Good afternoon. My name is Kyu Sul Choi, the Head of IR at KB Financial Group. Thank you for taking part in today's earnings conference of KB Financial Group for the first quarter of 2013. The access to this conference is being provided via Internet and conference call, being webcast live for Korea and abroad. During the Q&A, you may call in to ask questions. Joining us in today's earnings conference, we have with us KBFG's President, Young-Rok Lim and executives from KBFG subsidiaries. The conference will consist of the earnings presentation by our CFO, Jong-Kyoo Yoon, on the earnings results for Q1 2013, followed by a Q&A session, at which time you may call in for questions. Please utilize the Q&A session time. Let me now present our CFO, Jong-Kyoo Yoon, for the earnings presentation.

Good afternoon. My name is Jong-Kyoo Yoon, the CFO of KB Financial Group. Let me begin the earnings presentation of KBFG for Q1 2013. Before we go into the main presentation, let me remind you that there has been an accounting standards change on the scope of consolidated companies from 2013. In order to ensure comparability of the financial statements, we have restated the 2012 results, pursuant to the revised accounting criteria. So please take note that the 2012 numbers may have differed slightly. Let me now give you the financial highlights. KBFG's profit for Q1 2013 recorded KRW 411.5 billion. Profit for Q1 declined to 32% year-on-year, mainly due to the narrowing interest income from the NIM contraction, as well as the one-off noninterest income losses, including impairment loss on securities. I will elaborate further on the NIM trend and the details about the one-off losses in the latter part of my presentation. The indicator representing the group's profit generation capacity, the gross operating income, came in at KRW 1,844.4 billion, slightly hovering below the KRW 2 trillion levels sustained during the recent 3 quarters. The tepid loan growth, the margin compression put pressure on the interest income, while the one-off losses, in the noninterest category, weakened the top line. KBFG was trying to expand our fee income in addition to stably managing our investment return on the marketable securities, thereby maintaining the historical trend of KRW 2 trillion level. Including trusts and AUM, the group's total assets marked around KRW 368 trillion as of the end of March. Next, please. The provision for credit losses for Q1 2013 posted KRW 326.1 billion, down 16.2% year-on-year and 31.8% quarter-on-quarter. To date, we have proactively implemented, asset cleanup efforts, while applying conservative provisioning policies. As a result, despite the persistent…

Yes. That was the earnings presentation by our CFO. We will now begin with the Q&A session. [Operator Instructions] Mr. Hwang from Kyobo Securities.

My name is Huwang from Kyobo Seecurities. Regarding interest income for the bank, it seems like you are showing a downward trend. I believe that it is probably because of the lower volume of the loan growth. So on a quarter-on-quarter basis, I was wondering whether there were any other one-off factors that led to such a reduction? And starting from Q2, I believe that you have got to continue to grow your assets so that your interest income could also grow. So how do you anticipate the Q2 and Q3 outlook for loan growth? And also recently, there seems to be a trend within the banking sector to grow the SME loans. So per-borrower level, how do you foresee the outlook for the SME growth?

Yes, let me answer your question. As you have mentioned, the interest income reduction in Q1, basically was not because of the NIM because it was pretty much in line with our expectations. But it was mainly because of the lackluster loan growth. We did anticipate a little higher loan growth. However, our asset size has come down by about KRW 3 trillion, so that was the biggest factor. And you have very correctly pointed out a couple of things. If you look at the macroeconomic landscape, I believe that the sentiment in the market is to provide extra support for the SMEs. And that's direction of the current new government. So starting from April, I believe that, without hurting the asset quality of the bank, we are already beginning to pursue marketing, targeting certain SME loans. So already, I think that the trend has reversed from the downward trend to the upward trend for SME loans. As for the household loans, we are in the process of deleveraging. So I do not anticipate rapid growth on the household loans, especially regarding the collective loans. For a while, I believe that the -- we are -- conservative stance on the collective loans will remain. As I told you before, the household loans, we believe, will be growing at a very, very modest pace. However, on the corporate side, we have the large corporate, as well as SMEs. Now I believe that large corporates and SOHOs will continue to grow. But as for the SMEs loans, there will be 2 types available: One, there would be loans extended to support the SME sector, but at the same time, we have to help restructure the SME loans that are actually going delinquent. So I think that overall netted growth will be about on par. So on an annualized basis, we anticipate about 2% growth of our loan assets, that's our internal target. So starting from Q2, as I told you before, we will initially target the corporate loan so that we could actually begin to grow the loan assets further.

We have no questions coming in at this time, so we will wait at this time. We'll be taking a question from Macquarie Securities, Mr. Hwang Chan Young.

I'm Hwan Chan Young from Macquarie Securities. As was mentioned, you said that the NIM is probably going to go down in the future, and can you tell us about why you believe that? And I hope that you could provide a background information for the first quarter for each month, quarter. And could you tell us about your forecast for each quarter?

Regarding the NIM, to elaborate in the first quarter, as was mentioned, it's 2.73%. We believe that at this time, we have the interest impact that has been already influenced and we have seen some repricing as well. So in the second quarter, we will have to wait and see how the BOK interest rate turns out and the trend may change. For example, in Q1, if the BOK interest rate is maintained at the same level, then in Q2, the repricing probably will be concluded. And currently, what is difficult is that in the market for the corporate loans, as I aforementioned, there is heated competition, so I think that we have some difficulties related to the interest rate, which may have a downward pressure on the NIM. However, as I mentioned, if we have the BOK interest rate excluded, then probably in the Q2 numbers, we will see some delay in the NIM being declining in the second quarter. However, if there is a decline in the BOK interest rate in Q2, then we believe that in the third quarter or fourth quarter that they may drop even more. We will need to look at how we'll do in terms of efforts and repricing the market. To summarize, regarding the NIM, we will need to see, and if the BOK interest rate doesn't change, then we believe that the NIM downward trend will be stalled. However, if the BOK interest rate falls, then probably for 1 or 2 quarters going forward, it will go down. For your information, the first quarter monthly margin trend, 2.73% for January; 2.69% for February; and 2.76% for April. And when we take into consideration the recovery of delinquent interest, then it is very stable. And when we look at the previous quarterly trends or monthly trends, we can see that the downward decline is being stalled, so it will soon be stabilized. That is our forecast. Next question. Thank you very much. I believe that aside from a couple of one-off factors, our Q1 earnings results were quite straightforward, perhaps that's the reason for the small number of questions. So we seem to have no further questions. So with that, we will now conclude the earnings conference of KB Financial Group for the first quarter 2013. The presentation and DoD of this conference will be available for access any time on the IR web page of KBFG. Also, if you have more questions, please contact our IR Department. We would do our best to address your questions. Thank you, once again, for your participation today. Thank you very much.