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					      Contents
I        Bank Introduction                                                              V       Appendix
                                                                                         1      Community Focused Management…….                      26
 1       Bank Profile……………………………….                              4
                                                                                         2      Community Contributions ……………….                      27
 2       K-Leadership……………………….…….                              5
                                                                                         3      Market Share……………………………..                            28
 3       Core Strengths…………… …………......                         6
                                                                                         4      Market Share in Gumi & Pohang ……..                   29
 4       Prizes Awarded…………………………..                             7
                                                                                         5      Summary B/S……………………………..                             30
II       2003 Results                                                                    6      Summary I/S ……………………………..                            31
 1       2003 Results Highlight ……...………….                     9                          7     Operating Income…………………………                           32
 2       Earnings Overview …………………….                          10                          8     Interest Income ..………………………….                        33
 3       Asset Quality Overview …………...…..                    11                          9     Non-interest Income……………………….                        34
 4       Asset Growth ………..…..……………..                         12                         10     Non-operating Income…………………….                        35
 5       Capital Adequacy .……………………….                         13                         11     Loans in Won by Collateral Type……..…                 36
                                                                                         12     Corporate Loan Portfolio………. ………..                   37
III      Other Issues of Interest                                                        13     Corporate Loan by Collateral Type…..…                38
                                                                                         14     Corporate Loan – Asset Quality………...                 39
 1       Low-cost Deposits……………………….                          15
                                                                                         15     Problem Loans….…………………………                            40
 2       NIM & NIS ….…………………………….                             16                         16     Household Loan by Collateral Type……                  41
 3       Cost/Income ………………..………...…..                        17                         17     Household Loan – Asset Quality……..….                 42
 4       Delinquencies by Sector…...…….………                    18                         18     Credit Card ……………..………………….                          43
                                                                                         19     Credit Card – Asset Quality ..…………….                 44
IV       2004 Plan                                                                       20     Credit Card – Delinquency……………….                     45
 1       Management Objectives & Strategies….                 20                         21     Credit Card – Reaged Loans….…………                     46
 2       Target Earnings ……………….………….                         21                         22     NPL Disposal (LLP by Sectors) ……….                   47
 3       Asset Growth …………….………………..                          22                         23     Securities ……………………………...…..                         48
 4       Asset Quality …….………..………...…..                      23                         24     Credit Rating (Moody’s)…………………..                     49
 5       EPS & BPS …..………...…...…….…                          24                         25     Regional Economy..……………………….                         50
    This material may contain certain forward looking statements or figures that are subject to change. Daegu Bank undertakes no obligation with respect
    to any investment judgment based on this material.


      Investor Relations – FY03 Results & FY04 Plan                                                                                                        2
I   Bank Introduction




    1      Bank Profile

    2      K-Leadership

    3      Core Strengths

    4      Recent Prizes Awarded




    Investor Relations – FY03 Results & FY04 Plan   3
1 Bank Profile



                                  The oldest regional bank : Established on Oct. 7, 1967
 Leading Regional Bank            The largest regional bank : Total assets (2003YE) 18.2 trillion Won
                                  Shareholding structure (2003YE) : Individual 51.5%, Institutional 17.1%,
                                                                     Foreign 31.4%


                                  Branch network : Corporate 60, Retail 186
Delivery Channel Network          Phone-banking Customers (Nr) : 1,254,748 (Up 11.64% YoY)
                                  Registered Internet-banking Customers (Nr) : 592,433 (Up 36.55% YoY)



                                  Total deposit customers (Nr) : 3.25 million (61% of total population in the region)
    Customer Base                 Market share (Deposit, Oct.03) : 41.0% in Daegu, 32.3% in Daegu-Gyeongbuk
                                  Custodian business for local governments and other public institutions



                                 Divisional Structure
 Organization Structure          - 7 Divisions, 31 Teams, 3 Regional Headquarters
                                 4 Independent (External) Non-standing Directors in 7 BOD Members




     Investor Relations – FY03 Results & FY04 Plan                                                                      4
         2 K-Leadership

Dec.03
           “Sharing Dreams & Abundance
                     region”
            with the region”                                                      K-Leadership
                  K-Leadership driving
             the Community Focused Mgmt             Shareholder Value         Community Focused                 Human Centric
2000                                                  Management                 Management                      Management
                -Differentiation Strategy

                                                                        K-Leadership Execution Program
1997        Asian Financial Crisis


                                                     K-Project (Master Plan for Community Focused Management )
                                                        Community focused marketing on the back of systematic community
                                                        involvement solidifying customer relationship further
            Capital 165 bn, Deposit 2 tril.
1990
            Loan 1.5 tril.
                                                      Structural Adjustment Program initiated
                                                        Constructing more efficient management infrastructure


                                                      Advanced Management Infrastructure
                                                        New Corporate Governance and Management Infrastructure set in place
            Capital 15 bn, Deposit 219.5 bn
1980
            Loan 182.4 bn
                                                     Customer Satisfaction Management
                                                       The perspective, “Regional Society = Customers”, closely interconnected with
           Established as the first regional bank      Community Focused Management, places the priority on customer relations
Oct.67      (Deposit 0.3bn, Capital 0.15bn)

          (Unit : Won)

             Investor Relations – FY03 Results & FY04 Plan                                                                            5
3 Core Strengths


                                Community Focused Management



                                     Solid Relationship Building




               Low-cost Funding                                    Strong Customer Base
        Custodian Business for local govts,                 Biggest resource & info. network
        hospitals, and schools, etc.                        Non-financial SME customer info.
        Huge demand & checkable deposits                    advantage vis-à-vis other banks



               Profitability Base                                    Growth Potential
        Highest low—cost deposits to total                  Dominant regional market share
        Won deposits in the sector                          Unexplored cross-selling potential
        Higher than sector average NIM



   Investor Relations – FY03 Results & FY04 Plan                                                 6
4 Recent Prizes Awarded


                                                          Prizes Awarded
    Jan. 2004          Dasan Financial Golden Prize (Banking Sector) (by Korea Economic Daily / MOFE)

                       Management Innovation Grand Prix (by The Korean Society for Quality
    Oct. 2003
                       Management / Forbes Korea)

   Sep. 2003           Daegu Bank’s Internet-banking System certified with「BS7700」

    Jul. 2003         「DGB Community Corps」honored with Prime Minister’s Prize

   Jun. 2003           #5 out of 20 domestic banks for internet-banking service (by Stockpia)

   Mar. 2003           Marketing Frontier Grand Prix (by Korean Marketing Association)

    Jan. 2003          Business Model Patent for 「Cyber Dokdo Branch」

   Aug. 2002           #1 for two years in a row at “Customer Complaint Index” evaluated by FSS

    Jul. 2002          Model Company for Corporate Governance and Transparency (by KSE)

   May 2002            Bronze Order of Industrial Service Merit for supporting SMEs

    Apr. 2002          Presidential Prize for Employment Equal Opportunity

   Dec. 2001           Best CEO 2001 (by Korea Economic Daily / Towers Perrin)




   Investor Relations – FY03 Results & FY04 Plan                                                        7
II 2003 Results




   1     2003 Results Highlight
   2     Earnings Overview
   3     Asset Quality                             7

   4     Asset Growth
   5     Capital Adequacy




   Investor Relations – FY03 Results & FY04 Plan       8
  1 2003 Results Highlight


                Net Income 110.8 bn Won
Profitability        Operating Income 142.3 bn Won (Up 3.12% YoY) (Up 56.6% QoQ)
                     Pre-provision Income 342.1 bn Won (Up 10.5% YoY)
                     NIM 3.30%, NIS 4.07%
                     ROA 0.67%, ROE 14.41%


                Substandard & Below Loan Ratio 2.29%
Asset Quality
                     Overall Delinquency Ratio 1.81%
                     Corporate 1.45%, Household 1.46%, Credit Card 8.77% (>1day overdue, incl.card loan)
                     SBL Coverage Ratio 74.9%


                BPS increased 12.99% YoY
Asset Growth
                     Total asset 18.2 trillion Won (Up 4.50% YoY)
                     BPS 6,090 Won (Up 12.99% YoY)


                BIS CAR 10.58%, Equity to Asset Ratio 4.88%
Capital Adeq.        Total Equity 804.7 bn Won (Up 12.99% YoY) (※ Post-dividend payout basis)
                     Tier1 Ratio 8.22%
                     Tier2 Ratio 2.37%



         Investor Relations – FY03 Results & FY04 Plan                                                     9
   2 Earnings Overview


                                                     Quarterly                                        Quarterly
(Unit : bn Won, %, %p)          2002                                            2003                                               YoY      QoQ
                                         1Q02      2Q02     3Q02      4Q02                 1Q03      2Q03     3Q03      4Q03
Normalized Income                342.7     76.6      86.9     87.5     91.7       347.4      78.4      87.1     86.2     95.7       1.37    11.02

(Monthly Average)               (28.6)    (25.5)   (29.0)    (29.2) (30.6)        (29.0)   (26.1)    (29.0)    (28.7) (31.9)        1.37    11.02
                 1
One-off Items                    -33.0      -1.8      4.9      -6.1   -30.0         -5.3      -4.7    -19.9     10.0       9.3          -    -7.00
Pre-provision Income             309.7     74.8      91.8     81.4     61.7       342.1      73.7      67.2     96.2    105.0      10.46     9.15
Provision(△)                     178.5     31.5      43.7     52.3     51.0       226.9      58.6      51.2     56.6     60.5      27.11     6.89
                          2
 Loan Loss Provision             156.2     21.4      40.4     48.1     46.3       209.5      48.7      49.3     53.4     58.1      34.12     8.80
 Severance Provision              22.3     10.1       3.3       4.2      4.7       17.4        9.9      1.9       3.2      2.4    -21.97    -25.00
Income Tax                           0         0        0         0        0         4.4         0        0         0      4.4          -        -
Net Income                       131.2     43.3      48.1     29.1     10.7       110.8      15.1      16.0     39.6     40.1     -15.55     1.26

ROA                               0.88     1.22      1.33     0.79     0.28        0.67      0.38      0.39     0.95     1.02      -0.21     0.07

