Financial Supervisory Commission

Co., Ltd.

1. The debtor, a stock company, shall be declared bankrupt;

2. The attorney-at-law: One (resident registration number omitted), the office address: the 7th floor in Busan Metropolitan Government (resident address omitted) and the Korea Deposit Insurance Corporation (Seoul Jung-gu 33 and 2) shall be appointed as the bankrupt;

3. The period for reporting obligations shall be up to 18:00 on August 4, 2006.

4. The date and place of the first creditors meeting and the investigation on the claim on August 30, 2006 shall be the legal court of Busan District Court No. 307, which is the date and place of the first creditors meeting; and

1. According to the records of this case and the results of the examination of the debtor's representative, the following facts are substantiated.

A. The debtor was established on March 22, 1971, and the trade name was changed to Dong bank Mutual Savings and Finance Company on January 1, 1973. On March 23, 2002, the debtor had been engaged in the business stipulated in Article 11(1) of the Mutual Savings Banks Act, such as credit fraternity business, receipt of deposits and installment savings, loan of funds, etc. However, in the process of lending money to investors, loan of excess credit limit to the same person, loan of insolvent companies, loan of insolvent companies, etc., which resulted in the deterioration of liquidity and asset soundness by preventing executives and employees from denying such acts as receiving money.

B. The Financial Supervisory Service conducted a comprehensive inspection of the debtor from March 8, 2004 to March 26, 2004. As a result, the debtor became subject to timely corrective measures (request for management improvement) under Article 10 of the Act on the Structural Improvement of the Financial Industry and Article 17-5 of the Regulations on the Supervision of Business of Mutual Savings Bank Business, which led to the comprehensive evaluation class 4 of the debtor. As of September 27, 2005, the debtor was 5% of the capital adequacy ratio of BISD on dangerous assets as of the end of 2.1 billion won as of the evaluation of assets and liabilities. As of the end of 2.1.2 billion won as of the evaluation of assets and liabilities, it was proved that the debt amount was extremely poor, such as 2.1 billion won as of the end of 2004, and accordingly, the applicant made a decision on the debtor's insolvent financial institution and the order for the improvement of management (the suspension of business operation, the suspension of business performance and the appointment of the manager).

C. According to the first result implemented as of January 27, 2005, in order to ascertain the necessary amount of capital expansion for the actual normalization of a debtor whose business has been suspended and to confirm the amount of investment of public funds when it is impossible to normalize the business itself, the applicant has made one-way accounting firm conduct an actual contribution to ascertain the amount of investment of public funds. According to the first result of the implementation as of January 27, 2005, the total amount of the debtor's assets is KRW 349.7 billion, the total amount of the debtor's assets is KRW 472.2.7 billion, and the total amount of the debt exceeds KRW 12.2.87 billion. The second result of the second result conducted as of July 22, 2005, it was found that the debtor's total amount of the debtor's assets is KRW 253.52 billion, and the total amount of the debt is KRW 45.58 billion,000,00 won exceeding the standard of evaluation (each criteria).

D. Meanwhile, on November 25, 2005, the applicant evaluated that it is difficult to normalize the debtor's own business, and decided to file a petition for bankruptcy with the debtor on November 25, 2005, and on January 20, 2006, the applicant decided to revoke the debtor's business license.

2. According to the above facts, the obligor is clearly ratified if there is a cause of insolvency or excess of the obligation at present, and thus, it is so decided as per Disposition by applying Articles 116, 117, and 132 of the former Bankruptcy Act.

Judges Park Hong-dae (Presiding Judge)