KB 0001193125-25-046993 6-K Filing: Mar 5, 2025

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2025

Commission File Number: 000-53445

KB Financial Group Inc.

(Translation of registrant’s name into English)

26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Audit Report of KB Financial Group Inc. for Fiscal Year 2024

On March 5, 2025, KB Financial Group Inc. (“KB Financial Group”) disclosed audit reports for fiscal year 2024 based on the International Financial Reporting Standards as adopted by the Republic of Korea (including the consolidated and separate financial statements of KB Financial Group as of and for the years ended December 31, 2024 and 2023 and related notes) received from Samil PricewaterhouseCoopers, its independent auditor. The financial statements in such reports have not been approved by the shareholders of KB Financial Group and remain subject to change.

KB Financial Group is furnishing the following documents as exhibits to this Form 6-K filing:

Exhibit 99.1: An English-language translation of the Consolidated Audit Report of KB Financial Group for FY 2024.

Exhibit 99.2: An English-language translation of the Separate Audit Report of KB Financial Group for FY 2024.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	KB Financial Group Inc.
	(Registrant)
Date: March 5, 2025	By:	/s/ Sang Rock Na
	(Signature)
	Name: Sang Rock Na
	Title: Managing Director and Chief Financial Officer

EX-99.1

Exhibit 99.1

KB Financial Group Inc.

Consolidated Financial Statements

December 31, 2024 and 2023

(With Independent Auditor’s Report Thereon)

KB Financial Group Inc.

		Page(s)
Independent Auditor’s Report			1-5
Consolidated Financial Statements
Consolidated Statements of Financial Position			6
Consolidated Statements of Comprehensive Income			7-8
Consolidated Statements of Changes in Equity			9
Consolidated Statements of Cash Flows			10-11
Notes to the Consolidated Financial Statements			12
Independent Auditor’s Report on Internal Control over Financial<br>Reporting for Consolidation Purposes			344-345
Operating Status Report of Internal Control over Financial Reporting for<br>Consolidation Purposes			346

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Opinion

We have audited the accompanying consolidated financial statements of KB Financial Group Co., Ltd. and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated statements of financial position as at December 31, 2024 and 2023, and the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

We also have audited, in accordance with Korean Standards on Auditing, the Company’s Internal Control over Financial Reporting for consolidation purposes as of December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting, and our report dated March 5, 2025 expressed an unqualified opinion.

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Allowance for Expected Credit Losses on Loans Measured at Amortized Cost

Reason why the matter was determined to be a Key Audit Matter:

The impairment guidance under Korean IFRS No.1109 Financial Instruments requires the determination of significant increases in credit risk and measurement of expected credit losses using forward-looking information and others. Accordingly, the Group developed a new measurement model utilizing various types of information, which requires a higher level of management’s interpretation and judgment.

The Group measures expected credit losses on loans measured at amortized cost based on both individual and collective assessments. Individual assessment of expected credit losses is performed based on estimates of future forecast cash flow, and collective assessment of expected credit losses is involved with a variety and complex variable inputs and assumptions that requires management’s estimates and judgments. Due to these facts, expected credit losses of loans measured at amortized costs are determined as a key audit matter.

As described in Note 10, loans measured at amortized cost subject to individual or collective assessments amount to ~~W~~477,705,220 million, with allowances for credit losses of ~~W~~5,633,380 million as of December 31, 2024.

How our audit addressed the Key Audit Matter:

(1) Assessment of expected credit losses on an individual basis

We obtained an understanding and validated the processes and controls relating to the assessment of expected credit losses on an individual basis. In particular, we focused on the reasonableness of the assumptions used in estimating future cash flows. We evaluated whether management’s estimation was reasonable and we assessed the key assumptions in the cash flow projection including growth rate of entities subject to individual assessment and collateral valuation. As part of these procedures, we assessed whether sales growth rate, operating income ratio, and assumptions on investment activities were consistent with historical operating performance and current market conditions. Furthermore, we assessed the appropriateness of collateral valuation by conducting our own research on recent property prices and engaged independent appraisal specialists in assessing reasonableness of appraisal reports, models and methodologies used by management.

(2) Assessment of expected credit losses on a collective basis

We obtained an understanding and validated the processes and controls relating to management’s calculation of expected credit losses on a collective basis in accordance with impairment requirements under Korean IFRS No.1109 Financial Instruments. As explained in Note 3(6) and 4, management assesses credit ratings to recognize lifetime expected credit losses on loans with significant increase in credit risk and impaired loans. Other than these cases, management recognizes 12-months of expected credit losses. To calculate all expected credit losses, management has applied forward-looking information, possible multiple scenarios, probability of default, loss given default and other assumptions estimated through its internal procedures and controls implemented for various assumptions.

We assessed the design and operating effectiveness of controls relating to credit ratings that reasonably reflect both qualitative and quantitative information. Our testing over the accuracy and reliability of the information included agreeing qualitative and quantitative information with relevant evidence.

We reviewed the appropriateness of management policies and procedures to determine significant increases in credit risk, and tested reasonableness of expected credit loss model applied by each of the three stages (Stage 1, 2 and 3) depending on how significantly credit risk was increased.

We used risk specialists in verifying the reasonableness and possibility of forward-looking information and multiple scenarios produced by management. Also, we used risk specialists to statistically analyze the correlation between forward-looking information and probability of default or loss given default. We assessed the appropriateness of methodologies for adjusting the probability of default and loss given default to reflect forward-looking information on estimation of expected credit losses. We further tested the reasonableness and mathematical accuracy of the information through recalculation and inspection of supporting evidences.

We reviewed the methodologies used by management to verify that probability of default and loss given default were calibrated using sufficient and reasonable historical data. We determined that the default and loss data used were appropriately gathered and applied in accordance with internal control procedures. In addition, we assessed the reasonableness and accuracy of probability of default and loss given default through procedures including recalculation, and evaluated the accuracy of calculations regarding default and loss data used by management through agreeing them with relevant evidence.

2. Loss ratio assumptions used to estimate fulfilment cash flows of the insurance contracts

Reason why the matter was determined to be a Key Audit Matter:

Korean IFRS No.1117 Insurance Contract requires insurance liabilities to be measured by estimating all future cash flows of insurance contracts, and the estimates shall reflect conditions existing at the measurement date, including assumptions at that date about the future in a reasonable and unbiased way. The Group has developed a methodology for estimating future cash flows that uses a variety of information to make reasonable estimates of future cash flows, which requires high degree of management interpretation and judgment.

As described in Notes 2 and 3, management estimates future cash flows using various actuarial assumptions as inputs. Among the actuarial assumptions, the calculation of loss ratio assumptions includes various and complex inputs, including historical data, and management’s estimates and judgment. Due to these facts, loss ratio assumptions are determined as a key audit matter.

As described in Notes 38, the net book value of the liability for remaining coverage was ~~W~~49,652,372 million, which is presented as insurance contract liabilities, reinsurance contract liabilities, insurance contract assets, and reinsurance contract assets in the consolidated statement of financial position as of December 31, 2024.

How our audit addressed the Key Audit Matter:

We obtained an understanding of management’s processes and validated controls related to loss ratio assumption. We assessed the methodology whether the loss ratio assumption is estimated based on sufficient and reasonable historical data, and evaluated the underlying information including historical data used in estimates was properly compiled and used in accordance with internal control procedures. Also, we obtained an understanding of the calculation of the loss ratio assumption, evaluated the reasonableness and accuracy of the loss ratio assumption by performing recalculations and other procedures, and tested the accuracy and completeness of the historical data used in management’s estimates by reconciling the data to supporting documents. Actuarial specialists were involved in performing audit procedures above.

Other Matters

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to<br>fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances.
:---	:---
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
:---	:---
•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on<br>the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are<br>required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to<br>the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
:---	:---

•	Evaluate the overall presentation, structure and content of the consolidated financial statements, including the<br>disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business<br>activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
:---	:---

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Yeob Yu, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 5, 2025

This report is effective as at March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Financial Position

December 31, 2024 and 2023, and January 1, 2023

(in millions of Korean won)

		December 31, 2024			December 31, 2023			January 1, 2023
Assets
Cash and due from financial institutions	4,6,7,8,39	~~W~~	29,869,111		~~W~~	29,836,311		~~W~~	32,474,750
Financial assets at fair value through profit or loss	4,6,8,12		79,450,093			77,038,267			70,092,497
Derivative financial assets	4,6,9		11,730,767			6,157,628			9,446,580
Loans measured at amortized cost	4,6,10,11		472,071,840			444,805,287			433,038,931
Financial investments	4,6,8,12		131,009,464			122,199,529			115,452,659
Investments in associates and joint ventures	13		947,390			722,222			682,669
Insurance contract assets	38		276,191			229,640			83,304
Reinsurance contract assets	38		1,497,147			1,642,432			1,484,622
Property and equipment	14		5,390,015			4,945,699			4,991,467
Investment property	14		3,759,176			4,109,784			3,148,340
Intangible assets	15		1,966,684			1,950,858			1,858,470
Net defined benefit assets	25		258,500			374,090			478,934
Current income tax assets			339,855			244,317			204,690
Deferred income tax assets	17,34		278,824			274,225			188,372
Assets held for sale	18		136,838			208,230			211,758
Other assets	4,6,19		18,863,637			20,986,897			14,815,439

Total assets		~~W~~	757,845,532		~~W~~	715,725,416		~~W~~	688,653,482

Liabilities
Financial liabilities at fair value through profit or loss	4,6,20	~~W~~	10,720,231		~~W~~	10,920,435		~~W~~	12,271,604
Derivative financial liabilities	4,6,9		11,783,494			6,210,639			9,509,769
Deposits	4,6,21		435,687,897			406,512,434			393,928,904
Borrowings	4,6,22		68,077,012			69,583,561			71,717,366
Debentures	4,6,23		76,171,257			69,176,668			68,698,203
Insurance contract liabilities	38		55,863,701			50,617,990			46,372,434
Reinsurance contract liabilities	38		56,266			36,030			31,728
Provisions	24		927,632			1,444,418			933,701
Net defined benefit liabilities	25		100,187			81,869			85,745
Current income tax liabilities			530,720			145,335			998,681
Deferred income tax liabilities	17,34		1,682,292			2,094,912			1,452,057
Other liabilities	4,6,26		36,429,662			40,264,935			28,850,033

Total liabilities			698,030,351			657,089,226			634,850,225

Equity
Share capital			2,090,558			2,090,558			2,090,558
Hybrid securities			5,082,578			5,032,803			4,434,251
Capital surplus			16,646,734			16,647,916			16,940,731
Accumulated other comprehensive income	36		496,922			2,152,644			1,002,881
Retained earnings			34,808,220			31,934,600			28,890,922
Treasury shares			(1,236,060	)		(1,165,837	)		(836,188	)

Equity attributable to shareholders of the Parent Company	27		57,888,952			56,692,684			52,523,155
Non-controlling interests			1,926,229			1,943,506			1,280,102

Total equity			59,815,181			58,636,190			53,803,257

Total liabilities and equity		~~W~~	757,845,532		~~W~~	715,725,416		~~W~~	688,653,482

The above consolidated statements of financial position should be read in conjunction with the accompanying notes.

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023

(in millions of Korean won, except per share amounts)		2024			2023
Interest income		~~W~~	30,491,385		~~W~~	29,142,024
Interest income from financial instruments at fair value through other comprehensive income and<br>amortized cost			29,001,556			27,705,759
Interest income from financial instruments at fair value through profit or loss			1,458,512			1,415,366
Insurance finance interest income			31,317			20,899
Interest expense			(17,664,671	)		(16,961,164	)
Interest expense			(16,186,914	)		(15,426,706	)
Insurance finance interest expense			(1,477,757	)		(1,534,458	)

Net interest income	5,28		12,826,714			12,180,860

Fee and commission income			5,481,843			5,368,074
Fee and commission expense			(1,632,216	)		(1,694,550	)

Net fee and commission income	5,29		3,849,627			3,673,524

Insurance income			11,456,191			11,005,471
Insurance income			11,017,155			10,322,356
Reinsurance income			439,036			683,115
Insurance expense			(9,806,430	)		(9,558,619	)
Insurance service expense			(8,884,168	)		(8,720,568	)
Reinsurance expense			(922,262	)		(838,051	)

Net insurance income	5,38		1,649,761			1,446,852

Net gains on financial instruments at fair value through profit or loss	5,30		1,012,081			2,163,065

Other insurance finance expenses	38		(437,001	)		(572,476	)

Net other operating expenses	5,31		(1,873,011	)		(2,712,989	)

General and administrative expenses	5,32		(6,938,624	)		(6,647,406	)

Operating income before provision for credit losses	5		10,089,547			9,531,430

Provision for credit losses	5,7,11,12,19,24		(2,044,286	)		(3,146,409	)

Net operating income			8,045,261			6,385,021

Share of profit (loss) of associates and joint ventures	13		(16,884	)		33,110
Net other non-operating expenses	33		(1,043,130	)		(297,980	)

Net non-operating expenses			(1,060,014	)		(264,870	)

Profit before income tax expense			6,985,247			6,120,151
Income tax expense	34		(1,956,641	)		(1,593,817	)

Profit for the year	5		5,028,606			4,526,334

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023 (cont’d)

(in millions of Korean won, except per share amounts)

		2024			2023
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities	25	~~W~~	(85,375	)	~~W~~	(72,170	)
Share of other comprehensive loss of associates and joint ventures			—			(2	)
Gains (losses) on equity securities at fair value through other comprehensive income			(254,864	)		69,605
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk			(5,514	)		(52,863	)

			(345,753	)		(55,430	)

Items that may be reclassified subsequently to profit or loss:
Currency translation differences			582,872			317
Gains on debt securities at fair value through other comprehensive income			1,468,299			3,304,471
Share of other comprehensive income of associates and joint ventures			165			26
Gains on cash flow hedging instruments	9		34,741			53,923
Losses on hedging instruments of net investments in foreign operations	9		(186,708	)		(14,659	)
Insurance finance expense	38		(3,176,328	)		(2,117,504	)

			(1,276,959	)		1,226,574

Other comprehensive income (expense) for the year, net of tax			(1,622,712	)		1,171,144

Total comprehensive income for the year		~~W~~	3,405,894		~~W~~	5,697,478

Profit (loss) attributable to:	5
Shareholders of the Parent Company		~~W~~	5,078,221		~~W~~	4,594,835
Non-controlling interests			(49,615	)		(68,501	)

		~~W~~	5,028,606		~~W~~	4,526,334

Total comprehensive income for the year attributable to:
Shareholders of the Parent Company		~~W~~	3,419,852		~~W~~	5,772,352
Non-controlling interests			(13,958	)		(74,874	)

		~~W~~	3,405,894		~~W~~	5,697,478

Earnings per share	37
Basic earnings per share		~~W~~	12,880		~~W~~	11,483
Diluted earnings per share			12,726			11,218

The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2024 and 2023

(in millions of Korean won)

		Equity attributable to shareholders of the Parent Company
	Notes	Share<br>capital		Hybrid<br>securities			Capital<br>surplus			Accumulated<br>other<br>comprehensive<br>income			Retained<br>earnings			Treasury<br>shares			Non-controlling<br>interests			Total<br>equity
Balance as of January 1, 2023		~~W~~	2,090,558	~~W~~	4,434,251		~~W~~	16,940,731		~~W~~	1,249,922		~~W~~	28,948,425		~~W~~	(836,188	)	~~W~~	1,280,102		~~W~~	54,107,801

Changes in accounting policies											(247,041	)		(57,503	)								(304,544	)
Balance as of January 1, 2023 (After the restatement)			2,090,558		4,434,251			16,940,731			1,002,881			28,890,922			(836,188	)		1,280,102			53,803,257
Comprehensive income for the year
Profit (loss) for the year			—		—			—			—			4,594,835			—			(68,501	)		4,526,334
Remeasurements of net defined benefit liabilities			—		—			—			(72,525	)		—			—			355			(72,170	)
Currency translation differences			—		—			—			7,306			—			—			(6,989	)		317
Gains on financial instruments at fair value through other comprehensive income and transfer to<br>retained earnings			—		—			—			3,346,061			27,755			—			260			3,374,076
Share of other comprehensive income of associates and joint ventures			—		—			—			24			—			—			—			24
Gains on cash flow hedging instruments			—		—			—			53,923			—			—			—			53,923
Losses on hedging instruments of net investments in foreign operations			—		—			—			(14,659	)		—			—			—			(14,659	)
Insurance finance expenses			—		—			—			(2,117,504	)		—			—			—			(2,117,504	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk			—		—			—			(52,863	)		—			—			—			(52,863	)

Total comprehensive income for the year			—		—			—			1,149,763			4,622,590			—			(74,875	)		5,697,478

Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—		—			—			—			(564,970	)		—			—			(564,970	)
Quarterly dividends paid to shareholders of the Parent Company			—		—			—			—			(586,931	)		—			—			(586,931	)
Issuance of hybrid securities			—		598,552			—			—			—			—			429,078			1,027,630
Dividends on hybrid securities			—		—			—			—			(184,915	)		—			(57,179	)		(242,094	)
Acquisition of treasury shares			—		—			—			—			—			(571,745	)		—			(571,745	)
Retirement of treasury shares			—		—			—			—			(242,096	)		242,096			—			—
Ownership changes in subsidiaries			—		—			(292,815	)		—			—			—			366,380			73,565

Total transactions with shareholders			—		598,552			(292,815	)		—			(1,578,912	)		(329,649	)		738,279			(864,545	)

Balance as of December 31, 2023		~~W~~	2,090,558	~~W~~	5,032,803		~~W~~	16,647,916		~~W~~	2,152,644		~~W~~	31,934,600		~~W~~	(1,165,837	)	~~W~~	1,943,506		~~W~~	58,636,190

Balance as of January 1, 2024		~~W~~	2,090,558	~~W~~	5,032,803		~~W~~	16,647,916		~~W~~	2,152,644		~~W~~	31,934,600		~~W~~	(1,165,837	)	~~W~~	1,943,506		~~W~~	58,636,190

Comprehensive income for the year
Profit (loss) for the year			—		—			—			—			5,078,221			—			(49,615	)		5,028,606
Remeasurements of net defined benefit liabilities			—		—			—			(85,946	)		—			—			571			(85,375	)
Currency translation differences			—		—			—			547,337			—			—			35,535			582,872
Gains (losses) on financial instruments at fair value through other comprehensive income and<br>transfer to retained earnings			—		—			—			1,216,509			(2,647	)		—			(427	)		1,213,435
Share of other comprehensive income of associates and joint ventures			—		—			—			165			—			—			—			165
Gains (losses) on cash flow hedging instruments			—		—			—			34,763			—			—			(22	)		34,741
Losses on hedging instruments of net investments in foreign operations			—		—			—			(186,708	)		—			—			—			(186,708	)
Insurance finance expenses			—		—			—			(3,176,328	)		—			—			—			(3,176,328	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk			—		—			—			(5,514	)		—			—			—			(5,514	)

Total comprehensive income for the year			—		—			—			(1,655,722	)		5,075,574			—			(13,958	)		3,405,894

Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—		—			—			—			(587,006	)		—			—			(587,006	)
Quarterly dividends paid to shareholders of the Parent Company			—		—			—			—			(899,971	)		—			—			(899,971	)
Issuance of hybrid securities			—		399,059			—			—			—			—			756,317			1,155,376
Dividends on hybrid securities			—		—			—			—			(199,800	)		—			(77,162	)		(276,962	)
Redemption of hybrid securities			—		(349,284	)		—			—			—			—			(659,866	)		(1,009,150	)
Acquisition of treasury shares			—		—			—			—			—			(820,000	)		—			(820,000	)
Disposal of treasury shares			—		—			3,975			—			—			234,600			—			238,575
Retirement of treasury shares			—		—			—			—			(515,177	)		515,177			—			—
Ownership changes in subsidiaries			—		—			—			—			—			—			12,198			12,198
Others			—		—			(5,157	)		—			—			—			(34,806	)		(39,963	)

