WF

Business Context and Reporting Period

This Form 6-K filing by Woori Financial Group Inc. (Woori Bank), dated March 5, 2018, serves as a convocation notice for the Annual General Meeting of Shareholders scheduled for March 23, 2018. The filing includes unaudited consolidated and separate financial statements for the fiscal year ended December 31, 2017, alongside comparative data for 2016. The primary agenda items include the approval of 2017 financial statements, the appointment of a non-standing director, and the approval of the maximum limit on directors' compensation.

Key Financial Metrics (Fiscal Year 2017)

Financial data is presented in Korean Won (KRW) in millions, unless otherwise noted.

Note: The filing states that net income after the provision of regulatory reserve for credit loss was 1,389,822 million Won for 2017 and 1,094,594 million Won for 2016.

Material Changes vs. Prior Period

• Profitability Growth: Net income increased by approximately 19.7% year-over-year, driven by a 37% increase in operating income. This was supported by growth in net interest income (+4.0%) and net fees and commissions income (+14.2%).
• Asset Expansion: Total assets grew by 5.6 trillion Won (1.8%), primarily due to an increase in loans and receivables of 8.7 trillion Won.
• Liability Structure: Deposits increased by 13.7 trillion Won, while borrowings decreased by 4.0 trillion Won. Debentures increased by 4.3 trillion Won.
• Cash Flow Volatility: Net cash provided by operating activities swung from a positive 4.9 trillion Won in 2016 to a negative 2.0 trillion Won in 2017. This shift is largely attributed to significant changes in operating assets and liabilities, specifically a 9.6 trillion Won outflow related to loans and receivables and a 7.9 trillion Won outflow in other financial liabilities.
• Impairment Losses: Impairment losses on credit loss decreased slightly from 834,076 million Won in 2016 to 785,133 million Won in 2017.
• Other Comprehensive Income: Total comprehensive income decreased to 1,253,292 million Won from 1,355,427 million Won, impacted by a loss on foreign currency translation of 208,329 million Won and a loss on available-for-sale financial assets of 84,498 million Won.

Guidance, Outlook, and Corporate Actions

• Dividend Proposal: The filing indicates a proposed cash dividend of 500 KRW per share (10.0% yield) for 2017, compared to 400 KRW (8.0%) in 2016. Total dividends proposed are 336,636 million Won.
• Director Appointment: The AGM will vote on the appointment of Chang-Sik Bae as a Non-standing Director. His term is set from the March 2018 AGM to the March 2020 AGM. He is currently the Head of the Office of Human Resources Development at KDIC.
• Directors' Compensation: The maximum compensation limit for directors is proposed to remain at 3.2 billion Won for 2018, consistent with 2017.
• Regulatory Reserves: The regulatory reserve for credit loss as of December 31, 2017, stands at 2,438,191 million Won. The planned provision for the reserve for 2017 was 140,266 million Won.
• Unaudited Status: The financial statements included in this filing are unaudited and subject to change. Audited statements will be furnished separately.

Investor Verification Checklist

• Audited Financials: Verify the final audited figures against the unaudited numbers presented in this Form 6-K, as the filing explicitly states these are subject to change.
• Operating Cash Flow: Investigate the drivers behind the significant reversal in operating cash flow from positive in 2016 to negative in 2017, specifically regarding the classification of changes in loans and other financial liabilities.
• Foreign Exchange Impact: Assess the impact of the 208 billion Won loss on foreign currency translation on the bank's international exposure and hedging strategies.
• Asset Quality: Review the detailed breakdown of the 785 billion Won in impairment losses on credit loss to understand the quality of the loan portfolio.
• Hybrid Securities: Note the reduction in hybrid securities from 3,574,896 million Won in 2016 to 3,017,888 million Won in 2017 due to redemptions exceeding issuances; verify the impact on capital adequacy ratios.