Infrastructure Fund — 3,229 — 2,928
UBS Hana Asset Management — 22,107 — 30,413
HIF — 2,170 — 1,657
Hana INS — 7,836 — 8,991

— 447,046
W W
— 883,098 W
— 735,699 W
— 1,037,789

Guarantee and collateral provided among the Bank and its related parties as of December 31, 2009 and 2008

Related parties

Benefactor Beneficiary Guarantee/collateral 2009 2008

Hana Bank HFL Guarantee for F/X — 233,520
W — 251,500
W
Hana Capital Hana Bank Collateral 395,694 41,595
Hana Daetoo Securities Hana Bank Collateral
85,156 114,400
Hana HSBC Life Insurance Hana Bank Collateral — 13,000

32. Employee welfare

The Bank provides housing loans for employees at favorable interest rates and reimburses certain medical
expenses as part of the Bank’s employee benefits.
HONGKONG:165547.1 F-160
HANA BANK

33. Information on operating segments

The Bank’s service lines are composed of the Corporate Banking Group, Retail Banking Group, Choong-Chung
Banking Group, Young-Nam Banking Group, Treasury Group and others (including administrative and trust
segments). Financial information for each operating segment as of and for the years ended December 31, 2009
and 2008 is as follows (Korean won in millions):

2009
Choong-

Operating revenue (*) — 2,111,863
W — 3,387,693
W — 459,198
W — 335,417 W
W — 18,613,360 W
— 24,907,531
Securities — — 657 — 21,309,000 21,309,657

2008
Choong-

Operating revenue(*) — 805,491
W — 5,184,919
W — 506,364
W — 593,064 W
W — 28,276,497 W
— 35,366,335
Securities — — 1,701 — 20,356,514 20,358,215

(*) Operating revenue of the credit card business of the Bank, which was discontinued due to the spin-off,
amounting to W— 361,097 million and W
— 407,610 million for the years ended December 31, 2009 and 2008,
HONGKONG:165547.1 F-161
HANA BANK

34. General and administrative expenses

The Bank’s general and administrative expenses for the years ended December 31, 2009 and 2008 are as

2009 2008

Salaries (*) — 454,078
W — 459,976
W
Provision for severance and retirement benefits (*) 60,540 61,010
Early retirement benefits (*) 69,578 —
Employee benefits (*) 102,331 117,790
Rental expenses (*) 90,361 75,034
Entertainment expenses 19,213 22,102
Depreciation (*) 105,945 107,843
Amortization (*) 39,338 18,456
Tax and dues (*) 58,031 62,806
Advertisement expenses 42,396 70,486
Servicing expenses 139,323 136,775
Supplies expenses 9,739 10,367
Printing expenses 8,266 9,332
Communication expenses 13,439 11,783
Office rental and maintenance expenses 6,092 7,048
Vehicle maintenance expenses 5,670 6,935
Utilities expenses 9,444 8,752
Other expenses 58,966 64,895

— 1,292,750
W — 1,251,390
W

(*) These accounts amounting to W
— 902,914 million for the years ended December 31,
2009 and 2008, respectively, are related to the “added value” disclosure items of the Bank’s operations
as required by SKAS 21.

General and administrative expenses of the credit card business of the Bank, which was discontinued due to
the spin-off, amounting to W
— 15,933 million for the years ended December 31, 2009 and
2008, respectively, were included.

35. Information of trust business

The operations of the trust accounts for the years ended December 31, 2009 and 2008 are as follows (Korean
won in millions):

2009 2008

O perating revenue of trust operations:
Fees on trust accounts —
W 37,362 W
— 39,646

Early termination fees 275 156

— 37,637
W — 39,802
W

O perating expenses of trust operations:
Interest due to trust accounts —
W 36,849 W
— 47,710
HONGKONG:165547.1 F-162
HANA BANK

Book value and fair value of principal or dividend guaranteed trust accounts as of December 31, 2009 and 2008

2009


W — 1,106,115
W

— 1,116,397
W — 1,116,485
W

2008


W — 1,167,147
W

— 1,175,656
W — 1,177,912
W

As of December 31, 2009 and 2008, the Bank is not required to bear the difference between book value and fair
value of principal or dividend guaranteed trust accounts as the difference will be appropriated using a special
reserve trust account.

36. Cash flow information

Significant non-cash transactions for the years ended December 31, 2009 and 2008 are as follows (Korean won
in millions):

2009 2008

Changes in the unrealized gain (loss) of available-for-sale securities W
— 237,396 —
W (654,390)
Write-off of all or part of loan balances 686,201 280,627
Decrease in allowance for possible loan losses due to sale of NPL 134,974 45,241

37. Credit card business spin-off

For the purpose of strengthening the competitiveness of the Bank’s credit card business, the Board of Directors
of the Bank proposed to spin-off the credit card business on April 23, 2009, which was subsequently approved
by the shareholder through a special shareholder ’s meeting held on May 8, 2009. Pursuant to the proposed
spin-off, a new credit card company (“Hana Card”) was established on October 31, 2009 (“spin-off date”). All of
the shares issued by the newly incorporated company are owned by HFG. Any obligations related to the newly
incorporated company on or prior to the spin-off date will be jointly liable by the Bank and the newly incorporated
company.

