On Friday, January 22, 1999, the Financial Supervisory Commission (FSC) and the Korea Deposit Insurance Corporation (KDIC) entered into an Agreement on Performance of Management Normalization Plan (hereinafter, Agreement) with Hanvit Bank. Hanvit Bank was officially launched on January 1 of this year as a result of a merger between Commercial Bank of Korea (CBK) and Hanil Bank and has been recapitalized last year utilizing public resources.

With the understanding that the success of Hanvit Bank, being seen as a national project with high momentum, will determine the potentiality of Korean financial institutions in terms of building global competitiveness, this Agreement affirms the government's intent not to engage in Hanvit Bank's daily operations, such as personnel or budget matters unless specified otherwise under this Agreement, related laws and regulations, or when KDIC as a shareholder exercises right granted under the Commercial Code.

Under the condition that Hanvit Bank faithfully performs the Management Normalization Plan, the Agreement will be terminated after two years at which point in time KDIC's aggregate shares fall below 50%. By faithfully performing this Agreement, Hanvit Bank is expected to form the foundation to surface as a leading bank through sound and autonomous management.

* Please refer to the attached file for details.