ROE                              18.79    29.47     28.56    15.89     5.95       14.41      8.62      8.72    20.29    21.59      -4.38     1.30
Note) 1. Major one-off items include : Gains & Losses on Securities, Gains & Losses on equities swapped from bad loans and NPL sales, etc
      2. See p.47 for LLP breakdown by sectors
      3. Quarterly ROA and ROE annualized
     ※ Refer to pp.31 ~ 35 for further information related to earnings




            Investor Relations – FY03 Results & FY04 Plan                                                                                        10
    3 Asset Quality


(Unit : bn Won, %, %p)            1Q02         2Q02       3Q02         4Q02      1Q03       2Q03       3Q03       4Q03       YoY     QoQ

Total Credit                     7,927.3     8,658.1     9,095.1      9,551.8    9,907.4   10,284.9   10,524.9   10,352.8     8.39    -1.64
  Normal                         7,366.0     8,133.0     8,615.8      9,085.9    9,301.7    9,738.7    9,924.0    9,816.9     8.05    -1.08
  Precautionary                    282.8        258.7      238.8         248.2    304.4      290.5      339.9      299.0     20.47   -12.03
  Substandard                      139.5        138.1      159.7         162.4    205.9      170.4      148.6      116.2    -28.45   -21.80
  Doubtful                         128.8        117.2        68.2         48.4     72.6        68.0       85.8     101.8    110.33   18.65
  Estimated Loss                    10.1         11.1        12.6          6.9     22.7        17.3       26.6       18.9   173.91   -28.95
  PBL                              561.2        525.1      479.3         465.9    605.6      546.2      600.9      535.9     15.02   -10.82
  PBL Ratio                         7.08         6.06        5.27         4.88     6.11        5.31       5.71       5.18     0.30    -0.53
  SBL                              278.4        266.4      240.5         217.7    301.2      255.7      261.0      236.9      8.82    -9.23
  SBL Ratio                         3.51         3.08        2.64         2.28     3.04        2.49       2.48       2.29     0.01    -0.19
Loan Loss Reserve                  150.4        182.0      157.1         154.8    181.1      158.9      177.7      177.6     14.73    -0.06
SBL Coverage Ratio                  54.0         68.3        65.3         71.1     60.1        62.2       68.1       74.9     3.80    6.80
Note) Refer to pp.36~46 for further information on the asset quality by sector




             Investor Relations – FY03 Results & FY04 Plan                                                                                    11
       4 Asset Growth

           Total asset increased 4.5% YoY
           Funding and asset allocation : Cash & Dues → SME Loans

           Total equity 804.7 bn Won after dividend payout
           BPS 6,090 Won (Up 12.99% YoY)


  (Unit : bn,%,Ending)       1Q02        2Q02           3Q02          4Q02          1Q03         2Q03          3Q03               4Q03              YoY        QoQ
   Total Asset              16,183.7    16,247.0       16,856.1       17,420.5 18,185.9 17,932.1              17,938.9      18,203.9                  4.50         1.48
                        1
   Total Securities          6,191.3      5,584.1        5,855.9       5,860.0      6,419.8      6,212.7        6,101.2      6,334.2                  8.09         3.82
                        2
   Total Loans               6,903.0      7,655.3        8,047.5       8,453.9      8,741.7      9,162.1        9,405.7      9,568.5                13.18          1.73
                        3
    Loans in Won             6,624.8      7,377.7        7,733.8       8,066.9      8,300.2      8,728.3        8,991.2      9,141.7 (100 %)        13.32          1.67
     Large Corp.              208.7         244.1          193.6         172.0         190.2        194.7         212.9        182.5 (2.00%)          6.10      -14.28
     SME                     4,298.8      4,604.9        4,705.0       4,928.4      5,148.5      5,451.6        5,628.5      5,685.9 (62.2%)        15.37          1.02
     Household               1,771.5      2,195.5        2,500.4       2,673.8      2,704.3      2,767.0        2,848.3      2,942.0 (32.2%)        10.03          3.29
     Public&Others            345.8         333.2          334.8         292.7         257.2        315.0         301.5        331.2 (3.60%)        13.15          9.85
   Total Deposits           13,229.9    13,384.9       13,892.6       14,496.0 15,105.5 14,827.1              14,785.3 15,180.1                       4.72         2.67
                        4
   Total Equity               615.2         732.2          733.3         712.2         709.2        757.9         803.9        837.7                17.62          4.20
                                                                                                                                       5
   (Paid-in)                  602.1         660.6          660.6         660.6         660.6        660.6         660.6        660.6                   0.0          0.0

Note) 1. Total Asset = Banking A/C + Trust A/C – Lendings to and Borrowings from Banking A/C 2. Total Securities = Won Securities + Fcy Securities + Securities in Trust A/C
      3. Total Loans = Loans in Won + Loans in Fcy(incl.offshore & domestic usance bill) + Advances for Customers + Loans in Trust A/C
      4. Total Deposits = Won Deposits + CD + RP + Bills Sold + Debentures + Money in Trust
      5. Pre-dividend payout



                 Investor Relations – FY03 Results & FY04 Plan                                                                                                          12
  5 Capital Adequacy
                                                                                    BIS CAR     Tier 1 Ratio    Equity/Asset
                                                            12

                                                            10
    Risk-weighted Asset Management
    - Priority placed on strengthening the Tier 1 Capital   8

    BIS CAR 8.22%                                           6
    - Up 0.38%p YoY
    - Up 0.05%p QoQ                                         4

                                                            2

                                                            0
                                                                   2Q02      3Q02       4Q02       1Q03        2Q03          3Q03       4Q03


(Unit : bn Won, %, %p)       1Q02       2Q02      3Q02      4Q02          1Q03        2Q03         3Q03         4Q03            YoY         QoQ
BIS Capital                    859.5      941.6     943.6     976.6         917.6       959.5        985.9      1,024.7           4.93       3.94
  Core                         623.6      723.3     736.9     705.4         702.9       751.3        797.0        795.6          12.79      -0.18
  Supplementary                236.8      219.1     207.5     272.0         215.5       209.0        189.7        230.0         -15.44      21.24
RWA                          8,173.8    8,617.1   9,230.4   9,001.0       9,153.9     9.548.3      9,760.8      9,683.1           7.58      -0.80
BIS CAR                        10.52     10.93     10.22        10.85      10.02        10.05        10.10        10.58             -0.27      0.48
  Tier 1 Ratio                   7.63     8.39      7.98         7.84       7.68         7.87          8.17           8.22           0.38      0.05
  Tier 2 Ratio                   2.89     2.54      2.25         3.02       2.35         2.19          1.94           2.37          -0.65      0.43

Equity to Asset Ratio            4.15     4.86      4.68         4.45       4.18         4.51          4.78           4.88 1        0.43       0.10
Note) 1. Pre-Dividend payout basis

           Investor Relations – FY03 Results & FY04 Plan                                                                                              13
III Other Issues of Interest




    1   Low-cost Deposits

    2   NIM & NIS

    3   Cost-Income Ratio

    4   Delinquencies by Sector




   Investor Relations – FY03 Results & FY04 Plan   14
1 Low-cost Deposits

                                                                                     Average funding cost of low-cost deposits
                                                                                                                                       (Cumulative, %)
     Solid relationship with individual customers and institutions           1.6

    in the region serves as a conduit for the low-cost deposits              1.4
                                                                                     1.53    1.51
                                                                                                      1.44
                                                                                                             1.34

      Portion of Low-cost deposits in total Won deposits                     1.2

      46.1%                                                                    1

                                                                                                                      0.91
    Average funding cost of low-cost deposits (incl.MMDA)                    0.8                                              0.84
                                                                                                                                        0.77
    for 2003                                                                 0.6
                                                                                                                                               0.73


     0.73% (Down 0.61%p YoY)
                                                                             0.4
                                                                                    1Q02     2Q02     3Q02   4Q02     1Q03    2Q03     3Q03    4Q03




(Unit :bn Won, %, %p, Avg.)         3Q02           4Q02          1Q03         2Q03            3Q03             4Q03                  YoY         QoQ
Low-cost Deposits          (A)       4,891.0        4,938.7      5,188.9       5,336.5         5,366.1              5,406.1          9.46         0.75
Demand                                 843.0          863.1        963.1           985.6            981.6            994.0       15.17            1.26
Savings (Checkable)                  3,325.4        3,354.5      3,480.3       3,471.8         3,491.4              3,509.8          4.63         0.53
Corp.Savings (Checkable)               722.6          721.1        745.5           879.1            893.1            902.3       25.13            1.03
Deposits in Won            (B)      10,123.2       10,224.0     11,265.2     11,525.1        11,655.4           11,725.7         14.69            0.60
A/B                                      48.3          48.3         46.1            46.3             46.0             46.1           -2.2             0.1
                 1
Total Deposits            (C)       13,258.9       13,479.3     14,620.0     14,859.6        14,866.6           14,920.0         10.69            0.36
A/C                                      36.9          36.6         35.5            35.9             36.1             36.2           -0.4             0.1
Note) 1.Total Deposits = Won Deposits + CD + RP + Bills Sold + Debentures + Money in Trust


          Investor Relations – FY03 Results & FY04 Plan                                                                                                     15
2 NIM & NIS

                                                                                                      NIS     NIM
  Flexible Adjustment of Interest Rate taking into account
  credit risks and target ROA                                                  4.3
                                                                               4.1
  NIS 4.07% (Up 0.03%p QoQ)                                                    3.9
  NIM 3.30% (Up 0.07%p QoQ)                                                    3.7
                                                                               3.5
  Weighted Average Net Interest Spread (Nov.03)                                3.3

      New portion of loans and deposits          Ending Balance                3.1
                                                                               2.9
       Daegu Bank         Sector Avg.      Daegu Bank          Sector Avg.
                                                                               2.7
          2.70%             2.19%            2.75%               2.30%
                                                                               2.5
  Note) Excl. Demand and checkable savings                                           1Q02 2Q02 3Q02 4Q02    1Q03    2Q03 3Q03 4Q03




(Unit : %, %p, Cumulative)                3Q02          4Q02          1Q03    2Q03       3Q03      4Q03             YoY        QoQ

NIS                                       4.14          4.14           3.92   4.01       4.04       4.07            -0.07      0.03

 Loan Rate (Avg.)                         7.89          7.81           7.40   7.38       7.31       7.25            -0.56      -0.06

 Deposit Rate (Avg.)                      3.75          3.67           3.48   3.37       3.27       3.18            -0.49      -0.09

