[ ] /

2003

[ ] 1 1 2 2 3 3 4 / 4 5 5 6 6 7 7 8 8 9 9 10 10 11 10 12 11

[ ] 13 12 14 18 15 20 16 22

[ ] 17 23 18 25 19 27 20 28 21 / 29 22 31 23 31 24 33

[ ] 25 42 26 50 27 53 28 54

[ ] 29 56 30 61 31 63 32 65 33 67 34 67 35 67 36 68 37 73 38 74 39 77 40 78 41 81 42 86 43 95 44 96

[ ] 45 106 46 108 47 114 48 119 49 120 50 123 51 134 52 137 53 141 54 144 55 145 56 147

, SK, LG,, 120,,, 125,537 184525, 1399,205 131,900, 9707 1321,803, 105,002 323,373 45,295 6,718, LG 7,533, (Global Bank),,,,, 2004 323 1

2

Vision 30 30, ROE 25%, ROA 15% Multi-Specialist, Pan-Asia Slogan KB!(Leading the way, Together!) 3

2001 11 1 ( ), 2001 11 9 2002 4 8 Moody s A3 2002 5 6 2002 5 11 500 (Financial Times) 2002 6 19 2002 7 2, 2002 8 30 200 2002 9 4 3 (The Banker ) 2002 9 22 2002 10 1 CI 2002 11 15 (SOHO) 2002 11 21 GOLD & WISEPB 2002 12 2 Lotto 6/45 2002 12 4 ING 2003 2 17 2003 3 13 2003 5 26 ABS 2003 6 11 S&P 50 2003 7 3 ( ) 2003 7 7 3 (Euromoney ) 2003 7 23 60, 73 (The Banker ) 2003 8 27 ING 2003 9 1 Bank On 2003 9 3 KB 2003 9 5 ( ) 2003 9 30 2003 10 1 BC KB Card 2003 12 16 Sorak Financial Holdings BII 2003 12 17 4

(2004 2 2 ) 9, 4, 18, 63, 8, 14, 2, 1 OP, 41NPL, 8 PB, 1,131 5

(2003 12 31 ) 1,085 51-1,136 3-1 4 1,088 51 1 1,140 2003 2002 C D 1,253 2,748 A T M 8,037 6,102 - - 645 896 9,935 9,746 ( : ) ( : ) 2003 2002 15-15 18-18 12-12 8-8 11,276 33 11,309 10,085 27 10,112 7,849 27 7,876 7,879 26 7,905 339 1 340 329 1 330 19,491 61 19,552 18,319 54 18,373 ) 1 : + 2 : ( ) + 6

(2004 323 ) Donald H MacKenzie, Richard E Lint Principal, Mercer Human Resource Consulting ING Seoul Branch Bernard S Black Professor, Stanford Law School ) 2004 3 19 7

(2003 12 31 ) ( :,, %) KB 9612 3 80,000 15,999,930 9999 90 327 ( 981231) 88 427 ( 92128) 44,759 8,941,587 9989 38,338 6,134,040 8000 97 318 20,000 3,999,200 9998 91 9 6 8,000 799,800 9998 KB 9910 9 6,262 830,796 6634 Kookmin Bank Luxembourg SA Luxembourg 911018 EUR175 70,000 10000 Kookmin Bank Int l Limited London 9111 1 ( 9912) GBP20 20,000,000 10000 Kookmin Finance HongKong Limited Hong Kong 95 720 ( 981127) USD20 2,000,000 10000 ) ( ) 8

(2003 12 31 ) ( :,, %) 91 9 9 ( 00 111) 70,000 1,400,000 2000 93 313 10,000 1,999,910 9999 Kookmin Finance Asia Limited(HK) Kookmin Singapore Ltd Sorak Financial Holdings 99 921 112,484 6,000,000 2667 54423 ( 981231) 66,675 4,854,713 3641 Hong Kong 96 214 USD20 2,000,000 10000 Singapore Singapore 94 322 SGD30 30,000,000 10000 90 530 SGD5,098,552 1,274,638 2500 ) 1,, Kookmin Finance Asia Limited(HK), Kookmin Singapore Ltd 2 ( ) ( : ) 011031 299,697,462 14,985 14,985 02 322 17,979,954 899 15,884 6% 021130 10,581,269 529 CB 16,413 03 101 8,120,431 406 16,819 0442983 9

(2003 12 31 ) BANK OF NEW YORK, ADRs 35,000,566 1041 ( ) 30,016,623 892 ING BANK NV AMSTERDAM 12,716,691 378 EURO-PACIFIC GROWTH FUND 10,682,290 318 EMERGING MARKETS GROWTH 10,125,055 301 7,496,146 223 GOVERNMENT OF SINGAPORE 6,083,840 181 MONETARY AUTHORITY OF SINGAPORE 4,676,444 139 ( ) 4,326,412 129 TEMPLETON GROWTH FUND INC 4,199,993 125 TEMPLETON FOREIGN FUND 4,192,950 125 ABU DHABI INVESTMENT AUT 3,988,816 119 GIS-PRUDENTIAL ASSURANCE LTD 3,922,975 117 GOLDMAN SACHS CAPITAL SH 3,831,151 114 ) Bank of New York ADR (2003 12 31 ) - - - - 53 005 31,025,352 923 38 004 675,118 020 49 005 2,024,235 060 380 037 28,519,674 848 340 034 3,373,997 100 98,841 9755 23,311,269 693 1,621 160 247,449,471 7356 101,322 10000 336,379,116 10000 1 2 10

(2003 12 31 ) 1,534 151 313,862,840 9331 460 045 3,087,413 092 4,905 484 8,618,702 256 5,801 573 3,848,639 114 25,776 2544 5,398,369 160 12,895 1273 857,599 026 25,731 2540 616,710 018 24,220 2390 88,844 003 101,322 10000 336,379,116 10000 2003 2002 20% 1,000 2,311 4,123 2482% 11

( :, %, %P) 2003 2002 (A) 34,169 35,961 1,792 ( B ) 45,831 17,399 28,432 40,405 15,935 24,470 - - - 1,097 1,002 95 4,329 462 3,867 ( C ) 198 374 176 - - - 12 374 362 186-186 ( D) 3,931 5,833 9,764 (A-B+C-D) 7,533 13,103 20,636 (ROA) 042 081 123 (ROE) 776 1304 2080 (A-B) 384 392 008 (A) 752 813 061 (B) 368 421 053 (NIM) 330 339 009 12

( :, %, %P) 2003 2002 1,407,686 1,321,782 85,904 50,533 38,214 12,319 359 289 070 42,023 25,091 16,932 299 190 109 A /B 7336 6533 803 A 37,070 24,965 12,105 B 50,533 38,214 12,319 2002 2003 2002 2003 13

( : ) 2003 2002 18 19 01 75 73 2 74 72 2 1 67 57 10 66 56 10 ( ) 18,578 18,848 270 1,196 1,211 15 1,188 1,203 15 1 1,076 956 120 1,052 939 113 ( ) 1,163 1,129 34 1 B/S ( : ) 2003 2002 16,819 16,413 406 62,307 58,648 3,659 16,621 27,423 10,802 11,602 1,262 12,864 84,145 103,746 19,601 2 BIS ( :, %, %P) 2003 2002 A 127,399 144,393 16,994 B 1,273,973 1,387,030 113,057 1,252,839 1,366,970 114,131 21,134 20,060 1,074 A/B 1000 1041 041 622 662 040 378 379 001 - - - 14

3 / ( :, %) 2003 2002 ( A ) 1,845,173 1,870,696 25,523 ( B ) 70,753 11,784 58,969 (B/A) 383% 063% 320%p 4 BIS ( : %, %P) 2003 2002 10021 10068 047 9911 9747 164 2379 2147 232 15

( : ) 2003 2002 1,283,146 1,214,863 68,283 1,278,248 1,209,109 69,139 4,898 5,754 856 369,734 432,448 62,714 281,018 309,408 28,390 88,716 123,040 34,324 1,407,686 1,321,782 85,904 1,405,315 1,286,787 118,528 2,371 34,995 32,624 1,424,587 1,384,660 39,927 1,321,803 1,231,097 90,706 102,784 153,563 50,779 2,148,219 2,138,405 9,814 1,840,525 1,714,988 125,537 323,373 428,375 105,002 ( ) 15,679 4,958 10,721 30,410 30,916 506 ) 1 : + + + + + + 2 :, CP,, 3 : 4 : + ( )+ 5 : + - 6 : 16

3 Moody's S & P Fitch 2001 514 Baa3 P3 BB+ B BBB C - - 2001 118 Baa2 P3 BB+ B BBB C - - 2002 117 Baa2 P3 BBB- A3 BBB C - - 2002 4 8 A3 P2 BBB- A3 BBB C - - 2002 5 2 A3 P2 BBB A2 BBB C - - 2002 911 A3 P2 BBB A2 A- B/C - - 2002 925 A3 P2 BBB+ A2 A- B/C - - ) 1 2001514 () 17

( ) 3 : 2003 12 31 ( : ) 3 3 6,526,345 132,180,272 28,101,845 10,902,800 139,920,521 19,192,581 3,019,556 13,362,339 6,484,239 175,637,992 1,681,896 6,230,738 1,662,119 (1,160,239) 8,414,514 184,052,506 184,052,506 ( ) 3 : 2003 11 12 31 ( : ) 3 3 15,556,986 76,084 1 11,625,550 1,089,103 2 1,636,171 2,311,631 3 2,295,265 (1,146,444) 15,480,902 (1,146,444) 1 5,902,834 (393,096) 2 270,405 3 6,603,515 4 2,704,148 (753,348) 18

