Moody's places ratings of 16 Korean institutions on review for upgrade

Singapore, July 03, 2007 -- Moody's Investors Service has put on review for possible upgrades for ratings of 16 Korean institutions: Citibank Korea Inc, Daegu Bank, Export-Import Bank of Korea("KEXIM"), Hana Bank, Industrial Bank of Korea, Jeonbuk Bank, Kookmin Bank, Korea Development Bank, Korea Exchange Bank, Korea Rail Network Authority("KRNA"), National Agricultural Cooperative Federation, Pusan Bank, Shinhan Bank, Standard Chartered First Bank Korea Limited, Suhyup Bank and Woori Bank. All bank financial strength ratings and Global Local Currency Ratings of the banks are unaffected. Also unaffected was the issuer rating of Woori Finance Holdings, which was not constrained.

The action follows Moody's decision to place on review for upgrade Korea's A3 long-term local currency and foreign currency bond ratings, the A3/Prime-2 country ceiling for foreign currency bank deposit ratings, and A1 country ceiling for foreign currency long-term bonds on July 3, 2007. See press release of July 3, 2007 for greater discussion on sovereign issues.

The ratings of both KEXIM and KRNA are derived from the application of Moody's rating methodology for government-related issuers (GRIs). KEXIM's ratings reflect the following inputs: baseline credit assessment 7 (on a scale of 1 to 21, where 1 represents lowest credit risk); Aa1 local currency deposit ceiling of Korea; high dependence; and high probability of support. KRNA's ratings reflect the following inputs: baseline credit assessment 7 (on a scale of 1 to 21, where 1 represents lowest credit risk); A3 local currency bond rating of the Korean Government, which has been put on the review this time; high dependence; and high probability of support.

Ratings on review for upgrade include:

Citibank Korea Inc -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Daegu Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Export-Import Bank of Korea -- Long-term foreign currency senior debt rating of Aa3

Hana Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Industrial Bank of Korea -- Foreign currency long-term deposit rating of A3, foreign currency short-term deposit rating of Prime-2, long-term foreign currency senior debt rating of A1 and long-term foreign currency subordinated debt rating of A1

Jeonbuk Bank -- Foreign currency short-term deposit rating of Prime-2

Kookmin Bank -- Foreign currency long-term deposit rating of A3, foreign currency short-term deposit rating of Prime-2 and long-term foreign currency senior debt rating of A1

Korea Development Bank -- Foreign currency long-term deposit rating of A3, foreign currency short-term deposit rating of Prime-2 and long-term foreign currency senior debt rating of Aa3

Korea Exchange Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Korea Rail Network Authority: Issuer rating of A3

National Agricultural Cooperative Federation -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Pusan Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Shinhan Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Standard Chartered First Bank Korea Limited -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Suhyup Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2

Woori Bank -- Foreign currency long-term deposit rating of A3 and foreign currency short-term deposit rating of Prime-2