NIM                                       3.20          3.15           3.20   3.24       3.23       3.30            0.15       0.07



           Investor Relations – FY03 Results & FY04 Plan                                                                               16
  3 Cost-Income Ratio
                                                                                                     Cost-Income Ratio
                                                                      55                                                               (Quarterly, %)


                                                                      50


                                                                      45
         2003 Cost-Income Ratio1 : 42.7%
         Decreased 1.9%p YoY
                                                                      40


                                                                      35


                                                                      30
      SG&A Expenses                                                          1Q02     2Q02    3Q02     4Q02     1Q03     2Q03     3Q03       4Q03

                                                    Quarterly
 (Unit : bn Won, %)                                                                                      2001       2002        2003         YoY
                       1Q02      2Q02     3Q02     4Q02      1Q03     2Q03          3Q03     4Q03
Salary                   25.8      18.9     21.7      30.9     24.9        29.2       22.3     31.1       74.4          97.3      107.5        10.48
Severance Provision      10.1       3.3      4.2       4.7      9.9         1.9        3.2      2.4       12.4          22.3       17.4       -21.97
Equip.Expenses           22.8      20.9     21.4      22.4     25.0        24.3       28.6     22.5       78.4          87.5      100.4        14.74
Depreciation               3.7      4.8      6.4       6.1      5.7         6.5        7.5      8.8       19.0          21.0       28.5        35.71
Taxes                      2.0      1.8      2.2       2.7      1.6         1.8        2.1      2.6           8.2        8.7        8.1         -6.90
SG&A Expenses            64.4      49.7     55.9      66.8     67.2        63.7       63.7     67.3      192.4         236.8      261.9        10.60
LLP                      21.4      40.4     48.1      46.3     48.7        49.3       53.4     58.1       81.2         156.2      209.5        34.12
Operating Income         47.4      50.1     21.6      18.9     21.2        37.7       32.5     50.9      155.4         138.0      142.3          3.12
Adj. Op. Income         133.2     140.2    125.7     131.9    137.1    150.7         149.7    176.2      429.0         531.0      613.7        15.57

 Note) SG&A Expenses / Adjusted Operating Income (= LLP + SG&A Expenses + Operating Income)

            Investor Relations – FY03 Results & FY04 Plan                                                                                               17
 4 Delinquencies by Sector

 Delinquency Ratios

  (Unit : %, %p)        1Q02         2Q02        3Q02       4Q02         1Q03    2Q03   3Q03    4Q03    YoY     QoQ
 Overall                 2.73         2.32        2.30       1.90         2.67   1.88    2.27    1.81   -0.09   -0.46
 Corporate               2.98         2.53        2.35       1.76         2.37   1.60    1.92    1.45   -0.31   -0.47
 Household               1.09         0.80        0.92       0.76         1.45   1.15    1.53    1.46   0.70    -0.07
 Card (1d)               6.04         6.59        8.19       8.64        12.27   9.46   12.07    8.77   0.13    -3.30
   >1m overdue           3.50         3.73        5.23       6.03         9.36   6.46    8.83    6.76   0.73    -2.07
   >3m overdue           1.81         2.03        2.65       2.91         5.38   4.00    3.24    4.46   1.55    1.22
Note) See pp.45~46 for more detailed information on credit card’s delinquency.




 Write-offs by Sector

 (Unit : bn Won)        1Q02         2Q02       3Q02        4Q02         2002    1Q03   2Q03    3Q03    4Q03    2003
Corporate                24.4         5.8        70.6        41.7        142.5   6.3    17.1    8.9     31.6    63.9
Household                 0.8         1.5         1.4         1.0         4.7    5.7    18.3    11.2    1.3     36.5
Credit Card               3.8         4.6         5.6        14.5         28.5   14.8   31.1    25.7    22.1    93.7
Total                    29.0        11.9        77.6        57.2        175.7   26.8   66.5    45.8    55.0    194.0




           Investor Relations – FY03 Results & FY04 Plan                                                                18
IV 2004 Plan




 1     Management Objectives and Strategy

 2     Target Earnings
 3     Asset Growth
 4     Asset Quality

 5     EPS & BPS




     Investor Relations – FY03 Results & FY04 Plan   19
1 Management Objectives & Strategies


  Before : Mgmt Objectives set from                  VISION
 the top on the basis of earnings
 simulation                            Best Leading Regional Bank
  Top-Down Approach

  FY04 : Each business division sets
 its own target by MBO method
  Bottom-Up Approach
                                           ’04 Mgmt Objectives
  More conservative estimates
                                         Sustainable Growth
                                         Net Income 120 bn Won
                                        (Pre-tax 170.6 bn Won)



        Focus on                           Enhanced Community                      Upgraded Mgmt
 Differentiated Business                   Focused Management                       Infrastructure
 Strengthened Marketing for high-        Community activities representing   Enhanced efficiency with BPR
 net worth customers                     “DGB“ Brand                         Upgraded system infrastructure
 Prudent Risk Management                 Linking to marketing platform       Advanced risk management
 Tapping into New Businesses             Deeper community involvement        system
 Early response to customer need         Strengthening network function      Performance culture in place



     Investor Relations – FY03 Results & FY04 Plan                                                            20
2 Target Earnings


  Earnings Indicators
    (Unit : bn Won, %, %p)                  2003       2004      YoY
Pre-provision Income                         342.1     371.1        8.5
(Loan Loss Provision)                      (209.5)    (182.0)     -13.1
Pre-tax Income                               115.2     170.6      48.1
Income Tax                                     4.4      50.6    1,050.0
Net Income                                   110.8     120.0        8.3




  Other key indicators
ROA                                           0.67      0.66      -0.01
ROE                                          14.41     13.46      -0.95
BIS CAR                                      10.58     10.10      -0.48
Tier 1 Ratio                                  8.22      8.34      0.12




      Investor Relations – FY03 Results & FY04 Plan                       21
3 Asset Growth
   Asset Growth

 (Unit : bn Won, %, %p, Avg.Bal.)             2003                      2004                       YoY
Total Assets                               17,993.4                  19,230.0                      6.87
Total Loans (Won + Trust)                   8,872.4                   9,979.3                     12.48
 Corporate Loan (in Won)                    5,638.2                   6,468.9                     14.73
 Household Loan (in Won)                    2,764.7                   3,059.0                     10.64
Total Securities                            6,180.4                   6,662.1                      7.79
Total Deposits                             14,920.0                  15,950.9                      6.91

   Focused Marketing

   Corporate Loans
    Strengthened Marketing designed to target 100 leading SMEs in the region
    Enhanced support for promising quality SMEs
    Integrated financial package products and services for the SMEs in newly planned industrial complexes
   (※Industrial complexes to be established in 2004 : Daegu Fashion Apparel Complex, Gumi National Ind.Complex
   the fourth, Guji Regional Ind.Complex, Pohang 4th Regional Ind.Complex, etc)
    Providing Loans related to urban Industrial Complex Remodeling
   Household Loans
    Enhanced cross-selling with the newly installed CRM system
    Strengthened marketing for high quality customers with risk weight below 50% and high net worth customers
    Undertaking custodian business for more public funds in conjunction with the government’s localization policy
    Opening new branches in Gumi and Pohang : Okgye, Otae/Booksam area in Gumi, Heunghae in Pohang, etc.
    Delivery channel portfolio optimization : CRM Branches, In-store, Drive-in teller window, etc.


     Investor Relations – FY03 Results & FY04 Plan                                                                  22
4 Asset Quality
  Major Asset Quality Ratios
           (Unit : %, %p)                        2003                        2004                       YoY
Substandard & Below Loan Ratio                     2.29                       1.94                      -0.35
Overall Delinquency Ratio                          1.81                       1.79                      -0.02
SBL Coverage Ratio                                 74.9                       73.8                      -1.10

    Credit Risk Management
    Risk weighted assets allocated to each branch   Focus on Return on Risk Weighted Asset (RORWA)
    New loan products and related risk management system shall be subject to approval by Loan Committee, the highest
    decision making body w.r.t. loan approval
     Corporate Loan
    Year-round Credit Risk Evaluation System set in motion for SMEs with loans more than 1 bn Won
    Improved management of corporate loan portfolio : More detailed Industry breakdown (6 to 30 or 60 industries)
                                                           Industry credit rating and lending limit in place
    Increasing collateralized loans with letter of guarantees (up to 18% of corporate loans in Won for FY04)

    Household Loan
    More prudent risk management using the Credit Bureau
    Strengthened ex-ante loan monitoring function
    Facilitating NPL recovery with individual work-out system
    Early NPL write-off and sales
    Completed development of credit risk management system for small scale businesses (e.g. mom-and-pop)

    Credit Card
    Remodeling the Credit Scoring System
    Delinquency Scoring System in place : evaluating individual risk for the delinquent customers

       Investor Relations – FY03 Results & FY04 Plan                                                                   23
 5 EPS & BPS


                                                      2002 YE            2003 YE                       2004 YE(E)
Net Income                      (A)                 131.2 bn Won      110.8 bn Won                   120.0 bn Won
Total Equity                    (B)                 712.1 bn Won      804.7 bn Won                   924.7 bn Won
Total Issued Shares             (C)                 132,125,000        132,125,000                    132,125,000
Share Price                                          4,760 Won          5,770 Won                           -
EPS                          (A/C)                    993 Won           839 Won                         908 Won
                                                                                     1
BPS                          (B/C)                   5,390 Won          6,090 Won                      7,000 Won
Note) 1. Post-dividend payout (250 Won per share)




    BPS expected to increase 14.9% YoY, exceeding 12.99% increase in 2003 (6,090 Won → 7,000 Won)
    Target capital adequacy ratio will be met through organic growth of capital based on sustainable asset growth
    Target dividend payout ratio : 25%~30%

    17.2 bn of Write-down (equivalent to 19%) on LG Card exposure (corporate bonds) classified as precautionary
    Early retirement (Jan. 2004)
    Substantial write-down on debt-swapped equity holdings on troubled companies and LG Card corporate bonds
    → Minimized source of non-operating expenses for 2004
    Almost completed disposal of Kamco put-back options and other problem loans



          Investor Relations – FY03 Results & FY04 Plan                                                             24
V Appendix