( ) 3 : 2003 12 31 ( : ) 3 3 256,150 10,278,357 9,677,174 21,453,761 489,788-20,228,649 549,082 2,739 56,127 255,424 1,567,943 ( ) (771) ( ) (139,769) 32,337,327 32,337,327 ) ( ) 3 : 2003 11 12 31 ( : ) 3 3 1,539 620,917 730,871 1,526,838 51,484 548 1,368,774 2,161 3,005 2,658 253,296 109,826 1,068 7,680 39,242 970 36,970 232,361 1,527 7,831 86,220 11,966 50,240 2,573,996 2,573,996 19

( :, %) 2003 2002 1,170,458 6623 43,178 369 1,131,577 7150 47,664 421 C D 40,683 230 1,812 445 21,199 134 1,022 482 36,259 205 1,412 389 45,689 289 2,033 445 13,156 074 517 393 10,392 065 418 402 233,114 1319 13,767 591 142,543 901 9,557 670 1,493,670 8452 60,686 406 1,351,400 8539 60,694 449 12,770 072 107 084 10,965 069 141 128 34,629 1,506 196 009 349 16 101 107 22,698 2,932 143 019 557 48 245 165 7,738 044 163 211 10,719 068 383 357 265 001 - - 231 001 141 6104 56,908 322 635 112 47,545 300 1,270 267 1,550,578 8774 61,321 395 1,398,945 8839 61,964 443 120,531 984 95,093 682 006 538 - - - - - - 145,865 631 37,173 922 004 235 216,608 1226 - - 183,669 1161 - - 1,767,186 10000 61,321 347 1,582,614 10000 61,964 392 1,654 300,699 1,217,253 009 1702 6888 23 21,820 86,366 139 726 710 10,419 301,804 1,051,438 066 1907 6644 482 19,061 81,923 462 632 779 ( ) 776,096 4392 57,755 744 667,716 4219 55,037 824 ( ) 441,157 2496 28,611 649 383,722 2425 26,886 701 965 005 56 580 916 006 40 435 6,860 039 269 392 7,366 047 321 436 12,876 073 1,321 1026 16,315 103 1,195 732 66,990 379 6,997 1044 57,194 361 5,859 1025 18,452 104 2,618 1419 11,499 073 1,701 1479 2,988 017 1,100 3681 4,192 026 1,129 2693 ( ) (18,240) (103) - - (14,379) (091) - - 1,592,045 9009 117,952 741 1,435,265 9069 110,010 766 6,129 12,695 27,851 848 19,834 123 ( ) (1,321) 035 072 158 005 112 001 (007) 82 665 867 11 363 17-133 524 311 128 183 1413-2,533 13,022 32,160 1,885 8,353 158 (2,672) 016 082 203 012 053 001 (017) - - - 34 1,039 1,091 37 394 150 - - - - 135 797 339 198 471 9494-66,159 374 2,005 303 55,439 350 2,745 495 1,658,204 9383 119,957 723 1,490,704 9419 112,755 756 9,688 055 - - 9,146 058 - - 32,105 182 - - 31,268 198 - - 67,189 380 - - 51,496 325 - - 108,982 617 - - 91,910 581 - - 1,767,186 10000 119,957 679 1,582,614 10000 112,755 712 20

( :, %) 2003 2002 130,648 3419 475 172,149 4960 511 130 003 422 1,399 040 410 130,778 3422 475 173,548 5000 510 245,127 6415 623 167,837 4836 697 456 012-358 010-5,742 151-5,350 154-251,325 6578 608 173,545 5000 674 382,103 10000 562 347,093 10000 592 5,315 139 969 7,896 227 969 128,829 3372 567 167,795 4834 630 - - - 373 011 411 248,403 6501 567 172,949 4983 691 ) (1,586) (042) - (3,037) (087) - ) (15) - - (114) (003) - 380,946 9970 575 345,862 9965 674 1,157 030-1,231 035-382,103 10000 573 347,093 10000 671 ) (2003 ) ( : %) 1 2 3 4 5 6 7 8 9 10 11 12 ( ) 627 588 625 805 595 609 652 625 546 549 586 584 658 616 523 513 527 580 608 567 514 607 629 528 572 448 581 578 439 431 624 497 537 443 541 523 468 565 618 465 542 455 600 496 443 542 622 489 547-2488 571 472 077 071 620 553 453 524 578 531 434 557 615 483 495 513 537 513 441 549 582 482 518 455 590 488 452 595 680 481 873 429 564 493 435 599 588 454 510 377 507 424 351 474 671 383 21

( : ) 2003 2002 116,255 109,891 6,364 104 516 412 17,014 15,829 1,185 98,148 92,519 5,629 989 1,027 38 59,028 60,752 1,724 42,803 47,710 4,907 4,107 4,159 52 11,432 8,302 3,130 686 581 105 57,227 49,139 8,088 16,360 13,454 2,906 2,704 3,304 600 13,656 10,150 3,506 2,476 3,183 707 2 3 1 ( ) - - - 2,478 3,186 708 20,476 29,314 8,838 1,974 3,077 1,103 2,875 2,024 851 12 374 362 15,615 23,839 8,224 66,035 43,617 22,418 473 392 81 2,001 2,452 451 1,781 1,507 274 40,405 15,935 24,470 - - - 21,375 23,331 1,956 45,559 14,303 31,256 27,802 48,172 20,370 27,041 25,514 1,527 761 22,658 21,897 10,891 5,252 5,639 23,116 8,974 14,142 11,464 18,936 30,400 11,464 18,936 30,400 3,931 5,833 9,764 7,533 13,103 20,636 22

( :, %) 1,262 007 2003 2002 65,263 355 45,994 268 281,018 1527 309,408 1804 1,399,205 7602 1,267,305 7390 ( ) (36,903) (201) (23,787) (138) ( ) (228) (001) (304) (002) 1,237,152 6724 1,164,721 6791 40,199 218 44,172 258 374 002 374 002 5,333 029 7,563 044 897 005 524 003 102,498 557 57,488 335 15,000 081 - - 16,454 089 3,717 022 17,871 097 12,761 074 - - 76 001 30,196 164 30,926 180 1,840,525 10000 1,714,988 10000 1,321,803 7182 1,231,096 7178 1,242,056 6748 1,189,819 6938 14,754 080 10,836 063 64,993 353 30,441 177 109,028 592 106,908 623 33,544 182 31,917 186 33,229 181 34,085 199 36,232 197 30,742 179 442 002 729 004 126 001 375 002 5,455 030 9,060 053 - - - - 191,926 1043 175,390 1023 1,756,380 9543 1,611,242 9395 16,819 091 16,413 096 62,307 339 58,648 342 16,621 090 27,423 160 (11,602) (063) 84,145 457 103,746 605 1,840,525 10000 1,714,988 10000 ) 64,843 352 61,355 358 133,623 726 97,848 571 23

2,555 079 3,255 076 ( :, %) 2003 2002 2,562 079 2-96,772 2993 150,010 3502 4,898 151 5,754 134 - - - - 202,286 6255 266,694 6226 27 001 2 - ( ) (1,398) (043) (1,904) (045) ( ) (8) - (18) - 15,679 485 4,580 107 323,373 10000 428,375 10000 102,784 3179 153,563 3585 214,538 6634 268,527 6268 - - - - - - 379 009 561 017 457 011 5,490 170 5,449 127 323,373 10000 428,375 10000 ) ( ) 24

2003 2002 ( :, %) 1,237,152 9642 1,217,055 9621 1,164,413 9585 1,051,061 9622 40,199 313 41,602 329 44,172 364 32,289 296 897 007 1,071 008 524 004 1,064 010 1,278,248 9962 1,259,728 9958 1,209,109 9953 1,084,414 9928 4,898 038 5,315 042 5,754 047 7,896 072 1,283,146 10000 1,265,043 10000 1,214,863 10000 1,092,310 10000 ) = (, ) + + ( :, %) 2003 2002 419,832 3394 413,327 3550 353,515 2858 353,691 3038 66,317 536 59,636 512 - - - - 427,555 3456 403,487 3465 5,687 046 7,780 067 5,262 043 7,386 064 425 003 394 003 630 005 955 008 383,320 3098 338,655 2908 128 001 209 002 1,237,152 10000 1,164,413 10000 ) 25

2003 2002 763 005 649 005 570 004 487 004 1,765 013 1,933 015 162,650 1155 161,654 1223, 2,783 020 3,979 030 57,656 410 56,826 430 88,890 631 72,401 548 23,586 168 20,776 157 18,049 128 14,601 110 2,774 020 5,738 043 12,962 092 25,974 197 65,042 462 56,223 425 12,550 089 - -, 112 001 6,471 049 4,121 029 3,231 024 8,817 063 7,561 057, 8,339 059 7,663 058, 11,913 085 10,148 077 504 004 922 007 8,089 057 59,493 450 915,751 6505 805,052 6091 1,407,686 10000 1,321,782 10000 ) 2003 2002 (A/B x 100) 3092% 3152% (A) 382,503 366,937 (B) 1,237,024 1,164,204 ) 26

