Credit Administrative Work 1 1. Items to be verified in credit handling (1) Why we need credit consultation? (2) Basic items to be verified in credit consultation 2. Procedures of credit handling (1) Counseling with client (2) Credit rating (3) Pre-consultation (4) Application for approval (5) Credit evaluation (6) Receiving loan documents and fulfillment of approval conditions (7) Approval confirmation (8) Loan disbursement (9) Preservation of loan documents (10) Loan administrations

2 1. Items to be verified in credit handling (1) Why we need credit consultation? [Debtor] - Industry - Business type - Business environment Diversification of Credit Conditions Propose Appropriate Conditions Successful Credit Consultation (2) Basic items to be verified in credit consultation 1) Confirmation on debtor’s entity Legal capacity Appropriateness in Exercising Right of Representation 2) Use of Fund, Loan Amount, Loan Period Appropriateness in use of fund Loan with unclear fund use Ex. Construction of factory, introduction of new machineries, purchase of raw material, 1 cycle working capital financing, etc. No credit approval (by Credit Approval Division in Head Office) Possible insolvency Confirmation on management or employee holding right of representation Confirmation on debtor(corporation)’s legal capacity 3) Identify available credit amount Sales & assets volume Scale of New Investment Excessive Expenditure Compared to Scale Concerns for Reckless Management, Risk for Lack of Repayment Capability Review on the appropriateness in credit amount Loan for Working Capital Loan for CAPEX Prepare and review on working capital limit calculation table Prepare and review on CAPEX financing calculation table Requesting Loan for New Business based on Projected Financial Statements Additional review on Business Plan

3 4) Identification of Current Status of Industry Current Status of Industry which Debtor Belongs to Growing Industry Put priority on technology and finding buyer ahead of obligor’s financial position Items requiring careful verification Judgment on available range of credit extension Declining Industry Items to be considered in identification of Current Status of Industry Adequate reduction of exposure regardless of stable financial structure Economical status of industry in the country Government Policy Market Demand (Growth Potential) Competition Intensity Life Cycle Difficulty in Entering & Exiting, etc. ※ Matters requiring attention in applying for credit approval to Credit Approval Division(Overseas Loan Team) Loan officer of Overseas Loan Team may be short on information about a certain industry in a country. Times to be taken in credit approval may be shortened by providing current status and prospect of industry. 5) Single Borrower, TELIT Single Borrower Review on the status of parent company Most of corporations doing business with overseas branch & corporation of KEB have their headquarters in Korea Affiliated entities who can significantly influence one another having close relationship though they are separate corporate entities and individuals Application Standard for Discretionary Powers Interest Pricing Calculation based on single borrower Confirmation on credit rating of parent company Importance in Grasping Loan Policy of Loan Review Department of Korea Headquarter Future credit operation policy What is TELIT? Consultation about the possible use of TELIT after consulting with SRM or RM in charge of parent company in Korea

4 6) Selection of appropriate loan approval authority Application of appropriate loan approval authority is possible only after completion of credit rating since approval authority may differ according to loan amount and credit rating. Total Credit Limit = Total Credit- Credit Excluding Single Borrower Limit Net Unsecured Credit Limit = (Total Credit- Credit Excluding Single Borrower Limit) x Credit Risk Weight – Realization Value of Collateral Completion of Credit Rating before Loan Application Error in Application of Loan Approval Authority Risk for severe problem including the excessive loan with violation of approval authority Application Criteria of Loan Approval Authority Determination of Approval Authority Subject to Headquarter 7) Security Interest Review on debtor’s debt serviceability Review on providing collateral, additional guarantor, and obtaining LOC Simultaneous review on management status, operation results, and debt serviceability, and obtaining guarantee fromparent company, if deemed possible Review on debt serviceability Security interest measures Understanding of current status and guarantee from parent company 8) Analysis on Profitability Grasping Risk Scale Risk Hedge + pursue additional appropriate profit Loan officer’s Committee Chairman (Head of Overseas Loan Team) 3 voting members (loan officers) On demands Senior Loan officer’s Committee Chairman (Head of Credit Approval Division) 3 voting members (Head of Team) On demands Loan Committee Chairman (Deputy President (CCO)) Voting members (Head of Loan Div, Head of Marketing Support Dept) Twice a Week

5 1) Counseling with Client Great opportunity to grasp the matters to be confirmed in loan handling Take memo in great details by carefully listening to remarks of client, Use it in credit rating Available through various routes including on-site visit to obligor, obligor’s visit to Bank, phone, etc. 2) Credit Rating In case of obligor’s rejection to submit document before loan handling: Search internet data, refer to evaluation data of other credit rating agencies. Request for prior consultation to Credit Approval Division in H/O, and receive formal documents after getting approval “Credit rating is an important element in measuring the scale of approval authority and credit risk quantity” Report on Counseling Determination on Loan promotion Credit Rating Prior obtainment of Documents for Credit Rating 3) Prior consultation For the loan to be approved by headquarter, after completion of credit rating → Request for prior consultation to loan officers 4) Request for Approval 5) Credit evaluation and approval Credit evaluation and approval by loan officer of H/O Approval of Prior consultation Request for receiving additional documents Request for Formal Approval 6)Request for Loan Documents & Fulfillment of Approval Conditions 7) Confirmation on Approval 8) Loan Record Completion of credit evaluation & Approval Confirmatio n on Approval Conditions Request for Loan Documents Approval ledger is created after confirmation on approval When confirming approval based on withdrawal request of client for loan, create Loan record with sequence of approval no. 9) Safekeeping of Loan Documents 10) Follow-Up Services Loan Documents: Documentation from Counseling, Execution, Follow-Up Services to Final Collection Personnel in charge of loan examines based on check list and chief of branch examines once gain with check list. All behavior from loan handling to repayment 2. Procedures of Loan Handling 1 Counseling with Client 2 Credit Rating 3 Prior consultation 4 Request for Approval 5 Credit evaluation 6 Request for Loan Documents & Fulfillment of Approval Conditions 7 Confirmation on Approval 8 Loan Disbursement 9 Safekeeping of Loan Documents 10 Loan administration