Total transactions with shareholders			—		49,775			(1,182	)		—			(2,201,954	)		(70,223	)		(3,319	)		(2,226,903	)

Balance as of December 31, 2024		~~W~~	2,090,558	~~W~~	5,082,578		~~W~~	16,646,734		~~W~~	496,922		~~W~~	34,808,220		~~W~~	(1,236,060	)	~~W~~	1,926,229		~~W~~	59,815,181

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023

(in millions of Korean won)		2024			2023
Cash flows from operating activities
Profit for the year		~~W~~	5,028,606		~~W~~	4,526,334

Adjustment for non-cash items
Net losses (gains) on financial assets at fair value through profit or loss			29,212			(1,793,351	)
Net losses on derivative financial instruments for hedging purposes			168,387			53,073
Provision for credit losses			2,044,286			3,146,409
Net losses on financial investments			103,986			255,989
Share of loss (profit) of associates and joint ventures			16,884			(33,110	)
Depreciation and amortization expense			916,295			865,927
Other net losses on property and equipment/intangible assets			145,164			131,270
Share-based payments			140,453			69,703
Post-employment benefits			177,481			155,720
Net interest expense			6,122			274,681
Losses on foreign currency translation			620,754			200,486
Insurance finance income			(10,922,966	)		(7,695,017	)
Reinsurance finance expense			1,659,880			1,318,610
Other expenses			793,690			827,254

			(4,100,372	)		(2,222,356	)

Changes in operating assets and liabilities
Financial asset at fair value through profit or loss			(700,633	)		(6,247,689	)
Derivative financial instruments			(207,969	)		(152,753	)
Loans measured at fair value through other comprehensive income			(646,377	)		(252,695	)
Loans measured at amortized cost			(27,515,988	)		(15,308,932	)
Current income tax assets			(95,539	)		(39,627	)
Deferred income tax assets			5,201			(84,148	)
Other assets	39		1,393,446			(3,775,944	)
Financial liabilities at fair value through profit or loss			(183,609	)		(1,467,780	)
Deposits			23,821,056			12,195,807
Current income tax liabilities			385,385			(853,347	)
Deferred income tax liabilities			367,748			245,859
Other liabilities			(4,948,829	)		9,967,626
Insurance contract assets			(46,550	)		(146,335	)
Reinsurance contract assets			(1,498,923	)		(1,470,578	)
Insurance contract liabilities			11,807,838			9,009,220
Reinsurance contract liabilities			49,018			37,217
Investment contract liabilities			1,106,677			148,937

			3,091,952			1,804,838

Net cash inflow from operating activities			4,020,186			4,108,816

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023 (cont’d)

(in millions of Korean won)	Notes	2024			2023
Cash flows from investing activities
Net cash flows from derivative financial instruments for hedging purposes			(44,552	)		(48,122	)
Disposal of financial asset at fair value through profit or loss			15,648,112			12,389,938
Acquisition of financial asset at fair value through profit or loss			(16,365,119	)		(11,312,232	)
Disposal of financial investments			45,225,323			43,472,217
Acquisition of financial investments			(47,328,121	)		(47,125,014	)
Disposal of investments in associates and joint ventures			98,497			99,834
Acquisition of investments in associates and joint ventures			(339,469	)		(114,904	)
Disposal of property and equipment			18,616			8,177
Acquisition of property and equipment			(337,178	)		(350,138	)
Disposal of investment property			264,948			3,669
Acquisition of investment property			(88,756	)		(1,018,598	)
Disposal of intangible assets			21,073			5,359
Acquisition of intangible assets			(289,731	)		(330,427	)
Net cash flows from changes in ownership of subsidiaries			88,528			1,297,001
Others			(397,226	)		(496,252	)

Net cash outflow from investing activities			(3,825,055	)		(3,519,492	)

Cash flows from financing activities
Net cash flows from derivative financial instruments for hedging purposes			(216,883	)		(73,335	)
Net decrease in borrowings			(4,358,474	)		(2,223,069	)
Increase in debentures			86,031,647			83,777,490
Decrease in debentures			(80,848,086	)		(83,683,272	)
Increase in other payables to trust accounts			89,900			2,333,656
Dividends paid to shareholders of the Parent Company			(1,486,978	)		(1,151,900	)
Issuance of hybrid securities			399,059			598,552
Redemption of hybrid securities			(350,000	)		—
Dividends paid on hybrid securities			(199,800	)		(184,915	)
Acquisition of treasury shares			(820,000	)		(571,745	)
Redemption of principal of lease liabilities			(311,363	)		(235,052	)
Decrease in non-controlling interests			115,292			721,101
Others			(28,151	)		(546,580	)

Net cash outflow from financing activities			(1,983,837	)		(1,239,069	)

Effect of exchange rate changes on cash and cash equivalents	39		570,985			(58,465	)

Net decrease in cash and cash equivalents			(1,217,721	)		(708,210	)
Cash and cash equivalents at the beginning of the year	39		25,826,588			26,534,798

Cash and cash equivalents at the end of the year	39	~~W~~	24,608,867		~~W~~	25,826,588

The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

1. The Parent Company

KB Financial Group Inc. (the “Parent Company”) was incorporated on September 29, 2008, under the Financial Holding Companies Act of Korea. KB Financial Group Inc. and its subsidiaries (the “Group”) derive substantially all of their revenue and income from providing a broad range of banking and related financial services to consumers and corporations. The Parent Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The Parent Company’s headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd. and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Group established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Group acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Group included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, aand KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Group included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Parent Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

The Parent Company’s share capital as of December 31, 2024, is ~~W~~ 2,090,558 million. The Parent Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized in its Articles of Incorporation is 1,000 million.

2. Basis of Preparation

2.1 Application of Korean IFRS

The Group maintains its accounting records in Korean won and prepares statutory consolidated financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying consolidated financial statements have been translated into English from the Korean language consolidated financial statements.

The consolidated financial statements of the Group have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.1.1 The Group has applied the following new and amended standards for the first time for its annual reporting period commencing January 1, 2024.

- Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” – Classification of Liabilities into Current and Non-Current and Non-current Liabilities with Covenants

Liabilities are classified as current or non-current based on their substantive rights existing at the end of the reporting period, without considering the possibility of exercising the right to delay the payment or management’s expectations. Also, if the transfer of equity instruments is included in the payment of liabilities, it is excluded if the option to pay with equity instruments is recognized separately from the liability in a compound financial instrument and meets the definition of equity instruments. These amendments do not have a significant impact on the financial statements.

- Amendment of Korean IFRS No.1007 “Statement of Cash Flows” and No.1107 “Financial Instruments: Disclosures” – Disclosure of Supplier Finance Arrangements

The amendments require disclosure of the effects of supplier finance arrangements on the Group’s liabilities, cash flows and exposure to liquidity risk. These amendments do not have a significant impact on the financial statements.

- Amendment of Korean IFRS No.1116 “Leases” – Lease Liability in a Sale and Leaseback

The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. These amendments do not have a significant impact on the financial statements.

- Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” – Disclosure of Virtual Asset

The amendments require additional disclosure for virtual assets held by the Group, virtual assets entrusted by customers to the Group, and the issuance and transfer of virtual assets. These amendments do not have a significant impact on the financial statements.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.1.2 The following new and amended standards have been published that are not mandatory for December 31, 2024 reporting period and have not been adopted by the Group.

- Amendment of Korean IFRS No.1021 “The Effects of Changes in Foreign Exchange Rates” and Korean IFRS No.1101 “First-time Adoption of International Financial Reporting Standards” – Lack of exchangeability

The amendments require the Group to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Group is exposed. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2025. These amendments do not have a significant impact on the financial statements.

- Amendment of Korean IFRS No.1109 “Financial Instruments” and No.1107 “Financial Instruments: Disclosures”

The amendments address practical concerns and introduce new requirements, such as permitting the deeming of financial liabilities as settled (derecognized) through an electronic payment system if certain criteria are met before the payment date. It also includes additional disclosures for equity instruments designated as financial assets measured at fair value through other comprehensive income. This amendment will be effective for annual reporting periods beginning on or after January 1, 2026. The Group is currently reviewing the impact of these amendments on its financial statements.

- Korean IFRS Accounting Standards Annual Improvements Volume 11

Korean IFRS Accounting Standards Annual Improvements Volume 11 will be effective for annual reporting periods beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

•	Korean IFRS No.1101 “First-time adoption of International Financial Reporting Standards”: Hedge<br>accounting by a first-time adopter
•	Korean IFRS No.1107 “Financial Instruments: Disclosures”: Gain or loss on derecognition, Application<br>guidance
:---	:---
•	Korean IFRS No.1109 “Financial Instruments”: Derecognition of lease liabilities, Definition of<br>transaction price
:---	:---
•	Korean IFRS No.1110 “Consolidated Financial Statements”: Determination of a ‘de facto agent’
:---	:---
•	Korean IFRS Bo.1007 “Statement of Cash Flows”: Cost method
:---	:---

2.1.3 Restatement of financial statements for the years ended December 31, 2023 for the application of Insurance Contract accounting policy changes

In applying K-IFRS No. 1117, the Group has developed and applied its own accounting policies for areas where accounting treatment is not clearly defined. In order to provide more reliable and relevant information, the consolidated entity has changed some of these policies during the current period and has retrospectively applied them to each prior reporting period presented in accordance with Korean IFRS No. 1008, “Accounting Policies, Changes in Accounting Estimates, and Errors”.

There is no effect on the statement of cash flows due to the change in accounting policy. The effects of applying the changes in accounting policies on the comprehensive income statement for the year ended December 31, 2023, and the financial position as of December 31, 2024 and 2023, are as follows:

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.1.3.1 The consolidated statement of comprehensive income for the years ended December 31, 2023

(In millions of Korean won)
	Before the effects<br>of change in<br>accounting policy			After the effects<br>of change in<br>accounting policy			Net increase<br>(decrease)
Interest income	~~W~~	12,141,717		~~W~~	12,180,860		~~W~~	39,143
Insurance finance interest income		23,954			20,899			(3,055	)
Insurance finance interest expense		(1,576,656	)		(1,534,458	)		42,198
Net insurance income		1,422,952			1,446,852			23,900
Insurance income		10,978,808			11,005,471			26,663
Insurance income		10,295,693			10,322,356			26,663
Insurance expense		(9,555,856	)		(9,558,619	)		(2,763	)
Insurance service expense		(8,718,748	)		(8,720,568	)		(1,820	)
Reinsurance expense		(837,108	)		(838,051	)		(943	)
Other insurance finance expenses		(459,135	)		(572,476	)		(113,341	)
Net operating income		6,435,319			6,385,021			(50,298	)
Net non-operating expenses		(264,870	)		(264,870	)		—
Profit before income tax expense		6,170,449			6,120,151			(50,298	)
Income tax expense		(1,607,018	)		(1,593,817	)		13,201
Profit for the period		4,563,431			4,526,334			(37,097	)
Other comprehensive income (loss), net of tax		1,066,624			1,171,144			104,520
Net Financial Income (Expense) of Insurance Contract Assets (Liabilities)		(2,222,024	)		(2,117,504	)		104,520
Total comprehensive income		5,630,055			5,697,478			67,423

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.1.3.2 The consolidated statements of financial position for the years ended December 31, 2023

(In millions of Korean won)
	Before the effects<br>of change in<br>accounting policy		After the effects<br>of change in<br>accounting policy		Net increase<br>(decrease)
Reinsurance contract assets	~~W~~	1,655,168	~~W~~	1,642,432	~~W~~	(12,736	)
Total assets		715,738,152		715,725,416		(12,736	)
Insurance contract liabilities		50,308,552		50,617,990		309,438
Deferred income tax liabilities		2,179,966		2,094,912		(85,054	)
Total liabilities		656,864,842		657,089,226		224,384
Accumulated other comprehensive income (loss)		2,295,165		2,152,644		(142,521	)
Retained earnings		32,029,199		31,934,600		(94,599	)
Total equity		58,873,310		58,636,190		(237,120	)
Total liabilities and equity		715,738,152		715,725,416		(12,736	)

2.1.3.3 The consolidated statements of financial position for the years ended January 1, 2023

(In millions of Korean won)
	Before the effects<br>of change in<br>accounting policy		After the effects<br>of change in<br>accounting policy		Net increase<br>(decrease)
Reinsurance contract assets	~~W~~	1,495,966	~~W~~	1,484,622	~~W~~	(11,344	)
Total assets		688,664,826		688,653,482		(11,344	)
Insurance contract liabilities		45,969,434		46,372,434		403,000
Deferred income tax liabilities		1,561,857		1,452,057		(109,800	)
Total liabilities		634,557,025		634,850,225		293,200
Accumulated other comprehensive income (loss)		1,249,922		1,002,881		(247,041	)
Retained earnings		28,948,425		28,890,922		(57,503	)
Total equity		54,107,801		53,803,257		(304,544	)
Total liabilities and equity		688,664,826		688,653,482		(11,344	)

2.2 Measurement Basis

The consolidated financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the financial statements of each entity of the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Korean won, which is the Parent Company’s functional and presentation currency.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.4 Critical Accounting Estimates

The Group applies accounting policies and uses judgements, accounting estimates, and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses) in preparing the consolidated financial statements. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks that may result in material adjustments to the consolidated financial statements are as follows:

2.4.1 Income taxes

As the income taxes on the Group’s taxable income is calculated by applying the tax laws of various countries and the decisions of tax authorities, there is uncertainty in calculating the final tax effect.

If a certain portion of the taxable income is not used for investments, wages, etc. in accordance with the Korean regulation called ‘Special Taxation for Facilitation of Investment and Mutually-beneficial Cooperation’, the Group is liable to pay additional income tax calculated based on the tax laws. Therefore, the effect of recirculation of corporate income should be reflected in current and deferred income tax. As the Group’s income tax is dependent on the actual investments, wages, etc. per each year, there are uncertainties in measuring the final tax effects during the period when the tax law is applied.

2.4.2 Fair value of financial instruments

The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available is determined by using valuation techniques. Financial instruments, which are not actively traded in the market and those with less transparent market prices, will have less objective fair values and require broad judgment on liquidity, concentration, uncertainty in market factors, assumptions in fair value determination, and other risks.

As described in the material accounting policies in Note 3.3 Recognition and Measurement of Financial Instruments, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

2.4.3 Allowances and provisions for credit losses

The Group recognizes and measures allowances for credit losses of debt instruments measured at amortized cost, debt instruments measured at fair value through other comprehensive income, and lease receivables. Also, the Group recognizes and measures provisions for credit losses of acceptances and guarantees, and unused loan commitments. Accuracy of allowances and provisions for credit losses is dependent upon estimation of expected cash flows of the borrower subject to individual assessment of impairment, and upon assumptions and variables of model used in collective assessment of impairment and estimation of provisions for credit losses of acceptances and guarantees, and unused loan commitments.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.4.4 Impairment of goodwill

The recoverable amounts of cash-generating units are determined based on value-in-use calculations to test whether impairment of goodwill has occurred.

2.4.5 The judgment and estimation uncertainty in measurement of insurance contracts

2.4.5.1 Methods used to measure the future cash flows and estimation process of input variable

The estimated future cash flows are measured as the probability-weighted average of all possible outcomes, utilizing all reasonable and relevant information available without excessive cost or effort. Market and non-market variables are considered in measuring the cash flows within the boundary of the insurance contract. While deterministic scenarios (representing a range of probabilities) are typically used for calculating the probability-weighted average, probabilistic scenarios are employed when cash flows are influenced by complex underlying factors and nonlinear responses to economic conditions. The cash flows within the boundary of an insurance contract portfolio include both directly attributable cash flows and cash flows allocated from a higher level than the insurance contract portfolio. These cash flows are systematically and reasonably allocated, ensuring consistent methods are applied for similar types of cash flows.

The key assumptions used in estimating the future cash flows of the Group are as follows:

Loss ratio: The loss ratio refers to the ratio of insurance claims paid to policyholders to the premiums received by the insurance company for providing risk coverage services to policyholders. The loss ratio, which is an estimation of future premiums and claims payable, is estimated based on objective and reliable data, using the best available methods to suit the intended application. Objective and reliable data refers to the most recent measured results made using the Group’s experience statistics, insurance industry statistics, or national statistics, and others. It also means the best method that reasonably distinguishes characteristics such as the policyholder’s gender, contract type, risk characteristics by distribution channel, and others.
Expense ratio: Expense ratio refers to the costs incurred by insurance companies for the sale and management of insurance contracts. Expense ratio is calculated primarily considering the ongoing costs incurred by the insurance company, taking into account the going concern, and includes the allocation of both fixed and variable indirect expenses directly related to insurance contracts. Expense ratio also considers costs such as contract acquisition expense (regardless of whether premiums are paid or not), contract maintenance expense, and claims expense, distributed in order to manage cost by product and distribution channel.
Lapse ratio: The lapse ratio is an estimate of future cancellations or lapses of insurance contracts among current customers of the insurance company. It is calculated for the purpose of predicting the level of future current premium payments and cancellation refunds. The statistics used for estimation primarily rely on experience statistics of the Group, and lapse ratio is calculated based on characteristics such as product type, distribution channel, payment method, and others, which can significantly affect lapse ratio.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

2.4.5.2 Estimation of Discretionary Cash Flows

Some contracts issued by the Group grant discretion to the Group regarding cash flows to be paid to policyholders. Changes in discretionary cash flows are considered related to future services, and adjust the contractual service margin. The Group identifies changes in discretionary cash flow by identifying assured cash flows at the initial recognition date of the contract. However, if it is not possible to distinguish between the portion considered assured and the portion considered discretionary, the profit within the estimated fulfillment cash flows is considered assured, and is updated to reflect current assumptions related to financial risk.

2.4.5.3 Estimation of Risk Adjustment for Non-Financial Risk

Risk adjustment for non-financial risk is to adjust the present value estimates of future cash flows to reflect the compensation required by the Group for bearing the uncertainty about the amount and timing of cash flows arising from non-financial risk. This adjustment reflects the uncertainty of cash flows arising from all non-financial risks related to the insurance contracts and is estimated separately from all of the other estimates. The Group uses the confidence lever technique and the cost of capital methods for determining the risk adjustment for non-financial risk. Changes in risk adjustment for non-financial risk are disclosed separately for insurance service results and insurance finance income. The Group calculates this adjustment considering the diversification effect at the consolidated level and then allocated to individual contract units.

2.4.5.4 Estimation of Discount Rate

The discount rate should only include relevant factors such as the time value of money, characteristics of cash flows from insurance contracts, and liquidity characteristics, and should be calculated using observable input variables to the maximum extent possible. The discount rate should also reflect all reasonable and supportable information on internal and external non-market variables available without undue cost or effort. The Group estimates the discount rate using a bottom-up approach.

In the bottom-up approach, the discount rate is calculated using an unleveraged yield curve adjusted to reflect the characteristics of cash flows and liquidity of insurance contracts. To reflect the liquidity characteristics of insurance contracts, the risk-free yield curve is adjusted for illiquidity premium.

2.4.5.5 Estimation of Investment Component

The investment component is the amount that the Group must repay to policyholders under insurance contracts in all circumstances, regardless of the occurrence of insurance events. The Group classifies cash outflows such as maturity refunds, cancellation refunds, annuity payments, and cash flows related to insurance policy loans as investment components.

2.4.5.6 Estimation of Coverage Units

The quantity of insurance contract services provided is calculated based on the expected coverage period and maximum coverage amount (insurance amount), and for investment (related) services it is calculated based on the premium reserve (net of insurance policy loans). If insurance contracts within the group provide multiple services, weights are applied based on the total premium of each service. The quantity of services for each period and expected coverage period are calculated based on the expected persistency ratio applied in estimating the fulfillment cash flows, applied the present value effect.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3. Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

3.1 Consolidation

3.1.1 Subsidiaries

Subsidiaries are companies that are controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Also, the existence and effects of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls the investee. Subsidiaries are fully consolidated from the date when control is transferred to the Group and de-consolidated from the date when control is lost.