( :, %) 2003 2002 554,733 4484 550,092 4724 80 001 888 007 1,677 014 6,394 055 33,071 267 31,522 271 812 006 1,743 015 590,373 4772 590,639 5072 165,856 1341 168,707 1449 480,923 3887 405,067 3479 1,237,152 10000 1,164,413 10000 ) ( : ) 44,120 44,830 710 171,346 170,884 462 59,793 59,793-2,764 5,512 2,748 278,023 281,019 2,996 63,926 66,012 2,086 151,957 152,894 937 27-27 82,047 83,735 1,688 360,070 364,754 4,684 27

( :, %) 2003 2002 1,242,056 8719 1,209,806 8679 1,189,819 8593 1,165,249 8508 141,103 991 121,930 875 129,878 938 106,546 778 976,167 6852 966,681 6935 936,304 6762 933,480 6816 70,547 495 69,580 499 74,911 541 80,587 588 54,239 381 51,615 370 48,726 352 44,636 326 14,754 104 12,770 092 10,836 078 10,965 080 64,993 456 40,683 292 30,441 220 21,199 155 102,784 721 130,648 937 153,563 1109 172,149 1257 1,424,587 10000 1,393,907 10000 1,384,659 10000 1,369,562 10000 ) ( :, %) 2003 2002 908,857 732 884,979 744 287,037 231 259,485 218 46,162 37 45,355 38 1,242,056 10000 1,189,819 10000 74,073 7207 110,211 7177 14,716 1432 25,927 1688 13,995 1361 17,425 1135 102,784 10000 153,563 10000 ), 28

( : ) 2003 2002 190 156 34 504 424 80 1,123 1,014 109 3322 3,680 358 445 625 180 5 207 202 1,819 1,182 637 ( ) (70) (97) 27 ( ) (1) (1) - 7,337 7,190 147 1,231 903 328 2,775 2,890 115 162 64 98 742 656 86 2,427 2,677 250 7,337 7,190 147 ) Position( ) ( ) 29

2003 2002 ( : ) 284-284 - - - 99-99 99-99 48 20 68 193-193 - 53 53 - - - - 32 32 34 70 104 754 1,021 1,775 484 215 699 1,185 1,126 2,311 810 285 1,095 ), 5 ( : %) 7 30 90 6 1 3 3 (%) 705-083 -052-017 -234-499 028 ) ( ) / ( : ) (%) 1 1,055,282 1,119,780 64,498 076 2 1,005,737 1,008,021 2,284 003 3 984,188 997,102 12,914 016 4 993,217 1,016,256 23,039 028 5 907,651 933,116 25,465 031 6 1,474,847 1,489,825 14,978 018 7 831,304 843,569 12,265 015 8 932,185 936,222 4,037 005 9 818,723 874,305 55,582 063 10 632,378 652,975 20,597 023 11 281,212 306,152 24,940 029 12 726,163 763,658 37,495 043 ), (+), (-) 30

( : ) 2003 2002 36,903 23,787 36,903-23,787-11 23 6,474 489 1,398 1,904 45,484 15,908 45,251 15,263 45,251-15,263-233 645 ) ( : ) 2003 2002 1,407,686 1,321,782 1,405,315 1,286,787 2,371 34,995 42,023 25,091 41,465 23,837 558 1,254 50,533 38,214 49,950 36,521 583 1,693 28,148 24,309 27,743 23,394 405 915 ) 1 (,, ) 2 31

2003 2002 SK ) 20 20 32

( : ) 2003 CB 2003630-213 56 - - - - 2003526 202 202 - - 10 - - 200377 626 653 8 - - - - SK 2003617 4,519 4,334 - - - 3,060 1,274 (CBO ) 5,347 5,402 64-10 3,060 1,274 ) 100 ( : ) 2003 2002 8,003 10,317 ( ) (2,705) (2,889) ( ) (5,298) (7,428) 12,815 13,069 ( ) (12,002) (12,434) ( ) (813) (635) 58,024 49,079 44,461 37,504 1,293-64 93 603 1,755 652,357 345,752 33

1 ( / ) Middle Office ( ) Front Office ( ) Middle Office Front Office 2 :, (VaR), 34

: Front Office Middle Office Back Office 3 / NPV :,, ( ) Black-Scholes Formula 35

4 ( ) ( : ) (A) 5,989 69 78 - - - - - - 5,989 69 78 - - - - - - Match, (B) 140,228 1,906 2,029 62,405 255 252 30,712 182 203 47,111 1,469 1,574 (C) 504,905 5,538 4,755 196,303 1,267 1,529 13,640 - - 278,387 3,752 2,837 - - - 16,575 519 389 (A+B+C) 651,122 7,513 6,862 5 ( ) ( : ) (A) - - - - - - - - - - - - - - - - - - Match, (B) - - - - - - - - - - - - (C) 14 - - - - - 14 - - - - - - - - - - - (A+B+C) 14 - - 36

6 ( ) ( : ) (A) 5,989 69 78 - - - - - - 5,989 69 78 - - - - - - Match, (B) 43,850 232 243 - - - 28,750 175 196 15,100 57 47 (C) 251,243 1,186 2,107 - - - 3,962 - - 238,981 1,178 2,015 - - - 8,300 8 92 (A+B+C) 301,082 1,487 2,428 7 ( ) : 37

8 ( ) ( : ) (A) - - - - - - - - - - - - - - - - - - Match, (B) 64,930 263 263 62,405 255 252 1,962 7 7 563 1 4 (C) 245,920 3,842 2,352 196,303 1,267 1,529 9,678 - - 39,406 2,574 822 - - - 533 1 1 (A+B+C) 310,850 4,105 2,615 9 ( ) : 38

10 ( ) ( : ) (A) - - - - - - - - - - - - - - - - - - Match, (B) 31,448 1,411 1,523 - - - - - - 31,448 1,411 1,523 (C) 7,742 510 296 - - - - - - - - - - - - 7,742 510 296 (A+B+C) 39,190 1,921 1,819 11 ( ) ( : ) (A) - - - - - - - - - - - - - - - - - - Match, (B) - - - - - - - - - - - - (C) 14 - - - - - 14 - - - - - - - - - - - (A+B+C) 14 - - 39

12 ( ) : 13 ( ) : 14 ( ) ( : ) Credit Default Swap - - - - - - Total Return Swap - - - - - - Credit Option - - - - - - Credit Linked Notes 479-479 - - - - - - - - - 479-479 - - - 15 ( ) : 40

16 ( ) ( : ) 297,120 301,172 39,190-637,482 1 96,956 264,302 30,920-392,178 1 5 196,279 32,160 8,270-236,709 5 3,885 4,710 - - 8,595 Current Exposure 2,487 8,713 4,227-15,427 5,989 - - - 5,989 1 - - - - - 1 5 5,989 - - - 5,989 5 - - - - - Current Exposure 99 - - - 99 Match, 43,850 64,930 31,448-140,228 1 13,300 62,489 29,448-105,237 1 5 30,350 764 2,000-33,114 5 200 1,677 - - 1,877 Current Exposure 366 1,062 3,264-4,692 247,281 236,242 7,742-491,265 1 83,656 201,813 1,471-286,940 1 5 159,940 31,396 6,271-197,607 5 3,685 3,033 - - 6,718 Current Exposure 2,022 7,651 963-10,636 17 ( ) : 18 ( ) : 19 ( ) : 41

(2004 2 ) ( ) (, ),,,,,, 42

:, Total Exposure,, 500, :,,,,, /,, : /, / /, ALM( / ), : /,, RAROC/EVA / /, New Basel Capital Accord, / /, :,,,, Credit Review 43

2003 : 4 Stress Testing BASEL II 2004 Risk Appetite TFT Stress Testing 2004 2003 Stress Testing (Stress Testing) 2003 44

(EC), 2004 ( ) Risk Appetite Risk Appetite KPI RAROC EC, RAROC, EVA, EC RAPS RM Total Exposure :,, ABS, / Stress Testing, ALM Stress, 45

Basel II 2006 Basel II IRB(Internal Ratings Based approach) AMA(Advanced Measurement Approach) Basel II Basel II, 2003 5 BIS CP3(Consultative Paper) Basel II (),, CSS : ASS(Application Scorecard System : ) BSS(Behaviour Scorecard System : ) Pool (PD, LGD, EAD) : (PD, LGD, EAD), Operational Risk AMA(Advanced Measurement Approach) 46

2 3 :,, (Indication price) (Benchmark price) : : 47

, (Settlement price), 1 / :,, ALM, / :,, ALM :,, ALM 48

Bottom-up Top-down (Risk Appetite) (Risk Appetite) : (Risk Appetite = / ) / :,, ALM, = ( + EL of NPL) Risk Appetite,, 49

,, (Credit Risk Management System) Portfolio Total Exposure 50

,, ALM,,,,,,,,,,,, /, RAROC,, (RAPM), (RAPS) /,,,, Portfolio exposure,, 51

,,,, Total Exposure Total Exposure Exposure ( ) Exposure Exposure Limit Exposure 300,, Monitoring (Review),,,,,,,, FLC, ( 19%, 49%, 99%) 52