    1. Community Focused Management               14. Corporate Loan – Asset Quality
    2. Community Contributions                    15. Problem Loans
    3. Market Share                               16. Household Loans by Collateral Type
    4. Market Share in Gumi & Pohang              17. Household Loans – Asset Quality
    5. Summary B/S                                18. Credit Card
    6. Summary I/S                                19. Credit Card – Asset Quality
    7. Operating Income                           20. Credit Card – Delinquency
    8. Interest Income                            21. Credit Card – Reaged Loan
    9. Non-interest Income                        22. NPL Disposal
    10. Non-operating Income                      23. Securities
    11. Loans in Won by Collateral Type           24. Credit Rating (Moody’s)
    12. Corporate Loan Portfolio                  25. Regional Economy
    13. Corporate Loans by Collateral Type




  Investor Relations – FY03 Results & FY04 Plan                                            25
1 Community Focused Management
  The highest management principle, which envisages solidifying regional ties and contributing
  to regional development so that the Bank can grow together with the region


           Regional Development                                   Social Contribution
The biggest financial service provider in the         Granting stipends via DGB Education Foundation
region                                                Supporting for cultural and art activities
Depository bank for regional public institutions      Promoting various sports events in the region
Actively engaged in regional SOC projects             Offering products designed to contribute a
「DGB Plus Club」organizing 226 regional                portion of their profits to regional development
enterprisers                                          Other community involvement programs



           Community Activities                              Environmental Activities
Created a sub-team level unit in charge of            Carrying out various activities targeted at
 organizing DGB community activities                  environmental conservation
-「DGB Community Corps」organized                       - e.g. Cleaning Shincheon&Kumho river regularly
Volunteering for relief activities in “Daegu          Launched a so-called “Green City” campaign
 Subway Accident”..                                   Seasonal birds preservation activities
‘DGB Lady Assoc.’ & ‘DGB Camellia Assoc’              Promoting environmental activities via ‘Cyber
organizing and sponsoring community activities         Dokdo Branch’ (e.g. Literary contest for children)
Sponsoring other activities (e.g. HABITAT)



      Investor Relations – FY03 Results & FY04 Plan                                                         26
2 Community Contributions
                                                                                  Community Contributions by Sector

                                                                                                            Others 8%
 Total contributions for the past 6 years : 21.4bn Won
 Community contributions by sectors:                                 Culture & Arts 38%                           Education 25%
 - Culture&Arts (e.g.) : Daegu Arts Festival
 - Sports (e.g.) : Daegu Marathon, Sports Promotion Fund
 - Social Welfare (e.g) : Relief Activities for Daegu Subway
                Disaster, Children suffering from Leukemia                                                     Social Welfare 6%
 - Education (e.g) : DGB Education Foundation

                                                                                                              Sports 23%

      (Unit : mil.Won)           1997        1998        1999           2000         2001       2002       2003         Total
                         Daegu     3,226         124           136         184            236      508        425          4,839
  Culture & Arts
                     Gyeongbuk        11            2      1,708           716             81       36        624          3,178
                         Daegu      180           55            38           67           215     1,991     2,147          4,693
  Sports
                     Gyeongbuk        22          23            31           36            61       40         57           270
                         Daegu        37          37            75           59            81      145        522           956
  Social Welfare
                     Gyeongbuk        70          18            21           18            39      122         21           309
                         Daegu      442          480           386         460            356      302      2,270          4,696
  Education
                     Gyeongbuk        35          30            32           52            40      237        240           667
                         Daegu      253           81            11           21            35       45        755          1,200
  Others
                     Gyeongbuk          -           -           32         547             15          -       18           612
           Total                   4,275         851       2,469         2,159         1,160      3,426     7,079       21,420


     Investor Relations – FY03 Results & FY04 Plan                                                                                 27
     3 Market Share

                                  Deposit                                                               Loan

45                                                       (Unit : %)   35
                                                                                                                               (Unit : %)
                                          40.6                 41.0                              31.2
            39.1    39.1           39.5          39.6   39.8
                                                                                                        29.7   29.2           29.3   29.8
40                         37.8                                                   28.7                                28.6
     36.6                                                             30   27.8          28.2

35
                                                               32.3                                                                  23.7
                                   30.9   31.4   31.1   31.4          25   22.9   22.8           23.1          23.1           23.3
            30.4    30.4                                                                                22.5          22.7
     29.3                  29.6                                                          21.8
30
                                                                      20
25

                                                                      15   13.4                                13.1           13.4   13.6
                                                                                  12.7                                12.9
20                                                                                       11.4           11.8
                                                        16.9   17.3                              11.1
                                   16.1   16.2   16.5
     15.7   15.3    14.9   15.0
                                                                      10
15


10                                                                    5
     1997   1998    1999   2000    2001   2002 Apr 03 Jul 03 Oct 03        1997   1998   1999    2000   2001   2002   Apr 03 Jul 03 Oct 03


                   Daegu           Gyeongbuk            Both                             Daegu          Gyeongbuk            Both



             Investor Relations – FY03 Results & FY04 Plan                                                                                   28
4 Market Share in Gumi & Pohang
      Loan Market Share in Gumi & Pohang                                                                                                  (Unit : %)
16

                                                                                                                                           15.3   15.7
15

                                                                                                                            14.3   14.2
14                                                                                                                 13.8                           13.7
                                                                                                            13.6
                                                                                                    13.4                                                   Pohang
                                                                                           13.3                                            13.3
                                                                                                                                                           Gumi
                                                                                  13.0                                      12.9
13                                                                                                                                 12.7
              12.7                                                12.7    12.6                              12.7   12.6
     12.5              12.5             12.5    12.5     12.4
                                12.2                                      12.6    12.6     12.1
              11.9                      12.0                                                        11.9
12   11.8              11.8     11.8            11.8     12.1     12.1


11
     '00.12    '01.1    '01.2   '01.3   '01.4    '01.5    '01.6   '01.7   '01.8   '01.12    '02.8   '02.9   '02.10 '02.11   '02.12 '03. 04 '03.07 '03.10



      Deposit Market Share in Gumi & Pohang                                                                                               (Unit : %)
22

                                                                                  20.3                                                     20.1   20.3
                                                                  19.5    19.6             19.8                    19.7     19.7
20                                                                                                  19.4    19.5
                                                 19.2    19.0
                                                                                                                                   18.6
      18.3     18.1     18.2     18.0   17.8
18


16                                                                                                                                                15.5     Pohang
                                                                                                                                                           Gumi
                                                                                                                                           14.7
                                                                                                                            14.0   14.3
                                                                                           13.6             13.5   13.7
14                                                                                                  13.2
                                                                                  12.9
       11.9                                                       11.9    11.9
12             11.5     11.4                     11.6    11.4
                                10.9    10.8

10
     '0012     '01.1    '01.2   '01.3   '01.4    '01.5    '01.6   '01.7   '01.8 '01.12     '02.8    '02.9 '02.10 '02.11 '02.12 '03.04 '03.07 '03.10


            Investor Relations – FY03 Results & FY04 Plan                                                                                                     29
     5 Summary B/S (Bank A/C)

 (Unit : bn Won, %)      1Q02      2Q02       3Q02       4Q02       1Q03       2Q03       3Q03       4Q03        YoY      QoQ

Cash&Due                 1,367.2    1,332.2    1,309.1    1,561.7    1,118.5    1,010.8      878.1      660.5    -57.71    -24.78
Securities               5,049.5    4,427.5    4,719.9    4,660.9    5,157.9    5,063.3    4,958.7    5,214.2     11.87      5.15
Loans                    7,585.5    8,307.2    8,505.1    8,867.0    9,436.8    9,596.3    9,897.1   10,137.4     14.33      2.43
Fixed Asset                344.2      338.8     3,44.9      348.5      345.4      346.3      348.1      350.7      0.63      0.75
Other Assets               483.7      487.2     5,85.6      582.4      651.5      568.0      528.8      546.2     -6.22      3.29

Total Assets            14,830.3   14,892.9   15,464.6   16,020.5   16,710.1   16,584.6   16,610.9   16,909.0      5.55      1.79

Deposits                10,412.9   10,408.9   10,522.1   11,737.3   12,406.8   12,168.2   12,125.7   12,648.7      7.76      4.31
Borrowings               2,831.7    2,839.1    3,207.8    2,493.3    2,451.0    2,673.9    2,705.5    2,500.9      0.30     -7.56
Debentures                 436.4      273.3      273.0      327.7      327.4      327.1      326.7      285.0    -13.03    -12.76
Other Liabilities          534.2      639.4      728.4      750.1      815.7      657.6      649.1      636.7    -15.12     -1.91

Total Liability         14,215.2   14,160.7   14,731.3   15,308.3   16,000.9   15,826.7   15,807.0   16,071.3      4.98      1.67

Paid-in Capital            602.1     660.6      660.6      660.6      660.6      660.6      660.6      660.6          -         -
Capital Surplus              0.0      12.3       12.3       12.3       12.3       12.3       12.3       12.3          -         -
Retained Earnings            4.6      52.6       81.7       59.1       74.2       90.2      129.8      169.9     187.48     30.89
Capital Adjustmnt            8.5       6.6      -21.3      -19.8      -38.0       -5.2        1.1       -5.1          -   -563.64

Total Equity               615.2     732.2      733.3      712.2      709.2      757.9      803.9      837.7 1    17.62      4.20
Total Eq. & Liab.       14,830.3   14,892.9   15,464.6   16,020.5   16,710.1   16,584.6   16,610.9   16,909.0      5.55      1.79
Note) 1. Pre-dividend payout


               Investor Relations – FY03 Results & FY04 Plan                                                                    30
    6 Summary I/S
       (Unit : bn
   Won,%,Cumulative)
                             1Q02         2Q02     3Q02     4Q02      1Q03     2Q03     3Q03     4Q03       YoY       QoQ

 Operating Revenue                288.5    577.4    871.5   1.162.5    290.8    594.3    892.6   1,213.4     4.38       7.54

  Interest Revenue                239.3    486.2    736.9    984.3     246.1    500.3    753.9   1,011.3     2.74       1.50
  Fee Revenue                      26.6     57.0     85.6    116.4      28.4     58.8     88.0     119.6     2.75       8.22
  Trust Gain                        5.2      9.8     11.2     14.9       4.1      7.4     10.6      17.6    18.12     118.75
  Other Op.Rev.                    17.4     24.4     37.9     46.9      12.2     27.8     40.1      64.9    38.38     101.63

