1. 2006. 7.11 KDB International Business

2. Ⅰ. Overview Past ○ Korea’s first bank to introduce Foreign Capital (’60.4) ○ Korea’s first bank to introduce Bank Loan (’70.6) ○ Korea’s first bank to issue Foreign-Currency Denominated Bond (’74.10) ○ Korea’s first bank to open Overseas Network (’77) -KASI : Korea Associated Security Inc. Recent ○ Best Asia Bond Issuer ○ Korean companies’ No.1 Mediator ○ Korea’s No.1 Bank Loan ○ Korea’s Best Derivatives House (’04, ’05) ○ Asian Top10 Regional Bank (’06) - 1 - ▣ KDB’s Presence Korea’s Leading Financial Institution for 52 years

3. - 1 - ▣ Organization : 1 Center 5 Departments 13 Overseas International Finance Dept. Long-term Overseas Funding Investor Relations Global Banking Dept. Lending to Corporate International Investment Arranging Overseas Corporate Funding International Banking Division Division Overseas Branches 6 Branch, 2 Representative Office 4 Subsidiaries Trade Finance Dept. Opening Import L/C Accepting Export B/E Ⅰ. Organization Cash FX & Money Market Trading Securities Trading Derivatives FX & Interest Rate & Equity Derivatives Trading Credit & Commodity Trading Trading Center Operation ABS Trust Business Settlement

4. ▣ Overseas Network Singapore Hong Kong ▪ Hochimin New York ▪ Qingdao Ireland Hungary London Tokyo Shanghai Beijing Guangzhou Frankfurt ▪ Shenyang ▪ Jakarta ▪ New Delhi : Representative ▪ : Branch, Subsidiary, Representative Office - 3 - Branch6 Subsidiary4 Representative Office 2 Representative6 Saint Paulo ▪ Bangkok

5. ▣ Korea’s Premiere Bond Issuer Improving Overseas Funding Condition for Domestic Institution ○ First successful overseas funding post IMF - Global Bond U$1billion issue (’99.4) ○ Always benchmark funding to guide lower funding cost of Korean borrower - Entered L+20bp in 5yr Global Bond Interest rate (’06) ’98(365bp) → ’02(78bp) → ’03(71bp) → ’04(58bp) → ’06(20bp) Diversion on Funding market & resource ○ Developing new source of funding in overseas financial market - First to issue Samurai Bond(’78) · Yankee Bond(’90) · Global Bond(’94) ○ Contributing to diversification on funding source (G3 & HK$, A$ Market) ○ Forming Opportunistic Funding System (EMTN, Bilateral Loan) that allow funding at any time Improving Korean Institutes Credit rate ○ Positive correspondence to credit review by the major credit rating agency (Moody’s, S&P) ○ Regularly held IR Activity (Road-show & Investor Meeting) ○ Continuous monitoring to recognize international financial market trends Ⅱ. Main Business - 4 -

6. ▣ Arranging Korean Companies’ overseas funding □ Arranging overseas funding of Korean corporate block penetration of domestic market by international IB □ Strengthening arranging capabilities on Structured Finance - Aircraft · ship financial risk, Overseas ABS Assisting various method of Overseas funding resulting from Corporate globalization like Overseas movement of Production facility Assisting various method of Overseas funding resulting from Corporate globalization like Overseas movement of Production facility □ Lead managing Fixed Income Bond Issuance by Blue Chip corporate □ Expanding International Banking Business with Foreign Companies (China, India etc.) □ Funding and underwriting large Scale Development Finance demand Supporting industrial & economic growth within Asia by Underwriting large development funding Supporting industrial & economic growth within Asia by Underwriting large development funding □ Building network of cooperating with Foreign Government and Financial Institution - 5 -

7. ▣ Providing Financial services to support company’s import & export operations - 6 - Opening L/C Trade Bill Loan & Discount ○ Issuing L/C by the request of the customers for settlement of import goods - Sight payment, usance & local L/C ○ Accepting Bill of Exchange & shipping document that had been Issued upon completion of loading within the terms of L/C, export contract ○ Companies that want To supply good/services /construct domestically or export good/services /construct in accordance to export L/C or export Related contract Supporting company for a smooth import/export operation Accepting B/E

8. Providing FX structured products Engineering & providing Derivatives Leading the Market as largest Derivatives House in Korea Korea’s leading developer in new financial products Risk management Consulting & Cyber transaction - -First to introduce derivatives & KRW derivatives to Korean market - -Market share leader in OTC derivatives market - - Entered the credit derivatives market Domestic credit derivatives market is in the forming stage motivated by New-BIS - -Inspiring company’s financial risk awareness through Forex Seminar - - Providing risk hedging opportunity to small & medium enterprises through Internet ○ Funding Cost 절약 ○ Asset-Liability Management ○ 환 ∙ 금리 변동 위험헤지 ○ 매출채권 부도위험 헤지 Supporting company’s operational stability ○ Saving Funding Cost ○ Hedging the fluctuation risk of Currency ∙ Interest rate - 7 - ▣ Financial Risk Management Services to Private Sector Providing Total Solution for Financial Risks

9. ▣ Dealing Business - 8 - ○ Front Office DESKProducts FX Dealing - Interbank KRW/USD Spot, Forward, SWAP Trade - Interbank FX Spot, Forward, SWAP Trade - Customer Spot, Forward, SWAP Trade Securities Trading - Floating Rate Note, Equity & Equity related Bond Trade - Fixed Income Bond Trade Derivatives - Interest Rate SWAP, Currency SWAP - Currency Option, Interest Rate Option, Equity Option - CDS (Credit Default Swap), Synthetic CDO etc. Front Office Middle Office Risk management, internal control Back Office (Operating Dept.) Settlement ○ Trading Structure (U$ billion)