,, (,, ) (VaR ) Stress Testing Back Testing VaR(Value at Risk) (, ) (,, VaR ) BIS BIS, 2003 12 2002 12 3 ( : ) 42,465 10,583 53,048 54,440 18,071 72,511 1,553 13 1,566 558 5 563 1 624,010-624,010 344,952-344,952 2 741-741 273-273 300-300 657-657 669,069 10,596 679,665 400,880 18,076 418,956 ) 1,, 2 3 ( ) 4 (trading book) (banking book) 53

VaR VaR VaR 87 274 46 93 ) 1VaR 20031 12 2VaR 3 VaR 99%, 1 4 (094) VaR GAP 54

, ( : ) 1 2 3 3 574,789 31,324 14,438 1,928 622,479 ( : ) 1 2 3 3 626,879 276,804 182,504 150,965 1,237,152 ( : ) 1 2 3 3 5,355 12,816 19,776 20,863 58,810 21,736 16,158 13,607 9,290 60,791 112,208 26,892 - - 139,100 139,299 55,866 33,383 30,153 258,701, 7 30 90 6 1 3 ( : ) 3 1,793 2,580 3,569 4,448 4,871 5,999 623 6,622 2,444 3,316 4,728 5,516 5,781 6,251 1,086 7,337 55

1 (=repricing ) (Base rate) (, ) (MBR ; Market-related Base Rate) (repricing ), (6, 12 ) (Base rate) (, CD, RP), ( ) ( 3 ),, + 025%p + 1%p + 1%p 56

(matched funding) repricing ( repricing (, ), (Base rate) (, ) 3, 5 (Base rate) 5 5 +12% +15% +10% * 05%p 57

(Market Opportunity Rate) 58

2 ( : %) 2) 1) 1 4 10 (, 1 ) 85 105 1675-3) (1 ) 790 - ( 1 ) 5 : +15 5 : +10 AAA BB- C 4) (1 ) 738 880 3060 ) 1 / 2 :4, : 5 3 (6 ) 4, 112 59

1) 2) ( : %) - 010-10 - 015 050 6 360 380 1 390 410 2 405 425 3 420 440 3 330 360 6 340 370 1 365 400 2 390 420 3 410 440 3 535-3 - 3 7 500 - ) 1 2 60

( : ) ( ) KB 2,577 956 616 366 179 K B 253 Kookmin Bank Luxembourg SA Kookmin Bank Int l Limited Kookmin Finance HongKong Limited 2,870 2,257 2,119 12,193 981 (800) 774 (448) 563 (383) 255 (200) 147 (80) 179 (63) 59 (263) 568 (426) 627 (240) 4,153 (2,903) 142 104 12/31 59 53 12/31 123 87 3/31 11 8 3/31 15 10 12/31 49 39 12/31 19-12/31 53 33 12/31 35 7 12/31 436 341 ) 20031231 (3 200341 ~ 20031231 ) 61

1 ( :, %, %P) 2003 2002 KB 250 019 570 040 320 021 - - 80 006 80 006 1,394 104 1,430 100 36 004 Kookmin Bank Luxembourg SA Kookmin Bank Int l Limited Kookmin Finance HongKong Limited 1,545 114 1,928 140 383 026 1,703 127 2,578 188 875 061 1,225 091 2,433 177 1,208 086 6,117 455 9,019 651 2,902 196 2 ( :, %, %P) Kookmin Bank Luxembourg SA Kookmin Bank Int l Limited Kookmin Finance HongKong Limited 2003 2002 1,200 089 1,779 129 579 040 1,063 079 2,031 148 968 069 1,576 117 1,505 110 71 007 3,839 285 5,315 387 1,476 102 62

(1) (Compliance),,,, (2),, (3) (4), 63

2003 (1) Compliance -,,,, (2) -, - (3) -,, (4), -,,,, NPL, (), (5) - (6) -,,, - - 64

65

66

67

1 ( ) ( ) 981031 400,000 - Jan Op 000228 de Beeck 01111 ~ 041031 5,000 ( :, ) ( ) 10,000 011221 439 300,000 020806 16,559 10,000 021217 409 10,000 030110 342 60,000 031007 2,100 ( ) 10,000 49,100 441 22,490 300 27,600 - - - 22,490 49,100 484 000228 30,000 400 27,600 - - - 30,000 49,100 645 000228 30,000 400 27,600 - - - 30,000 49,100 645 000228 4,800 64 27,600 - - - 4,800 49,100 103 000228 7,000 93 27,600 1,100 031120 16 5,900 49,100 127 000228 4,800 64 27,600 - - - 4,800 49,100 103 000228 7,000 93 0331 27,600 - - - 7,000 49,100 151 000228 4,800 64 ~ 27,600 - - - 4,800 49,100 103 000228 2,486 33 06228 27,600 - - - 2,486 49,100 53 000228 2,486 33 27,600 - - - 2,486 49,100 53 000228 4,800 64 27,600 - - - 4,800 49,100 103 000228 1,928 26 27,600 - - - 1,928 49,100 41 000228 4,909 65 27,600 - - - 4,909 49,100 106 000228 7,000 93 27,600 - - - 7,000 49,100 151 000228 67,283 895 9 27,600 10,000 031028 031120 149 57,283 49,100 1,235 000318 41,460 524 23,469 1,300 03121 26 40,160 49,100 1,029 000318 14,807 187 23,469 - - - 14,807 49,100 380 000318 2,961 37 23,469 - - - 2,961 49,100 76 000318 2,961 37 23,469 - - - 2,961 49,100 76 000318 23,469 2,961 030319 35-49,100-000318 2,961 37 03319 23,469 - - - 2,961 49,100 76 ~ 000318 2,961 37 05318 23,469 2,961 031121 54-49,100-000318 2,961 37 23,469 2,961 031015 55-49,100-000318 2,961 37 23,469 - - - 2,961 49,100 76 000318 11,845 150 23,469 - - - 11,845 49,100 304 000318 11,845 150 23,469 - - - 11,845 49,100 304 000318 11,845 150 23,469 - - - 11,845 49,100 304 010315 29,614 473 28,027 - - - 29,614 49,100 624 010315 14,807 237 28,027 - - - 14,807 49,100 312 68

( ) ( ) ( ) ( ) 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 1,870 30 28,027 - - - 1,870 49,100 39 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 1,870 30 28,027 - - - 1,870 49,100 39 010315 1,870 30 28,027 - - - 1,870 49,100 39 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 11,845 189 28,027 - - - 11,845 49,100 250 010315 11,845 189 28,027 - - - 11,845 49,100 250 010315 11,845 189 04316 28,027 - - - 11,845 49,100 250 010315 11,845 189 ~ 09315 28,027 - - - 11,845 49,100 250 010315 11,845 189 28,027 - - - 11,845 49,100 250 010315 11,845 189 28,027 - - - 11,845 49,100 250 010315 11,845 189 28,027 - - - 11,845 49,100 250 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 2,961 47 28,027 - - - 2,961 49,100 62 010315 592 9 28,027 - - - 592 49,100 12 010315 5,329 83 28,027 - - - 5,329 49,100 110 4 010315 17,766 282 28,027 - - - 17,766 49,100 372 5 010315 16,060 245 28,027 - - - 16,060 49,100 327 27 010315 1,712 27 4 28,027 - - - 1,712 49,100 36 010324 30,000 514 25,100 - - - 30,000 49,100 720 010324 19,333 331 25,100 - - - 19,333 49,100 464 010324 2,318 40 04325 25,100 - - - 2,318 49,100 56 ~ 010324 2,318 40 07324 25,100 - - - 2,318 49,100 56 010324 1,916 33 25,100 - - - 1,916 49,100 46 010324 16,491 282 2 25,100 - - - 16,491 49,100 397 011116 500,000 9,182 041117 51,200 - - - 500,000 49,100-011116 200,000 3,673 ~ 091116 51,200 - - - 200,000 49,100-011116 150,000 2,755 51,200 - - - 150,000 49,100-69

( ) ( ) ( ) ( ) 020322 9963 244 57,100 - - - 9,963 49,100 - Henry 020322 Cornell 3,321 81 57,100 - - - 3,321 49,100-020322 3,321 81 57,100 - - - 3,321 49,100-020322 10,000 245 57,100 - - - 10,000 49,100-020322 3,321 81 57,100 - - - 3,321 49,100 - Timothy 020322 Hartman 3,321 81 57,100 - - - 3,321 49,100-020322 3,000 73 57,100 - - - 3,000 49,100-020322 3,000 73 57,100 - - - 3,000 49,100-020322 3,000 73 57,100 - - - 3,000 49,100-020322 30,000 735 05323 57,100 - - - 30,000 49,100-020322 9,498 233 ~ 10322 57,100 - - - 9,498 49,100-020322 13,339 327 57,100 - - - 13,339 49,100-020322 13,339 327 57,100 - - - 13,339 49,100-020322 30,000 735 57,100 - - - 30,000 49,100-020322 30,000 735 57,100 - - - 30,000 49,100-020322 30,000 735 57,100 - - - 30,000 49,100-020322 30,000 735 57,100 - - - 30,000 49,100-020322 9,498 233 57,100 - - - 9,498 49,100-020322 150,000 3,670 57,100 - - - 150,000 49,100-9 020322 25,000 610 5 Donald H 020726 MacKenzie 030321 30,000 520 05727 ~ 10726 57,100 - - - 25,000 49,100-58,800 - - - 30,000 49,100-30,000 422 35,500 - - - 30,000 49,100 408 030321 10,000 141 35,500 - - - 10,000 49,100 136 030321 10,000 141 35,500 - - - 10,000 49,100 136 Richard 030321 Elliott Lint 10,000 141 35,500 - - - 10,000 49,100 136 030321 10,000 141 060322 35,500 - - - 10,000 49,100 136 030321 10,000 141 ~ 35,500 - - - 10,000 49,100 136 110321 030321 10,000 141 35,500 - - - 10,000 49,100 136 Bernard S 030321 Black 10,000 141 35,500 - - - 10,000 49,100 136 030321 10,000 141 35,500 - - - 10,000 49,100 136 030321 10,000 141 35,500 - - - 10,000 49,100 136 030321 10,000 141 35,500 - - - 10,000 49,100 136 030321 10,000 141 35,500 - - - 10,000 49,100 136 70