 Operating Expense                241.1    479.9    752.4   1.024.5    269.6    535.4    801.2   1,071.1     4.55       1.54

  Interest Expense                135.0    265.4    407.6    545.0     126.7    253.0    378.4    493.2     -9.50      -8.45
  Fees Paid                         3.7      7.2     11.3     15.7       4.2      8.5     12.9     17.0      8.28      -6.82
  Trust Loss                        0.0      0.1      0.0      5.6       0.0      0.3      0.1      0.0         -          -
  Other Op.Exp.                    38.0     93.1    163.5    221.4      71.5    142.8    215.2    299.1 1   35.09      15.88
  SG&A Expenses                    64.4    114.1    170.1    236.8      67.2    130.9    194.6    261.9     10.60       5.65

 Operating Income                  47.4     97.5    119.1    138.0      21.2     58.9     91.5    142.3      3.12      56.62
 Non-op. Revenue                    8.9     29.0     45.1     60.1       7.5     17.6     31.2     48.8     -18.80     29.41
 Non-op. Expense                   13.0     35.1     43.7     66.9      13.6     45.3     51.9     75.8     13.47     262.12
 Ordinary Income                   43.3     91.4    120.5    131.2      15.1     31.1     70.7    115.2     -12.20     12.37
 Income Tax                         0.0      0.0      0.0       0.0      0.0      0.0      0.0       4.4          -         -

 Net Income                        43.3     91.4    120.5    131.2      15.1     31.1     70.7    110.8     -15.55      1.26
Note) 1. Incl. LLP 209.5 bn Won

             Investor Relations – FY03 Results & FY04 Plan                                                                31
    7 Operating Income


                                             Quarterly                                      Quarterly
(Unit : bn Won, %, %p)   2002                                          2003                                          YoY      QoQ
                                   1Q02     2Q02     3Q02     4Q02               1Q03     2Q03     3Q03     4Q03

Operating Revenue        1,162.5   288.5    288.9    294.1    291.0    1,213.4   290.8    303.5    298.3    320.8     4.38     7.54

 Interest Revenue         984.3    239.3    246.9    250.7    247.4    1,011.3   246.1    254.2    253.6    257.4     2.74     1.50
 Fee Revenue              116.4     26.6     30.4     28.6     30.8      119.6    28.4     30.4     29.2     31.6     2.75     8.22
 Trust Gains               14.9      5.2      4.6      1.4      3.7       17.6     4.1      3.3      3.2      7.0    18.12   118.75
 Other Op. Revenues        46.9     17.4      7.0     13.5      9.0       64.9    12.2     15.6     12.3     24.8    38.38   101.63

Operating Expense        1,024.5   241.1    238.8    272.5    272.1    1,071.1   269.6    265.8    265.8    269.9     4.55     1.54


 Interest Expense          545.0   135.0    130.4    142.2    137.4      493.2   126.7    126.3    125.4    114.8    -9.50    -8.45
 Fee Expense                15.7      3.7      3.5      4.1      4.4      17.0      4.2      4.3      4.4      4.1    8.28    -6.82
 Trust Loss                  5.6      0.0      0.1     -0.1      5.6       0.0      0.0      0.3     -0.2     -0.1       -        -
 Other Op. Expenses        221.4     38.0     55.1     70.4     57.9     299.1     71.5     71.3     72.4     83.9   35.09    15.88
 (LLP)                   (156.2)   (21.4)   (40.3)   (48.1)   (46.3)   (209.5)   (48.7)   (49.3)   (53.6)   (57.9)   34.12     8.02
 SG&A Expense              236.8     64.4     49.7     56.0     66.7     261.9     67.2     63.7     63.7     67.3   10.60     5.65


Operating Income          138.0     47.4     50.1     21.6     18.9     142.3     21.2     37.7     32.5     50.9     3.12    56.62




             Investor Relations – FY03 Results & FY04 Plan                                                                        32
     8 Interest Income


                                           Quarterly                                            Quarterly
(Unit : bn Won)                                                              2002                                           2003
                          1Q02         2Q02         3Q02          4Q02                1Q03    2Q03     3Q03        4Q03

Int. Revenue                 239.3       246.9         250.7       247.4      984.3   246.1    254.2    253.6       257.4   1,011.3
   Dues                        9.8        10.8          10.9          8.0      39.5     6.8      8.7         4.5      0.8     20.8

   Securities                 79.5        78.7          73.0         69.4     300.6    74.6     73.3        72.4     75.9    296.2

   Loans                     146.6       153.4         161.4       166.9      628.3   162.6    170.4    175.4       179.4    687.8

   Other Int. Rev.             3.4          4.0           5.4         3.1      15.9     2.1      1.8         1.2      1.4       6.5

Interest Expense             135.0       130.4         142.1       137.5      545.0   126.7    126.3    125.4       114.8    493.2

   Deposits                   94.5        91.7          88.2         90.0     364.4    94.9     92.2        86.7     83.0    356.8

   Borrowings                 27.3        31.4          34.2         30.9     123.8    24.0     25.6        24.4     23.5     97.5

   Debentures                  9.5          6.1           6.1         6.5      28.2     6.7      6.6         6.7      6.9     26.9

   Other Int.Exp.              3.7          1.2         13.6         10.1      28.5     1.1      1.8         7.7      1.4     12.0

Interest Income              104.3       116.5         108.6       109.9      439.3   119.4    128.0    128.2       142.5    518.1
Note) Incl. Interest earnings on credit card’s cash advance and card loans



                Investor Relations – FY03 Results & FY04 Plan                                                                         33
   9 Non-interest Income


                                            Quarterly                                                   Quarterly
     (Unit : bn Won)                                                       2002                                                     2003
                              1Q02        2Q02       3Q02       4Q02                   1Q03        2Q03        3Q03        4Q03

 Fees in Won                       9.5      10.9        10.0       10.8       41.2        10.6          11.7        11.8    13.4      47.5

 Fees in Fcy                       2.4       2.6         3.3        4.4       12.7          2.3          3.2         5.1     6.5      17.1

 Card Fees    1                  12.5       14.4        13.3       14.4       54.6        12.5          13.0        11.9    12.8      50.2

 Guarantee                         0.5       0.4         0.4        0.4        1.7          0.4          0.3         0.4     0.4       1.5

 Gain on Securities                4.3      -4.8        -1.5       -0.4       -2.4         -4.2          0.6         0.7     4.8       1.9

 Trust                             5.2       4.7        -2.4        1.8        9.3          4.1          3.0         3.4     7.1      17.6

                                                                                                                                             2
 Others                           -5.5      -4.5        -6.0       -9.4      -25.4         -8.0         -9.3    -11.6       -11.3    -40.2

 Non-interest Income             28.9       23.7        17.1       22.0       91.7        17.7          22.5        21.7    33.7      95.6

Note) 1. Excl. Interest earnings on card loans and cash advances
      2. 11.4bn Won of contribution to Credit Guarantee Fund and 15.2bn Won of Deposit Insurance Fees




             Investor Relations – FY03 Results & FY04 Plan                                                                                   34
   10 Non-operating Income


                                               Quarterly                               Quarterly
  (Unit : bn Won, %, %p)     2002                                     2003                                    YoY       QoQ
                                      1Q02    2Q02    3Q02   4Q02             1Q03    2Q03    3Q03   4Q03

Non-operating Revenue          60.1     8.9    20.1   16.1    15.0    48.8      7.5    10.1   13.6    17.6   -18.80    29.41

Gain on Disposal of            31.6     5.0    14.0    8.1     4.5    30.0      3.2     5.0    9.7    12.1    -5.06    24.74
Investment Securities
Restoration of Investment       7.3     0.1     0.2    0.0     6.9     3.2      2.7     0.0    2.8    -2.3   -56.16         -
Securities Impairment loss
Gains on Loan Sales             0.2     0.0     0.0    0.2     0.0     2.8      0.0     0.0    0.0     2.8    1,300        -
Others                         21.0     3.7     5.9    7.8     3.6    12.8      1.6     5.1    1.1     5.0   -39.05   354.55

Non-operating Expense          66.8    12.9    22.1    8.6    23.2    75.8     13.6    31.7    6.6    23.9   13.47    262.12

Loss on Disposal of            10.5     8.0     1.0    0.5     1.0     5.9      0.1     0.0    3.2     2.6   -43.81    -18.75
Investment Securities
Impairment Loss on             33.7     0.1    17.0    0.0    16.6    50.2     10.1    22.9    1.8    15.4   48.96    755.56
Investment Securities
Loss on Loan Sales              4.1     1.5     0.0    2.2     0.3     7.7      0.0     4.0    0.0     3.7    87.80        -
Others                         18.5     3.3     4.1    5.9     5.2    12.0      3.4     4.8    1.6     2.2   -35.14    37.50

Non-operating Income           -6.7    -4.0    -2.0    7.5     -8.2   -27.0    -6.1   -21.6    7.0    -6.3        -   -190.00




            Investor Relations – FY03 Results & FY04 Plan                                                                  35
11 Loans in Won by Collateral Type



                               Corporate             Household            Public & Others              Total
  (Unit: bn Won,%)
                            Amt        %          Amt        %            Amt         %          Amt           %

Real Estate               2,745.1       46.78      1,606.0        54.59     20.1          7.89   4,371.2        48.22

Securities                  167.9          2.86     137.9          4.69         1.7       0.67    307.5            3.39

Letter of Guarantee         952.0       16.22         25.4         0.86         0.8       0.31    978.2         10.79

Sub-total                 3,865.0       65.86      1,769.3        60.14     22.6          8.87   5,656.9        62.40

Unsecured                 2,003.5       34.14      1,172.7        39.86    232.3       91.13     3,408.5        37.60

Total                     5,868.5      100.00      2,942.0       100.00    254.9      100.00     9,065.4       100.00

Note) As at the end of December 2003




            Investor Relations – FY03 Results & FY04 Plan                                                                 36
  12 Corporate Loan Portfolio

