Understanding of Credit Card

1. Understanding of Credit Card 1. Outline of Credit Card Service 1) Outline of Credit Card 2) Distinction between Credit Card and Other Cards 3) Classification of Credit Card 2. Overseas Use of Our Credit Card 1) Transaction authorization 2) General Use 3) Cash Advance 4) Cash Advance at Counter of Our Overseas Br. 5) Deposit Withdrawal 3. Invalid Credit Card 4. Emergency Service 5. Appeal Process 6. Overseas Chargeback Process

2. Understanding of Credit Card 1. Outline of Credit Card Service (1) Outline of Credit Card • Definition • Payment card with which one can purchase goods or services at credit card merchants and one can make deferred payment of the amount after a certain grace period Transaction Model of Credit Card Issuance of Card/Request for payment Transaction authorization/ Payment for sales Request for transaction authorization / Submission of Sales Slip Application for Issuance of Card/ Payment of Charge Presentation of Card/ Signing on sales slip Provision of goods, services/ Issuance of sales slip [ Basic Model for 3-way Transaction (2) Distinction between Credit Card and Other Cards Debit Card • Payment card whose funds are withdrawn directly from the cardholder's checking accountat the time of sale (excluding quasi-cash securities or vouchers). Transactions arePIN-based and permitted within the balance of a connected checking account. Check Card • Although it is the same as debit card, it can be used at credit card merchant by signature method. • It refers to the debit card developed and specialized in Korea that can provide some credit line. Prepaid Card • It is the card that can provide goods or services within the amount stored by electronic or • magnetic method. In a broad sense, it is included in debit card. Cash Card • Card with a function of simply processing deposits & withdrawals of cash

3. Credit Card • Deferred payment according to certain grace period • In case of a international brand card, it can be used instead of cash at merchants worldwide • Signature method, not PIN (except for cash advances at ATM) • Fund Accommodation Function • Cash Advance Function • Card Loan Function • Deposit withdrawal is available at overseas ATM • Revolving Payment Function • Check Card • Direct payment from connected payment account upon the purchase of goods or services • No Fund Accommodation Function • No Cash Advance, No Card Loan • Use at Credit Card Merchant (Signature Method) • Although it was developed to be used mostly at domestic credit card merchant,“The One Check Card” can be used at credit card merchants worldwide. • Certain credit line is available at the time of using public transportation • Deposit withdrawal is available at overseas ATM • Debit Card • Direct payment from connected payment account upon the purchase of goods or services • Can only be used in debit card merchant • Used by means of PIN input • Deposit (Cash) Withdrawal Function • No Fund Accommodation Function • No Cash Advance & No Card Loan • Deposit withdrawal is available at overseas ATM • Prepaid Card • Pre-pay certain amount and purchase the card • Used within the balance • KEB has been providing “World Cash Card” (Master Card) that can be used worldwide. • Cash Card • Deposit withdrawal from & deposit into a deposit account linked • By means of PIN input

4. (3) Classification of Credit Card [Card Brand Distinction by BIN • Card No. & BIN • BIN (Bank Identification Number) is assigned and managed to separate card brand from issuer under the regulations of international card headquarters per brand • BIN is composed of a total of 6 digits including Prefix No. (4 digits) for each brand and bank identification code (2 digits) • Account No. System • Account Number is composed of 13, 16, 19 digits, etc Credit Card

5. Debit/ Check Card • VISA • -Debit Card : Pin type, deposit withdrawal at overseas ATM • -Check Card : Signature type, deposit withdrawal at overseas ATM ( The One Check Card can be used in overseas credit card merchant) • MasterCard : Not issued Prepaid Card [Classification of Cards - Brand