( ) ( ) ( ) ( ) 030321 30,000 422 35,500 - - - 30,000 49,100 408 030321 30,000 422 060322 35,500 - - - 30,000 49,100 408 030321 30,000 422 ~ 110321 35,500 - - - 30,000 49,100 408 030321 90,000 5 1,266 35,500 - - - 90,000 49,100 1,224 030827 30,000 453 060828 ~ 110827 40,500 - - - 30,000 49,100 258 010322 6,644 56 71,538 - - - 6,644 49,100-010322 6,644 56 040323 ~ 71,538 - - - 6,644 49,100-010322 4,429 37 110322 71,538 - - - 4,429 49,100-010322 4,429 37 71,538 - - - 4,429 49,100-020329 3,330 22 040330 129,100 - - - 3,330 49,100-020329 3,330 22 ~ 129,100 - - - 3,330 49,100-110329 020329 3,330 22 129,100 - - - 3,330 49,100 - ) 1 20011116 20 2 20011116, 3 4 2001322 2002329 () 5 2004227 2,248,554 605,633 1,642,921 336,379,116 50,456,867 3,363,791 2 20011116, 2002322, 2003321, 40% 20011116 20 (, ROE) 20023222003321, 2002726Donald H MacKenzie 2003827 71

,, 3() 1) 3, 1) : 2) ( ) ( :, ) ( ) 030321 1,356,243 30,000 35,500 422 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 Richard 030321 Elliott Lint 1,356,243 10,000 35,500 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 ) 1,3 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 Bernard S 030321 Black 030321 1,356,243 10,000 060322 35,500 141 336,379,116 3,363,791 ~ 1,356,243 10,000 110321 35,500 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 030321 1,356,243 10,000 35,500 141 336,379,116 3,363,791 030321 1,356,243 30,000 35,500 422 336,379,116 3,363,791 030321 1,356,243 30,000 35,500 ) 2,3 422 336,379,116 3,363,791 030321 1,356,243 30,000 35,500 422 336,379,116 3,363,791 030321 1,356,243 5 90,000 35,500 1,266 336,379,116 3,363,791 060828 ) 2,3 030827 1,612,921 30,000 ~ 40,500 453 336,379,116 3,363,791 110827 ) 1 : 35,500 40% 2 3,, 72

( :, ) ( ) ( ) 030110 80,000 10,000 70,000 5,000 5,000 39,150 342 030319 2,961 2,961-23,469 23,469 ) 35,257 35 031007 70,000 60,000 10,000 5,000 5,000 40,000 2,100 031015 2,961 2,961-23,469 23,469 42,050 55 031028 10,000 5,000 5,000 27,600 27,600 43,000 77 031120 7,000 1,100 5,900 27,600 27,600 41,900 16 031120 10,000 5,000 5,000 27,600 27,600 41,900 72 031121 2,961 2,961-23,469 23,469 41,600 54 031201 41,460 1,300 40,160 23,469 23,469 43,300 26 ) 2, 1, 1 ( : ) 030827 30,000 30,000-2 ( : ) 2003 2002 1,663 1,655 73

1) ( :, %) ( ) 2) ( ) 3) (A) (B) (C) ( ) (C-A) (C-B) 27 43 31 4(148) 12( 279) 0 50 55 55 5(100) 139 140 140 1(07) 0 0 1 13 13 12(1,200) (2001111 0 0 28 28 28 ) 50 65 44 6( 120) 21( 323) 180 180 180 0 0 3 0 0 3( 1000) 0 399 479 491 92(231) 12(25) 9 7 7 2( 222) 0 (2003321 ) 9 7 7 2( 222) 0 250 250 250 0 0 (2003321 ) 250 250 250 0 0 12 18 12 0 6( 333) (2003321 22 68 0 22( 1000) 68( 1000) ) 34 86 12 22( 647) 74( 860) (2003321 18 18 18 0 0 ) 18 18 18 0 0 16 0 62 46(2875) 62 (2003321 ) 16 0 62 46(2875) 62 3 3 2 1( 333) 1( 333) (2003321 ) 3 3 2 1( 333) 1( 333) 74

( ) 2) ( ) 3) (A) (B) (C) ( ) (C-A) (C-B) 94 45 45 49( 521) 0 5,548 5,154 6,792 1,244(224) 1,638(318) 14,011 9,378 4,470 (2003321 1,471 1,400 0 ) 284 362 0 9,541 ( 681) 1,471 ( 1000) 284 ( 1000) 4,908 ( 523) 1,400 ( 1000) 362 ( 1000) 0 0 991 991 991 21,408 16,339 12,298 9,110 ( 426) 4,041 ( 247) 18 18 18 0 0 () 22,119 17,164 13,122 22,137 17,182 13,140 8,997 ( 407) 8,997 ( 407) 4,042 ( 235) 4,042 ( 235) 18 18 18 0 0 () 22,119 17,164 13,122 8,997 ( 407) 4,042 ( 235) 8,997 4,042 22,137 17,182 13,140 ( 407) ( 235) ) 1 2, 2 ( ) ( ) (,, ) 3 1 4 ( ) 75

: 1) ( : ) ( ) 2) ( ) 3) ( / ) ( ) (2003321 1999412 2004411 150 ) 150 (2003321 2003409 2004408 10 6 ) 10 6 10 6 150 10 6 150 ) 1 ( ) 2 3 : 1) ( :, ) ( ) 2) ( ) B/S 3) B/S (2003321 0 0 194 2 164 2 0 0 ) 0 0 194 2 164 2 0 0 0 0 194 2 164 2 0 0 0 0 194 2 164 2 0 0 ) 1 ( ) ( ) 2 3 76

1 ) ( : ) 201 83 106 1 11 ) 2 ( ) ( : ) ) 8 1 / 14 2 - ),, 3 ( ) ) ( : ) 82 54-21 7 ) 20012002 77

78

79 (), : (6 ),

/,,,,,,, 24 (1588-1688), 60 16 3 ( 2 ) (ISP) 2003101,, PC,, 80

/ ( : ) ( ) ( ) / / 100 100 100 100 1,000(800) 2,000( 1,600) 2,000( 1,600) 4,000( 3,200) 10 ( ) 2,000 100 3,500 500 6,000 1,000 8,000 1,000 10,000 CD / ATM ( : ) 10 1,000 600 600 1,000 1,500 +600 800 1,000 1,000 1,500 +600 ( : ) 600(500 ~ 300) (ARS) 600(500 ~ 300) 700(600 ~ 400) 1,300(1,200 ~ 1,000) FAX 200(100) ) 1 ( ),, 2 VIP (Platinum) (, VIP ) 3 VIP ( ) (, VIP ) 4 81

/ ( : ), 10,000 (20 ) 10,000 (10) ( : ) 50 300 ( : ) 200,000 300,000 500,000 20,000 30,000 50,000 ( : ) 5,000 (100 ) 1,000 30,000 100 500 82

( : ), 2,000, 1,000 60,000 30,000 5,000 ( ) 5,000 300 (200 ) 1,000 2,000 ( ) 500 5,000 10,000 2,000 1,000 1,000 ( ) 1,000, ( ), 2,000 ( ), 5,000 1 2 3 4 4 ( ) 40,000 50,000 60,000 80,000 100,000 40,000 30,000 30,000 30,000 15,000 50,000 50,000,, ( ) ( ) 83

( ) RM (), ( ) - 60,000, ( ) - 100,000 ( ) - 40,000 1 40,000 2 50,000 3 ( ) 60,000 4 80,000 4 100,000-30,000 1~300 15,000 301~400 14,000 401~500 13,000 500 12,000 1~100 150,000 101~300 300,000 ( ) 300 500,000-15,000-25,000 ( ) - 80,000 1~100 100,000 101~300 200,000 ( ) 300 250,000-100,000 { (05%)( /365)} + { ( MOR- MOR) /365} ( - ) /360 05% - 2,000-5,000-5,000 84

1100 ~ 1350% (35 ~ 79%) 1250 ~ 2695% 04% 3 RMS( ) 1800 ~ 2500% RCS( ) 1900 ~ 2700% 05% - : * 11% ( ) - : * 1% * : ( ) * ( ) : / / KB ( ) 200 ~ 405% 400% 200 ~ 450% 400% 200 ~ 405% 400% 150 ~ 405% 310 ~ 400% 150 ~ 405% 230 ~ 400% 150 ~ 405% 400% 150 ~ 405% 400% 100 ~ 405% 150 ~ 400% 360 ~ 405% 400% 100 ~ 450% 150 ~ 400% - 85

