. (Acceptance and Continuance of Client Relationships and Specific Engagements) 5. (Resources) 6. (Engagement Performance) 7. (Information and Communication) 8. (Monitoring and Remediation Process)

quarter owing to the close monitoring of debts and a proactive approach in asset quality management adopted by commercial banks. As of the end of the second quarter of 2018, net loans at 14 domestically

business operation. Meanwhile, Senior Management ensures that policies, processes and systems for controlling, monitoring and reporting risks and capital are in place whereas segregation of duties and

operation. Meanwhile, KBank ensures that policies, processes and systems for controlling, monitoring and reporting risks, capital and liquidity are in place whereas segregation of duties and reporting lines

importance of strengthening capital to be in accordance with the Basel regulatory reforms. Close monitoring and consideration of the relevant criteria and impacts have been jointly undertaken with the Bank of

Engagements) (1) (1) 4 (Human Resources) ( ) ( ) 5 (Engagement Performance) (2) ( ) 6 (Monitoring) (1) (2) 100 .20 65 2 KPMG KPMG AQIs 2 KPMG KPMG 2 KPMG KPMG KPMG KPMG KPMG KPMG KPMG KPMG 108 31 2564 5.60

) 4 (Human Resources) ( ) ( ) 5 (Engagement Performance) (2) ( ) 6 (Monitoring) (1) (2) 100 .20 85 2 EY data analytic tools EY EY EY EY EY EY EY EY EY 211 30 2564 6.41 35 EY 3 3 1 (Leadership

(Engagement Performance) (2) ( ) 6 (Monitoring) (1) (2) 100 .20 50 - 2 - 10 technical committee 5 31 2565 17,698 0.09 3 3 1 (Leadership Responsibilities for Quality within the Firm) 3 2 (Relevant Ethical

and risks of organizations that will link their systems to ours. Duties and responsibilities are clearly defined in the contract entered into with those organizations, while risk-monitoring measures

each area. We continued to prioritize risk assessment through prudent screening and close monitoring of borrowers, and remained vigilant on risks. Meanwhile, we mainly targeted borrowers with good track