6. [Card Issued to Individuals] Gold The most typical credit card issued to customers with basic rating A higher class card issued to new cardholder with great credit rating or preferred cardholder of classic card Premium card providing diverse additional services and benefits including the high credit line, customized concierge service for travel & entertainment , etc. Premium golf specialized card for VVIP cardholders as part of differentiated strategies for VIP cardholders in line with the popularization of premium card The highest level card issued to selected few that provides very high credit line, convenience, customized benefits, reward and service (not issued by KEB) [Card Issued to Corporations or for Business Purposes] Corporate card issued to corporate customers Card issued mainly to self-employed business owners or its employees Purchasing-only card for corporatecustomers. Used for small payment or convenient purchase. Provides MIS services , etc It is Master Card to manage the oil supply record of vehicle and it has functions of purchasing card when used in general merchants (Not issued by KEB) It is signature card issued to corporations or for business purposes

7. 2. Overseas Use of KEB Cards (1) Transaction Authorization Flow • Credit Card Transaction • ATM Transaction ( Int’I Credit Card, Check Card, Debit Card)

8. (2) General Use • Applicable Cards • -All credit cards for domestic & overseas use • -“The One Check Card” among Check Cards • - “World Cash Card” • Credit Line • -Credit Card : Both individual/corporate customers can use the card within the total credit line (domestic use + overseas use) • -Check Card : Not exceeding the deposit balance • Use • -Worldwide credit card merchant of each brand where trade mark on the right is attached • Method • -Signature type • Application of Exchange Rate • - Charge to Credit Card = (Charge (USD) + ( 1% of Charge)) * (Telegraphic Transfer Selling Rate + Exchange commission for 45 days) • Overseas Floor Limit Transaction • -In case of overseas use of credit cards, a credit card can be used by no-authorization method with confirmation of CRB in a merchant related to the travel industry • -Floor Limit amount differs depending on region and country. Generally transactions involving USD500 • STIP (Stand in Process) • -In case KEB cannot authorize a transaction due to system error, authorization time-out, etc, the international card headquarters performs the authorization on our behalf. (3) Cash Advance • Applicable Card • - Out of all consumer/corporate cards for domestic & overseas use, “card in the name of executive/employee” where individual cardholder’s name is printed on the front side. Business Card for the owner (service unavailable for employees) • Credit Line • -Credit Card : Within the cash advance limit (part of a total credit line) • Application • - Worldwide Global ATM (Automated Teller Machine) where trade mark on the right is attached • - KEB branches, banks handling international brand cards • - KEB website • Method • -ATM : PIN input • - KEB branches, banks handling international brand cards: Drawing of Cash Disburse Draft • -Internet : Certificate Method • -Cash advance at an overseas branch of KEB (refer to the next page) • Application of Exchange Rate • - Charge to Credit Card = (Charge (USD) + ( 1% of Charge)) * (Telegraphic Transfer Selling Rate + Exchange commission for 45 days)

9. (4) Cash Advance at counter of our overseas branch • Flow : ID verification (identification with photo such as passport, driver’s license, etc) Our transaction authorization Telex or Call(82-2-524-8100)  cash disburse draft drawing  Input KIBS information USD Payment • Cash Disbursement Transaction Receipt • It is composed of 2 sheets, 1 for the card holder and 1 for the bank. In case of card imprinting and writing statement, use 2 sheets together. • Imprinting of actual card on cash disbursement receipt • Write check digit (Check whether the first four digits of the card number imprinted on the card are consistent with the 4 digit numbers printed on the bottom) • Type and No. of identification such as passport, driver’s license shall be written on the cash disbursement receipt (in case of JCB, you must write down passport no.) • Write transaction authorization no. notified from our transaction authorization center. • Write other information on cash disburse draft • Signature of the principal (Check whether the signature is the same as that on the card. Account password is unnecessary.) • Storage of cash disbursement receipt • cash disbursement receipt is kept for 5 years. • When the home country requests a copy, send it via fax (5) Deposit Withdrawal • Applicable Card : All credit cards for domestic & overseas uses with cash card function out of cards which use KEB deposit account for settlement • Check Card, Debit Card, • Credit Limit • Credit Card, Check Card : Within the balance of deposit account • Application • Withdrawal in local currency from worldwide Global ATM where trade mark on the right is attached • ※ Deposit withdrawal at KEB counter overseas is only available when registered for service “overseas manual deposit & withdrawal service” before departure. • Method • ATM : PIN Input • Application of Exchange Rate • Amount = (Withdrawal (USD) + (For each country/ withdrawal amount 2~3.5$)) * (Telegraphic Transfer Selling Rate + Exchange commission for 45 days)