86 ( 1 3 ) (1) 50% (2) 30% (3) ( ) (1),(2) * : (1),(2) 15% = / 100 1 = / * = / 100 ( )

87 * = + - + (, (1) : (2) :, (,, ) * : (,,, )+ + + + + + + ( )+ + + + +

, ( ) 1, ( ) 1 3 1, ( ) 3, 1, ( ) 3 12 1, ( ) 12,, 88

3,,,, ( ) ( ) (, ) 3 ( ),, i :, i : i : 89

,, i i i i i, BIS BIS BIS ( ) 8% 100%, * (NIM) = ( ) / 90

( = +, 15% 3 i :,,,, i : Moody's, S&P, Fitch,,, 1 Moody's S&P Fitch AaaBaa3(10 ) AAABBB-(10 )AAABBB-(10 ) Ba1 C(11 ) BB+ D(12 ) BB+ D(14 ) P-1 P-3(3 ) A-1 A-3(3 ) F1 F3(3 ) NP(1 ) B D(3 ) B D(3 ) 91

1 Moody s Aaa 1 P-1 (Prime-1) 1 Aa1 2 Aa2 3 Aa3 4, P-2 (Prime-2) 2 A1 5 A2 6 A3 7 Baa1 8 Baa2 9 Baa3 10,, P-3 (Prime-3) 3 Ba1 11 Ba2 12 Ba3 13, B1 14 B2 15, B3 16 Caa1 17 Caa2 18 Caa3 19 Ca 20 C 21,,, Not Prime,, 4,, 92

2 S & P AAA 1 (Extremely Strong) A-1 1 AA+ 2 AA 3 AA- 4 (Very Strong) A-2 2 A+ 5 A 6 A- 7 BBB+ 8 BBB 9 BBB- 10 (Strong) (Adequate) A-3 3 BB+ 11 BB 12 BB- 13 (Less Vulnerable) B 4 B+ 14 B 15 B- 16 CCC+ 17 CCC 18 CCC- 19 CC 20 C 21 D 22 (More Vulnerable) (Currently Vulnerable) (Currently Highly Vulnerable) C 5 D 6 93

3 Fitch AAA 1 (Highest Credit Quality) F1 1 AA+ 2 AA 3 AA- 4 (Very High Credit Quality) F2 2 A+ 5 A 6 A- 7 BBB+ 8 BBB 9 BBB- 10 (High Credit Quality) (Good Credit Quality) F3 3 BB+ 11 BB 12 BB- 13 B+ 14 B 15 B- 16 (Speculative) (Highly Speculative) B 4 CCC+ 17 CCC 18 CCC- 19 CC 20 C 21 C 5 DDD 22 DD 23 D 24 (Default), 90~100% (Default), 50~90% (Default), D 6 94

95

96

97

98

99

100

101

102

103

104

< > Kookmin Bank Tokyo Branch Yurakucho Denki Bldg N, 14F, 1-7-1, Yurakucho, Chiyoda-ku Tokyo 100 Japan Tel : 81-3-3201-3411 Kookmin Bank New York Branch 565 Fifth Avenue, 24 th Floor, New York, NY, 10017 USA Tel : 1-212-697-6100 Kookmin Bank Auckland Branch Level 19, ASB Bank Centre Cnr Albert & Wellesley Streets PO BOX 7506, Auckland, New Zealand Tel : 64-9-366-1000 < > Kookmin Bank Guangzhou Office Room 3211, Office Building, CITIC PLAZA, 233 Tianhe NRoad Guangzhou, China Tel : 86-20-3877-0566 105

106 2004 33 ( )2003 20021231, ( ) 2003 20021231 ( ) 1 2003530 2003930 7427% 2003724 1 0442983, 976%24% 20039 30 10,595,409 9,391,897

2 2002 12 050% 075% 100% 200% 800% 1200% 2000% 2000% 2000% 5000% 5500% 6000% 10000% 10000% 10000% 200212 200312 31 336,265, 314,701 3 20031217 30,623,76127,423,761 20031226 43,700, 892% 4 LG LG 20031124 4,370, 200419 3,127 2,059 ( ) 2004 20031231 LG, 4,870, 268753 LG, 5 2003 12 31 2,055,663 2003 12 31, 107

(Balance Sheet) (Banking Account) 3 2003 12 31 2 2002 12 31 3 (Amount) ( : (Unit : Million Won)) 2 (Amount) 6,526,345 4,599,356 (12,810) (21,156) 2,945,921 2,392,346 228,153 186,780 2,763,457 1,532,179 601,624 509,207 28,101,845 30,940,750 4,482,948 5,676,973 17,088,357 13,173,700 5,979,341 10,986,915 551,199 1,103,162 139,920,521 126,730,561 (3,690,341) (2,378,696) (22,780) (30,442) 8,567 123,715,244 116,441,303 4,019,930 4,417,176 37,427 37,415 533,294 756,300 89,665 52,430 47,202 30,802 10,249,831 5,748,806 1,500,000-1,787,131 1,276,080-7,643 1,645,351 371,744 108

3 (Amount) 2 (Amount) 3,019,556 3,092,616 3,687,782 3,167,709 (1,196,201) (690,562) (22,228) - 549,427 614,457 1,522 2,099 (746) (1,087) 6,484,239 6,135,558 1,336,639 1,235,362 1,715,100 1,877,645 1,080,057 981,141 92,217 48,390 307,154 12,646 552,636 170,624 751,252 660,791 612,592 1,087,587-37,882 36,592 23,490 184,052,506 171,498,841 132,180,272 123,109,653 124,205,641 118,981,916 1,475,373 1,083,648 6,499,258 3,044,089 10,902,800 10,690,754 3,354,369 3,191,744 3,322,917 3,408,530 3,623,156 3,074,161 44,239 72,860 109

3 (Amount) 2 (Amount) 12,608 37,493 545,511 905,966 19,192,581 17,539,007 18,379,403 17,022,308 (83,443) (270,924) 888,455 789,127 8,166 (1,504) 13,362,339 9,784,798 234,432 131,455 (163,349) (88,682) 1,074 2,287 3,983,295 734,646 1,886,446 1,868,692 4,418,940 4,656,225 109,675 48,745 130,778 147,623 123,455 85,841 120,437 112,732 686,271 522,286 337,624 395,678 400,445 541,757 315,241 486,413 777,575 139,100 175,637,992 161,124,212 1,681,896 1,641,293 1,681,896 1,641,293 6,230,738 5,864,752 110

3 (Amount) 2 (Amount) 5,655,840 5,287,708 574,898 577,044 1,662,119 2,742,335 545,740 413,740 40,760 40,760 1,827,700 960,700 2,774 7,165 (754,855) 1,319,970 <(753,348)> <1,310,291> (1,160,239) 126,249 (1,328,312) (148,973) 26,211 137,987 180,449 4,624 94,773 (749) 8,414,514 10,374,629 184,052,506 171,498,841 2,081,815 2,338,576 800,297 1,031,698 1,281,518 1,306,878 5,802,405 4,907,866 6,385 9,285 65,235,675 34,575,158 30,231,665 16,980,805 31,085,047 17,357,206 3,918,963 237,147 4,446,110 3,750,402 60,313 175,527 111

(Trust Account) 3 2003 12 31 2 2002 12 31 3 (Amount) ( : (Unit : Million Won)) 2 (Amount) 256,150 236 9,677,174 15,001,019 1,197,622 1,245,820 1,584,363 1,461,172 54,798 77,375 4,080,362 7,600,794 592,379 924,514 767,675 747,253 563,432 2,696,979 836,543 247,112 489,788 575,412 130,469 223,855 129,638 158,188 589 25,565 193,236 126,244 26,206 27,381 9,650 14,179 20,228,649 26,669,409 2,739 176 255,424 325,519 12,883 14,130 241,221 308,950 1,320 2,439 1,567,943 457,941 (771) (1,771) (139,769) (190,417) 32,337,327 42,837,524 112

3 (Amount) 2 (Amount) 10,278,357 15,356,285 140 305 316,524 458,216 122,036 183,528 276 418 64,337 73,635 19,836 22,667 5,016 6,154 2,040,923 1,887,373 1,116,712 2,266,498 219,367 491,618 1,629,099 2,428,955 2,518,813 4,356,567 401,998 382,773 384,826 669,254 246,780 193,260 292,200 368,723 45,057 34,311 647,997 1,423,207 61,868 24,131 144,552 84,692 21,453,761 26,852,684 797,043 177,158 20,654,155 26,675,526 2,563 - - 37,882 549,082 544,918 3,545 37,067 531,394 493,407 14,143 14,444 56,127 45,755 32,337,327 42,837,524 113

(Income Statement) (Banking Account) 3 2003 11 2003 12 31 2 2002 11 2002 12 31 ( : (Unit : Million Won)) 3 (Amount) 2 (Amount) 15,556,986 15,584,501 1 11,625,550 10,989,058 10,433 51,580 116,142 95,576 958,665 652,423 626,552 834,895 9,814,835 9,251,849 98,923 102,735 1,636,171 1,345,669 703,391 538,125 8,037 9,049 172 288 749,661 603,366 174,910 194,841 2,295,265 3,249,774 119,168 127,017 70,976 167,366 1,633 1,123 5,580 12,186 287,501 202,367 247,639 318,338 1,209 37,436 1,131,711 1,760,743 400,397 603,633 10,715-18,736 19,565 114