If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that subsidiary’s financial statements in preparing the consolidated financial statements to ensure conformity with the Group’s accounting policies.

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests, if any. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions (i.e., transactions with owners in their capacity as owners). The difference between fair value of any consideration paid and carrying amount of the subsidiary’s net assets attributable to the additional interests acquired, is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group loses control, any investment retained in the former subsidiary is recognized at its fair value at the date when control is lost, with the resulting difference recognized in profit or loss. This fair value will be the fair value on initial recognition of a financial asset in accordance with Korean IFRS No.1109 or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture. In addition, all amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for on the same basis as would be required if the Group had directly disposed of the related assets or liabilities. Therefore, amounts previously recognized in other comprehensive income are reclassified to profit or loss.

The Group accounts for each business combination by applying the acquisition method. The consideration transferred is measured at fair value, and identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are initially measured at acquisition-date fair values. For each business combination, the Group measures non-controlling interests in the acquiree that entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation at either (a) fair value or (b) the proportionate share in the recognized amounts of the acquiree’s identifiable net assets. Acquisition-related costs are expensed in the periods in which the costs are incurred.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.1.1 Subsidiaries (cont’d)

In a business combination achieved in stages, the Group shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate. In prior reporting periods, the Group may have recognized changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognized in other comprehensive income shall be reclassified as profit or loss, or retained earnings, on the same basis as would be required if the Group had directly disposed of the previously held equity interest.

The Group applies the book-value method to account for business combinations of entities under common control. Identifiable assets acquired and liabilities assumed in a business combination are measured at their book value on the consolidated financial statements of the Group. In addition, the difference between (a) the sum of consolidated net book value of the assets and liabilities transferred and accumulated other comprehensive income and (b) the consideration paid, is recognized as capital surplus.

3.1.2 Associates and joint ventures

Associates are entities over which the Group has significant influence over the financial and operating policy decisions. Generally, if the Group holds 20% or more of the voting power of the investee, it is presumed that the Group has significant influence.

Joint ventures are investments in which the Group has joint control over economic activities pursuant to contractual arrangement. Decisions about strategic financial and operating policies require unanimous consent of the parties sharing control.

Investments in associates and joint ventures are initially recognized at cost and equity method is applied after initial recognition. The carrying amount is increased or decreased to recognize the Group’s share of the profit or loss of the investee and changes in the investee’s equity after the date of acquisition. Distributions received from an investee reduce the carrying amount of the investment. Unrealized gains and losses resulting from transactions between the Group and associates are eliminated to the extent of the Group’s share in associates. If unrealized losses are an indication of an impairment that requires recognition in the consolidated financial statements, those losses are recognized for the period.

If associates or joint ventures use accounting policies other than those of the Group for like transactions and events in similar circumstances, if necessary, adjustments shall be made to make the associates or joint ventures’ accounting policies conform to those of the Group when the associates or joint ventures’ financial statements are used by the Group in applying the equity method.

If the Group’s share of losses of associates and joint ventures equals or exceeds its interest in the associates (including long-term interests that, in substance, form part of the Group’s net investment in the associates), the Group discontinues recognizing its share of further losses. After the Group’s interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee.

The Group determines at each reporting period whether there is any objective evidence that the investments in the associates are impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associates and its carrying amount and recognizes the amount as non-operating expenses in the consolidated statement of comprehensive income.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.1.3 Structured entity

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. When the Group decides whether it has power over the structured entities in which the Group has interests, it considers factors such as the purpose, the form, the substantive ability to direct the relevant activities of a structured entity, the nature of its relationship with a structured entity, and the amount of exposure to variable returns.

3.1.4 Funds management

The Group manages and operates trust assets, collective investment, and other funds on behalf of investors. These trusts and funds are not consolidated, except for trusts and funds over which the Group has control.

3.1.5 Intragroup transactions

Intragroup balances, income, expenses, and any unrealized gains and losses resulting from intragroup transactions are eliminated in full, in preparing the consolidated financial statements. If unrealized losses are an indication of an impairment that requires recognition in the consolidated financial statements, those losses are recognized for the period.

3.2 Foreign Currency

3.2.1 Foreign currency transactions

A foreign currency transaction is recorded, at initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate which is the spot exchange rate at the end of the reporting period. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was measured and non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Except for the exchange differences for the net investment in a foreign operation and the financial liability designated as a hedging instrument of net investment, exchange differences arising on the settlement of monetary items or on translating monetary items are recognized in profit or loss. When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income, conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

3.2.2 Foreign operations

The results and financial position of a foreign operation, whose functional currency differs from the Group’s presentation currency, are translated into the Group’s presentation currency based on the following procedures.

If the functional currency of a foreign operation is not the currency of a hyperinflationary economy, assets and liabilities for each statement of financial position presented (including comparatives) are translated at the closing rate at the end of the reporting period, income and expenses for each statement of comprehensive income presented (including comparatives) are translated using the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.2.2 Foreign operations (cont’d)

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and are translated into the presentation currency at the closing rate.

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss (as a reclassification adjustment) when the gain or loss on disposal is recognized. On the partial disposal of a subsidiary that includes a foreign operation, the Group re-attributes the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the non-controlling interests in that foreign operation. In any other partial disposal of a foreign operation, the Group reclassifies to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

3.2.3 Translation of the net investment in a foreign operation

A monetary item that is receivable from or payable to a foreign operation, for which settlement is neither planned nor likely to occur in the foreseeable future is, in substance, a part of the Group’s net investment in that foreign operation, then foreign currency difference arising from that monetary item is recognized in the other comprehensive income and shall be reclassified to profit or loss on disposal of the net investment.

3.3 Recognition and Measurement of Financial Instruments

3.3.1 Initial recognition

The Group recognizes a financial asset or a financial liability in its consolidated statement of financial position when the Group becomes party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned) is recognized and derecognized using trade date accounting.

For financial reporting purpose, the Group classifies (a) financial assets as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, or financial assets at amortized cost and (b) financial liabilities as financial liabilities at fair value through profit or loss, or other financial liabilities. These classifications are based on the business model for managing financial instruments and the contractual cash flow characteristics of the financial instrument at initial recognition.

At initial recognition, a financial asset or financial liability is measured at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. The fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value of a financial instrument on initial recognition is normally the transaction price (that is, the fair value of the consideration given or received) in an arm’s length transaction.

3.3.2 Subsequent measurement

After initial recognition, financial instruments are measured at amortized cost or fair value based on classification at initial recognition.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.3.2.1 Amortized cost

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

3.3.2.2 Fair value

The Group uses quoted price in an active market which is based on listed market price or dealer price quotations of financial instruments traded in an active market as best estimate of fair value. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

If there is no active market for a financial instrument, fair value is determined either by using a valuation technique or independent third-party valuation service. Valuation techniques include using recent arm’s length market transactions between knowledgeable and willing parties, if available, referencing the current fair value of another instrument that is substantially the same, discounted cash flow analysis, and option pricing models.

The Group uses valuation models that are commonly used by market participants and customized for the Group to determine fair values of common over-the-counter (“OTC”) derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Group uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

In addition, the fair value information recognized in the consolidated statement of financial position is classified into the following fair value hierarchy, reflecting the significance of the input variables used in the fair value measurement.

Level 1 :	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at<br>the measurement date
Level 2 :	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,<br>either directly or indirectly
:---	:---
Level 3 :	Unobservable inputs for the asset or liability
:---	:---

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety.

If a fair value measurement uses observable inputs that require significant adjustment using unobservable inputs, that measurement is a Level 3 measurement.

If the valuation technique does not reflect all factors which market participants would consider in pricing the asset or liability, the fair value is adjusted to reflect those factors. Those factors include counterparty credit risk, bid-ask spread, liquidity risk, and others.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.3.2.2 Fair value (cont’d)

The Group uses valuation technique which maximizes the use of market inputs and minimizes the use of entity-specific inputs. It incorporates all factors that market participants would consider in pricing the asset or liability and is consistent with economic methodologies applied for pricing financial instruments. Periodically, the Group calibrates the valuation technique and tests its validity using prices of observable current market transactions of the same instrument or based on other relevant observable market data.

3.3.3 Derecognition

Derecognition is the removal of a previously recognized financial asset or financial liability from the consolidated statement of financial position. The derecognition criteria for financial assets and financial liabilities are as follows:

3.3.3.1 Derecognition of financial assets

A financial asset is derecognized when the contractual rights to the cash flows from the financial assets expire or the Group transfers substantially all the risks and rewards of ownership of the financial asset, or the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and the Group has not retained control. Therefore, if the Group does not transfer substantially all the risks and rewards of ownership of the financial asset, the Group continues to recognize the financial asset to the extent of its continuing involvement in the financial asset.

If the Group transfers the contractual rights to receive the cash flows of the financial asset but retains substantially all the risks and rewards of ownership of the financial asset, the Group continues to recognize the transferred asset in its entirety and recognize a financial liability for the consideration received.

The Group writes off a financial asset when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Group considers write-off when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The write-off decision is made in accordance with internal regulations. After the write-off, the Group can continue to collect the written-off loans according to the internal policy. Recovered amounts from financial assets previously written-off are recognized in profit or loss.

3.3.3.2 Derecognition of financial liabilities

A financial liability is derecognized from the consolidated statement of financial position when it is extinguished (i.e., the obligation specified in the contract is discharged, canceled or expires).

3.3.4 Offsetting

A financial asset and a financial liability are offset, and the net amount is presented in the consolidated statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on a future event and must be legally enforceable in the normal course of business, the event of default, and the event of insolvency or bankruptcy of the Group and all of the counterparties.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.4 Cash and Due from Financial Institutions

Cash and due from financial institutions include cash on hand, foreign currency, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and due from financial institutions. Cash and due from financial institutions are measured at amortized cost.

3.5 Non-derivative Financial Assets

3.5.1 Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss unless they are classified as financial assets at amortized cost or at fair value through other comprehensive income.

The Group may designate certain financial assets upon initial recognition as at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

After initial recognition, a financial asset at fair value through profit or loss is measured at fair value and gains or losses arising from a change in fair value are recognized in profit or loss. Interest income using the effective interest method and dividend income from financial assets at fair value through profit or loss are also recognized in profit or loss.

3.5.2 Financial assets at fair value through other comprehensive income

The Group classifies below financial assets as financial assets at fair value through other comprehensive income:

•	Debt instruments that are held within a business model whose objective is achieved by both collecting contractual<br>cash flows and selling financial assets, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding and;
•	Equity instruments that are not held for short-term trading but held for strategic investment, and designated as<br>financial assets at fair value through other comprehensive income
:---	:---

After initial recognition, a financial asset at fair value through other comprehensive income is measured at fair value. Gains or losses arising from a change in fair value, other than dividend income, interest income calculated using the effective interest method and exchange differences arising on monetary items which are recognized directly in profit or loss, are recognized in other comprehensive income in equity.

When the financial assets at fair value through other comprehensive income is disposed of, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. However, cumulative gain or loss of equity instruments designated at fair value through other comprehensive income is reclassified to retained earnings not to profit or loss at disposal.

A financial asset at fair value through other comprehensive income denominated in foreign currency is translated at the closing rate. Exchange differences resulting from changes in amortized cost are recognized in profit or loss, and other changes are recognized in equity.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.5.3 Financial assets at amortized cost

A financial asset, which is held within the business model whose objective is achieved by collecting contractual cash flows, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding, is classified as a financial asset at amortized cost. After initial recognition, a financial asset at amortized cost is measured at amortized cost using the effective interest method and interest income is calculated using the effective interest method.

3.6 Expected Credit Losses of Financial Assets (Debt Instruments)

The Group recognizes loss allowances for expected credit losses at the end of the reporting period for financial assets at amortized cost and fair value through other comprehensive income except for financial assets at fair value through profit or loss.

Expected credit losses are estimated at present value of probability-weighted amount that is determined by evaluating a range of possible outcomes. The Group measures expected credit losses by reflecting all reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The approaches of measuring expected credit losses in accordance with Korean IFRS are as follows:

•	General approach: for financial assets and unused loan commitments not subject to the below 2 approaches
•	Simplified approach: for trade receivables, contract assets, and lease receivables
:---	:---
•	Credit-impaired approach: for financial assets that are credit-impaired at the time of acquisition
:---	:---

Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures loss allowances for that financial instrument at an amount equal to 12-month expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Group measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

The Group assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. Criterion of more than 30 days past due is applied to all subsidiaries, and other criteria are applied selectively considering specific indicators of each subsidiary or additionally considering specific indicators of each subsidiary. If the contractual cash flows of a financial asset have been renegotiated or modified, the Group assesses whether the credit risk has increased significantly using the same following criteria.

•	More than 30 days past due
•	Decline in credit rating at the end of the reporting period by certain notches or more compared to the time of<br>initial recognition
:---	:---
•	Subsequent managing ratings below certain level in the early warning system
:---	:---
•	Debt restructuring (except for impaired financial assets) and
:---	:---
•	Credit delinquency information of Korea Federation of Banks, etc.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.6 Expected Credit Losses of Financial Assets (Debt Instruments) (cont’d)

Under simplified approach, the Group always measures loss allowances at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Group only recognizes the cumulative changes in lifetime expected credit losses since initial recognition as loss allowances at the end of the reporting period. In assessing credit impairment, the Group uses definition of default as in the new Basel Accord which rules calculation of Capital Adequacy Ratio.

The Group generally considers the loan to be credit-impaired if one or more of the following criteria are met:

•	90 days or more past due
•	Legal proceedings related to collection
:---	:---
•	A borrower registered on the credit management list of Korea Federation of Banks
:---	:---
•	A corporate borrower with the credit rating C and D
:---	:---
•	Refinancing and
:---	:---
•	Debt restructuring, etc.
:---	:---

3.6.1 Forward-looking information

The Group uses forward-looking information, when determining whether credit risk has increased significantly and measuring expected credit losses.

The Group assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses.

The correlation between the major macroeconomic variables and the credit risk are as follows:

Key macroeconomic variables	Correlation between the major<br>macroeconomic variables and the credit risk
Benchmark interest rate	(+)
AA- rated corporate bond<br>(3-year)	(+)
BBB- rated corporate bond<br>(3-year)	(+)
Composite stock index	(-)
Rate of increase in housing transaction price index (Whole Country)	(-)
Rate of increase in housing transaction price index (Metropolitan Area)	(-)
WTI crude oil price	(+)
Growth rate of private consumption	(-)
Rate of increase or decrease in unemployment rate	(+)
Household loan growth rate	(-)
CD distribution yield	(-)
Unemployment rate	(+)
Interest rate spread	(+)
Private consumption growth rate	(-)
Leading composite index (Cyclical Component)	(-)

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.6.1 Forward-looking information (cont’d)

Forward-looking information used in the calculation of expected credit losses is based on the macroeconomic forecasts utilized by management of the Group for its business plan considering reliable external agency’s forecasts and others. The forward-looking information is generated by KB Research with a comprehensive approach to capture the possibility of various economic forecast scenarios that are derived from the internal and external viewpoints of the macroeconomic situation. The Group determines the macroeconomic variables to be used in forecasting future conditions of the economy, considering the direction of the forecast scenario based on GDP growth and the significant relationship between macroeconomic variables and time series data. Some macroeconomic variables used are different than those used in the previous year.

As of December 31, 2024, the Group measures expected credit losses by applying both the worse scenario and the crisis scenario, taking into consideration the potential credit risk resulting from the uncertain financial environment locally and globally and the rapid economic recession.

3.6.2 Measuring expected credit losses on financial assets at amortized cost

The expected credit losses of financial assets at amortized cost are measured as present value of the difference between the contractual cash flows to be received and the cash flows expected to be received. The Group estimates expected future cash flows for financial assets that are individually significant. The Group selects the individually significant financial assets by comprehensively considering quantitative and qualitative factors (such as debt restructuring or negative net assets, etc.) among financial assets with the credit risk has increased significantly or credit-impaired (individual assessment of impairment).

For financial assets that are not individually significant, the Group collectively estimates expected credit losses by grouping loans with a homogeneous credit risk profile (collective assessment of impairment).

3.6.2.1 Individual assessment of impairment

Individual assessment of impairment losses is performed using management’s best estimate on the present value of expected future cash flows. The Group uses all the available information including financial condition of the borrower such as operating cash flow and net realizable value of any collateral held.

3.6.2.2 Collective assessment of impairment

Collective assessment of impairment losses is performed by using a methodology based on historical loss experience and reflecting forward-looking information. Such a process incorporates factors such as type of collateral, type of product, type of borrower, credit rating, size of portfolio, and recovery period and applies Probability of Default (“PD”) on a group of assets and Loss Given Default (“LGD”) by type of recovery method. Also, the Group applies certain assumptions to model expected credit losses assessment and to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce the gap between loss estimate and actual loss experience.

The lifetime expected credit losses are measured by applying the PD to the carrying amount calculated by deducting the expected principal repayment amount from the carrying amount as of the reporting date and the LGD adjusted to reflect changes in the carrying amount.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.6.3 Measuring expected credit losses on financial assets at fair value through other comprehensive income

The Group measures expected credit losses on financial assets at fair value through other comprehensive income in a manner that is consistent with the requirements that are applicable to financial assets at amortized cost. However, loss allowances are recognized in other comprehensive income. Upon disposal or repayment of financial assets at fair value through other comprehensive income, the amount of loss allowances is reclassified from other comprehensive income to profit or loss.

3.7 Derivative Financial Instruments

The Group enters into numerous derivative financial instrument contracts such as currency forwards, interest rate swaps, currency swaps, and others for trading purposes or to manage its interest rate risk, currency risk, and others. The Group’s derivative financial instruments business focuses on addressing the needs of the Group’s corporate clients to hedge their risk exposure and to hedge the Group’s risk exposure that results from such client contracts. These derivative financial instruments are presented as derivative financial instruments in the consolidated financial statements irrespective of transaction purpose and subsequent measurement requirement.

The Group designates certain derivative financial instruments as hedging instruments to hedge the risk of changes in fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge) and the risk of changes in cash flow (cash flow hedge). The Group designates certain derivative and non-derivative financial instruments as hedging instruments to hedge the currency risk of the net investment in a foreign operation (hedge of net investment).

At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge. This documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged, the inception date of hedging relationship and how the Group will assess the hedging instrument’s effectiveness in offsetting the changes in the hedged item’s fair value or cash flows attributable to the hedged risk.

Derivative financial instruments are initially recognized at fair value. After initial recognition, derivative financial instruments are measured at fair value, and changes therein are accounted for as described below.

3.7.1 Derivative financial instruments held for trading

All derivative financial instruments, except for derivatives that are designated and qualify for hedge accounting, are measured at fair value. Gains or losses arising from changes in fair value are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.2 Derivative financial instruments for fair value hedges

If derivative financial instruments are designated and qualify for fair value hedges, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in profit or loss as part of other operating income or expenses. If the hedged items are equity instruments for which the Group has elected to present changes in fair value in other comprehensive income, changes in fair value of the hedging instrument and changes in fair value of the hedged item attributable to the hedged risk are recognized in other comprehensive income.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.7.2 Derivative financial instruments for fair value hedges (cont’d)

Fair value hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. Once fair value hedge accounting is discontinued, the adjustment to the carrying amount of a hedged item is amortized to profit or loss by the maturity of the financial instrument using the effective interest method.

3.7.3 Derivative financial instruments for cash flow hedges

The effective portion of changes in fair value of derivative financial instruments that are designated and qualify for cash flow hedges is recognized in other comprehensive income, limited to the cumulative change in fair value (present value) of the hedged item (the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge. The ineffective portion is recognized in profit or loss as other operating income or expenses. The associated gains or losses that were previously recognized in other comprehensive income are reclassified from equity to profit or loss (other operating income or expenses) as a reclassification adjustment in the same period or periods during which the hedged forecast cash flows affect profit or loss. Cash flow hedge accounting is discontinued prospectively if the hedging instrument expires or is sold, terminated or exercised, or the hedging relationship ceases to meet the qualifying criteria. When the cash flow hedge accounting is discontinued, the cumulative gains or losses on the hedging instrument that have been recognized in other comprehensive income are reclassified to profit or loss over the period in which the forecast transaction occurs. If the forecast transaction is no longer expected to occur, the cumulative gains or losses that have been recognized in other comprehensive income are immediately reclassified to profit or loss.