10. 3. Invalid Credit Card • Concept • “Invalid Credit Card” refers to the card suspended of transaction due to loss & theft or due to overdue payment etc • ※ Does not necessarily that the issuance of the card itself was invalid from the beginning. • Cautions in Overseas Loss & Theft Report & Suspension of Transaction • One who received the loss & theft report through phone or visit, etc at overseas counter of KEB shall process it by making calls to the transaction authorization center of the bank (82-2-524-8282) or instruct the cardholder himself/herself to directly report such loss to the bank. • In case of reporting at counter, instruct the customer to directly state contents of the accident (who, when, where, how, etc), send it via fax to the home country and contact via phone. • After confirming whether request for emergency service is made, help the customer receive re-issued card so that he or she can continue to use the card in a foreign country. • In case a person other than a cardholder himself makes a report, instruct him to directly call the home country to verify the identity of the person, relationship to the cardholder, etc. • In case the cardholder requests compensation, instruct him or her to directly draw up the appeal & compensation request, send it via fax and make a phone call in person. • In case of receiving a request to cancel the loss & theft accident report, inform him of our website or instruct him to directly make a phone call to the home country • In case an overseas branch received the accident report or request for cancellation, obtain a copy of the identification and copy of the front & back of actual card with signature after ID verification, send fax to the home country and contact via phone. • Invalid Card Statement/ Exceptional Transaction File • “Invalid Card Statement” is a booklet containing the account no. of cards suspended of transaction due to loss & theft, forgery & fabrication, overdue, overdue, bankruptcy, etc. • Domestic transaction does not recognize the floor limit, thus invalid card statement is not drawn up based on the all transaction authorization policy. • In case of overseas transactions, stand in process or floor limit for each country is operated thus invalid card is registered with selection to invalid card statement/exception file operated by each branch to prevent the false use overseas • Name per brand • ※ In the US, Paper CRB is not issued. Instead, the NCRF (National Card Recovery File and Electronic Bulletin File are operated. • ※ Exception file: Not only invalid cards but also preferred cards are registered.

11. 4. Emergency Service • Contents of Service • The card business of each brand provides the following services when a cardholder requests help due to emergency during overseas stay. • Distinction of Service • * Emergency Card Replacement Service (ECRS): A customer who requests emergency re-issuance due to loss, theft, damage to magnetic, etc. can receive a new one in a foreign country he or she is staying. • * Emergency Cash Advance Service (ECS) : A customer who requests emergence re-issuance due to loss, theft, damage to magnetic, etc. and receives a new one can get emergence cash advance at counter of our overseas branch. • Service Providing Institution • VISA Headquarter : GAC (Global Assistance Center) • MasterCard Headquarter : VSC (Voice Service Center) • JCB Headquarter : JCB Plaza • Transaction Authority Center of Our Bank (82-2-524-8100) • Service Applicable Card • All Credit Card for Domestic & Overseas Use • “The One Check Card” among Visa Check Cards • “World Cash Card” among MasterCard Prepaid Cards Emergency Service Flow