3 (Amount) 2 (Amount) 15,480,902 13,318,736 5,902,834 6,075,192 4,280,290 4,770,967 410,746 415,938 1,143,228 830,219 68,570 58,068 270,405 330,385 88,783 224,590 181,622 105,795 6,603,515 4,361,733 47,269 39,215 200,109 245,232 178,094 150,659 4,040,536 1,593,479 1,053,990 1,594,025 419,185 561,749-9,213 664,332 168,161 2,704,148 2,551,426 1,149,816 1,121,336 109,766 100,198 317,550 253,464 65,046 49,792 387,425 311,487 79,431 78,444 125,717 106,612 67,317 88,029 106,844 158,895 87,690 61,361 207,546 221,808 115

3 (Amount) 2 (Amount) 76,084 2,265,765 1,089,103 525,280 2,229 1,844 2,692 3,404 267,870-554,203 382,075 2,771 733 75,553 27,698 60,957 15,858 122,828 93,668 2,311,631 897,427 35,287 8,132 22,228 - - 273,620 60,210 171,963 209,307 300,091-48,775 92,297 9,383 1,652,264-240,038 85,463 (1,146,444) 1,893,618 (1,146,444) 1,893,618 (393,096) 583,327 (753,348) 1,310,291 116

(Trust Account) 3 2003 11 2003 12 31 2 2002 11 2002 12 31 ( : (Unit : Million Won)) 3 (Amount) 2 (Amount) 1,539 4 730,871 1,057,767 70,501 121,885 92,843 136,908 4,108 10,228 390,499 590,545 4,836 2,748 61,898 45,935 101,184 142,133 5,002 7,385 51,484 76,479 18,469 38,481 9,432 11,504 5,261 1,534 14,321 19,820 3,079 3,669 922 1,471-1,532-1,162 1,368,774 1,169,135-1 3,005 46,272-1,537 253,296 102,308 1,068 2,452 39,242 12,387 36,970 24,240 1,527 6,417 86,220 154,510 2,573,996 2,656,203 117

3 (Amount) 2 (Amount) 620,917 879,831 7 6 24,847 46,008 4,393 13,164 7 9 3,747 4,504 1,363 2,384 1,288 440 69,247 96,236 71,887 152,599 16,234 43,952 93,722 159,619 227,238 174,314 24,379 26,781 23,063 20,425 7,252 7,893 23,148 27,915 1,104 1,289 23,307 99,295 1,517 571 3,167 2,427 1,526,838 1,169,952 151,920 1,300 1,374,918 1,168,652 548 5,732 2,161 2,499 2,658 66,271 109,826 193,863 7,680 4,992 970 419 232,361 300,686 7,831 8,784 11,966 16,423 50,240 6,751 2,573,996 2,656,203 118

3 2003 11 2003 12 31 ( : 2004 323 ) 2 2002 11 2002 12 31 ( : 2003 321 ) 3 (Amount) ( : (Unit : Million Won)) 2 (Amount) (754,855) 1,319,970 410 5,117 (1,917) 4,562 (753,348) 1,310,291-5,417-5,417 (754,855) 1,325,387 754,900 (1,324,977) 754,900 (867,000) - (744) - (132,000) - (325,233) - (325,233) () : - : 1,000 (20%) 45 410 119

3 2003 11 2003 12 31 2 2002 11 2002 12 31 ( : ) 3 2 4,050,135 3,191,196 1 ( ) 2 8,466,367 47,269 200,109 1,652,264 4,040,536 1,053,990 419,185-109,766 12,130 387,425 79,431 35,287 22,228 60,210 209,307 - ( ) 2,033 ( ) 42,900 92,297 3 ( ) (753,348) (3,007,438) 119,168 70,976 287,501 1,209 1,131,711 400,397 10,715-2,229 554,203 2,771 75,553 267,870 60,957-22,178 1,310,291 5,307,564 39,215 245,232-1,593,479 1,594,025 561,749 9,213 100,198 11,333 311,487 78,444 8,132-171,963 300,091 273,620 - - 9,383 (3,359,886) 127,017 167,366 202,367 37,436 1,760,743 603,633-360 1,844 382,075 733 27,698-15,858 2,022 30,734 120

121 3 2 4 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) (655,446) 118,796 (255,957) (399,310) (166) (593,967) (28,019) 36,095 587,179 (18,637) (66,349) - (35,111) (8,058,172) (1,247,467) 1,336,940 (1,198,423) 5,119,423 (71,295) 11,392 (12,580,451) 101,599 (316,890) (705) 162 (166) (8,865) 166,101 (28,328) 145,924 474,995 37,882 (66,773) 3,238 14,037 (51,181) 5,639 (90,475) (1,070) (54,343) 45,215 (19,130) (60,268) 33 141,532 (15,205,028) 2,839,245 992,343 1,606,941 - - - (20,439,846) 14,049 (578,828) (502) 978 - (56,619) (338,569) 55,723 67,591 403,014 229,452

122 3 2 ( ) ( ) ( ) ( ) ( ) ( )(++) 4,645,870 5,229,520 391,726 3,455,169 1,465,556 (3,246,431) 3,230,841 (3,333,706) 548,995 (28,621) (24,885) (860,455) 3,191,050 (6,483,584) 379,284 (365,338) 3,248,649 (325,188) (273,080) 19,325 (623) (173,865) (171,172) (1,227,876) 826 (212) (35) 637,833 3,100,581 33,343 3,771,757 11,941,097 6,077,294 (18,978) 1,890,033 16,575,007 (18,031,093) 830,753 (999,551) 114,264 (6,583) (89,007) (1,240,419) 13,170,893 (3,891,809) 1,487,401 (2,069,405) (931,874) (29,967) 499,769 (57,825) (41,516) (901,723) (219,313) (149,704) 1,928 (737) (26,741) (72,735) 3,173,316-3,100,581

123 19(1 2002, 29 2003 ) 2003 20021231,, ( ) 20031231 10,677,822 620,929 638,079 150,492,,,,,

124,,,,,,,,,,,,

(Forward Looking Criteria, FLC ) 12 (AAA, AA, A, BBB, BB, BB -, B, B -, CCC, CC, C, D), AAA B 05% B - CCC 2% CC 20% C 50% D 100%,,,, 200212 050% 075% 100% 200% 800% 1200% 2000% 2000% 2000% 5000% 5500% 6000% 10000% 10000% 10000% 2002122003 1231 336,265, 314,701, ( ) 20% 50%, 100%, 19% 125

,,,,,,,, ( ) 40 4-5 4-5,,, 9 5 1-10 5-30 126

127, 30 ( ),, 20031231 48,388 26,160 22,228, 1,,

128,,,,,,,,, ( ),

129,,,, 2003 20021231 ( USD 1:1,1978, USD 1:1,2004),,, 6 20021231 ( ) ( ) ( ) ( ) ( )325,233

1 2003 20021231 ( : ) 2003 2002 2,612,248 1,340,482 810 41,192 8,185 392 8,995 41,584 140,000 140,000 1,560 1,336 PD 454 458 CLSA 200 - - 8,319 2,214 10,113 2,763,457 1,532,179 1 (12,810) (21,156) 2,750,647 1,511,023 12,415 25,677 71,879 104,073-15,193 71,879 119,266 JP MORGAN 3,354 5,064 513,976 359,200 601,624 509,207 1 1999 ( ) 140,000 ( : 1%, : 5, ) 130

2 2003 20021231,, ( : ) 2003 2002 28,884,554 28,904,621 1,415,445 1,851,133 447,992 568,702 809,921 814,759 3,793,594 3,229,851 35,351,506 35,369,066 5,413,333 4,676,506 1,218,370 1,287,125 6,631,703 5,963,631 41,983,209 41,332,697 41,951,219 39,713,543 38,199,290 33,731,435 297,868 131,768 635,218 632,172 81,083,595 74,208,918 526,227 738,632 42,473 39,414 568,700 778,046 62,963 95,252 12,815 20,941 3,962 5,449 79,740 121,642 123,715,244 116,441,303 1,165,988 1,052,800 887,018 933,010 767,884 1,094,119 1,197,563 1,334,006 1,477 3,241 4,019,930 4,417,176 1,640,000 33,600 5,351 248,857-89,287 1,645,351 371,744 131

3 20031231 ( : ) 114,948,955 5,342,015 2,264,071 935,330 206,411 123,696,782 773,958 297,883 491,148 501,798 206,411 2,271,198 (%) 067 558 2169 5365 10000 184 3,681,484 263,168 40,037 31,500 803 4,016,992 14,568 17,072 16,252 19,350 803 68,045 (%) 040 649 4059 6143 10000 169 / 507,729 54,354 1,850 3,030 3,757 570,720 2,539 8,687 430 1,515 3,757 16,928 (%) 050 1598 2324 5000 10000 297 42,754 6,347 19,539 10,903 9,896 89,439 214 498 3,908 5,451 9,896 19,967 (%) 050 785 2000 5000 10000 2232 7,239,554 1,626,508 400 1,158,525 224,844 10,249,831 72,396 195,181 80 695,115 224,844 1,187,616 (%) 100 1200 2000 6000 10000 1159 1,500,000 - - - - 1,500,000 - - - - - - (%) 000 000 000 000 000 000 1,645,351 - - - - 1,645,351 - - - - - - (%) 000 000 000 000 000 000 1,363,209 409,352 7,555 6,811 168 1,787,095 6,816 75,048 2,064 3,417 168 87,513 (%) 050 1833 2732 5017 10000 490 29,685 - - 125 16,275 46,085 148 - - 63 16,275 16,486 (%) 050 000 000 5040 10000 3577 1* 130,958,721 7,701,744 2,333,452 2,146,224 462,154 143,602,295 2* 870,639 594,369 513,882 1,226,709 462,154 3,667,753 (%) 066 772 2202 5716 10000 255 1* 2* 132