3.7.4 Derivative and non-derivative financial instruments designated for net investments hedges

If derivative and non-derivative financial instruments are designated and qualify for the net investment hedge, the effective portion of changes in fair value of the hedging instrument is recognized in other comprehensive income and the ineffective portion is recognized in profit or loss as other operating income or expenses. The cumulative gains or losses on the hedging instrument relating to the effective portion of the hedge that have been accumulated in other comprehensive income will be reclassified from other comprehensive income to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation.

3.7.5 Embedded derivatives

An embedded derivative is separated from the host contract and accounted for as a derivative if, and only if, (a) the economic characteristics and risks of the embedded derivative are not closely related to those of the host contract, (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative and (c) the hybrid contract contains a host that is not a financial asset and is not designated as at fair value through profit or loss. Gains or losses arising from a change in fair value of an embedded derivative separated from the host contract are recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss.

3.7.6 Day one gains or losses

If the Group uses a valuation technique that incorporates unobservable inputs for the fair value of the OTC derivatives at initial recognition, there may be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. If the fair value is subsequently determined using observable inputs, the remaining deferred amount is recognized in profit or loss as part of net gains or losses on financial instruments at fair value through profit or loss or other operating income or expenses.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.8 Property and Equipment

3.8.1 Recognition and measurement

Property and equipment that qualify for recognition as an asset are measured at cost and subsequently carried at its cost less any accumulated depreciation and any accumulated impairment losses.

The cost of property and equipment includes any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent expenditures are capitalized only when they prolong the useful life or enhance values of the assets but the costs of the day-to-day servicing of the assets such as repair and maintenance costs are recognized in profit or loss as incurred. When part of an item of property and equipment has a useful life different from that of the entire asset, it is recognized as a separate asset.

3.8.2 Depreciation

Land is not depreciated, whereas other property and equipment are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The depreciable amount of an asset is determined after deducting its residual value.

Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation method and estimated useful life of property and equipment are as follows:

Property and equipment	Depreciation method	Estimated useful life
Buildings	Straight-line	20~40 years
Leasehold improvements	Declining-balance/ Straight-line	4~15 years
Equipment and vehicles	Declining-balance/ Straight-line	3~15 years

The residual value, the useful life, and the depreciation method applied to an asset are reviewed at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.9 Investment Properties

3.9.1 Recognition and measurement

Properties held to earn rentals or for capital appreciation or both are classified as investment properties. Investment properties are measured initially at their cost and subsequently the cost model is used.

3.9.2 Depreciation

Land is not depreciated, whereas other investment properties are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Group. The depreciable amount of an asset is determined after deducting its residual value.

The depreciation method and estimated useful life of investment properties are as follows:

Investment properties		Depreciation method		Estimated useful life
Buildings		Straight-line		20~40 years

3.10 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets, except for goodwill and membership rights, are amortized using the straight-line or declining-balance method with no residual value over their estimated useful life since the assets are available for use.

Intangible assets	Amortization method	Estimated useful life
Industrial property rights	Straight-line	3 ~ 19 years
Software	Straight-line	3 ~ 5 years
Others	Straight-line / Declining-balance	1 ~ 13 years

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Where an intangible asset is not being amortized because its useful life is indefinite, the Group carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.10.1 Goodwill

3.10.1.1 Recognition and measurement

Goodwill related to business combinations before January 1, 2010, is stated at its carrying amount, which was recognized under the Group’s previous accounting policy, prior to the transition to Korean IFRS.

Goodwill acquired from business combinations after January 1, 2010, is initially measured as the excess of the consideration transferred over the fair value of net identifiable assets acquired and liabilities assumed. If the fair value of net identifiable assets acquired and liabilities assumed exceeds the consideration transferred, the difference is recognized in profit or loss.

For each business combination, the Group decides at the acquisition date whether the non-controlling interests in the acquiree are initially measured at fair value or at the non-controlling interests’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets.

Acquisition-related costs incurred to effect a business combination are charged to expenses in the periods in which the costs are incurred and the services are received, except for the costs to issue debt or equity securities.

3.10.1.2 Additional acquisitions of non-controlling interests

Additional acquisitions of non-controlling interests are accounted for as equity transactions. Therefore, no additional goodwill is recognized.

3.10.1.3 Subsequent measurement

Goodwill is not amortized and is stated at cost less accumulated impairment losses. However, goodwill that forms part of the carrying amount of an investment in associates is not separately recognized and an impairment loss recognized is not allocated to any asset, including goodwill, which forms part of the carrying amount of the investment in the associates.

3.10.2 Subsequent expenditures

Subsequent expenditures are capitalized only when they enhance values of the assets. Internally generated intangible assets, such as goodwill and trade name, are not recognized as assets but expensed as incurred.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.11 Impairment of Non-financial Assets

The Group assesses at the end of each reporting period whether there is any indication that a non-financial asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and (c) non-current assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. However, irrespective of whether there is any indication of impairment, the Group tests (a) goodwill acquired in a business combination, (b) intangible assets with an indefinite useful life and (c) intangible assets not yet available for use for impairment annually by comparing their carrying amount with their recoverable amount.

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment loss and recognized immediately in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units that is expected to benefit from the synergies of the combination. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit.

An impairment loss recognized for goodwill is not reversed in a subsequent period. The Group assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset, other than goodwill, may no longer exist or may have decreased, and an impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The increased carrying amount of an asset other than goodwill attributable to a reversal of an impairment loss cannot exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

3.12 Non-current Assets Held for Sale

A non-current asset or disposal group is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. A non-current asset (or disposal group) classified as held for sale is measured at the lower of (a) its carrying amount measured in accordance with the applicable Korean IFRS, immediately before the initial classification of the asset (or disposal group) as held for sale and (b) fair value less costs to sell.

A non-current asset while it is classified as held for sale or while it is part of a disposal group classified as held for sale is not depreciated (or amortized).

Impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. Gain is recognized for any subsequent increase in fair value less costs to sell of an asset, but not in excess of the cumulative impairment loss that has been recognized.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.13 Financial Liabilities

The Group classifies financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Group recognizes financial liabilities in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the financial liability.

3.13.1 Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading or designated as such at initial recognition. After initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. At initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.

In relation to securities lending or borrowing transactions, when the Group borrows securities from the Korea Securities Depository and others, these transactions are managed as off-balance sheet items. The borrowed securities are treated as financial liabilities at fair value through profit or loss when they are sold. Changes in fair value at the end of the reporting period and difference between carrying amount at redemption and purchased amount are recognized in profit or loss.

In addition, the change in fair value of the financial liability designated at fair value through profit or loss that is attributable to change in the credit risk of that liability, the Group presents this change in other comprehensive income, and does not recycle this to profit or loss in accordance with Korean IFRS No.1109. However, if this treatment creates or enlarges an accounting mismatch, the Group recognizes this change in profit or loss.

3.13.2 Other financial liabilities

Non-derivative financial liabilities other than financial liabilities at fair value through profit or loss are classified as other financial liabilities. Other financial liabilities include deposits, borrowings, debentures, and others. At initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the acquisition. After initial recognition, other financial liabilities are measured at amortized cost, and its interest expense is recognized, using the effective interest method.

When an asset is sold under repurchase agreement, the Group continues to recognize the asset with the amount sold being accounted for as borrowings. The Group derecognizes a financial liability from the consolidated statement of financial position only when it is extinguished (i.e., when the obligation specified in the contract is discharged, canceled or expires).

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14 Insurance Contracts

KB Insurance Co., Ltd. and KB Life Insurance Co., Ltd., the subsidiaries of the Group, issue insurance contracts. The Group accounts for these contracts by applying Korean IFRS No.1117.

3.14.1 Definition and classification of insurance contracts

Insurance contract is defined as a contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. This assessment is carried out for each contract individually at the date of inception. The Group determined that the insurance risk related to the contract is significant if the issuer has to pay a significant additional benefits in any scenario that has commercial substance, even if the insured event is extremely unlikely, or even if the expected present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract.

The Group issues insurance contracts that contain participation features, allowing policyholders to participate in the investment returns of the Group, in addition to being compensated for insurance risks. Contracts with participation features are classified as insurance contracts with direct participation features if they meet the following criteria. At the beginning of an insurance contract, the Group evaluates whether the contract meets the following criteria.

•	The contractual terms specify that the policyholder participates in a share of a clearly identified pool of<br>underlying items
•	The Group expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on<br>the underlying items
:---	:---
•	the Group expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary<br>with the change in fair value of the underlying items
:---	:---

Furthermore, the Group issues investment contracts with discretionary participation features, which are associated with groups of assets identical to those of insurance contracts and share similar economic characteristics with insurance contracts.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.2 Level of aggregation

The Group identifies portfolios by aggregating insurance contracts subject to similar risks and managed together. Each portfolio is segmented into groups of insurance contracts applying the recognition and measurement requirements of IFRS 17. The Group distinguishes insurance contracts based on their issuance date at initial recognition. A cohort consists of contracts issued within a 12-month period, and is further segmented into three groups based on the possibility of becoming onerous.

•	a group of contracts that are onerous at initial recognition
•	a group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently
:---	:---
•	a group of the remaining contracts in the portfolio
:---	:---

The possibility of insurance contracts, at the lowest level of group of contracts, becoming onerous is determined based on the expected cash flows (fulfillment cash flow decided based on probability weighting) at initial recognition. The Group does not reassess the composition of the groups decided at the initial recognition date subsequently.

3.14.3 Recognition

The group recognizes a group of insurance contracts it issues from the earliest of the following: - the beginning of the coverage period of the group of contracts - the date when the first payment from a policyholder in the group becomes due - for a group of onerous contracts, when the group becomes onerous.

The group delays the recognition of a group of reinsurance contracts held that provide proportionate coverage until the date that any underlying insurance contract is initially recognized, if that date is later than the beginning of the coverage period of the group of reinsurance contracts held.

The group recognizes investment contracts with discretionary participation features at the date the Group becomes a party to the contract.

3.14.4 Contract boundary

Measurement of group of contracts includes all future cash flows within the contract boundaries. The Group decides that cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the entity can compel the policyholder to pay the premiums or in which the entity has a substantive obligation to provide the policyholder with insurance contract services.

A substantive obligation to provide insurance contract services ends when:

•	The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can<br>set a price or level of benefits that fully reflects those risks
•	The Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contains<br>the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio; and the pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to<br>periods after the reassessment date.
:---	:---

The Group evaluates contract boundaries at initial recognition and each subsequent reporting date to reflect changes in circumstances affecting substantive rights and obligations.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.5 Measurement: Insurance contracts not applying the premium allocation approach

3.14.5.1 Measurement on initial recognition

The group measures group of contracts as the sum of the fulfillment cash flows and the contractual service margin at the initial measurement. Fulfillment cash flows comprise estimates of future cash flows, an adjustment to reflect the time value of money and the financial risks related to the future cash flows, and a risk adjustment for non-financial risk.

Estimates of future cash flows is calculated by the probability-weighted average of all possible outcomes using all reasonable and supportable information available without undue cost or effort, considering both market and non-market variables, for cash flows within the contract boundary. The Group updates the estimates using all new information available, including information about past trends and evidence.

The risk adjustment for non-financial risk represents a liability that reflects the compensation that the insurer requires for bearing the uncertainty about the amounts and timing of cash flows arising from non-financial risk. Non-financial risks that are the subject of risk adjustment include insurance risk and other non-financial risks (such as lapse risk and expense risk). The Group calculates the risk adjustment for non-financial risk using techniques such as the confidence level method and the cost of capital method. The Group calculates the risk adjustment for non-financial risk at the level of the company, and after considering diversification effects, allocates it to individual groups of insurance contracts.

Contractual service margin represents the unearned profit the entity will recognize as it provides insurance contract services in the future. The group measures the contractual service margin on initial recognition of a group of insurance contracts at an amount that results in no income or expenses if the fulfillment cash flows at the initial recognition are net inflows. On the other hand, if the fulfillment cash flows are net outflow at the initial recognition, the Group classifies the group of contracts as an onerous group, recognizes the expected net outflow as an expense and manages loss component for subsequent measurement.

3.14.5.2 Subsequent measurement of the general measurement model

At the end of each reporting period, the carrying amount of group of contracts is the sum of estimated liability for incurred claims and liability for remaining coverage. Liability for remaining coverage comprises contractual service margin and expected fulfillment cash flows related to future services allocated to the group of contracts at the end of the reporting period. Liability for incurred claims comprises unpaid claims and insurance expenses, including reported but not yet paid claims, incurred but not reported claims, and dividends payable according to supervisory regulations.

The Group updates the fulfillment cash flows of both liability for incurred claims and liability for remaining coverage at each reporting date to reflect current estimates of the amounts, timing, and uncertainty of future cash flows, considering not only discount rates and other financial variables but also non-financial risk.

Experience adjustments is the differences between the following:

•	The estimated expected cash flows at the beginning of reporting period and the actual cash flows received during<br>the reporting period (including premiums received, cash flows related to insurance acquisition, and premium taxes paid)

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.5.2 Subsequent measurement of the general measurement model (cont’d)

•	The estimated expected cash flows at the beginning of reporting period and the actual insurance service expenses<br>incurred during the reporting period (excluding insurance acquisition costs)

Experience adjustments related to current or past services are recognized in profit or loss. For incurred claims (including those that have been incurred but not reported) and other incurred insurance service expenses, experience adjustments are always related to current or past services and are included as part of insurance service expenses in profit or loss. Changes in fulfillment cash flows related to future services are included in liability for remaining coverage by adjusting contractual service margin.

For insurance contracts without direct participation features, the carrying amount of the contractual service margin of a group of contracts at the end of the reporting period equals the carrying amount at the start of the reporting period adjusted for:

•	the effect of any new contracts added to the group
•	interest accreted on the carrying amount of the contractual service margin during the reporting period, measured<br>at the discount rates determined at initial recognition
:---	:---
•	the changes in fulfilment cash flows relating to future service, except to the extent that:
:---	:---
(i)	such increases in the fulfilment cash flows exceed the carrying amount of the contractual service margin,<br>giving rise to a loss
:---	:---
(ii)	such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining<br>coverage
:---	:---
•	the effect of any currency exchange differences on the contractual service margin
:---	:---
•	the amount recognized as insurance revenue because of the transfer of insurance contract services in the period,<br>determined by the allocation of the contractual service margin remaining at the end of the reporting period.
:---	:---

When fulfillment cash flows related to future services increase additionally, the cash flows result in an increase in the loss component of the group of contracts, and the increased loss component is recognized in profit or loss when the cash flows occur. Subsequently, decreases in fulfillment cash flows related to future services do not adjust contractual service margin until the loss component is fully recovered through profit or loss.

3.14.5.3 Subsequent Measurement of the Variable Fee Approach

The Group issues insurance contracts with direct participation features that provide significant investment-related services. Except for the following, the Group applies the same accounting policy for measuring insurance contracts under the variable fee approach as for measuring insurance contracts under the general measurement model.

For insurance contracts with direct participation features, the carrying amount of the contractual service margin of a group of contracts at the end of the reporting period equals the carrying amount at the start of the reporting period adjusted for the amounts specified below:

•	the effect of any new contracts added to the group
•	the change in the amount of the Group’s share of the fair value of the underlying items except to the extent<br>that
:---	:---
(i)	The amount of contractual service margin recognized in profit or loss due to the offsetting effect of risk<br>mitigation instruments
:---	:---
(ii)	the decrease in the amount of the Group’s share of the fair value of the underlying items exceeding the<br>carrying amount of the contractual service margin, giving rise to a loss
:---	:---
(iii)	the increase in the amount of the Group’s share of the fair value of the underlying items that causes<br>reversal of loss component of an onerous group
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.5.3 Subsequent Measurement of the Variable Fee Approach (cont’d)

•	the changes in fulfilment cash flows relating to future service, except to the extent that:
(i)	The amount of contractual service margin recognized in profit or loss due to the offsetting effect of risk<br>mitigation instruments
:---	:---
(ii)	The increases in the fulfilment cash flows that exceeds the carrying amount of the contractual service margin,<br>giving rise to a loss
:---	:---
(iii)	The decreases in the fulfilment cash flows that causes reversal of loss component of an onerous group
:---	:---
•	the effect of any currency exchange differences arising on the contractual service margin
:---	:---
•	the amount recognized as insurance revenue because of the transfer of insurance contract services in the period,<br>determined by the allocation of the contractual service margin remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period
:---	:---

All adjustments to contractual service margins are measured, considering the present value of currency, which is currently measured, taking into account all financial variables that affect the fair value gains arising from the underlying items. When applying the variable fee approach, the changes in the fulfillment cash flows adjusting the contractual service margin is composed of changes in the Group’s share of the fair value of the underlying items and the changes in the fulfillment cash flows that do not vary based on returns on the underlying items. the changes in the fulfillment cash flows that do not vary based on returns on the underlying items are as follows:

•	changes in the effect of currency risk and the effect of financial risk not arising from underlying items, such<br>as the impact of financial guarantees
•	experience adjustments arising from premiums received during the period related to future services
:---	:---
•	changes in estimated future cash flows of liability for remaining coverage
:---	:---
•	differences in the payment timing of investment components
:---	:---
•	changes in risk adjustment for non-financial risk related to future<br>services
:---	:---

3.14.5.4 Reinsurance contract

The Group applies the same accounting policy for measuring reinsurance contracts as for measuring insurance contracts, except for the following.

The Group includes all effects of risks related to the reinsurer’s default (including effects from security and losses due to disputes) when measuring the reinsurance contract group. The Group remeasures the effects of the reinsurer’s default risk at the end of each reporting period and recognizes the changes in the effects of default risk in profit or loss. The Group calculates the risk adjustment for non-financial risks to reflect the risks transferred to the reinsurer. Reinsurance contracts are not classified as onerous groups and do not recognize in profit or loss the expected outflows at the initial recognition, even if the fulfillment cash flows at initial recognition are outflows, considering the nature of reinsurance. However, if the net cost of purchasing reinsurance coverage is related to events that have occurred before the reinsurance contract is purchased, such costs are recognized as expenses immediately.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.5.5 Insurance revenue

The Group recognizes insurance revenue as the amount the Group expects to be entitled in exchange for provision of services arising from group of insurance contracts. Total insurance revenue for group of contracts is the amount received in premiums for the contracts, adjusted for financial effects and excluding all investment elements.

The amount of contractual service margin recognized as insurance revenue during the reporting period is determined by allocating the unamortized contractual service margin at the end of the reporting period for each unit of coverage provided during the reporting period and expected to be provided in the future. The number of coverage units in a group of contracts is the quantity of insurance contract services provided from insurance contracts within the group, and is determined based on the number of benefits provided and the expected duration of coverage under each contract.

Insurance acquisition cash flows are systematically allocated over each reporting period, recognized in equal amounts of insurance revenue and insurance expenses.

Loss component is allocated systematically, and the total amount allocated to the loss component becomes zero by the end of the coverage period of group of contracts. The portion of the allocated loss component for the reporting period is excluded from recognition in both insurance revenue and insurance expenses.

3.14.5.6 Insurance finance income or expenses

Insurance finance income consists of changes in the carrying amount of the groups of insurance contracts and reinsurance contracts arising from the effect of the time value of money and financial risk. The Group decides whether to disaggregate insurance finance income or expenses for the period between profit or loss and other comprehensive income for each portfolio. Systematic allocation involves allocating the expected total insurance finance income or expenses over the duration of the group of contracts, and recognizing the portion attributed to the reporting period in profit or loss and the remaining portion in other comprehensive income.

