WOORI BANK | CIK:0001264136 | 3

  • Filed: 4/30/2018
  • Entity registrant name: WOORI BANK (CIK: 0001264136)
  • Generator: Fujitsu
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    • ifrs-full:DisclosureOfRelatedPartyExplanatory

    45. RELATED PARTY TRANSACTIONS

    Related parties of the Group and assets and liabilities recognized and major transactions with the related parties during the current and prior periods are as follows:

     

    (1) Related parties

     

    Related parties

    Associates

    		    Kumho Tires Co., Inc., Woori Service Networks Co., Ltd., Korea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., Chin Hung International Inc., Poonglim Industrial Co., Ltd., STX Engine Co., Ltd, STX Corporation, 2016KIF-IMM Woori Bank Technology Venture Fund, K BANK Co., Ltd., Well to Sea No. 3 Private Equity Fund, and Others (Dongwoo C & C Co., Ltd. and other 22 associates)

     

    (2) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

     

    Related party

    		   

    A title of account

    		    December 31,
    2016    		     December 31,
    2017    		  

    Corporation that have significant influence over the Group

    		    KDIC(*1)    Loans      9       —  
          Other assets      270,041       —  
          Deposits due to customers      1,894,631       —  
          Other liabilities      15,568       —  

    Associates

    		   

    Kumho Tires Co., Inc.

    		    Loans      299,523       170,917  
          Allowance for credit loss      (715 )      (156,712 ) 
          Deposits due to customers      45,957       666  
          Other liabilities      50       50  
      

    Woori Blackstone Korea Opportunity Private Equity Fund No.1

    		    Other assets      34       —  
          Other liabilities      306       —  
              
      

    Woori Service Networks Co., Ltd.

    		    Loans      29       45  
          Deposits due to customers      2,572       1,311  
          Other liabilities      393       357  
      

    Korea Credit Bureau Co., Ltd.

    		    Loans      2       6  
          Deposits due to customers      5,069       5,586  
          Other liabilities      40       54  
      

    Korea Finance Security Co., Ltd.

    		    Loans      55       56  
          Deposits due to customers      2,801       2,854  
          Other liabilities      6       7  
      

    Chin Hung International Inc.

    		    Loans      4,320       408  
          Allowance for credit loss      (4,287 )      (22 ) 
          Deposits due to customers      14,047       46,220  
          Other liabilities      279       1,658  
      

    Poonglim Industrial Co., Ltd.

    		    Deposits due to customers      283       4  
      

    STX Engine Co., Ltd.

    		    Loans      107,974       106,176  
          Allowance for credit loss      (89,531 )      (88,734 ) 
          Deposits due to customers      13,260       18,092  
          Other liabilities      588       29  
      

    Samho International Co., Ltd.(*2)

    		    Loans      37,327       —  
          Allowance for credit loss      (717 )      —  
          Deposits due to customers      82,917       —  
          Other liabilities      216       —  
      

    STX Corporation

    		    Loans      144,035       47,711  
          Allowance for credit loss      (92,643 )      (31,210 ) 
          Deposits due to customers      14,412       77,555  
          Other liabilities      90       80  
      

    K BANK Co., Ltd.

    		    Loans      —       212  
          Other assets      325       —  
      

    Well to Sea No.3 Private Equity Fund(*3)

    		    Loans      —       73,810  
          Allowance for credit loss      —       (39 ) 
          Deposits due to customers      —       61  
          Other liabilities      —       27  
      

    Others(*4)

    		    Loans      619       499  
          Allowance for credit loss      (253 )      (471 ) 
          Other assets      8       1  
          Deposits due to customers      4,460       2,906  
          Other liabilities      60       73  

     

    (*1) As its ownership interest in the Group is lower than 20% as of December 31, 2017, it has been excluded from the corporation that have significant influence over the Group.
    (*2) As the Group sold its entire ownership interest of the entity, it is excluded from the investment in associates during the years ended December 31, 2017.
    (*3) Due to capital contribution by the Group during the years ended December 31, 2017, the entity was included in the investment in associates.
    (*4) Others include Saman Corporation, Kyesan Engineering Co., Ltd., Hyunwoo International Co., Ltd., DAEA SNC Co., Ltd. and others as of December 31, 2016 and 2017.