12. 5. Appeal Process • Concept of Appeal Process • It is to request the investigation or handling to KEB via mail, phone, internet or FAX, in case payment for goods or services is made differently from the intention of the cardholder or payment is charged for goods or services the cardholder did not purchase. • ※Use of card by card loss & theft and card counterfeit, etc. is classified as card accident not general appeal. Therefore, it is received and processed based on the “card accident appeal and compensation request” • Main causes of appeal • Cancelled Recurring Transaction • Incorrect Transaction Amount • Duplicated Processing • No Cardholder Authorization • Merchandise Not Received/Service Not Provided • Credit Not Processed • Paid by Other Means • Defective Merchandise / Not As Described • Non-receipt of Cash at ATM • Request for sales slip for verification process • ■ Receipt of appeal in charge for overseas use (refer to i-Rose card document form) • After receiving “KEB card charge appeal (form) from the cardholder, • - Send “KEB card charge appeal” and transaction verification (sales slip, refund slip, contract, etc) to card service support team via FAX • ■ Caution in receiving appeal in charge for overseas use • - Accurately fill in the form, “KEB card charge appeal.” • (Especially, contact no. of the cardholder, account no, contents of appeal, etc) • - Since dispute settlement process generally takes 2~4 months, fully inform the cardholder of the process to prevent the unnecessary complaints in advance. • - The dispute settlement is processed only within the date prescribed by each international card headquarters (at least within 30 days), thus it is necessary to check whether the processing date has lapsed when receiving the appeal from the cardholder. It shall not pass chargeback time limit due to omission in the receipt, etc. • - When receiving the appeal from the cardholder, you shall send the refund slip, certificate for the goods returned, transaction slip, etc. submitted by the cardholder together with the “Personnel in charge of KEB card appeal for overseas use” to card service support team via FAX(82-2-524-8055) since it may be utilized as important data in progressing chargeback in the future. • - When sending documents via fax, make a phone call to staff in charge as well to ensure the correct transfer. • Reference • - Personnel in charge of ATM cash withdrawal appeal : Manager Seungjo Choi (82-2-524-9964) • - Personnel in charge of credit card appeal : Manager Gyusuk Jeong (82-2-524-8358), Senior Clerk Jaegyun jeong (82-2-524-8936), Senior Clerk Hyeonhyun Kim (82-2-524-8359)

13. [Annex 1] Personnel in Charge Personnel With Authority Appeal Against Charge in KEB Card To division (team) Handling Branch: (Div.) Branch (Cardholder) Account No. Name Address Phone (Contents of Transaction) Date of Transaction Amount Name of Merchant Date of Settlement Local currency USD KRW If the transaction was made in won in Korea, please fill in the section, KRW only. I hereby file an appeal or request a copy of the transaction slip as follows. □ I request a copy of the transaction slip to confirm the above transaction or to use it as data for the appeal. □ I file an appeal regarding the above transaction with attached documents. Cause of Appeal: Cause of appeal shall separately be written on the back. • Caution • 1. Request for appeal or a copy of transaction slip shall be completed before the assigned date of settlement • for the charge and KEB shall bear no liability whatsoever if charge cannot be returned due to lapse • of charge-back time limit prescribed in VISA Int’l Regulation or MasterCard Int’l Regulation or agreement • between card companies by sending a request after the date of settlement. • 2. When cause of appeal turns out to be attributable to the cardholder, he or she shall pay late payment fees incurred • during the period. I hereby request as above and certify that there is no objection to Items 1 and 2. • year month day • Name of Applicant (Cardholder): (seal) • Signature on Card: Attached Documents • A copy of card charge statement • Relevant verification documents (a copy of the transaction slip for cardholder, etc) • In case of overseas use, English version of the confirmation of cardholder (form) • DP-A-FM-055 (revised 200.06, 210X297)

14. In case non- card issuer receives the request, please send relevant documents to the issuer immediately. Cause of Appeal Please make statements according to the six principles for report writing. DP-A-FM-055 (revised 2000.06, 210X297)

15. 6. Overseas Chargeback Process Overseas Chargeback Process Flow International card headquarters Cardholder Issuer Purchasing bank (purchaser) Merchant ■ Procedures for dispute resolution regarding the overseas use of KEB cards & domestic use of overseas cards - Chargeback refers to the return of the transaction amount to the purchasing bank (purchaser) with the purchased transaction from purchasing bank (purchaser) denied of payment from the cardholder or issuing bank (issuer) - Representment is the procedure where the purchasing bank (purchaser) verifies the improperness of returned chargeback denied of payment from the issuing bank (issuer) or cardholder and legitimacy of a claim. - Procedures for dispute resolution regarding the overseas use of KEB cards & domestic use of overseas cards come down to the processing of chargeback and representment as above. - The procedures for dispute resolution are processed as prescribed in the regulations of each international card headquarters (VISA, MASTER, JCB). ■ Reference : Regulations of each brand - VISA : Dispute Resolution Rules - MASTER : MasterCard International Chargeback Guide - JCB : JCB International Operating Manual