                                         2001                        2002                 2Q03                2003
      (Unit: bn Won, %)
                                     Amt           %          Amt              %      Amt           %      Amt          %
 Manufacturing                     2,882.0       65.1    3,103.1             60.8   3,241.4       57.4   3,224.6      55.0
   Automobiles & Metal              841.0        19.0        894.6           17.5    958.5        17.0   1,000.7      17.1
   Other Machinery&Equip.           265.0         6.0        276.7            5.4    294.8         5.2    296.5        5.1
   Non-metal                        117.1         2.6        129.0            2.5    134.9         2.4    135.3        2.3
   Textile                          898.0        20.3        917.5           18.0    912.1        16.2    861.0       14.7
   Chemical                         107.9         2.4        149.5            2.9    165.4         2.9    162.0        2.8
   Communication Equip.              95.3         2.2         84.5            1.7    115.8         2.1    122.4        2.1
   Others                           557.7        12.6        651.3           12.8    659.9        11.7    646.7       11.0
 Construction                       270.2         6.1        324.8            6.4    418.3         7.4    392.2        6.7
 Wholesale & Retail                 618.3        14.0        758.3           14.9    857.5        15.2    890.3       15.2
 Finance & Insurance                159.6         3.6        153.3            3.0     74.2         1.3     76.4        1.3
 Real Estate & Leasing              144.0         3.3        283.8            5.6    360.3         6.4    500.5        8.5
 Others                             351.8         7.9        477.1            9.4    694.6        12.3    784.5       13.4

     Total                         4,425.9      100.0    5,100.4            100.0   5,646.3      100.0   5,868.5     100.0
Note) Loans in Won




             Investor Relations – FY03 Results & FY04 Plan                                                                   37
13 Corporate Loans by Collateral Type


                                                                                     Unsecured to total corp.credits (3Q03)
    Ratio of the unsecured to total corporate credits (3Q03)
    - Daegu Bank 39.5%
    - Sector Average 50.1%                                                                                            Sector Avg. 50.1%
    - Regional Bank Average 42.4%
                                                                                 39.5%
    Source) Refer to FSS Press Release (Nov.20, 2003)




    Corporate Loans by Collateral Type                                           Daegu Kookmin     Hana   Shinhan     Woori      IBK

                          2001                2002                 1Q03              2Q03                 3Q03                   4Q03
(Unit : bn Won, %)
                     Amt         %       Amt            %      Amt        %      Amt        %        Amt         %         Amt          %
Real Estate          2,104.4      47.6   2,478.4        54.6   2,578.7    48.3   2,719.4    48.2    2,673.6      45.8     2,745.1       46.8
Securities            156.3        3.5    157.4          3.1    162.7      3.1    159.5      2.8      160.0         2.7       167.9       2.9
Letter of
                      823.9       18.6    890.0         17.4    919.6     17.2    962.3     17.0      977.1      16.7         952.0     16.2
Guarantee
Sub-total            3,084.6      69.7   3,525.8        69.1   3,661.0    68.6   3,841.2    68.0    3,810.7      65.2     3,865.0       65.9
Unsecured            1,341.3      30.3   1,574.6        30.9   1,677.7    31.4   1,805.1    32.0    2,030.8      34.8     2,003.5       34.1
Total                4,425.9     100.0   5,100.4     100.0     5,338.7   100.0   5,646.3   100.0    5,841.4    100.0      5,868.5      100.0
Note) Loans in Won

          Investor Relations – FY03 Results & FY04 Plan                                                                                         38
14 Corporate Loan – Asset Quality
   Asset Quality Trend
(Unit : bn Won, %, %p)           2Q02               3Q02      4Q02        1Q03                2Q03       3Q03        4Q03                YoY        QoQ
Normal                          4,478.7         4,553.0      4,794.9    4,956.8           5,337.9       5,502.8    5,615.5               17.11      2.05
Precautionary                     217.3             191.1     178.4       212.0               171.3      199.0       148.3              -16.87     -25.48
Substandard                       101.6             111.7     101.0       138.1               112.5      103.1            73.0          -27.72     -29.19
Doubtful                           33.9              23.1        7.1           8.7              5.9         9.3           10.3           45.07     10.75
Estimated Loss                         4.3            3.5        3.4           8.1              4.2       13.0             7.3          114.71     -43.85
Total                           4,835.8         4,882.4      5,084.8    5,323.7           5,631.8       5,827.2    5,854.4               15.14      0.47

PBL                               357.1             329.4     289.9       366.9               293.9      324.4        238.9             -17.59     -26.36
PBL Ratio                             7.38           6.75       5.70           6.89            5.22        5.57           4.08           -1.62      -1.49
SBL                               139.8             138.3     111.5       154.9               122.6      125.4            90.6          -18.74     -27.75
SBL Ratio                             2.89           2.83       2.19           2.91            2.18        2.15           1.55           -0.64      -0.60
Note) Loans in Won (excl. discounted amount of loans)


   Incremental Rise of Precautionary & Below Loan (Incl. Write-offs)
      (Unit : bn Won)        Jan03       Feb03       Mar03   Apr03     May03      Jun03         Jul03   Aug03     Sep03      Oct03        Nov03    Dec03
Monthly incremental rise
                               34.2          47.3      1.8     5.9      -8.4          -11.1     22.1     16.9      -0.5          35.9       -9.4   -39.7
Of PBL (incl. write-offs)




           Investor Relations – FY03 Results & FY04 Plan                                                                                                    39
15 Problem Loans

  Problem Loans (Dec. 2003)

   (Unit: bn
                      Normal      Prec.      Subst.       Doubt.      EL          Total    LLR    Collatrl     Coverg
   Won,%)
 Workout                   2.1     23.4          2.0            0.0   0.0          27.5     2.1        9.2            41.1
 CR                        0.0      0.0         19.3            0.9   0.0          20.2     4.3      25.1            145.5
 Mediation                 6.0      4.8          7.8            1.3   0.0          19.9     2.4      18.0            102.5
 Total                     8.1     28.2         29.1            2.2   0.0          67.6     8.8      52.3



  Kamco Put-back Options (i.e. Off-balance bad loans)

• Total off-balance bad loans at 2002YE : 52.2 bn Won
• Disposal of put-back loans : 36.8 bn Won (Loss : 15.7 bn Won)
• Total off-balance bad loans at 2003 YE : 15.4 bn Won
• Expected disposal of put-back loans on schedule for 2004 : 7.4 bn Won
         (Unit : bn Won)            1Q04               2Q04               3Q04            4Q04               Total
Put-back Loans                       4.3                  0.0               3.1           0.03                7.4
Expected Loss                        3.6                  0.0             -0.5            0.03                3.1
• Total off-balance bad loans at 2004 YE(E) : 8.0 bn Won



          Investor Relations – FY03 Results & FY04 Plan                                                                      40
16 Household Loans by Collateral Type


   Delinquency rate for unsecured household loans                              Collateralized                              Unsecured 39.9%
                                                                               59.3%
   (1,172.7bn Won) : 2.67%
   Delinquency rate for secured loans(1,769.3bn Won) : 0.66%

   Delinquency Rate for household mortgage(2003YE) : 0.76%
                                                                                                                          Letter of Guarantee
   - Down 0.28%p QoQ
                                                                                                                           0.8%


   Household Loans by Collateral Type

                             2002                   1Q03                   2Q03                       3Q03                   4Q03
(Unit : bn Won, %)
                       Amt          %         Amt          %         Amt            %           Amt          %         Amt          %
Real Estate           1,493.1        55.8     1,464.7       54.2     1,564.2         56.5       1,585.5       55.7     1,606.0       54.6
  Mortgage            1,259.4        47.1     1,201.3       44.4     1,255.0         45.4       1,258.0       44.2     1,210.7       41.2
Securities             121.8            4.6    117.2           4.3    120.4             4.4      129.9           4.6    137.9           4.7
Letter of Guarantee     25.6            1.0     22.4           0.8     25.1             0.9       25.6           0.9     25.4           0.8
Sub-total             1,640.5        61.4     1,604.3       59.3     1,709.7         61.8       1,741.0       61.2     1,769.3       60.1
Unsecured             1,033.3        38.6     1,100.0       40.7     1,057.3         38.2       1,107.3       38.9     1,172.7       39.9
Total                 2,673.8       100.0     2,704.3      100.0     2,767.0        100.0       2,848.3      100.0     2,942.0      100.0

Average LTV                  66.9                   66.6                   65.1                       64.4                   59.8
Note) Loans in Won


         Investor Relations – FY03 Results & FY04 Plan                                                                                        41
 17 Household Loan – Asset Quality
   Asset Quality Trend
  (Unit : bn Won, %)         2Q02               3Q02       4Q02        1Q03              2Q03       3Q03       4Q03                YoY       QoQ
Normal                      2,159.3            2,458.4    2,603.3    2,596.6         2,643.1       2,691.9    2,765.5               6.23      2.73
Precautionary                  20.8              19.3       36.3        48.7              71.9       85.9        92.5          154.82         7.68
Substandard                        8.6           12.8       15.6        22.1              18.0       22.9        20.1              28.85     -12.23
Doubtful                           4.0             8.5      16.8        29.8              27.1       38.6        58.9          250.60        52.59
Estimated Loss                     2.7             1.4        1.8           7.1            6.9         9.0           4.9       172.22        -45.56
Total                       2,195.5            2,500.4    2,673.8    2,704.3         2,767.0       2,848.3    2,942.0              10.03      3.29

PBL                            36.1              42.0       70.5       107.7             123.9      156.4       176.4          150.21        12.79
PBL Ratio                      1.64              1.68       2.64        3.98              4.48       5.49        6.00               3.36      0.51
SBL                            15.3              22.7       34.2        59.0              52.0       70.5        83.9          145.32        19.01
SBL Ratio                      0.70              0.91       1.28        2.18              1.88       2.48        2.85               1.57      0.37
Note) Loans in Won


   Monthly Incremental Increase in PBL including Write-offs

      (Unit : bn Won)      Jan03     Feb03        Mar03    Apr03    May03     Jun03        Jul03    Aug03    Sep03         Oct03     Nov03   Dec03
Incremental Increase in
                           30.9          5.8        6.2     15.1     12.2         10.8      17.5     13.4     12.8         12.3        6.2     3.7
PBL including write-offs

                                                                                                                     Declining
           Investor Relations – FY03 Results & FY04 Plan                                                                                              42
18 Credit Card