Assets and liabilities which were directly or indirectly related to the credit card business are transferred to the
newly incorporated company. The value of assets and liabilities transferred were determined based on the
statement of financial position as of March 31, 2009, which was subject to adjustments, for significant changes
in the assets and liabilities up to the spin-off date. Accordingly, the amounts transferred were finalized as of the
spin-off date.

The gains and losses attributable to the credit card business related to the spin-off were classified as gains and
losses from discontinuing operations on the statement of income. In addition, under SKAS 11 Discontinuing
Operations, any income and expenses relating to the credit card business for the year ended December 31,
2008 were reclassified for comparative purposes.

In determining the expenses relating to the discontinuing operations, expenses which cannot be directly
attributed to the discontinuing operations were allocated based on the operating revenue ratio of continuing and
discontinuing operations.
HONGKONG:165547.1 F-163
HANA BANK

Due to the credit card business spin-off, capital stock was reduced by W — 39,757 million and the total loss on
capital reduction amounting toW — 263,566 million were first offset against the additional paid-in capital
proportionately to the capital stock amounting to W
— 88,535 million, and the remaining loss on capital reduction
amounting to W— 175,031 million was recognized as a loss on capital adjustment. The loss on capital adjustment
of —
W 175,031 million has been proposed to be offset against the Bank’s retained earnings as an appropriation
of retained earnings as of December 31, 2009.

The carrying amounts of the assets and liabilities transferred to the Hana Card are as follows (Korean won in
million):

Account Carrying amount Account Carrying amount

Cash and deposits —
W 199,056 Debentures in in Korean won W
— 1,248,981
Credit card accounts 1,492,057 Other liabilities 154,265

(Allowance for possible loan
Total liabilities 1,403,246
losses) (46,285)
Other assets 61,741 Net book value —
W 303,323

Total assets —
W 1,706,569

The results of the credit card operations for the years ended December 31, 2009 and 2008 are as follows

2009.1.1~2009.10.31 2008.1.1~2008.12.31

Operating revenue — 361,097
W — 407,610
W
Operating expenses 317,712 304,461

Non-operating income 171 866
Non-operating expenses 129 161

Income before income taxes 43,427 103,854
Income tax expense 11,242 29,335

Discontinuing operation income — 32,185
W — 74,519
W

The net cash flows relating to the credit card operations for the period ended October 31, 2009 are as follows

2009

Cash flows from operating activities, net —
W 207,761
Cash flows from investing activities, net (8,995)
Net increase in cash flows — 198,766

W
HONGKONG:165547.1 F-164
HANA BANK

38. Operating result of the final interim period (unaudited)

Summary of operating results for the three months ended December 31, 2009 and 2008 are as follows (Korean
won in millions except for per share amounts):

Three months ended December 31,

2009 2008

Operating revenue —
W 4,658,624 W
— 15,782,883
Operating expenses 4,388,917 15,794,799

Operating income (loss) 269,707 (11,916)
Income from continuing operations 202,567 528
Income (loss) from a discontinuing operation (4,958) 25,187

Net income 197,969 25,715
— 911 W3
—

— 890 W 132
—

39. Approval of financial statements

The 2009 financial statements were approved by the Board of Directors on February 10, 2010.

40. Introduction of Korea International Financial Reporting Standards

According to the roadmap announced in March 2007, the Bank will adopt the Korea International Financial
Reporting Standards (hereinafter “K-IFRS”) for the first time for the financial period beginning January 1, 2011.
The holding company of the bank, HFG, and HFG’s consolidated subsidiary companies including the Bank,
formed a task force team and devised a strategic plan to transition to K-IFRS. In July 2007, the team completed
its preliminary impact assessment of K-IFRS and developed a detailed master plan for the implementation of
K-IFRS accounting information system. Following this plan, HFG analyzed the effects of alternative accounting
treatments within K-IFRS on each entity’s financial statements and the related impact on HFG’s operations in
detail. HFG has also finalized the K-IFRS accounting policies to be adopted and mapped out changes to HFG’s
accounting information system to capture and produce information under K-IFRS. As of December 31, 2009,
HFG has completed the process of developing its accounting information system and modifying its processes
that are affected by the implementation of K-IFRS. Starting from 2010, the K-IFRS financial statements will be
reported quarterly including the opening K-IFRS financial statements at the date of transition and any issues or
unforeseen implementation errors following the implementation of K-IFRS will be continuously improved and
remedied, and the related internal control processes are to be reassessed for a smooth transition to K-IFRS.
The K-IFRS implementation task force team has been periodically reporting the progress and results of the
implementation project to management of HFG. Additionally, the task force team has regularly provided training
programs to employees to develop K-IFRS-trained resources within HFG. Management of HFG expects the
K-IFRS project to be completed within the planned timeline.
HONGKONG:165547.1 F-165
HANA BANK

The table below describes the major differences that are expected to give rise to a significant impact on the
Bank’s financial statements based on the K-IFRSs that are effective as of December 31, 2009. The differences
listed below are not exhaustive, and additional areas may be identified in the future as a result of further
assessment.