For insurance contracts where changes in financial risk related assumptions significantly impact the amounts paid to policyholders, the Group uses a single discount rate to allocate the modified expected insurance finance income or expenses for the remaining coverage period of the group of contracts. Otherwise, the Group calculates insurance finance income or expenses using the discount rate determined at the date of initial recognition.

Insurance finance income or expenses arising from contractual service margin is systematically allocated using the discount rate determined at the date of initial recognition.

When the Group transfers insurance contracts to a third party or derecognize them due to changes in insurance contract terms, the accumulated other comprehensive income related to those insurance contracts is reclassified to profit or loss.

3.14.5.7 Reinsurance revenue and expenses

The Group recognizes separately the amounts recovered from reinsurers and the allocation of reinsurance premiums paid in reinsurance contracts. Changes in the carrying amount of reinsurance assets for remaining coverage resulting from the reinsurance services received are recognized as reinsurance expenses, while amounts recovered from reinsurers are recognized as reinsurance income.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.6 Premium allocation approach

3.14.6.1 Underlying insurance

For general insurance and automobile insurance, if the coverage period of each contract within the group of contracts (including insurance contract services within the contract boundary) is less than one year or if the premium allocation approach is reasonably expected to measure the liability for remaining coverage for the group without significant differences from the application of the general model requirements, the premium allocation approach is applied to simplify the measurement of the group of insurance contracts.

The carrying amount of the liability for remaining coverage at the time of initial recognition of each group of contract is calculated by deducting the insurance acquisition cash flows allocated to the group of insurance at the acquisition date from the premium receipts at the time of initial recognition, and adding or subtracting the amount resulting from removing previously recognized assets or liabilities for cash flows related to the group of contract at the time of initial recognition.

Subsequently, the carrying amount of the liability for remaining coverage is calculated by adding the received premiums and the amortization of the insurance acquisition cash flows, and deducting the insurance acquisition cash flows and the amount recognized as insurance revenue for services provided. However, if the insurance acquisition cash flows recognized as expenses when it incurs those costs because the coverage period of each contract in the group at initial recognition is no more than one year, the insurance acquisition cash flow is not considered for calculating the liability for remaining coverage.

If at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, the difference between the carrying amount of the liability for remaining coverage and the current estimate of the fulfilment cash flows related is calculated, added to the the liability for remaining coverage, and recognized as a loss in profit or loss.

The Group determines that the liability for remaining coverage subject to the insurance premium allocation approach do not have significant financial elements, and therefore does not adjust the carrying amount of the liability for remaining coverage for reflecting the effect of the time value of money and financial risk.

3.14.6.2 Reinsurance

The Group applies the same accounting policy for measuring reinsurance contracts applying the premium allocation approach (general reinsurance, automobile reinsurance, and long-term non-proportional reinsurance) as for measuring insurance contracts with the exception of the following:

The Group includes all effects of risks related to the reinsurer’s default (including effects from security and losses due to disputes) when measuring the reinsurance contract group. The Group remeasures the effects of the reinsurer’s default risk at the end of each reporting period and recognizes the changes in the effects of default risk in profit or loss. Reinsurance contracts are not classified as onerous groups and do not recognize in profit or loss the expected outflows at the initial recognition, even if the fulfillment cash flows at initial recognition are outflows, considering the nature of reinsurance. However, if the net cost of purchasing reinsurance coverage is related to events that have occurred before the reinsurance contract is purchased, such costs are recognized as expenses immediately.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.14.7 Modification and derecognition

The Group derecognizes an insurance contract when the insurance contract is extinguished because of reasons such as obligation specified in the insurance contract having been expired, discharged or cancelled. Additionally, if the conditions of the contract have changed to such an extent that the accounting treatment of the contract would have been significantly different had the new conditions existed from the beginning, the Group derecognizes the existing contract and recognizes it as a new contract. If the change in contract conditions is not significant, the Group accounts for it as a change in the estimate of fulfillment cash flows.

3.15 Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Inevitable risks and uncertainties surrounding related events and circumstances are considered in measuring the best estimate of the provisions, and where the effect of the time value of money is material, the amount of provisions is the present value of the expenditures expected to be required to settle the obligation.

Provisions for confirmed and unconfirmed acceptances and guarantees, and unused credit lines of consumer and corporate loans are recognized using a valuation model that applies the credit conversion factor, PD, and LGD.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provisions are reversed.

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfill it. If the Group has a contract that is onerous, the present obligation under the contract is recognized and measured as provisions.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.16 Financial Guarantee Contracts

Financial guarantee contracts require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contracts are initially recognized at fair value and classified as other liabilities and are amortized over the contractual term. After initial recognition, financial guarantee contracts are measured at the higher of:

•	The amount determined in accordance with Korean IFRS No.1109 Financial Instruments and
•	The amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance<br>with Korean IFRS No.1115 Revenue from Contracts with Customers.
:---	:---

3.17 Equity Instrument Issued by the Group

An equity instrument is any contract or agreement that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

3.17.1 Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or the exercise of stock option are deducted from the equity, net of any tax effects.

3.17.2 Hybrid securities

The financial instruments can be classified as either financial liabilities or equity in accordance with the terms of the contract. The Group classifies hybrid securities as an equity if the Group has the unconditional right to avoid any contractual obligation to deliver cash or another financial asset in relation to the financial instruments. However, hybrid securities issued by subsidiaries are classified as non-controlling interests, dividends are recognized in the consolidated statement of comprehensive income as profit attributable to non-controlling interests.

3.17.3 Treasury shares

If the Group acquires its own equity instruments, these are accounted for as treasury shares and are deducted directly from equity. No gains or losses are recognized in profit or loss on the purchase, sale, issue or retirement of own equity instruments. If an entity within the Group acquires and retains treasury shares, the consideration paid or received is directly recognized in equity.

3.17.4 Compound financial instruments

A compound financial instrument is classified as a financial liability or an equity instrument depending on the substance of the contractual arrangement of such financial instrument. The liability component of the compound financial instrument is measured at fair value of the similar liability without conversion option at initial recognition and subsequently measured at amortized cost using effective interest method until it is extinguished by conversion or matured. Equity component is initially measured at fair value of compound financial instrument in its entirety less fair value of liability component net of tax effect, and it is not remeasured subsequently.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.18 Revenue Recognition

The Group recognizes revenues in accordance with the following steps determined in accordance with Korean IFRS No.1115 Revenue from Contracts with Customers.

•	Step 1: Identify the contract with a customer.
•	Step 2: Identify the performance obligations in the contract.
:---	:---
•	Step 3: Determine the transaction price.
:---	:---
•	Step 4: Allocate the transaction price to the performance obligations in the contract.
:---	:---
•	Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
:---	:---

3.18.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt instruments), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the consolidated statement of comprehensive income using the effective interest method in accordance with Korean IFRS No.1109 Financial Instruments. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, where appropriate, a shorter period, to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates expected cash flows by considering all contractual terms of the financial instrument but does not consider expected credit losses. The calculation includes all fees and points paid (main components of effective interest rate only) or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. In those rare cases when it is not possible to reliably estimate the cash flows and the expected life of a financial instrument, the Group uses the contractual cash flows over the full contractual term of the financial instrument.

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss.

Interest income on debt securities at fair value through profit or loss is also classified as interest income in the consolidated statement of comprehensive income.

3.18.2 Fee and commission income

The Group recognizes financial service fees in accordance with the purpose of charging the fees and the accounting standards of the financial instrument related to the fees earned.

3.18.2.1 Fees that are an integral part of the effective interest of a financial instrument

Such fees are generally treated as adjustments of effective interest rate. Such fees may include compensation for activities such as evaluating the borrower’s financial condition, evaluating and recording guarantees, collateral and other security arrangements, negotiating the terms of the instrument, preparing and processing documents, and closing the transaction and origination fees received on issuing financial liabilities at amortized cost. However, fees relating to the creation or acquisition of a financial instrument at fair value through profit or loss are recognized as revenue immediately.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.18.2.2 Fees related to performance obligations satisfied over time

If the control of a good or service is transferred over time, the Group recognizes revenue related to performance obligations over the period of performance obligations. Fees charged in return for the services for a certain period of time, such as asset management fees, consignment business fees, etc. are recognized over the period of performance obligations.

3.18.2.3 Fees related to performance obligations satisfied at a point in time

Fees earned at a point in time are recognized as revenue when a customer obtains controls of a promised good or service and the Group satisfies a performance obligation.

Commission on negotiation or participation in negotiation for the third party such as trading stocks or other securities, arranging merger and acquisition of business, is recognized as revenue when the transaction has been completed.

If the Group arranges a syndicated loan but does not participate in the syndicated loan or participates in the syndicated loan with the same effective profit as other participants, a syndication arrangement fee is recognized as revenue at the completion of the syndication service.

3.18.3 Net gains or losses on financial instruments at fair value through profit or loss

Net gains or losses on financial instruments at fair value through profit or loss (including changes in fair value, dividends, and gains or losses from foreign currency translation) include gains or losses on financial instruments as follows:

•	Gains or losses relating to financial instruments at fair value through profit or loss (excluding interest income<br>using the effective interest rate method)
•	Gains or losses relating to derivative financial instruments for trading (including derivative financial<br>instruments for hedging purpose but do not qualify for hedge accounting)
:---	:---

3.18.4 Dividend income

Dividend income is recognized in profit or loss when the right to receive payment is established. Dividend income is recognized as net gains or losses on financial instruments at fair value through profit or loss or other operating income depending on the classification of equity securities.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.19 Employee Compensation and Benefits

3.19.1 Post-employment benefits

3.19.1.1 Defined contribution plans

When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as post-employment benefits for the period.

3.19.1.2 Defined benefit plans

All post-employment benefits, other than defined contribution plans, are classified as defined benefit plans. The amount recognized as a net defined benefit liability is the present value of the defined benefit obligation less the fair value of plan assets at the end of the reporting period.

The present value of the defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulted from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

When the present value of the defined benefit obligation minus the fair value of plan assets results in an asset, it is recognized to the extent of the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting from the introduction or changes to a defined benefit plan. Such past service cost is immediately recognized as an expense for the period.

3.19.2 Short-term employee benefits

Short-term employee benefits are employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense for the period.

The expected cost of profit-sharing and bonus payments is recognized as liabilities when the Group has a present legal or constructive obligation to make payments as a result of past events, such as service rendered by employees, and a reliable estimate of the obligation can be made.

3.19.3 Share-based payment

The Group provides its executives and employees with stock grants, mileage stock, and long-term share-based payments programs. When stock grants are exercised, the Group can either select to distribute newly issued shares or treasury shares or compensate in cash based on the share price. When mileage stock and long-term share-based payments are exercised, the Group pays the amount equivalent to share price of KB Financial Group Inc. in cash.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.19.3 Share-based payment (cont’d)

For a share-based payment transaction in which the terms of the arrangement provide the Group with the choice of whether to settle in cash or by issuing equity instruments, the Group accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions because the Group determines that it has a present obligation to settle in cash based on a past practice and a stated policy of settling in cash. Therefore, the Group measures the liability incurred as consideration for the service received at fair value and recognizes related expense and accrued expense over the vesting periods. For mileage stock and long-term share-based payments program, the Group accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions, which are recognized as expense and accrued expenses at the time of vesting.

Until the liability is settled, the Group remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

3.19.4 Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or an employee’s decision to accept an offer of benefits in exchange for the termination of employment. The Group recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring that is within the scope of Korean IFRS No.1037 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

3.20 Income Tax Expense

Income tax expense comprises current tax expense and deferred income tax expense. Current and deferred income tax are recognized as income or expense and included in profit or loss for the period, except to the extent that the tax arises from (a) a transaction or event which is recognized, in the same or a different period, outside profit or loss, either in other comprehensive income or directly in equity and (b) a business combination.

3.20.1 Current income tax

Current income tax is the amount of income tax payable (recoverable) in respect of the taxable profit (tax loss) for a period. A difference between the taxable profit and accounting profit may arise when income or expense is included in accounting profit in one period but is included in taxable profit in a different period. Differences may also arise if there is revenue that is exempt from taxation, or expense that is not deductible in determining taxable profit (loss). Current income tax liabilities for the current and prior periods are measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period.

The Group offsets current income tax assets and current income tax liabilities if, and only if, the Group (a) has a legally enforceable right to set off the recognized amounts and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.20.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the tax-based amount of assets and liabilities and their carrying amount in the financial statements. Deferred income tax liabilities are recognized for all taxable temporary differences and deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. However, deferred income tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax assets and liabilities are not recognized if they arise from the initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting nor taxable profit or loss.

The Group recognizes a deferred income tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Group reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Group offsets deferred income tax assets and deferred income tax liabilities if, and only if the Group has a legally enforceable right to set off current income tax assets against current income tax liabilities and the deferred income tax assets and the deferred income tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current income tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred income tax liabilities or assets are expected to be settled or recovered.

3.20.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Group which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Group recognizes its uncertain tax positions in the consolidated financial statements in accordance with Korean IFRS No.1012 and Interpretation of Korean IFRS No.2123. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with Korean IFRS No.1037.

3.20.4 Global minimum tax

The Group is subject to the global minimum tax under Pillar 2 legislation and has applied the exemption from recognizing and disclosing related deferred tax.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.21 Earnings per Share

The Group calculates basic earnings per share amounts and diluted earnings per share amounts for profit or loss attributable to ordinary equity holders of the Parent Company and presents them in the consolidated statement of comprehensive income. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by adjusting the profit or loss attributable to ordinary equity holders of the Parent Company and weighted average number of shares outstanding, taking into account all potential dilution effects, such as exchangeable bonds and share-based payments given to employees.

3.22 Lease

The Group as a lessor recognizes lease payments from operating leases as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the consolidated statement of financial position based on their nature.

A lessee is required to recognize a right-of-use asset (lease assets) representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Assets and liabilities arising from a lease are initially measured at the present value.

Lease liabilities include the net present value of the following lease payments:

•	Fixed payments (including in-substance fixed payments), less any lease<br>incentives receivable
•	Variable lease payments that depend on an index or a rate
:---	:---
•	Amounts expected to be payable by the lessee under residual value guarantees
:---	:---
•	The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
:---	:---
•	Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to<br>terminate the lease
:---	:---

The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, which is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

Right-of-use assets are measured at cost comprising the following:

•	The amount of the initial measurement of the lease liability
•	Any lease payments made at or before the commencement date, less any lease incentives received
:---	:---
•	Any initial direct costs incurred by the lessee, and
:---	:---
•	An estimate of restoration costs
:---	:---

However, the Group can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under USD 5,000).

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

3.22 Lease (cont’d)

The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

For sale and leaseback transactions, the Group applies the requirements of Korean IFRS No.1115 Revenue from Contracts with Customers, to determine whether the transfer of an asset is accounted for as a sale of that asset.

3.23 Operating Segments

The Group identifies its operating segments based on internal reports which are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

Segment information includes items which are directly attributable and can be allocated to the segment on a reasonable basis.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Group is exposed to are credit risk, market risk, liquidity risk, operational risk, and others.

This note regarding financial risk management provides information about the risks that the Group is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the consolidated financial statements.

The Group’s risk management system focuses on efficiently supporting long-term strategy and management decisions of the Group by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, operational risk, interest rate risk, insurance risk, liquidity risk, credit concentration risk, strategy risk, reputation risk, and foreign exchange settlement risk are recognized as the Group’s significant risks and measured and managed according to regulatory capital and internal capital standards.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

The Risk Management Committee, as the ultimate decision-making body, deals with risk-related issues, such as establishing risk management strategies in accordance with the strategic direction determined by the board of directors, determining the affordable level of risk appetite, reviewing the level of risk and the status of risk management activities, approving the application of risk management systems, methodologies, and major improvements, and establishing and approving risk management strategies and procedures to timely recognize, measure, monitor, and control risks arising from various transactions by the Group.

4.1.2.2 Risk Management Council

The Risk Management Council is responsible for consulting on matters delegated by the Risk Management Committee and requests for review by the Management Executive Committee, consulting on details of each subsidiary’s risk management strategies and procedures, monitoring the Group’s risk management status, and establishing and implementing necessary measures.

4.1.2.3 Risk Management Department

The Risk Management Department performs the Group’s risk management detailed strategies, procedures, and business processes, and is responsible for calculating the Group’s risk-weighted assets, monitoring and managing internal capital limits.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management reporting purposes, the Group considers all factors of credit risk exposure, such as default risk of individual borrowers, country risk, and risk of specific sectors in an integrated way.

4.2.2 Credit risk management

The Group measures the expected loss and economic capital for the assets subject to credit risk management, including on-balance and off-balance assets, and uses them as management indicators. The Group allocates and manages credit risk economic capital limits.

In addition, to prevent excessive concentration of exposures by borrower and industry, the total exposure limit at the Group level is introduced, applied, and managed to control the credit concentration risk.

All of the Kookmin Bank’s loan customers (individuals and corporates) are assigned a credit rating and managed by a comprehensive internal credit evaluation system. For individuals, the credit rating is evaluated by utilizing personal information, income and job information, asset information, and bank transaction information. For corporates, the credit rating is evaluated by analyzing and utilizing financial and non-financial information which measures current and future corporate value and ability to repay the debt. Also, the extent to which corporates have the ability to meet debt obligations is comprehensively considered.

The credit rating, once assigned, serves as the fundamental instrument in Kookmin Bank’s credit risk management, and is applied in a wide range of credit risk management processes, including credit approval, credit limit management, loan pricing, and assessment of allowances for credit losses. For corporates, Kookmin Bank conducts a regular credit evaluation at least once a year, and the review and supervision departments regularly validate the adequacy of credit ratings to manage credit risks.

KB Kookmin Card Co., Ltd.’s credit scoring system is divided into Application Scoring System (“ASS”) and Behavior Scoring System (“BSS”). For applications that meet the eligibility criteria for card issuance, the card will be issued only if the ASS credit rating is above the standard. KB Kookmin Card Co., Ltd’s internal information, external information from the credit bureau company and others, and personal information on the application are used to calculate the ASS credit rating. The BSS, which is recalculated on a weekly basis, predicts the delinquency probability of cardholders, and utilizes it to monitor cardholders and portfolio risk.