     

    (3) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

     

                For the years ended
    December 31    		  

    Related party

    		  

    A title of account

    		   2015     2016     2017  

    Corporation that have significant influence over the group

    		  

    KDIC(*3)

    		  

    Interest income

    		     22,237       11,778       —  
       

    Interest expenses

    		     23,584       20,966       15,331  
       

    Impairment losses due to credit loss (reversal of allowance for credit loss)

    		     29       —       —  

    Associates

    		  

    Kumho Tires Co., Ltd.

    		  

    Interest income

    		     2,698       2,430       2,641  
       

    Fees income

    		     6       6       5  
       

    Interest expenses

    		     205       68       1  
       

    Impairment losses due to credit loss (reversal of allowance for credit loss)

    		     (2,353 )      162       155,997  
     

    Woori Blackstone Korea Opportunity Private Equity Fund No.1

    		  

    Fees income

    		     1,437       1,364       6,225  
     

    Woori Service Networks Co., Ltd.

    		  

    Other income

    		     28       29       30  
       

    Interest expenses

    		     83       49       24  
       

    Fees expenses

    		     821       985       543  
       

    Other expenses

    		     228       222       507  
       

    Impairment losses due to credit loss

    		     2       —       —  
     

    Korea Credit Bureau Co., Ltd.

    		  

    Interest expenses

    		     74       138       82  
       

    Fees expenses

    		     1,690       1,915       2,079  
     

    Korea Finance Security Co., Ltd.

    		  

    Interest expenses

    		     39       10       12  
       

    Fees expenses

    		     93       110       —  
       

    Impairment losses due to credit loss (reversal of allowance for credit loss)

    		     (3 )      —       —  
     

    Chin Hung International Inc.

    		  

    Interest income

    		     807       240       364  
       

    Fees income

    		     1       1       1  
       

    Interest expenses

    		     35       28       27  
       

    Reversal of allowance for credit loss

    		     (534 )      (481 )      (4,265 ) 
     

    Poonglim Industrial Co., Ltd.

    		  

    Interest expenses

    		     11       2       —  
       

    Impairment losses due to credit loss (reversal of allowance for credit loss)

    		     (1,565 )      (1,557 )      —  
     

    Ansang Tech Co., Ltd.(*1)

    		  

    Reversal of allowance for credit loss

    		     (38 )      —       —  
      STX Engine Co., Ltd.   Interest income     1,358       1,348       1,417  
        Fees income     67       58       28  
        Interest expenses     46       97       147  
       

    Impairment losses due to credit loss

    		     20,524       63,866       (797 ) 

    Associates

    		  

    Samho International Co., Ltd.(*4)

    		   Interest income     1,015       916       486  
        Fees income     3       5       5  
        Interest expenses     981       525       334  
       

    Reversal of allowance for credit loss

    		     (2,098 )      (5,166 )      (717 ) 
     

    Force TEC C Co., Ltd.(*5)

    		   Interest income     249       153       —  
       

    Impairment losses due to credit loss (reversal of allowance for credit loss)

    		     5,900       —       —  
     

    Hana Engineering & Construction Co., Ltd.(*2)

    		  

    Reversal of allowance for credit loss

    		     (98 )      —       —  
      STX Corporation   Interest income     1,729       1,039       219  
        Fees income     89       75       30  
        Interest expenses     6       7       4  
       

    Impairment losses due to credit loss (reversal of allowance for credit loss)

    		     (4,060 )      73,457       (61,432 ) 
      Osung LST Co., Ltd.(*2)   Interest income     226       170       —  
        Interest expenses     16       1       —  
       

    Reversal of allowance for credit loss

    		     (223 )      (338 )      —  
     

    Woori Columbus 1st Private Equity Fund

    		   Fees income     546       308       272  
     

    Ilyang Construction Co., Ltd.(*2)

    		  

