□ Management Innovation Implementation Plan Announced

 On October 2, KHFC stated that it very seriously considers the findings of audits on public financial institutions' management innovation efforts that were recently released by the Board of Audit and Inspections (BAI), and plans to immediately take corrective action on issues raised by the BAI.

 The BAI conducted audits on management innovation by KHFC from November 28 through December 9 last year and raised issues in eight areas, including mortgage loan follow-ups, organization operation, and budget management. Six of the issues raised by BAI, including mortgage loan follow-ups, asset soundness classification criteria, organization operation, budget management, and the internal control system on derivatives, were already corrected early this year.

  KHFC sees issues pointed out by the BAI as opportunities to make greater efforts toward practicing ethical management and increasing business transparency so that the entire staff can maintain a high level of ethics. Meanwhile, KHFC will do its best to be a public company that is completely trusted by the public by stepping up its business innovation and social contribution.