2003 2002 2,612,248 1,340,482 140,000 140,000 12,415 37,409 JP MORGAN 4 2,735 2,040 2,767,398 1,519,931 (12,810) (21,156) 2,754,588 1,498,775 ( : ) 655,890 52,612 274,671 9,860 993,033 ( : ) 2003 2002 3,690,341 2,378,696 1,074 2,287 234,432 131,455 1,196,201 690,562 139,769 190,417 56,127 45,755 746 1,087 2001, 2002, 133

2004 33 20031231 20021231,, 20031231 013% 015%, Kookmin Finance HK Ltd, 20021231 744% 1621%,, Kookmin Bank Luxembourg SA Kookmin Finance HK Ltd 2003 20021231 134

1 2003530 2003930 7427% 2003724 1 0442983 2003930 10,595,409 9,391,897 KB Luxemburg SA2004218, 2004 2002830 8543% 6543% 172,024 145,000, 20021028 503%900 8700%8866% (Morgan Stanley Emerging MarketsMorgan Stanley M&A ) 2002529 20021227 2 200212 050% 075% 100% 200% 800% 1200% 2000% 2000% 2000% 5000% 5500% 6000% 10000% 10000% 10000% 135

200212 2003 1231 336,265, 314,701 3 20031217 30,623,76127,423,761 20031226 43,700, 892% 4 LG LG 20031124 4,370, 200419 3,127 2,059 ( ) 2004 20031231 LG, 4,870, 268 753 LG, 5 2003 12 31 2,371,671 2003 12 31, 136

(Consolidated Balance Sheet) 3 2003 12 31 2 2002 12 31 3 (Amount) ( : (Unit : Million Won)) 2 (Amount) 6,560,651 4,790,636 (12,810) (21,156) 2,945,921 2,393,118 228,153 186,780 2,793,082 1,688,995 606,305 542,899 30,531,067 36,862,306 7,178,248 9,273,445 17,189,839 15,217,208 5,991,930 12,313,049 171,050 58,604 139,926,208 135,143,612 (3,702,655) (3,311,861) (22,826) (30,509) 8,567-123,830,211 116,744,634 3,900,868 4,259,199 37,427 37,415 534,239 756,300 89,665 52,543 47,202 56,795 10,249,831 14,967,546 1,500,000-1,794,231 1,285,279-7,643 1,659,448 318,628 137

3 (Amount) 2 (Amount) 3,024,948 3,360,158 3,700,915 3,556,711 (1,205,871) (832,348) (22,228) - 551,356 632,115 1,522 4,767 (746) (1,087) 6,730,164 6,969,506 (102,751) (93,263) 1,345,715 1,342,223 1,717,666 1,887,952 1,051,818 1,278,215 92,661 59,331 313,383 148,825 563,872 188,012 752,523 668,049 612,592 1,087,587 335,384 361,444 47,301 41,131 186,773,038 187,126,218 135,373,286 126,890,960 127,321,356 122,634,867 1,552,672 1,212,004 6,499,258 3,044,089 10,750,820 15,473,094 3,481,254 8,841,863 3,068,008 3,140,751 3,623,156 3,074,161 44,239 72,860 138

3 (Amount) 2 (Amount) 12,608 37,493 521,555 305,966 19,182,576 23,450,346 18,369,398 22,835,348 (83,443) (273,702) 888,455 891,161 8,166 (2,461) 12,978,312 10,631,483 240,844 150,483 (83) (206) (167,690) (99,161) 1,074 2,304 3,508,144 633,555 1,908,765 2,089,971 4,479,084 5,257,319 110,925 253,593 135,880 152,423 123,570 92,425 110,884 108,705 688,045 289,081 338,748 526,887 400,445 541,757 315,241 486,413 784,436 145,934 178,284,994 176,445,883 1,681,896 1,641,293 1,681,896 1,641,293 6,237,528 5,968,401 139

3 (Amount) 2 (Amount) 5,655,840 5,287,708 581,688 680,693 1,712,664 2,787,469 545,740 545,740 40,760 40,760 1,827,700 1,827,700 2,774 2,492 (704,310) 370,777 <(741,750)> <1,271,308> (1,160,814) 30,817 (1,328,312) (148,973) 141,155 178,046 881-26,211 397 (749) - - 1,347 16,770 252,355 8,488,044 10,680,335 186,773,038 187,126,218 140

(Consolidated Income Statement) 3 2003 11 2003 12 31 2 2002 11 2002 12 31 ( : (Unit : Million Won)) 3 (Amount) 2 (Amount) 18,006,301 18,863,597 1 13,084,902 13,088,437 10,997 56,412 303,743 369,631 960,599 653,958 1,242,809 1,405,807 10,443,799 10,472,306 122,955 130,323 2,566,553 2,571,278 847,562 694,896 8,041 9,056 398 325 1,535,642 1,672,160 174,910 194,841 2,354,846 3,203,882 138,079 155,802 65,798 118,486 79,121 1,234 5,986 13,575 291,542 212,832 206,075 259,324 1,209 37,436 1,134,624 1,776,807 403,457 601,786 10,715-18,240 26,600 141

3 (Amount) 2 (Amount) 17,468,330 16,907,388 6,475,761 7,007,955 4,386,806 4,982,936 591,830 735,982 1,436,234 1,236,299 60,891 52,738 717,604 862,507 290,430 267,244 427,174 595,263 7,247,801 6,059,451 77,296 61,262 195,212 246,090 178,170 150,780 4,638,051 3,196,161 1,458-1,062,812 1,625,534 421,793 558,438-9,213 673,009 211,973 3,027,164 2,977,475 1,255,628 1,242,815 129,392 114,023 347,746 290,932 78,433 62,692 436,549 365,073 82,807 80,398 136,691 121,511 87,653 174,566 113,217 110,091 109,269 117,744 249,779 297,630 142

3 (Amount) 2 (Amount) 537,971 1,956,209 908,894 763,922 2,308 1,968 2,557 3,337 22,675-568,223 392,247 2,771 733 90,662 27,698 62,715 16,627 156,983 321,312 2,466,471 901,699 36,724 8,369 22,228 - - 17,484 68,408 204,754 217,515 376,395 5,840 - - 48,775 208,800 114,271 1,652,264-254,692 131,651 (1,019,606) 1,818,432 (1,019,606) 1,818,432 (354,358) 612,384 (665,248) 1,206,048 (76,502) 65,260 (741,750) 1,271,308 143

3 2003 11 2003 12 31 2 2002 11 2002 12 31 ( : ) 200211( ) 1,498,487 5,745,002 1,519,064 205,274 309,129 9,276,956 52,906 181,194 - - - 234,100 - - 1,271,308 - - 1,271,308 - - - - (6,883) (6,883) 89,900 - (89,900) - - - 3,360 - - 3,360 - - - (147,610) - (147,610) - - - 87,330 34 87,364 - - - (25,624) 395 (25,229) - - - (65,260) (65,260) - 42,610 (4,294) - 14,965 53,281 - (405) (1,969) 1,347 (25) (1,052) 20021231( ) 1,641,293 5,968,401 2,787,469 30,817 252,355 10,680,335 200311( ) 1,641,293 5,968,401 2,787,469 30,817 252,355 10,680,335 40,603 271,274 - - (236,428) 75,449 - - (741,750) - - (741,750) - - (325,233) - (2,474) (327,707) - (2,147) - 2,147 - - - - (1,182,235) - (1,182,235) - - - (36,891) (13) (36,904) - - - 881-881 - - - 25,814-25,814 - - - (1,347) - (1,347) - - - - 3,330 3,330 - - (7,656) - (7,656) - - (166) - - (166) 20031231( ) 1,681,896 6,237,528 1,712,664 (1,160,814) 16,770 8,488,044 144

3 2003 11 2003 12 31 2 2002 11 2002 12 31 ( : ) 1 ( ) 2 ( ) 3 3 3,698,980 (741,750) 8,170,281 77,296 195,212 4,638,051 1,062,812 421,793-129,392 12,130 436,549 82,807 36,724 22,228 68,408 217,515 5,840-208,800 2,033 42,900 433,289 76,502 (2,835,572) 138,079 65,798 291,542 1,209 1,134,624 403,457 10,715 2,308 568,223 2,771 90,662 22,675-62,715 18,616 ( ) 22,178-2 4,469,083 1,271,308 7,124,312 61,262 246,090 3,270,025 1,625,534 558,438 9,213 114,023 13,722 365,073 80,398 8,369-204,754 376,395-17,484 114,271 - - 55,066 4,195 (3,458,709) 155,802 118,486 212,832 37,436 1,776,807 601,786-1,968 392,980-27,698-2,022 16,627 8,268 36,542 69,455 145