Allowance for If there is an objective evidence that an The Bank provides an allowance for
possible loan impairment on loans and receivables has possible loan losses using the minimum
losses been incurred, the allowance for possible required provision percentage given by
loan losses is measured at the difference the Regulation on the Supervision of
between the carrying amount and the Banking Industry. Further, for large
present value of estimated future cash corporate loans categorized as

flows discounted at the financial asset’s substandard or below, the allowance for

original effective interest rate. For possible loan losses is determined at the
incurred but not reported losses, greater of the loss by the present value
formula-based approaches or statistical method or the loss by the minimum
methods may be used to determine the required provision rate. But, if the
allowance. abovementioned allowance for possible
loan losses is less than the amount
calculated by the EL method, the Bank
determines the amount calculated by EL
method.

Financial guarantee Financial guarantee contract is Not applicable.
contract recognized as a liability and measured at
fair value. After initial recognition, the
liability will be measured at the higher of:
(a) the provision for liability amount for

the financial guarantee contract (b) the

amount initially recognized less, when
appropriate, cumulative amortization

Deferred loan fees Deferred loan fees and expenses are Deferred loan fees and expenses are
and expenses amortized over the period of the expected amortized over the period of the
maturity or appropriate shorter period contractual maturity using straight-line
using the effective interest rate method. method.

Recognition of Interest revenue shall be recognized Interest revenue shall be recognized
accrued interest when the economic benefits associated when the economic benefits associated
with the transaction is probable and the with the transaction is highly probable
amount of the revenue can be measured and the amount of the revenue can be
reliably. measured reliably.

Hybrid bond If an entity has an unconditional right to If the Bank makes a contract for payment
avoid delivering cash or another financial of principal and interest, it is accounted
asset to settle a contractual obligation, it for as liability.
should be accounted for as equity.

Impairment losses If there is a significant or prolonged If there is a significant and prolonged
for decline in an available-for-sale equity decline in an available-for-sale equity
available-for-sale instruments below its cost, an impairment instruments below its cost, an impairment
equity instruments loss should be recognized in the loss should be recognized in the
statement of income. Impairment losses statement of income. Impairment losses
shall not be reversed through profit or may be reversed through profit or loss.
loss.

Fair value of The fair value of derivative assets and The fair value of derivative assets and
derivative assets liabilities reflects bid-ask spread and the liabilities is measured at closing price. In
and liabilities credit risk of the counter parties. addition, the Bank provides an allowance
for possible losses for derivative assets
by considering the credit risk of counter
parties.
HONGKONG:165547.1 F-166
HANA BANK


Investments in a Cost method is applied for the Equity method is applied for the
subsidiary, a joint investments in a subsidiary, a joint Investments in a subsidiary, a joint
venture, and an venture, and an associate, which are not venture, and an associate, which are not
associate held-for-sale (separate financial held-for-sale (non-consolidated financial
statement). statement).

Consolidation scope Subsidiaries to be consolidated are all The consolidation scope is determined by
subsidiaries controlled in substance the Law on External Audit for Joint-Stock
(including special purpose entity (“SPE”)). Companies with exceptions, and
Control is presumed to exist when the summarized as follows.
parent owns, directly or indirectly through — Over more than half of the voting
subsidiaries, more than half of the voting rights
power of an entity.
— Entity in which investor is the largest

shareholder owning more than 30%

of voting power
— No guidance on SPE
— Exemption from consolidation: less

than W
— 10 billion of total assets

Employee benefits The liability for severance and retirement In accordance with the Employee
benefits is estimated based on actuarial Retirement Benefit Security Act and the
assumptions and on a discounted basis. Bank’s regulations, employees and
directors terminating their employment
with at least one year of service are
entitled to severance and retirement
benefits. An allowance for employee
retirement benefits are measured based
on the assumption that all employees will
leave as of the reporting date.
HONGKONG:165547.1 F-167

Estado Financiero

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APPENDIX 2

- Index to Financial Statements

- Non-Consolidated Financial Statements of Hana Bank for the years ended

- Non-Consolidated Financial Statements of Hana Bank for the years ended

Total liabilities 130,624,034 126,296,553

Type Amount Ratio (%) Amount Ratio (%)

Fixed rate bonds 12,931,078 80.8 1,078,689 85.6

Type Amount Ratio (%) Amount Ratio (%)

Fixed rate bonds 11,336,281 79.6 1,028,033 70.5

Korea Credit Bureau (Formerly “Korea

(623) — (623) 13,702 14,345

Income tax expense (*2) —

779,241 56,007 835,248 183,754

(626,349) 1,375,967 (86,692) 662,926 145,844

Number of Ownership Number of Ownership

Independent auditors’ report

Total liabilities 126,296,553 137,685,012

Hana Funding Ltd. (*1) 100.0 58 — — 58 — — — 58 58

Book value Other Proportionate

(12,588) — (12,588) 13,116 13,112

(626,349) 1,375,967 (86,692) 662,926 145,844

673,173 (1,156,129) (482,956) (119,928)

47,128 (60,624) (13,496) (2,969)

Net increase in cash flows — 198,766

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