    Impairment losses due to credit loss

    		     215       —       —  
      K BANK Co., Ltd.(*6)   Fees income     —       296       —  
        Other income     —       1,638       1,051  
      Well to Sea No.3   Interest incomes     —       —       982  
      Private Equity Fund(*7)   Interest expenses     —       —       4  
       

    Impairment losses due to credit loss

    		     —       —       39  
      Others(*8)   Interest expenses     —       17       13  
       

    Impairment losses due to credit loss

    		     —       253       218  

     

    (*1) As the Group sold its ownership interests in the entities during the year ended December 31, 2015, these entities were excluded from the investment in associates.
    (*2) As the Group sold its ownership interests in the entities during the year ended December 31, 2016, these entities were excluded from the investment in associates.
    (*3) As its ownership interest in the Group is lower than 20% as of December 31, 2017, it has been exclude from the corporation that have significant influence over the Group.
    (*4) As the Group sold its entire ownership interest of the entity, it is excluded from the investment in associates during the years ended December 31, 2017.
    (*5) The entity is not in scope for the associates as of December 31, 2017, because the Group does not have significant influence over the entity due to the fact that it is going through workout process under receivership.
    (*6) Due to capital contribution during the year ended December 31, 2016, the entity has been included in the investment in associates.
    (*7) Due to capital contribution by the Group during the year ended December 31, 2017, the entity was included in the investment in associates.
    (*8) Others include Saman Corporation, Kyesan Engineering Co., Ltd., Hyunwoo International Co., Ltd., DAEA SNC Co., Ltd. and others as of December 31, 2017, and Saman Corporation, Kyesan Engineering Co., Ltd., Gachi Staff Co., Ltd., QTS Shipping Co., Ltd., and others were included as of December 31, 2016, respectively.

     

    (4) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):

     

         December 31, 2016      December 31, 2017       

    KDIC(*1)

    		      1,500,000        —      Loan commitment

    Kumho Tires Co., Inc.

    		      24,187        4,181      Letter of credit and others
         126,435        636      Loan commitment

    Korea Finance Security Co., Ltd.

    		      205        204      Loan commitment

    Korea Credit Bureau Co., Ltd.

    		      33        29      Loan commitment

    Woori Service Networks Co., Ltd.

    		      171        155      Loan commitment

    Chin Hung International Inc.

    		      40,904        31,891      Loan commitment

    STX Engine Co., Ltd.

    		      63,103        68,858      Letter of credit and others
         685        —      Loan commitment

    SamHo Co., Ltd.(*2)

    		      30,083        —      Loan commitment

    STX corporation

    		      24,316        17,557      Letter of credit and others
         71        53      Loan commitment

    Well to Sea No.3 Private Equity Fund(*3)

    		      —        236,190      Loan commitment

     

    (*1) As its ownership interest in the Group is lower than 20% as of December 31, 2017, it has been exclude from the corporation that have significant influence over the Group.
    (*2) As the Group sold its entire ownership interest of the entities during the year ended December 31, 2017, they are excluded from the investment in associates.
    (*3) Due to capital contribution by the Group during the year ended December 31, 2017, the entity was included in the investment in associates.

    For the guarantee provided to the related parties, the Group recognized provisions for guarantees amounting to 70,587 million Won and 71,459 million Won, as of December 31, 2016 and 2017, respectively.

     

    (5) Compensation for key management is as follows (Unit: Korean Won in millions):

     

         For the years ended December 31  
             2015(*)              2016              2017      

    Short term benefits

    		      10,288        9,523        12,024  

    Severance payments

    		      473        424        472  
      

     

     

    		     

     

     

    		     

     

     

    		  

    Total

    		      10,761        9,947        12,496  
      

     

     

    		     

     

     

    		     

     

     

    		  

     

    (*) As the scope of the compensation for key management disclosure has changed, the comparative amounts are restated.

     

    Key management includes registered executives and non-registered executives. Outstanding assets and liabilities from transactions with key management amount to 2,439 million Won and 6,309 million Won, respectively, as of December 31, 2017. With respect to the assets, the Group has not recognized any allowance, nor provision.