In order to establish a credit risk management system, the Group manages credit risk by forming a separate risk management organization. In particular, independently of the Sales Group, the Credit Management & Analysis Group of Kookmin Bank, a subsidiary, is in charge of loan policy, loan system, credit rating, credit analysis, follow-up management, and corporate restructuring. The Risk Management Group of Kookmin Bank is responsible for establishing policies on credit risk management, measuring and limiting internal capital of credit risk, setting credit limits, credit review, and verification of credit rating models.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.3 Maximum exposure to credit risk

The Group’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Financial assets
Due from financial institutions measured at amortized cost *		~~W~~	27,790,121	~~W~~	27,579,279
Financial assets at fair value through profit or loss:
Due from financial institutions measured at fair value through profit or loss			59,838		79,811
Securities measured at fair value through profit or loss			73,768,636		72,658,432
Loans measured at fair value through profit or loss			1,187,763		183,726
Financial instruments indexed to the price of gold			158,519		93,743
Derivatives			11,730,767		6,157,628
Loans measured at amortized cost *			472,071,840		444,805,287
Financial investments:
Securities measured at fair value through other comprehensive income			88,735,996		78,926,437
Securities measured at amortized cost *			37,113,552		39,701,389
Loans measured at fair value through other comprehensive income			1,446,628		801,050
Other financial assets *			14,404,227		16,544,513

			728,467,887		687,531,295

Off-balance sheet items
Acceptances and guarantees contracts			16,250,243		13,763,222
Financial guarantee contracts			6,674,740		7,828,205
Commitments			212,695,995		203,906,179

			235,620,978		225,497,606

		~~W~~	964,088,865	~~W~~	913,028,901

*	After netting of allowance
:---	:---

4.2.4 Credit risk of loans

The Group maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Group assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial assets at fair value through other comprehensive income. Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting reasonable and supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Group measures the expected credit losses of loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the consolidated financial statements.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.4.1 Credit risk exposure

Credit qualities of loans as of December 31, 2024 and 2023, are as follows:

	December 31, 2024
(In millions of Korean won)	12-month<br>expected credit<br>losses		Lifetime expected credit losses				Not applying<br>expected credit<br>losses		Total
			Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1	~~W~~	145,582,892	~~W~~	7,629,290	~~W~~	2,896	~~W~~	—	~~W~~	153,215,078
Grade 2		74,005,609		11,446,162		12,845		—		85,464,616
Grade 3		3,757,237		5,195,235		14,777		—		8,967,249
Grade 4		861,581		1,091,261		28,368		—		1,981,210
Grade 5		18,395		691,118		3,066,032		—		3,775,545

		224,225,714		26,053,066		3,124,918		—		253,403,698

Retail
Grade 1		175,229,905		4,814,560		6,804		—		180,051,269
Grade 2		8,048,905		4,071,783		39,224		—		12,159,912
Grade 3		4,213,155		1,546,848		33,207		—		5,793,210
Grade 4		315,926		368,863		34,997		—		719,786
Grade 5		49,595		867,276		1,182,000		—		2,098,871

		187,857,486		11,669,330		1,296,232		—		200,823,048

Credit card
Grade 1		11,554,106		195,328		—		—		11,749,434
Grade 2		5,528,025		584,962		—		—		6,112,987
Grade 3		2,575,397		1,640,995		—		—		4,216,392
Grade 4		12,202		476,827		—		—		489,029
Grade 5		1,068		320,083		589,481		—		910,632

		19,670,798		3,218,195		589,481		—		23,478,474

		431,753,998		40,940,591		5,010,631		—		477,705,220

Loans measured at fair value through other comprehensive income
Corporate
Grade1		1,402,334		—		—		—		1,402,334
Grade2		44,294		—		—		—		44,294
Grade3		—		—		—		—		—
Grade4		—		—		—		—		—
Grade5		—		—		—		—		—

		1,446,628		—		—		—		1,446,628

		1,446,628		—		—		—		1,446,628

	~~W~~	433,200,626	~~W~~	40,940,591	~~W~~	5,010,631	~~W~~	—	~~W~~	479,151,848

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.4.1 Credit risk exposure (cont’d)

		December 31, 2023
(In millions of Korean won)		12-month<br>expected credit<br>losses		Lifetime expected credit losses				Not applying<br>expected credit<br>losses		Total
				Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1		~~W~~	142,216,615	~~W~~	6,765,165	~~W~~	2,122	~~W~~	—	~~W~~	148,983,902
Grade 2			65,606,587		10,632,633		40,942		—		76,280,162
Grade 3			3,547,489		3,964,877		8,231		—		7,520,597
Grade 4			654,654		1,285,650		31,645		—		1,971,949
Grade 5			16,188		581,524		2,871,510		—		3,469,222

			212,041,533		23,229,849		2,954,450		—		238,225,832

Retail
Grade 1			165,579,777		4,147,682		11,945		—		169,739,404
Grade 2			7,133,302		3,664,451		30,019		—		10,827,772
Grade 3			4,941,476		1,614,245		26,804		—		6,582,525
Grade 4			258,300		375,964		24,908		—		659,172
Grade 5			42,561		776,597		1,064,258		—		1,883,416

			177,955,416		10,578,939		1,157,934		—		189,692,289

Credit card
Grade 1			10,776,164		253,905		—		—		11,030,069
Grade 2			5,854,931		936,657		—		—		6,791,588
Grade 3			1,645,099		1,416,715		—		—		3,061,814
Grade 4			7,827		431,083		—		—		438,910
Grade 5			2,432		229,439		795,719		—		1,027,590

			18,286,453		3,267,799		795,719		—		22,349,971

			408,283,402		37,076,587		4,908,103		—		450,268,092

Loans measured at fair value through other comprehensive income
Corporate
Grade1			762,041		—		—		—		762,041
Grade2			39,009		—		—		—		39,009
Grade3			—		—		—		—		—
Grade4			—		—		—		—		—
Grade5			—		—		—		—		—

			801,050		—		—		—		801,050

			801,050		—		—		—		801,050

		~~W~~	409,084,452	~~W~~	37,076,587	~~W~~	4,908,103	~~W~~	—	~~W~~	451,069,142

*	Before netting of allowance
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.4.1 Credit risk exposure (cont’d)

Credit qualities of loans graded according to internal credit ratings as of December 31, 2024 and 2023, are as follows:

	Range of<br>probability of default (%)	Retail	Corporate
Grade 1	0.0 ~ 1.0	1 ~ 5 grade	AAA ~ BBB+
Grade 2	1.0 ~ 5.0	6 ~ 8 grade	BBB ~ BB
Grade 3	5.0 ~ 15.0	9 ~ 10 grade	BB- ~ B
Grade 4	15.0 ~ 30.0	11 grade	B- ~ CCC
Grade 5	30.0 ~	12 grade or under	CC or under

4.2.4.2 Quantification of the extent to which collateral and other credit enhancements mitigate credit risk of loans as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
		12-month<br>expected credit<br>losses				Lifetime expected credit losses								Total
(In millions of Korean won)						Non-impaired				Impaired
Guarantees		~~W~~	120,868,541			~~W~~	8,349,217			~~W~~	498,290			~~W~~	129,716,048
Deposits and savings			2,792,768				127,130				11,704				2,931,602
Property and equipment			15,498,262				1,071,833				227,196				16,797,291
Real estate			214,770,163				21,195,798				2,167,580				238,133,541

		~~W~~	353,929,734			~~W~~	30,743,978			~~W~~	2,904,770			~~W~~	387,578,482

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		12-month<br>expected credit<br>losses				Lifetime expected credit losses								Total
(In millions of Korean won)						Non-impaired				Impaired
Guarantees		~~W~~	114,669,115			~~W~~	7,639,754			~~W~~	425,696			~~W~~	122,734,565
Deposits and savings			2,461,434				129,853				15,176				2,606,463
Property and equipment			15,121,688				1,109,156				442,084				16,672,928
Real estate			196,412,901				19,374,276				2,893,235				218,680,412

		~~W~~	328,665,138			~~W~~	28,253,039			~~W~~	3,776,191			~~W~~	360,694,368

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.5 Credit risk of securities

Credit qualities of securities exposed to credit risk other than equity securities among financial investments as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		12-month<br>expected credit<br>losses		Lifetime expected credit losses				Not applying<br>expected credit<br>losses		Total
				Non-impaired		Impaired
Securities measured at amortized cost *
Grade 1		~~W~~	33,733,935	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	33,733,935
Grade 2			3,396,100		—		—		—		3,396,100
Grade 3			913		—		—		—		913
Grade 4			—		—		—		—		—
Grade 5			—		—		—		—		—

			37,130,948		—		—		—		37,130,948

Securities measured at fair value through other comprehensive income
Grade 1			81,797,910		—		—		—		81,797,910
Grade 2			6,933,807		—		—		—		6,933,807
Grade 3			4,279		—		—		—		4,279
Grade 4			—		—		—		—		—
Grade 5			—		—		—		—		—

			88,735,996		—		—		—		88,735,996

		~~W~~	125,866,944	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	125,866,944


		December 31, 2023
(In millions of Korean won)		12-month<br>expected credit<br>losses		Lifetime expected credit losses				Not applying<br>expected credit<br>losses		Total
				Non-impaired		Impaired
Securities measured at amortized cost *
Grade 1		~~W~~	35,812,502	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	35,812,502
Grade 2			3,907,307		—		—		—		3,907,307
Grade 3			852		—		—		—		852
Grade 4			—		—		—		—		—
Grade 5			—		—		—		—		—

			39,720,661		—		—		—		39,720,661

Securities measured at fair value through other comprehensive income
Grade 1			72,574,183		—		—		—		72,574,183
Grade 2			6,326,108		—		—		—		6,326,108
Grade 3			26,146		—		—		—		26,146
Grade 4			—		—		—		—		—
Grade 5			—		—		—		—		—

			78,926,437		—		—		—		78,926,437

		~~W~~	118,647,098	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	118,647,098

*	Before netting of allowance
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.5 Credit risk of securities (cont’d)

Credit qualities of securities other than equity securities, according to the credit ratings by external credit rating agencies as of December 31, 2024 and 2023, are as follows:

Credit<br><br>quality	Domestic				Foreign
	KIS	NICE P&I	KAP	FnPricing Inc.	S&P	Fitch-IBCA	Moody’s
Grade 1	AA0 to AAA	AA0 to AAA	AA0 to AAA	AA0 to AAA	A- to AAA	A- to AAA	A3 to Aaa
Grade 2	A- to AA-	A- to AA-	A- to AA-	A- to AA-	BBB- to BBB+	BBB- to BBB+	Baa3 to Baa1
Grade 3	BBB0 to BBB+	BBB0 to BBB+	BBB0 to BBB+	BBB0 to BBB+	BB to BB+	BB to BB+	Ba2 to Ba1
Grade 4	BB0 to BBB-	BB0 to BBB-	BB0 to BBB-	BB0 to BBB-	B+ to BB-	B+ to BB-	B1 to Ba3
Grade 5	BB- or under	BB- or under	BB- or under	BB- or under	B or under	B or under	B2 or under

Credit qualities of debt securities denominated in Korean won are based on the lowest credit rating by the domestic credit rating agencies above, and those denominated in foreign currencies are based on the lowest credit rating by the foreign credit rating agencies above.

4.2.6 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		12-month<br>expected credit<br>losses		Lifetime expected credit losses				Not applying<br>expected credit<br>losses		Total
				Non-impaired		Impaired
Due from financial institutions measured at amortized cost *
Grade 1		~~W~~	26,483,963	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	26,483,963
Grade 2			583,640		—		—		—		583,640
Grade 3			62,223		—		—		—		62,223
Grade 4			18		—		—		—		18
Grade 5			661,849		—		—		—		661,849

		~~W~~	27,791,693	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	27,791,693


		December 31, 2023
(In millions of Korean won)		12-month<br>expected credit<br>losses		Lifetime expected credit losses				Not applying<br>expected credit<br>losses		Total
				Non-impaired		Impaired
Due from financial institutions measured at amortized cost *
Grade 1		~~W~~	26,279,729	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	26,279,729
Grade 2			503,794		—		—		—		503,794
Grade 3			108,290		—		—		—		108,290
Grade 4			—		—		—		—		—
Grade 5			688,487		—		—		—		688,487

		~~W~~	27,580,300	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	27,580,300

*	Before netting of allowance
:---	:---

The classification criteria of the credit qualities of due from financial institutions as of December 31, 2024 and 2023, are the same as the criteria for securities other than equity securities.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.7 Credit risk mitigation of derivative financial instruments

Quantification of the extent to which collateral mitigates credit risk of derivative financial instruments as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024				December 31,<br>2023
Deposits, savings, securities, and others		~~W~~	1,437,204			~~W~~	1,471,117

4.2.8 Credit risk concentration analysis

4.2.8.1 Classifications of loans by country as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
		December 31, 2024 *
		Retail		Corporate		Credit card		Total		%		Allowances			Carrying<br>amount
Korea		~~W~~	193,803,826	~~W~~	225,393,574	~~W~~	23,436,170	~~W~~	442,633,570		92.15	~~W~~	(4,119,163	)	~~W~~	438,514,407
Europe			—		5,473,894		—		5,473,894		1.14		(61,124	)		5,412,770
China			181,539		7,095,199		776		7,277,514		1.52		(30,204	)		7,247,310
Japan			—		1,183,745		100		1,183,845		0.25		(2,947	)		1,180,898
United States			—		5,350,298		—		5,350,298		1.11		(116,741	)		5,233,557
Cambodia			3,575,153		4,315,485		1,114		7,891,752		1.64		(362,314	)		7,529,438
Indonesia			1,968,896		4,003,127		34,642		6,006,665		1.25		(596,496	)		5,410,169
Others			1,293,634		3,222,768		5,672		4,522,074		0.94		(344,392	)		4,177,682

		~~W~~	200,823,048	~~W~~	256,038,090	~~W~~	23,478,474	~~W~~	480,339,612		100.00	~~W~~	(5,633,381	)	~~W~~	474,706,231

(In millions of Korean won)
		December 31, 2023 *
		Retail		Corporate		Credit card		Total		%		Allowances			Carrying<br>amount
Korea		~~W~~	184,016,939	~~W~~	210,306,079	~~W~~	22,304,522	~~W~~	416,627,540		92.33	~~W~~	(4,013,937	)	~~W~~	412,613,603
Europe			—		4,611,356		—		4,611,356		1.02		(29,267	)		4,582,089
China			73,105		7,048,870		537		7,122,512		1.58		(37,624	)		7,084,888
Japan			—		912,224		92		912,316		0.20		(2,072	)		910,244
United States			—		5,985,577		—		5,985,577		1.33		(168,487	)		5,817,090
Cambodia			3,466,607		3,931,738		1,097		7,399,442		1.64		(243,544	)		7,155,898
Indonesia			1,474,419		3,216,033		38,198		4,728,650		1.05		(765,195	)		3,963,455
Others			661,219		3,198,731		5,525		3,865,475		0.85		(202,679	)		3,662,796

		~~W~~	189,692,289	~~W~~	239,210,608	~~W~~	22,349,971	~~W~~	451,252,868		100.00	~~W~~	(5,462,805	)	~~W~~	445,790,063

*	Amount includes loans measured at fair value through profit or loss, other comprehensive income, and amortized<br>cost.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.8.2 Classifications of corporate loans by industry as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	December 31, 2024
	Loans		%		Allowances			Carrying amount
Financial institutions	~~W~~	29,395,390		11.48	~~W~~	(258,612	)	~~W~~	29,136,778
Manufacturing		55,635,406		21.73		(602,712	)		55,032,694
Service		113,938,671		44.50		(1,132,799	)		112,805,872
Wholesale and retail		31,112,210		12.15		(552,209	)		30,560,001
Construction		6,782,310		2.65		(279,959	)		6,502,351
Public sector		2,460,655		0.96		(66,475	)		2,394,180
Others		16,713,448		6.53		(276,057	)		16,437,391

	~~W~~	256,038,090		100.00	~~W~~	(3,168,823	)	~~W~~	252,869,267

(In millions of Korean won)
	December 31, 2023
	Loans		%		Allowances			Carrying amount
Financial institutions	~~W~~	25,194,810		10.53	~~W~~	(147,964	)	~~W~~	25,046,846
Manufacturing		51,666,785		21.60		(619,644	)		51,047,141
Service		106,907,060		44.69		(1,247,642	)		105,659,418
Wholesale and retail		29,904,053		12.50		(502,211	)		29,401,842
Construction		7,047,906		2.95		(280,598	)		6,767,308
Public sector		2,259,364		0.94		(83,029	)		2,176,335
Others		16,230,630		6.79		(276,811	)		15,953,819

	~~W~~	239,210,608		100.00	~~W~~	(3,157,899	)	~~W~~	236,052,709

4.2.8.3 Classifications of retail loans and credit card receivables as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	December 31, 2024
	Loans		%		Allowances			Carrying amount
Housing loan	~~W~~	104,273,035		46.49	~~W~~	(283,861	)	~~W~~	103,989,174
General loan		96,550,013		43.04		(1,303,956	)		95,246,057
Credit card		23,478,474		10.47		(876,740	)		22,601,734

	~~W~~	224,301,522		100.00	~~W~~	(2,464,557	)	~~W~~	221,836,965

(In millions of Korean won)
	December 31, 2023
	Loans		%		Allowances			Carrying amount
Housing loan	~~W~~	97,142,065		45.81	~~W~~	(227,758	)	~~W~~	96,914,307
General loan		92,550,224		43.65		(1,141,322	)		91,408,902
Credit card		22,349,971		10.54		(935,826	)		21,414,145

	~~W~~	212,042,260		100.00	~~W~~	(2,304,906	)	~~W~~	209,737,354

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.8.4 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	December 31, 2024
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance	~~W~~	27,791,693		100.00	~~W~~	(1,572	)	~~W~~	27,790,121

		27,791,693		100.00		(1,572	)		27,790,121

Due from financial institutions measured at fair value through profit or loss
Finance and insurance		59,838		100.00		—			59,838

		59,838		100.00		—			59,838

Securities measured at fair value through profit or loss
Government and government funded institutions		25,543,224		34.63		—			25,543,224
Finance and insurance		35,810,087		48.54		—			35,810,087
Others		12,415,325		16.83		—			12,415,325

		73,768,636		100.00		—			73,768,636

Derivative financial assets
Government and government funded institutions		51,376		0.44		—			51,376
Finance and insurance		10,398,642		88.64		—			10,398,642
Others		1,280,749		10.92		—			1,280,749

		11,730,767		100.00		—			11,730,767

Securities measured at fair value through other comprehensive income
Government and government funded institutions		49,417,230		55.69		—			49,417,230
Finance and insurance		27,374,090		30.85		—			27,374,090
Others		11,944,676		13.46		—			11,944,676

		88,735,996		100.00		—			88,735,996

Securities measured at amortized cost
Government and government funded institutions		15,499,014		41.75		(787	)		15,498,227
Finance and insurance		21,411,994		57.66		(16,228	)		21,395,766
Others		219,940		0.59		(381	)		219,559

		37,130,948		100.00		(17,396	)		37,113,552

	~~W~~	239,217,878			~~W~~	(18,968	)	~~W~~	239,198,910

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.8.4 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by industry as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	December 31, 2023
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Finance and insurance	~~W~~	27,580,300		100.00	~~W~~	(1,021	)	~~W~~	27,579,279

		27,580,300		100.00		(1,021	)		27,579,279

Due from financial institutions measured at fair value through profit or loss
Finance and insurance		79,811		100.00		—			79,811

		79,811		100.00		—			79,811

Securities measured at fair value through profit or loss
Government and government funded institutions		21,022,824		28.94		—			21,022,824
Finance and insurance		37,426,249		51.51		—			37,426,249
Others		14,209,359		19.55		—			14,209,359

		72,658,432		100.00		—			72,658,432

Derivative financial assets
Government and government funded institutions		52,508		0.85		—			52,508
Finance and insurance		5,785,110		93.95		—			5,785,110
Others		320,010		5.20		—			320,010

		6,157,628		100.00		—			6,157,628

Securities measured at fair value through other comprehensive income
Government and government funded institutions		44,790,264		56.75		—			44,790,264
Finance and insurance		21,546,428		27.30		—			21,546,428
Others		12,589,745		15.95		—			12,589,745

		78,926,437		100.00		—			78,926,437

Securities measured at amortized cost
Government and government funded institutions		16,391,846		41.27		(655	)		16,391,191
Finance and insurance		22,960,878		57.80		(17,965	)		22,942,913
Others		367,937		0.93		(652	)		367,285

		39,720,661		100.00		(19,272	)		39,701,389

	~~W~~	225,123,269			~~W~~	(20,293	)	~~W~~	225,102,976

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	December 31, 2024
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea	~~W~~	18,731,321		67.39	~~W~~	(436	)	~~W~~	18,730,885
United States		2,946,827		10.60		(91	)		2,946,736
Others		6,113,545		22.01		(1,045	)		6,112,500

		27,791,693		100.00		(1,572	)		27,790,121

Due from financial institutions measured at fair value through profit or loss
Korea		59,838		100.00		—			59,838

		59,838		100.00		—			59,838

Securities measured at fair value through profit or loss
Korea		65,276,781		88.48		—			65,276,781
United States		3,817,882		5.18		—			3,817,882
Others		4,673,973		6.34		—			4,673,973

		73,768,636		100.00		—			73,768,636

Derivative financial assets
Korea		5,153,264		43.93		—			5,153,264
United States		2,870,245		24.47		—			2,870,245
France		1,117,765		9.53		—			1,117,765
Singapore		370,823		3.16		—			370,823
Japan		377,000		3.21					377,000
Others		1,841,670		15.70		—			1,841,670

