Moody's assigns A3 to Busan Bank's LT2 subordinated debt issue

Hong Kong, October 18, 2007 -- Moody's Investors Service has assigned A3 rating to Busan Bank's Lower Tier II Subordinated Notes due 2017. The outlook for the rating is stable.

These ratings are subject to receipt of final documentation, the terms and conditions of which are not expected to change in any material way from the draft documents we reviewed.

The rating is underpinned by the bank's dominant presence in Busan City, smaller but growing market share in the surrounding Gyeongnam province, good profitability, solid capital adequacy, and much improved asset quality. It also reflects the fact that the bank's operations are concentrated in a limited geographical area, and that it must compete with nationwide banks in terms of efficiency.

Busan Bank is based in Busan, Korea's second largest city. Established in 1967, it is the dominant bank in Busan city and had assets of KRW 24.4 trillion as of June 30, 2007.

The bank's other ratings are: long-term/short-term deposit ratings of A2/Prime-1 (stable outlook) and C- bank financial strength rating (stable outlook).

Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold or sell securities.