      (Unit : bn Won,%)               3Q02         4Q02            1Q03     2Q03      3Q03      4Q03      YoY      QoQ
Cardholder (Thousand)                     607           618           624      614       604       581     -5.99    -3.81
Merchant (Thousand)                       111           111           110      111       111       110     -0.90    -0.90
Card Usage (Cumulative)               2,218.6      3,655.7          907.1   1,785.8   2,566.2   3,190.7   -12.72   -19.98
 Lump Sum                               524.1         995.2         267.2    534.0     802.0      934.2    -6.13   -50.67
 Installment                            402.9         654.6         152.8    303.4     436.5      582.2   -11.06    9.47
 Cash Advance                         1,148.8      1,783.8          434.0    848.4    1,189.4   1,488.2   -16.57   -12.38
 Affiliate Cards                        142.8         222.1          53.1    100.0     138.3      186.1   -16.21   24.80
                                  1
Net Fee Income(Cumulative)               79.8         108.9          23.1     47.4      70.7       96.2   -11.66    9.44
Card Receivables                        542.7         581.0         544.9    521.9     465.3      490.8   -15.52    5.48
 Credit Sales                           263.8         297.4         313.4    238.9     216.7      242.4   -18.49   11.86
 Cash Advance                           222.8         218.0         213.5    189.1     153.5      145.9   -33.07    -4.95
 Card Loan                                 3.0          8.7          16.8     45.1      55.6       60.5   595.40    8.81
 Affiliate Cards, etc.                   53.1          56.9           1.2     48.8      39.5       42.0   -26.19    6.33
Note) 1. Incl. Interest earnings on card loans and cash advances




         Investor Relations – FY03 Results & FY04 Plan                                                                      43
  19 Credit Card – Asset Quality

   Asset Quality Trend
   (Unit : bn Won, %)        2Q02               3Q02     4Q02       1Q03               2Q03      3Q03       4Q03               YoY       QoQ
Normal                        482.8             510.2    537.4      479.7              450.3     387.8       417.7            -22.27      7.71
Precautionary                      8.7           16.9     23.5           29.5           35.8      39.2           34.3          45.96     -12.50
Substandard                        0.0            0.1      0.2            0.2            0.2        0.4           0.2              -     -50.00
Doubtful                           7.0           10.6     18.5           28.7           29.8      34.3           32.3          74.59      -5.83
Estimated Loss                     3.4            4.9      1.4            6.8            5.8        3.6           6.3         350.00     75.00
Total                         501.9             542.7    581.0      544.9              521.9     465.3       490.8            -15.52      5.48

PBL                               19.1           32.5     43.6       65.2               71.6      77.5           73.1          67.66      -5.68
PBL Ratio                         3.81           5.99     7.50      11.97              13.72     16.66       14.89              7.39      -1.77
SBL                               10.4           15.6     20.1       35.7               35.8      38.3           38.8          93.03      1.31
SBL Ratio                         2.07           2.87     3.46       6.55               6.86      8.23           7.91           4.45      -0.32


   Monthly Incremental Increase in PBL including Write-offs

      (Unit : bn Won)      Jan03     Feb03       Mar03   Apr03   May03      Jun03        Jul03   Aug03    Sep03     Oct03        Nov03   Dec03
Incremental Increase in
                           10.1          15.9     10.5   10.0     14.0          13.4      10.4    13.2     7.9          7.1       6.4     4.4
PBL including write-offs

                                                                                                                   Declining

            Investor Relations – FY03 Results & FY04 Plan                                                                                         44
  20 Credit Card – Delinquency
  Delinquency Breakdown

(Unit : bn Won, %)             02.12       03.01   03.02   03.03   03.04   03.05   03.06   03.07   03.08   03.09    03.10    03.11    03.12
         1d ~ 1m                 14.6       17.6    17.7    14.6    17.1    14.4    13.5    15.1    12.3    10.1       8.3    10.1       6.4
         1m ~ 3m                 17.8       21.3    25.4    19.6    16.9    16.7    11.1    14.5    16.6    12.9       9.6      8.3      6.3
Excl.    3m ~ 6m                 16.3       19.0    22.6    24.9    26.9    24.5    18.8    16.9    15.6    16.5     16.8     16.4     13.4
Card
         > 6m                     0.5        5.5     9.2     4.1    12.2    16.7     1.9    11.0    12.1      0.4      6.7      9.1      1.5
Loan
         Total                   49.2       63.5    74.9    63.1    73.0    72.2    45.3    57.5    56.6    40.0     41.4     44.0     27.6
         >1d Overdue (%)         8.59      11.04   13.37   11.95   13.71   14.97    9.50   12.69   13.43    9.76    10.16    10.80     6.41
         >1m Overdue (%)         6.04       7.98   10.21    9.19   10.50   11.08    6.67    9.36   10.51    7.28     8.13     8.32     4.93
Card Receivables               572.3       575.5   560.0   528.1   532.7   521.7   476.8   453.1   421.6   409.7    407.9    407.1    430.3
         1d ~ 1m                 15.1       18.7    20.1    15.9    18.6    16.9    15.7    20.0    20.5    15.1     13.5     13.7       9.9
         1m ~ 3m                 18.1       22.0    26.3    21.7    19.3    18.0    12.8    17.3    21.0    23.6     20.0     14.6     11.3
Incl.    3m ~ 6m                 16.4       19.1    22.9    25.2    27.5    25.7    19.0    17.2    16.2    17.0     20.1     24.6     20.2
Card     > 6m                     0.5        5.5     9.3     4.1    12.3    16.7     1.9    11.1    12.2      0.5      6.8      9.3      1.7
Loan
         Total                   50.2       65.4    78.6    66.9    77.7    77.4    49.4    65.6    69.9    56.2     60.4     62.2     43.1
         >1d Overdue (%)         8.64      11.19   13.79   12.27   14.05   14.08    9.46   13.13   14.78   12.08    12.94    13.28     8.77

         >1m Overdue (%)         5.89       7.99   10.26    9.36   10.69   11.01    6.46    9.12   10.45    8.83    10.04    10.36     6.76
Card Receivables               581.0       584.5   569.8   544.9   552.9   549.4   521.9   499.8   472.9   465.3    467.0    468.1    490.8
Write-offs (Monthly)             11.0          0     2.3    12.5       0     5.4    25.6       0     7.2    18.4        0       4.1    18.1
Note) Reaged loans included in Card Loan

            Investor Relations – FY03 Results & FY04 Plan                                                                                 45
 21 Credit Card – Reaged Loan



     (Unit : bn Won, %)      03.01    03.02    03.03    03.04    03.05    03.06    03.07    03.08    03.09    03.10    03.11    03.12
           1d ~ 1m             1.07     2.61     1.95     1.85     2.57     2.39     5.19     8.99     6.24     5.72     3.98     3.85
           1m ~ 3m             0.59     0.77     1.54     2.18     1.62     1.46     2.57     3.64     9.47    10.53     6.75     4.92
           3m ~ 6m             0.12     0.29     0.23     0.56     0.87     0.21     0.29     0.55     0.43     2.63     7.32     6.51
Delinqcy
           > 6m                0.04     0.05     0.06     0.08     0.08     0.04     0.08     0.07     0.06     0.07     0.13     0.20
           Total               1.82     3.72     3.78     4.67     5.14     4.10     8.13    13.25    16.20    18.95    18.18    15.48
           >1d Overdue(%)      20.2     38.2     23.4     24.2     19.7     10.3     20.7     30.7     34.7     38.0     35.4     30.6
           >1m Overdue(%)       8.3     11.4     11.3     14.6      9.9      4.3      7.5      9.9     21.3     26.5     27.6     23.0
           Normal              0.25     0.24     0.21     0.22     0.32     0.31     0.27     0.24     0.29     0.31     0.33     0.45
           Precautionary       5.03     4.91     9.67    10.79    15.30    24.41    21.23    23.28    25.56    25.57    26.59    27.43

Asset      Substandard         0.00     0.01     0.02     0.01     0.02     0.04     0.09     0.12     0.13     0.08     0.11     0.09
Quality    Doubtful            2.64     3.02     3.72     4.99     6.60    11.15    12.51    16.47    17.42    18.69    19.22    18.22
           Estimated Loss      1.06     1.54     2.54     3.26     3.83     3.75     5.17     3.01     3.35     5.28     5.17     4.40
           Total               8.99     9.73    16.17    19.28    26.06    39.66    39.27    43.11    46.75    49.93    51.43    50.58
Write-offs (Monthly)           0.00     0.00     0.35     0.00     0.96     2.34     0.00     1.77     1.34     0.00     1.47     3.97




           Investor Relations – FY03 Results & FY04 Plan                                                                                46
   22 2003 NPL Disposal



                                                                               2003
    (Unit : bn Won, Bank A/C)                                                                 Acceptances
                                               Corporate      Household     Credit Card                       Total
                                                                                              & Guarantees
LLR at 2002 YE                                         89.7          40.0              22.7             0.2           152.6
LLP                                                    44.5          64.0             101.2            -0.2           209.5
Collection of Receivable
                                                       21.9           2.7               5.2             0.0            29.9
Charge-offs
Credit Adjustment                                       2.9           0.0               0.0             0.0             2.9
             1
Write-offs                                             63.8          36.5              93.7             0.0           194.0
                             2
Loan Sales related LLP                                 22.9           0.7               0.0             0.0            23.6
LLR at 2003 YE                                         72.3          69.5              35.5             0.0           177.3

Loss on debt-swapped equities                          29.9           0.0               0.0             0.0            29.9
Note) 1. Excl. 3.4 bn Won of Write-offs in Trust A/C
      2. Total Loan Sales : 97.7 bn Won




                 Investor Relations – FY03 Results & FY04 Plan                                                            47
23 Securities (Bank A/C)

                                                        Trading
        (Unit: bn Won)               Total                                    Subtotal
                                                       Securities                                      AFS                     HTM
Bond (in Won)                           4,987.9                 340.0              4,647.9                   1,809.8                2,838.1
   Government                           1,724.6                   10.2             1,714.4                    367.1                 1,347.3
   Municipal                              415.9                     0.0              415.9                      10.1                  405.8
   Debenture                              964.8                 130.1                834.7                    607.2                   227.5
   Public Corporate                     1,203.9                 110.1              1,093.8                    468.1                   625.7
   Corporate                              678.7                   89.6               589.1                    357.3                   231.8
Bond (in Fcy)                                67.1                   0.0               67.1                      43.1                      24.0
                                                                                             1
Stock                                        29.9                   0.0               29.9                      29.9                       0.0
                                                                                             2
Beneficial Certificate                       40.3                   0.0               40.3                       4.3                      36.0
   (Stock)                                    0.0                   0.0                0.0                       0.0                       0.0
Others                                       89.0                   0.0               89.0                      89.0                       0.0
Total                                   5,214.2                 340.0              4,874.2                   1,976.1                2,898.1
Note) 1. Equities swapped from debt to troubled companies : 18.5bn Won (Book value 16.7bn) + Equity holdings on subsidiaries 11.4bn Won
      2. book value 40.2bn Won