		11,730,767		100.00		—			11,730,767

Securities measured at fair value through other comprehensive income
Korea		81,111,331		91.40		—			81,111,331
United States		4,460,081		5.04		—			4,460,081
Others		3,164,584		3.56		—			3,164,584

		88,735,996		100.00		—			88,735,996

Securities measured at amortized cost
Korea		31,798,069		85.64		(12,389	)		31,785,680
United States		1,862,402		5.02		(1,191	)		1,861,211
Others		3,470,477		9.34		(3,816	)		3,466,661

		37,130,948		100.00		(17,396	)		37,113,552

	~~W~~	239,217,878			~~W~~	(18,968	)	~~W~~	239,198,910

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.2.8.5 Classifications of due from financial institutions, securities other than equity securities, and derivative financial assets by country as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)
	December 31, 2023
	Amount		%		Allowances			Carrying amount
Due from financial institutions measured at amortized cost
Korea	~~W~~	19,763,609		71.65	~~W~~	(229	)	~~W~~	19,763,380
United States		3,021,300		10.95		(88	)		3,021,212
Others		4,795,391		17.40		(704	)		4,794,687

		27,580,300		100.00		(1,021	)		27,579,279

Due from financial institutions measured at fair value through profit or loss
Korea		79,811		100.00		—			79,811

		79,811		100.00		—			79,811

Securities measured at fair value through profit or loss
Korea		65,460,878		90.09		—			65,460,878
United States		3,260,968		4.49		—			3,260,968
Others		3,936,586		5.42		—			3,936,586

		72,658,432		100.00		—			72,658,432

Derivative financial assets
Korea		2,931,376		47.61		—			2,931,376
United States		1,008,296		16.37		—			1,008,296
France		863,376		14.02		—			863,376
Singapore		141,696		2.30		—			141,696
Japan		326,585		5.30		—			326,585
Others		886,299		14.40		—			886,299

		6,157,628		100.00		—			6,157,628

Securities measured at fair value through other comprehensive income
Korea		73,226,955		92.78		—			73,226,955
United States		2,354,107		2.99		—			2,354,107
Others		3,345,375		4.23		—			3,345,375

		78,926,437		100.00		—			78,926,437

Securities measured at amortized cost
Korea		35,344,575		88.99		(14,648	)		35,329,927
United States		1,159,699		2.92		(1,070	)		1,158,629
Others		3,216,387		8.09		(3,554	)		3,212,833

		39,720,661		100.00		(19,272	)		39,701,389

	~~W~~	225,123,269			~~W~~	(20,293	)	~~W~~	225,102,976

Due from financial institutions, financial instruments at fair value through profit or loss linked to gold price, and derivative financial instruments are mostly related to the finance and insurance industry with high credit ratings.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Group becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Group manages its liquidity risk through analysis of the contractual maturity of interest-bearing assets and liabilities, assets and liabilities related to the other inflows and outflows of funds, and off-balance sheet items related to the inflows and outflows of funds such as currency derivative instruments and others.

4.3.2 Liquidity risk management and indicator

The liquidity risk is managed by risk management policies and liquidity risk management guidelines set forth in these policies that apply to all risk management policies and procedures that may arise throughout the overall business of the Group.

The Group calculates and manages cumulative liquidity gap, liquidity ratio and others for all transactions and off-balance transactions related to liquidity, that affect the cash flows in Korean won and foreign currency funds raised and operated for the management of liquidity risks and periodically reports them to the Risk Management Council and the Risk Management Committee.

4.3.3 Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest payments; as such, amounts in the table below do not match with those in the consolidated statements of financial position which are based on discounted cash flows. The future interest payments for floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss ^1^	~~W~~	2,717,732	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—		~~W~~	2,717,732
Financial liabilities designated at fair value through profit or loss ^1^		8,002,499		—		—		—		—		—			8,002,499
Derivatives held for trading ^1^		11,409,695		—		—		—		—		—			11,409,695
Derivatives held for hedging ^2^		—		7,538		12,221		85,101		64,760		(3,206	)		166,414
Deposits ^3^		181,232,114		41,663,882		57,643,486		137,677,588		24,822,029		1,437,036			444,476,135
Borrowings		10,613,810		17,508,577		7,562,405		22,180,471		10,360,622		1,263,467			69,489,352
Debentures		1,113		4,138,143		6,683,638		21,458,905		42,772,744		5,955,515			81,010,058
Lease liabilities		196		30,683		56,903		227,390		606,547		122,502			1,044,221
Other financial liabilities		108,979		22,138,250		147,660		331,842		1,174,845		171,549			24,073,125

	~~W~~	214,086,138	~~W~~	85,487,073	~~W~~	72,106,313	~~W~~	181,961,297	~~W~~	79,801,547	~~W~~	8,946,863		~~W~~	642,389,231

Off-balance sheet items
Commitments ^4^	~~W~~	212,695,995	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—		~~W~~	212,695,995
Acceptances and guarantees contracts		16,250,243		—		—		—		—		—			16,250,243
Financial guarantee contracts ^5^		6,674,740		—		—		—		—		—			6,674,740

	~~W~~	235,620,978	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—		~~W~~	235,620,978

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.3.3.1 Remaining contractual maturity of financial liabilities other than derivatives held for cash flow hedge, and off-balance sheet items as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	On demand		Up to 1 month		1-3 months		3-12 months		1-5 years		Over 5 years			Total
Financial liabilities
Financial liabilities at fair value through profit or loss ^1^	~~W~~	2,953,472	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—		~~W~~	2,953,472
Financial liabilities designated at fair value through profit or loss ^1^		7,966,963		—		—		—		—		—			7,966,963
Derivatives held for trading ^1^		5,966,512		—		—		—		—		—			5,966,512
Derivatives held for hedging ^2^		7,856		11,887		16,968		48,476		50,888		(4,255	)		131,820
Deposits ^3^		175,103,423		35,688,530		55,092,937		131,347,718		17,325,661		1,764,854			416,323,123
Borrowings		10,729,326		18,654,410		6,594,666		21,356,372		12,432,385		1,195,946			70,963,105
Debentures		10,077		3,843,626		5,556,957		21,137,247		37,653,013		5,727,779			73,928,699
Lease liabilities		243		27,478		43,005		172,528		366,002		34,804			644,060
Other financial liabilities		875,267		25,693,343		166,001		331,289		1,128,101		264,861			28,458,862

	~~W~~	203,613,139	~~W~~	83,919,274	~~W~~	67,470,534	~~W~~	174,393,630	~~W~~	68,956,050	~~W~~	8,983,989		~~W~~	607,336,616

Off-balance sheet items
Commitments ^4^	~~W~~	203,906,179	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—		~~W~~	203,906,179
Acceptances and guarantees contracts		13,763,222		—		—		—		—		—			13,763,222
Financial guarantee contracts ^5^		7,828,205		—		—		—		—		—			7,828,205

	~~W~~	225,497,606	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—		~~W~~	225,497,606

^1^	Financial liabilities measured or designated at fair value through profit or loss and derivatives held for<br>trading are not managed by contractual maturity because they are expected to be traded or redeemed before maturity. Therefore, the carrying amounts of those financial instruments are included in the ‘On demand’ category.
:---	:---
^2^	Cash flows of derivatives held for hedging are shown at net amount of cash inflows and outflows by remaining<br>contractual maturity.
:---	:---
^3^	Deposits that are contractually repayable on demand or on short notice are included in the ‘On<br>demand’ category.
:---	:---
^4^	Commitments are included in the ‘On demand’ category because payments can be requested at any time.
:---	:---
^5^	Cash flows under financial guarantee contracts are classified based on the earliest period that the contract<br>can be executed.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.3.3.2 Contractual cash flows of derivatives held for cash flow hedge as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Up to 1 month			1-3 months			3-12 months			1-5 years			Over 5 years				Total
Cash flow to be received (paid) of net-settled<br>derivatives		~~W~~	1,402		~~W~~	6,654		~~W~~	22,907		~~W~~	51,167		~~W~~	—			~~W~~	82,130
Cash flow to be received of gross-settled derivatives			146,467			168,634			1,477,861			3,147,437			—				4,940,399
Cash flow to be paid of gross-settled derivatives			(192,685	)		(272,362	)		(1,616,687	)		(3,663,434	)		—				(5,745,168	)
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Up to 1 month			1-3 months			3-12 months			1-5 years			Over 5 years				Total
Cash flow to be received (paid) of net-settled<br>derivatives		~~W~~	1,605		~~W~~	9,596		~~W~~	28,260		~~W~~	76,704		~~W~~	802			~~W~~	116,967
Cash flow to be received of gross-settled derivatives			35,052			86,391			331,383			2,723,781			—				3,176,607
Cash flow to be paid of gross-settled derivatives			(35,871	)		(92,640	)		(488,194	)		(3,272,506	)		—				(3,889,211	)

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc., which arise from securities, derivatives, and others. The most significant risks associated with trading positions are interest rate risk, currency risk, and additional risks include stock price risk. The non-trading position is also exposed to interest rate risk. The Group manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Risk management

The Group sets and monitors internal capital limits for market risk and interest rate risk to manage the risks of trading and non-trading positions. In order to manage market risk efficiently, the Group maintains risk management systems and procedures such as trading policies and procedures, market risk management guidelines for trading positions, and interest rate risk management guidelines for non-trading positions. The entire process is carried out through consultation with the Risk Management Council and approval by the Risk Management Committee of the Group. However, insurance companies that are engaged in the insurance business are not subject to these guidelines and are monitored by setting internal capital limits for market risk and interest rate risk based on K-ICS.

In the case of Kookmin Bank, a major subsidiary, the Risk Management Council establishes and enforces overall market risk management policies for market risk management and decides to establish position limits, loss limits, VaR limits, and approves non-standard new products. In addition, the Market Risk Management Subcommittee, chaired by Chief Risk Officer (“CRO”), is a practical decision-making body for market risk management and determines position limits, loss limits, VaR limits, sensitivity limits, and scenario loss limits for each department of the business group.

Kookmin Bank’s Asset-Liability Management Committee (“ALCO”) determines interest rate and commission operating standards and Asset Liability Management (“ALM”) operation policies and enacts and revises relevant guidelines. The Risk Management Committee and the Risk Management Council monitor the establishment and enforcement of ALM risk management policies and enact and revise ALM risk management guidelines. Interest rate risk limits are set based on future asset and liability positions and expected interest rate volatility, which reflect annual business plans. The Financial Planning Department and the Risk Management Department regularly measure and monitor interest rate risk and report the status and limit of interest rate risk including changes in Economic Value of Equity (“ΔEVE”), changes in Net Interest Income (“ΔNII”), and duration gap to the ALCO and the Risk Management Council on a monthly basis, and to the Risk Management Committee on a quarterly basis. To ensure the adequacy of interest rate risk and liquidity risk management, the Risk Management Department assigns the limits, monitors and reviews the procedures and tasks of ALM operations conducted by the ALM department, and reports related matters to the management independently.

Kookmin Bank is closely monitoring the outputs of various industry groups and markets that manage the transition to the new interest rate benchmark, including announcements by LIBOR regulation authority and various consultative bodies related to the transition to alternative interest rate. In response to these announcements, Kookmin Bank has completed most of the transition and replacement plans according to LIBOR transition programs and plans consisting of major business areas such as finance, accounting, tax, legal, IT, and risk. The program is under the control of the CFO and related matters are reported to the board of directors and consultative bodies with senior management as members. Kookmin Bank continues its efforts as a market participant to actively express opinions so that the index interest rate benchmark reform can be carried out in the direction of minimizing the financial and non-financial impacts and operational risks and minimizing confusion among stakeholders.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.3 Trading position

4.4.3.1 Definition of a trading position

The trading position, which is subject to market risk management, is the trading position defined in “Trading Policy and Guidelines” and the basic requirements for the trading position are as follows:

The target position should be made daily fair value assessment and should have no legal constrictions on sale and hedging.

•	The target position has no restrictions on the sale, and the daily fair value assessment should be made, and the<br>embedded significant risk can be hedged in the market.
•	The trading position classification criteria should be clearly defined in the Trading Policy and Guidelines, and<br>the trading position should be managed by a separate trading department.
:---	:---
•	The target position must be operated according to the documented trading strategy and the management of position<br>limit must be carried out.
:---	:---
•	The specialized dealer or operating department shall have the authority to execute the transaction without prior<br>approval from the Risk Management Department, etc. within the predetermined limits of the target position.
:---	:---
•	The target positions should be periodically reported to management for risk management of the Group.
:---	:---

4.4.3.2 Observation method of market risk arising from trading positions

From January 2023, Subsidiaries of the Group use the Basel III standardized approach to measure market risk and manage it at the portfolio level(Prior to January 2023, Basel II standardized approach or Basel II internal models such as VaR). In addition, the Group controls and manages the risk of derivative financial instrument transactions in accordance with the Financial Supervisory Service regulations and enforcement rules.

4.4.3.3 Basel III standardized approach

Market risk regulatory capital is calculated as the sum of (a) sensitivities-based risk, (b) default risk, and (c) residual risk according to the Basel III standardized approach introduced in January 2023.

(a) Sensitivities-based risk, which is the basis of the Basel III standardized approach for market risk, calculates the expected loss for each risk factor by applying the risk weights and correlation parameter specified by the Basel Committee and summing them.

(b) Default risk is the risk from default of issuer of securities and derivatives and is calculated by applying risk weights based on the issuer’s credit rating.

(c) Residual risk is the risk imposed on atypical underlying instruments and is calculated by applying a certain percentage specified by the Basel Committee to the par value.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.3.3 Basel III standardized approach (cont’d)

(Basel III standardized approach definitions by risk type)

Sensitivities-based risk	Interest rate risk group	GIRR	The risk associated with risk-free interest rates (typically OIS rates) defined by currency and maturity.
		CSR	The risk associated with the issuer’s interest rate credit spread, defined by creditworthiness and sector.
	Equity risk group		The risk factors associated with equity, defined by market capitalization, economic conditions, and sector
	Foreign exchange risk group		The risk factors associated with exchange rate, defined by currency pairs
	Commodity risk group		The risk factors associated with commodities, defined by commodity types.
Default risk			Issuer default risk in securities (bonds, etc.) and derivatives.
Residual risk			Additional risks imposed on non-standard underlying asset products, etc.

Required equity capital of subsidiaries according to Basel III standardized approach for the year ended December 31, 2024 and 2023, are as follows:

Kookmin Bank

(In millions of Korean won)		2024
		Sensitivities-<br>based risk				Default risk				Residual risk				Dec. 31, 2024
		~~W~~	417,756			~~W~~	52,293			~~W~~	1,070			~~W~~	471,120
(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Sensitivities-<br>based risk				Default risk				Residual risk				Dec. 31, 2023
		~~W~~	479,174			~~W~~	85,375			~~W~~	862			~~W~~	565,411

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.3.3 Basel III standardized approach (cont’d)

KB Securities Co., Ltd.

(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2024
	~~W~~	612,879	~~W~~	282,755	~~W~~	8,303	~~W~~	903,937
(In millions of Korean won)	2023
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	736,052	~~W~~	307,682	~~W~~	7,454	~~W~~	1,051,187

KB Kookmin Card Co., Ltd.

(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2024
	~~W~~	40,454	~~W~~	—	~~W~~	—	~~W~~	40,454
(In millions of Korean won)	2023
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	43,029	~~W~~	—	~~W~~	—	~~W~~	43,029

KB Asset Management Co., Ltd.

(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2024
	~~W~~	6,460	~~W~~	747	~~W~~	—	~~W~~	7,207
(In millions of Korean won)	2023
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	3,658	~~W~~	—	~~W~~	—	~~W~~	3,658

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.3.3 Basel III standardized approach (cont’d)

KB Capital Co., Ltd.

(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2024
	~~W~~	13,052	~~W~~	—	~~W~~	—	~~W~~	13,052
(In millions of Korean won)	2023
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	11,127	~~W~~	—	~~W~~	—	~~W~~	11,127

KB Investment Co., Ltd.

(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	61,802	~~W~~	5,597	~~W~~	1	~~W~~	67,400
(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	74,408	~~W~~	7,135	~~W~~	—	~~W~~	81,543

KB Data System Co., Ltd.

(In millions of Korean won)	2024
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	427	~~W~~	—	~~W~~	—	~~W~~	427
(In millions of Korean won)	2023
	Sensitivities-<br>based risk		Default risk		Residual risk		Dec. 31, 2023
	~~W~~	325	~~W~~	—	~~W~~	—	~~W~~	325

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.3.4 Details of risk factors

(a) Interest rate risk

Interest rate risk for trading positions usually arises from debt securities. The Group’s trading strategy is to gain short-term trading gains from interest rate fluctuations. The Group manages interest rate risk associated with trading portfolios using sensitivity analysis (Price Value of a Basis Point: PVBP).

(b) Stock price risk

Stock price risk usually arises from the portfolio of trading stocks. The portfolio of trading stocks consists of stocks listed on the exchange and derivatives linked to stocks, collective investment securities and others.

Currency risk arises from holding assets and liabilities which are denominated in foreign currency, and currency-related derivatives. Most of the net foreign currency exposures occur in the US dollars, the Chinese Yuan and the Indonesian Rupiah.

4.4.4 Non-trading position (Interest Rate Risk of Banking Book (“IRRBB”))

4.4.4.1 Qualitative disclosure

(a) Definition of interest rate risk for risk management and measurement purposes

Interest rate risk is a change in equity and earnings due to the changes in value of interest-sensitive assets and liabilities, etc., and is measured by ΔEVE and ΔNII.

(b) Overall interest rate risk management and mitigation strategy

The interest rate risk management department establishes and sets interest rate risk management policies and limit once a year by a resolution of the Risk Management Council considering the mid to long-term management strategy and macroeconomic status. The interest rate risk management department analyzes interest rate risk crisis situations assuming abnormal interest rate fluctuations and reports the results to the Risk Management Council and observes changes in interest rate risk and compliance with risk limits to devise timely countermeasures and reports the management status regularly and frequently to the Risk Management Council. The interest rate risk model adequacy test is carried out regularly at least once a year by the verification department independent of the management department.

In order to measure the sensitivity of the economic value and earnings to changes in interest rates, the Group calculates monthly interest rate gap and duration gap for assets and liabilities.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.4.1 Qualitative disclosure (cont’d)

(d) Interest rate shock and stress scenarios used to estimate changes in the economic value and in earnings

The Group calculates ΔEVE by applying following six interest rate shock and stress scenarios, and ΔNII by applying parallel shock up and parallel shock down scenarios.

•	Scenario 1 : Parallel shock up
•	Scenario 2 : Parallel shock down
:---	:---
•	Scenario 3 : Steepener shock (short rates down and long rates up)
:---	:---
•	Scenario 4 : Flattener shock (short rates up and long rates down)
:---	:---
•	Scenario 5 : Short rates shock up
:---	:---
•	Scenario 6 : Short rates shock down
:---	:---

(e) Key modeling assumptions used to measure interest rate risk for internal management purposes

The Group measures unfavorable changes in economic value resulting from changes in interest rates, following the interest rate risk calculation standards set by the Financial Supervisory Service.

(f) Interest rate risk hedging methodology and related accounting

Subsidiaries which are subject to interest rate risk measurement hedges interest rate risk through back-to-back interest rate swap transactions, which are the same as interest payment cash flows and officially document and manage the risk management strategy for hedge accounting, risk management objectives, hedging relationship, and assessment method for hedge effectiveness.

