On November 1, the board of directors of Kookmin Bank (the “New Kookmin”), which was established pursuant to the Merger Agreement entered between Kookmin Bank and H&CB on April 23, 2001, held inaugural meeting. The board of directors approved and ratified the following agenda.

1. Appointment of Chairman for the board of directors of New Kookmin

Kim, Sang Hoon, the former Kookmin Bank’s Chairman, President and Chief Executive Officer was appointed as Chairman of the New Kookmin.

2. Appointment of CEO for New Kookmin

Kim, Jung Tae, the former H&CB’s Chairman, President and Chief Executive Officer was appointed as President and Chief Executive Officer of the New Kookmin.

3. Announcement of the merger completion

In accordance with the Commercial Code of Korea New Kookmin’s board of directors approved and ratified to replace the report to the inaugural general meeting for the merger with the announcement of the board of directors’ meeting as follows.

New Kookmin, newly incorporated, in accordance with the relevant laws and regulations, has completed due procedures needed for the merger of Kookmin Bank and H&CB

3.1 Progress and schedule

3.2 Structure

To accomplish the business combination, Kookmin Bank and H&CB will jointly form New Kookmin. Concurrently, Kookmin Bank and H&CB will be merged into New Kookmin, and New Kookmin will serve as the surviving corporation.

The New Kookmin shall issue and deliver one share of its common stock per 1.688346 share of common stock of Kookmin Bank.

The New Kookmin shall issue and deliver one share of its common stock per one share of common stock of H&CB.

The aggregate number of shares of authorized capital stock of New Kookmin to be issued will be 1,000,000,000 shares. Out of the authorized capital, 299,697,462 shares has been issued and at the time of its incorporation. Accordingly, paid-in capital of New Kookmin is 1,498,487,310,000 Won.

3.3 Dissenting shareholders and creditors

During the exercise period of the appraisal rights, 46,580 common shares and 17,790,000 preferred shares were submitted to ask H&CB to buy back the relevant shares.

During the same period, 63,637 common shares and 24,000,000 preferred shares were submitted to ask Kookmin Bank to buy back the relevant shares.

There were no creditors who filed with the relevant bank the dissenting opinion in respect to the merger.

3.4 Articles of incorporation

The Articles of incorporation will be available on our website at www.kookmin-bank.com and www.hncbworld.com.

4. Appointment of the members of audit committee

Members of the audit committee operated under the control of the board of directors were appointed as follows.

4.1 Members of the audit committee who are executive directors for New Kookmin

4.2 Members of the audit committee who are non-executive directors for New Kookmin

5. Other

The board of directors also approved and ratified regulation & operational guideline on the board of directors and the related regulations for committees under the board of directors.

The address of principle office of New Kookmin is 9-1, 2-Ga, Namdaemun-Ro, Jung- Gu, Seoul, Korea 100-703.