           Investor Relations – FY03 Results & FY04 Plan                                                                                         48
24 Credit Rating (Moody’s)

  Long-term Deposit : Baa3 / Short-term Deposit : Prime-3 (Upgraded in Jun 20, 2002)
  BFSR upgraded : E+ → D- (Dec. 12, 2003)




       A3                                                                       BFSR

                                                                                  D-

                                                     Investment Grade   Baa3



                                                                                       E+
                  Ba2


                                                         Ba3

                                 Caa1


      Sep.96       Dec.97        Jan.98                Feb.99       Jun.02       Dec.03



     Investor Relations – FY03 Results & FY04 Plan                                          49
 25 Regional Economy

       Regional Economy at Glimpse                                            Daegu Industrial Structure (2002 GRDP)
                                                                                               Agriculture/Fishery/Forestry 0.8%
  Total population : 5.32milion(2002)                            Public/Non-profit 11.7%
  GRDP(2002) : 59 trillion Won                                                                              Manufacturing 23.1%
                                                                                                                 % portion in Manufact.
                                                                                                                 (Textile : 15.5%)
                                                                                                                 (Automobile : 15.3%)
                                                                                                                 (Machinery: 13.6%)

                                    Gyeongbuk Province                                                            Utilities
                                                                   Service 52.5%                                  1.8%
                     Mungyeong                                    Wholesale/Retail : 15.6%
                                                                  Real Estate : 14.5%                       Construction 10.1%
Culture&Tourism Belt                    Andong                    Finance/Insurance : 8.6%


                Sangju
                                                                         Gyeongbuk Industrial Structure (2002 GRDP)
                Gimcheon                          Pohang                  Construction 10.0%
                              Gumi                                                                 Agriculture/Fishery/Forestry 8.6%

                                                                  Service 23.4%
                                            Youngcheon
                              Daegu         Gyeongsan      Gyeongju
                                                                                                           Manufacturing 42.3%
                                                                                                           % portion in Manufact.
                                                                                                           (Textile : 4.9%)
                                                              Public/Non-profit 8.7%                       (Communic./Electronics : 32.5%)
                                                                                                           (Steel : 23.0%)
                                                                                                           (Chemical : 7.6%)
     Grand Triangle Techno Belt                                             Utilities
                                                                                                           (Non-metal : 7.3%)

                                                                             6.7%

           Investor Relations – FY03 Results & FY04 Plan                                                                           50
  25 Regional Economy (Cont.)
  Major Economic Indicators
                                                      2001                                       2002                              2003
                                       1Q      2Q            3Q       4Q        1Q        2Q            3Q      4Q        1Q        2Q        3Q
Ind. Production      Daegu             91.3    95.4          92.1     92.2      93.1     100.1          89.0    97.5      93.2      98.4      88.4
  (2000=100)       Gyeongbuk       101.4      111.3          109.6   113.9     115.2     120.2      122.7      130.8     128.0     129.9     134.9

Prod. Shipment       Daegu             90.4    96.2          90.4     92.2      93.9     103.4          90.6    98.8      94.2      99.1      89.5
  (2000=100)       Gyeongbuk       102.2      111.5          110.1    1135     115.7     120.2      118.9      127.2     124.7     127.8     130.8

Inventory Index      Daegu         126.4      105.6          119.7   117.1     124.1     109.2          99.6   106.4     117.3     127.3     119.5
  (2000=100)       Gyeongbuk       102.4      107.9          100.8   100.9      96.7     108.5      103.3      107.5     107.6     104.9     102.0

Unemployment         Daegu             5.6      4.4           4.1      4.3       4.7       3.6          3.8      3.7       4.3       4.2       3.9
    (%)            Gyeongbuk           3.4      2.7           2.2      2.2       2.3       2.2          2.0      1.7       1.9       1.8       2.1
                     Daegu         102.8      103.8          104.5   104.0     104.9     106.1      106.6      107.5     109.4     109.5     109.8
CPI (2000=100)
                   Gyeongbuk       102.7      103.7          104.1   103.5     104.2     105.3      105.8      106.0     107.8     107.7     107.8

    Export           Daegu         615.8      656.2          578.4   582.1     561.3     690.5      628.6      679.2     611.9     719..0    681.9
 (Million USD)     Gyeongbuk      3,457.3     3,560.6    3,541.6     3,902.4   3,619.3   4,266.7    4,719.3    4,957.6   5,569.7   5,857.9   6,641.8

     Import          Daegu         320.9      323.2          299.9   322.4     306.4     363.4      345.4      374.0     354.9     384.9     377.4
 (Million USD)     Gyeongbuk      2,872.2     2,800.3    3,320.5     3,359.9   2,965.8   3,513.0    3,546.4    3,929.3   3,783.6   3,853.3   4,212.6

Dishonored Bill       Daegu            0.31    0.27          0.25     0.21      0.20      0.14          0.14    0.14      0.20      0.35      0.21
   Ratio (%)       Gyeongbuk           0.21    0.13          0.41     0.10      0.07      0.12          0.10    0.09      0.09      0.17      0.16

Source : National Statistical Office


            Investor Relations – FY03 Results & FY04 Plan                                                                                            51
   25 Regional Economy (Cont.)
                                                                                                                Total Deposit in Daetu-Gyeongbuk
                                                                                                                Daegu Bank’s Deposit in Daegu-Gyeongbuk
                                                                                                         (Unit : bn Won)
                                                                                                                                               42,210
      Daegu Bank’s deposit in Daegu-Gyeongbuk increased                                                 30,237                 39.6%
      74.3% for the period between 1996 and 2002
      - Total regional deposit increased 39.6% for the same period
                                                                                                                                                            13,266
      The Bank’s deposit growth rate double the regional
      deposit growth rate                                                                                                      74.3%
                                                                                                         7,610



                                                                                                          1996                                       2002

                                                      1997                 1998                  1999                   2000                 2001                   2002
       (Unit : Trillion Won, %)         1996
                                                Amt          %Chg    Amt          %Chg     Amt          %Chg      Amt          %Chg    Amt          %Chg      Amt          %Chg

Real GDP Growth Rate                                  5.0                  -6.7                  10.9                   9.3                  3.1                    6.3

National GRDP                                   432.2                424.7          -1.7   470.4         10.8      503.8         7.1   534.7          6.1     581.5          8.8

Daegu GRDP                    (A)                16.1                 14.9          -7.5    16.3          9.4       17.2         5.5    18.4          7.0      20.3         10.3

Gyeongbuk GRDP                    (B)            28.8                 27.3          -5.2    31.6         15.8       33.6         6.3    35.5          5.7      38.9          9.6

(B) / (A)                                             10.4                 9.9                   10.2                   10.1                 10.1                   10.2

Total Deposit in Daegu-Gyeongbuk         30.2    30.9          2.2    29.2          -5.4    31.0          6.0       35.5        14.5    38.7          9.0      42.2          9.1

Daegu Bank’s Deposit in the region        7.6     9.0         18.8     8.9          -1.8     9.4          6.2       10.5        11.5    11.9         13.7      13.3         11.1

Daegu Bank’s Market Share               25.1          29.3                 30.4                  30.4                   29.6                 30.9                   31.4

Source : MOFE, BOK

              Investor Relations – FY03 Results & FY04 Plan                                                                                                                  52
 25 Regional Economy (Cont.)
                                              Major business in the foundation of Technopolis
   Daegu Industrial Structure
                                              850 bn Won for the following 5 years , 700 human resources in research
   being reshaped into more                   Expected the creation of future industry as Southeastern R&D Hub
   high-tech oriented one                     2015 vision : creation of 2 thousand new business and 50 thousand employments

   Foundation of DKIST
   Industrial Complex formulated              Objective : Worldwide competitive Display Industry Cluster
    for Display Industry                      Construction period : 2004 ~ 2008
                                              Budget : 145.0bn Won
                                              Area : Daegu Technopolis or Dalseong Secheon Industrial Complex
  Planned or newly created industrial complexes in the region

     Industrial Complex             Area        Acre          Industries        Corp.(Nr)               Corporations
Seongseo 4th Ind.Complex           Daegu        87 mil.        Electronics          27       Heeseong Electronics, etc.
Daegu Fashion Apparel Valley       Daegu       428 mil.     Fashion, Design        800       Daegyeong and others
                                    Gumi      1,438 mil.     Semiconductor           -       10 next generation industries
Gumi National Ind.Complex
                                   1st Lots     43 mil.        Electronics          19       Hanwook Technoglas and others
(The 4th Complex)
                                   2nd Lots    122 mil.        Electronics          61       KG Tec and others

Guji Regional Ind.Complex       Dalseong      1,002 mil.       Electronics          NA       NA
Pohang 4th Reg.Ind.Complex         Pohang      767 mil.          Steel              60       Hongdeok Steel Cod and others
Yeongil Bay Port Ind.Complex       Pohang     2,203 mil.        Logistics           NA       NA
Gyeongju Woedong Complex        Gyengju         53 mil.        Auto parts           20       NA
Wegwan 2nd Reg.Ind.Complex      Wegwan         177 mil.     Precision Mach.         42       Daewoo Precision and others
Seongseo 3rd Ind.Complex           Daegu       223 mil.        High-tech           2~3       NA


         Investor Relations – FY03 Results & FY04 Plan                                                                        53
25 Daegu Bank and Regional Economy


                                         2010 Vision and Target
                                      Top 50 Bank in Asia

                                      Market Share Target :
                                      50% for Daegu, 30% for Gyeongbuk




                                           Growth Drivers




 Community Focused                       Regional Industrial             Government’s
 Marketing                               Structure being reshaped        Localization Policy

 High Customer Loyalty                                                   Regional financial conduit
 Steady Increase in Deposit              More high-tech oriented one     Increase in loan demand
 Solid Customer Base                                                     (incl. SOC projects)




     Investor Relations – FY03 Results & FY04 Plan                                                    54

				
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