(g) Key modeling and parametric assumptions used in calculating ΔEVE and ΔNII

Subsidiaries which are subject to interest rate risk measurement calculate interest rate risk, including all cash flow of interest-sensitive assets and liabilities, and off-balance sheet items. The main assumptions of the IRRBB standard method for calculating ΔEVE, ΔNII are as follows:

(Classification of time buckets of cash flows (19 buckets in total))

		Time bucket intervals (D:Day M:Months Y:Years t^cf^:Repricing date)
Short-term rates		1D<br><br>(0.0028Y)	1D< t^cf^<br><br>≤1M<br><br>(0.0417Y)	1M< t^cf^<br><br>≤3M<br><br>(0.1667Y)	3M< t^cf^<br><br>≤6M<br><br>(0.375Y)	6M< t^cf^<br><br>≤9M<br><br>(0.625Y)	9M< t^cf^<br><br>≤1Y<br><br>(0.875Y)	1Y< t^cf^<br><br>≤1.5Y<br><br>(1.25Y)	1.5Y< t^cf^<br><br>≤2Y<br><br>(1.75Y)
Medium-term rates		2Y< t^cf^<br><br>≤3Y<br><br>(2.5Y)	3Y< t^cf^<br><br>≤4Y<br><br>(3.5Y)	4Y< t^cf^<br><br>≤5Y<br><br>(4.5Y)	5Y< t^cf^<br><br>≤6Y<br><br>(5.5Y)	6Y< t^cf^<br><br>≤7Y<br><br>(6.5Y)
Long-term rates		7Y< t^cf^<br><br>≤8Y<br><br>(7.5Y)	8Y< t^cf^<br><br>≤9Y<br><br>(8.5Y)	9Y< t^cf^<br><br>≤10Y<br><br>(9.5Y)	10Y< t^cf^<br><br>≤15Y<br><br>(12.5Y)	15Y< t^cf^<br><br>≤20Y<br><br>(17.5Y)	t^cf^ >20Y<br><br>(25Y)
*	The number in brackets is the time bucket’s midpoint.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.4.1 Qualitative disclosure (cont’d)

(Caps on core deposit and average maturity by category for non-maturity deposits)

	Cap on proportion of<br>core deposits (%)	Cap on average maturity of<br>core deposits (years)
Retail/transactional	90	5
Retail/non-transactional	70	4.5
Wholesale	50	4

4.4.4.2 Quantitative disclosure

The average repricing maturity of non-maturity deposits is 2.5 years for core deposits, 1 day for non-core deposits, and the longest repricing maturity is five years.

(a) Kookmin Bank

ΔEVE is calculated by applying six interest rate shock and stress scenarios, and ΔNII is calculated by applying parallel shock up and parallel shock down scenarios. Results as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024				December 31, 2023
	changes in<br>the<br>economic<br>value of<br>equity<br>capital<br>Δ EVE		Changes in<br>net interest<br>income<br>Δ NII		changes in<br>the<br>economic<br>value of<br>equity<br>capital<br>Δ EVE		Changes in<br>net interest<br>income<br>Δ NII
Scenario 1 (Parallel shock up)	~~W~~	830,102		205,111	~~W~~	1,211,285		494,957
Scenario 2 (Parallel shock down)		—		—		—		—
Scenario 3 (Short rates down, long rates up)		398,065				338,439
Scenario 4 (Short rates up, long rates down)		447,275				620,553
Scenario 5 (Short rates shock up)		540,388				901,087
Scenario 6 (Short rates shock down)		132,113				90,869
Maximum out of six scenarios		830,102		205,111		1,211,285		494,957
Basic capital		35,059,009				33,478,665

(b) Non-bank subsidiaries

ΔEVE is maximum out of six interest rate shock and stress scenarios, and ΔNII is maximum of parallel shock up and parallel shock down scenarios. Results as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024				December 31, 2023
	Δ EVE		Δ NII		Δ EVE		Δ NII
KB Securities Co., Ltd.	~~W~~	88,676	~~W~~	387,027	~~W~~	38,694	~~W~~	419,121
KB Kookmin Card Co., Ltd.		147,683		216,520		42,562		221,049
KB Capital Co., Ltd.		172,611		64,840		206,305	~~W~~	40,167
KB Savings Bank Co., Ltd.		15,125		568		14,855		156

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.5 Financial assets and liabilities denominated in foreign currencies

Details of financial instruments denominated in foreign currencies and translated into Korean won as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	USD		JPY		EUR		GBP		CNY		Others		Total
Financial assets
Cash and due from financial institutions	~~W~~	9,171,037	~~W~~	739,998	~~W~~	328,861	~~W~~	61,561	~~W~~	566,160	~~W~~	1,308,772	~~W~~	12,176,389
Financial assets at fair value through profit or loss		8,481,069		3,104		945,556		152,459		404		447,628		10,030,220
Derivatives held for trading		288,228		8,111		10,297		616		13,604		3,450		324,306
Derivatives held for hedging		457,414		—		—		2		—		102		457,518
Loans measured at amortized cost		31,598,425		877,024		3,474,346		1,069,013		2,114,302		8,274,576		47,407,686
Financial assets at fair value through other comprehensive income		7,789,037		—		278,806		50,415		549,307		1,570,697		10,238,262
Financial assets at amortized cost		3,544,607		—		44,358		227,140		200,747		1,806,530		5,823,382
Other financial assets		3,621,636		38,182		97,946		44,483		57,331		310,716		4,170,294

	~~W~~	64,951,453	~~W~~	1,666,419	~~W~~	5,180,170	~~W~~	1,605,689	~~W~~	3,501,855	~~W~~	13,722,471	~~W~~	90,628,057

Financial liabilities
Financial liabilities at fair value through profit or loss	~~W~~	1,024,957	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	21,841	~~W~~	1,046,798
Derivatives held for trading		724,036		48,351		76,968		214		3,002		8,932		861,503
Derivatives held for hedging		161,114		—		2,264		1,144		—		11,119		175,641
Deposits		30,041,679		1,658,775		1,645,279		1,058,101		2,519,261		5,036,555		41,959,650
Borrowings		16,231,860		452,189		1,492,914		229,757		372,293		3,495,867		22,274,880
Debentures		9,785,607		—		3,902,818		—		—		656,664		14,345,089
Other financial liabilities		4,567,800		129,853		115,012		26,017		88,768		113,785		5,041,235

	~~W~~	62,537,053	~~W~~	2,289,168	~~W~~	7,235,255	~~W~~	1,315,233	~~W~~	2,983,324	~~W~~	9,344,763	~~W~~	85,704,796

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.4.5 Financial assets and liabilities denominated in foreign currencies (cont’d)

(In millions of Korean won)	December 31, 2023
	USD		JPY		EUR		GBP		CNY		Others		Total
Financial assets
Cash and due from financial institutions	~~W~~	6,651,597	~~W~~	579,744	~~W~~	363,520	~~W~~	52,992	~~W~~	408,390	~~W~~	1,644,720	~~W~~	9,700,963
Financial assets at fair value through profit or loss		7,594,682		2,320		699,951		119,801		1,799		348,919		8,767,472
Derivatives held for trading		399,244		374		22,395		4,012		1,173		52,026		479,224
Derivatives held for hedging		166,801		—		225		4		—		4,313		171,343
Loans measured at amortized cost		32,119,823		785,006		2,866,108		979,163		1,648,885		7,093,058		45,492,043
Financial assets at fair value through other comprehensive income		6,076,271		—		288,852		4,591		654,436		1,063,371		8,087,521
Financial assets at amortized cost		2,730,263		—		41,406		199,589		32,579		1,850,922		4,854,759
Other financial assets		3,395,714		100,822		85,263		36,929		515,278		630,366		4,764,372

	~~W~~	59,134,395	~~W~~	1,468,266	~~W~~	4,367,720	~~W~~	1,397,081	~~W~~	3,262,540	~~W~~	12,687,695	~~W~~	82,317,697

Financial liabilities
Financial liabilities at fair value through profit or loss	~~W~~	1,123,670	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	1,123,670
Derivatives held for trading		735,627		4,566		45,359		108		11		206,546		992,217
Derivatives held for hedging		154,120		—		1,246		252		—		2,314		157,932
Deposits		25,777,256		1,763,971		1,822,443		761,371		1,787,865		4,200,321		36,113,227
Borrowings		15,895,866		743,356		944,944		314,177		506,248		2,726,591		21,131,182
Debentures		8,412,413		—		2,959,534		—		—		1,008,961		12,380,908
Other financial liabilities		4,773,601		91,519		840,629		8,995		545,722		119,055		6,379,521

	~~W~~	56,872,553	~~W~~	2,603,412	~~W~~	6,614,155	~~W~~	1,084,903	~~W~~	2,839,846	~~W~~	8,263,788	~~W~~	78,278,657

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.5 Operational Risk

4.5.1 Concept

Operational risk of the Group refers to the risk of loss that may occur due to improper or incorrect internal procedures, personnel, systems or external events. Operational risk management plays a role in enhancing the stability and soundness of financial institutions by managing the appropriate level of capital and supplementing the internal control system.

4.5.2 Risk management

The purpose of operational risk management is not only to comply with supervisory and regulatory requirements, but also to spread risk management culture, strengthen internal control, improve processes, and provide timely feedback to management and all employees. The Parent Company manages the Group’s overall operational risk, and each subsidiary establishes and implements operational risk management policies according to its own risk level and implements and operates related systems. The Group Risk Management Committee establishes and allocates risk capital of operational risk for each subsidiary, and subsidiaries manage operational risks at an appropriate level within the allocated risk capital.

4.6 Capital Management

The Group complies with the capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements (“BIS”) in June 2011 and was implemented in Korea in December 2013. According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 9.0%, Tier 1 Capital ratio of 10.5%, and Total Capital ratio of 12.5%) as of December 31, 2024.

The Group’s capital is classified into three categories in accordance with the Detailed Regulations on Supervision of Financial Holding Companies as follows:

•	Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Group and is the<br>last to be compensated in liquidation of the Group and not repaid except for liquidation. It includes capital, capital surplus, retained earnings, non-controlling interests of the consolidated subsidiaries,<br>accumulated other comprehensive income, and other capital surplus, etc.
•	Additional Tier 1 Capital: Additional Tier 1 Capital includes capital, capital surplus, etc. related to the<br>issuance of capital securities of a permanent nature that meets the conditional capital securities requirements.
:---	:---
•	Tier 2 Capital: Tier 2 Capital means capital that can compensate for losses of the Group upon liquidation,<br>including (a) the amount of subordinated bonds with maturity of not less than 5 years that meet the conditional capital securities requirements, and (b) the allowances for credit losses accumulated on the loans which are classified as<br>normal or precautionary in accordance with Regulations on Supervision of Financial Holding Companies, and others.
:---	:---

The risk-weighted assets are the magnitude of the amount of risk inherent in the total asset held by the Group. The Group calculates risk-weighted assets by each risk (credit risk, market risk, and operational risk) based on the Detailed Regulations on Supervision of Financial Holding Companies and uses them to calculate capital adequacy ratio.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

4.6 Capital Management (cont’d)

The Group evaluates and manages capital adequacy through separate internal policies. The evaluation of capital adequacy compares the size of available capital (the actual amount of available capital) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Group under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis.

Internal capital refers to the capital required to prevent the insolvency from future unexpected losses. The Group operates a system to measure, allocate, and manage internal capital to major subsidiaries by risk type.

The Risk Management Committee of the Group determines the risk appetite of the Group, allocates internal capital by risk type and major subsidiaries, and major subsidiaries operate capital efficiently within the range of the allocated internal capital. The Risk Management Department of the Group monitors internal capital limit management and reports it to management and the Risk Management Committee. If the limit of internal capital is expected to be exceeded due to new businesses or business expansion, the Group’s capital adequacy management is carried out through review and approval by the Risk Management Committee in advance.

Details of the Group’s capital adequacy ratio in accordance with Basel III requirements as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Total Capital:		~~W~~	56,849,484	~~W~~	53,743,658
Tier 1 Capital			52,477,447		49,390,274
Common Equity Tier 1 Capital			46,794,302		43,663,753
Additional Tier 1 Capital			5,683,146		5,726,521
Tier 2 Capital			4,372,037		4,353,384
Risk-Weighted Assets: ^1^			345,980,580		321,318,905
Total Capital ratio (%):			16.43		16.73
Tier 1 Capital ratio (%)			15.17		15.37
Common Equity Tier 1 Capital ratio (%)			13.53		13.59
^1^	The Group is currently reviewing detailed plans to reflect the completion guarantee management-type land trust<br>business agreement with KB Real Estate Trust Co., Ltd. in risk-weighted assets and provisions, and it has not been reflected in the financial statements as of December 31, 2024.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

5. Segment Information

5.1 Overall Segment Information and Business Segments

The Group classifies reporting segments based on the nature of the products and services provided, the type of customer, and the Group’s management organization.

Banking business	Corporate banking	Loans, deposit products, and other related financial services to large, small and medium-sized<br>enterprises and SOHOs
	Retail banking	Loans, deposit products, and other related financial services to individuals and households
	Other banking services	Trading activities in securities and derivatives, funding, and other supporting activities
Securities business		Investment banking, brokerage services, and other supporting activities
Non-life insurance business		Non-life insurance and other supporting activities
Credit card business		Credit sale, cash advance, card loan, and other supporting activities
Life insurance business		Life insurance and other supporting activities

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

5.1 Overall Segment Information and Business Segments (cont’d)

Financial information by business segment as of and for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	2024
	Banking business												Securities			Non-life<br>insurance			Credit card			Life<br>insurance			Others			Consolidation<br>adjustments			Total
	Corporate<br>banking			Retail banking			Other banking<br>services			Sub-total
Net operating revenues(expenses) from external customers	~~W~~	5,281,537		~~W~~	4,165,446		~~W~~	637,177		~~W~~	10,084,160		~~W~~	1,772,379		~~W~~	1,447,658		~~W~~	2,107,801		~~W~~	366,433		~~W~~	1,249,740		~~W~~	—		~~W~~	17,028,171
Intersegment net operating revenues(expenses)		91,339			—			537,771			629,110			48,236			(172,748	)		(59,531	)		(1,236	)		296,117			(739,948	)		—

	~~W~~	5,372,876		~~W~~	4,165,446		~~W~~	1,174,948		~~W~~	10,713,270		~~W~~	1,820,615		~~W~~	1,274,910		~~W~~	2,048,270		~~W~~	365,197		~~W~~	1,545,857		~~W~~	(739,948	)	~~W~~	17,028,171

Net interest income(expenses)	~~W~~	5,765,967		~~W~~	3,319,728		~~W~~	1,138,177		~~W~~	10,223,872		~~W~~	604,220		~~W~~	(27,286	)	~~W~~	1,661,002		~~W~~	(137,380	)	~~W~~	687,978		~~W~~	(185,692	)	~~W~~	12,826,714
Interest income		12,100,679			7,760,970			3,349,423			23,211,072			1,783,459			899,571			2,464,356			645,953			1,586,364			(99,390	)		30,491,385
Interest expense		(6,334,712	)		(4,441,242	)		(2,211,246	)		(12,987,200	)		(1,179,239	)		(926,857	)		(803,354	)		(783,333	)		(898,386	)		(86,302	)		(17,664,671	)
Net fee and commission income(expenses)		410,424			241,799			460,655			1,112,878			788,521			(35,521	)		770,218			8,295			1,248,859			(43,623	)		3,849,627
Fee and commission income		600,466			390,775			552,868			1,544,109			1,012,768			10,271			1,817,271			16,340			1,414,179			(333,095	)		5,481,843
Fee and commission expense		(190,042	)		(148,976	)		(92,213	)		(431,231	)		(224,247	)		(45,792	)		(1,047,053	)		(8,045	)		(165,320	)		289,472			(1,632,216	)
Net insurance income(expenses)		—			—			—			—			—			1,091,885			8,133			480,066			—			69,677			1,649,761
Insurance income		—			—			—			—			—			10,468,227			17,233			1,009,157			—			(38,426	)		11,456,191
Insurance expense		—			—			—			—			—			(9,376,342	)		(9,100	)		(529,091	)		—			108,103			(9,806,430	)
Net gains(losses) on financial instruments at fair value through profit or loss		23,652			—			744,225			767,877			267,257			344,848			11,847			283,572			(13,103	)		(650,217	)		1,012,081
Net other insurance finance expense		—			—			—			—			—			(55,895	)		—			(381,106	)		—			—			(437,001	)
Net other operating income(expenses)		(827,167	)		603,919			(1,168,109	)		(1,391,357	)		160,617			(43,121	)		(402,930	)		111,750			(377,877	)		69,907			(1,873,011	)

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

5.1 Overall Segment Information and Business Segments (cont’d)

(In millions of Korean won)
	2024
	Banking business												Securities			Non-life<br>insurance			Credit card			Life<br>insurance			Others			Consolidation<br>adjustments			Total
	Corporate<br>banking			Retail banking			Other banking<br>services			Sub-total
General and administrative expenses	~~W~~	(2,004,769	)	~~W~~	(1,984,805	)	~~W~~	(644,744	)	~~W~~	(4,634,318	)	~~W~~	(980,340	)	~~W~~	(140,270	)	~~W~~	(641,283	)	~~W~~	(147,517	)	~~W~~	(522,641	)	~~W~~	127,745		~~W~~	(6,938,624	)
Operating income(expenses) before provision for credit losses		3,368,107			2,180,641			530,204			6,078,952			840,275			1,134,640			1,406,987			217,680			1,023,216			(612,203	)		10,089,547
Reversal(provision) of credit losses		(482,326	)		(196,996	)		(765	)		(680,087	)		(66,978	)		1,945			(892,871	)		712			(414,498	)		7,491			(2,044,286	)
Net operating income(expenses)		2,885,781			1,983,645			529,439			5,398,865			773,297			1,136,585			514,116			218,392			608,718			(604,712	)		8,045,261
Share of profit(loss) of associates and joint ventures		—			—			7,402			7,402			(35,156	)		2,272			1,238			(259	)		(282	)		7,901			(16,884	)
Net other non-operating income(expenses)		(61,903	)		—			(899,066	)		(960,969	)		3,059			(12,950	)		9,755			6,694			(46,838	)		(41,881	)		(1,043,130	)
Segment profit(loss) before income tax expense		2,823,878			1,983,645			(362,225	)		4,445,298			741,200			1,125,907			525,109			224,827			561,598			(638,692	)		6,985,247
Income tax benefit(expense)		(927,629	)		(523,682	)		157,415			(1,293,896	)		(156,310	)		(286,340	)		(133,621	)		(60,555	)		(88,651	)		62,732			(1,956,641	)

Profit(loss) for the year	~~W~~	1,896,249		~~W~~	1,459,963		~~W~~	(204,810	)	~~W~~	3,151,402		~~W~~	584,890		~~W~~	839,567		~~W~~	391,488		~~W~~	164,272		~~W~~	472,947		~~W~~	(575,960	)	~~W~~	5,028,606

Profit(loss) attributable to shareholders of the Parent Company	~~W~~	1,877,266		~~W~~	1,459,963		~~W~~	(85,470	)	~~W~~	3,251,759		~~W~~	585,682		~~W~~	839,494		~~W~~	402,715		~~W~~	164,272		~~W~~	470,606		~~W~~	(636,307	)	~~W~~	5,078,221
Profit(loss) attributable to non-controlling<br>interests		18,983			—			(119,340	)		(100,357	)		(792	)		73			(11,227	)		—			2,341			60,347			(49,615	)
Total assets *		239,124,552			176,075,559			147,687,069			562,887,180			63,384,388			40,776,375			30,541,628			34,047,554			64,172,457			(37,964,050	)		757,845,532
Total liabilities *		222,291,921			210,839,098			91,728,841			524,859,860			56,498,405			34,982,352			25,236,826			30,984,398			27,995,907			(2,527,397	)		698,030,351

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

5.1 Overall Segment Information and Business Segments (cont’d)

(In millions of Korean won)
	2024
	Banking business												Securities			Non-life<br>insurance			Credit card			Life<br>insurance			Others			Consolidation<br>adjustments			Total
	Corporate<br>banking			Retail banking			Other banking<br>services			Sub-total
Net operating revenues(expenses) from external customers	~~W~~	5,640,663		~~W~~	4,443,943		~~W~~	30,910		~~W~~	10,115,516		~~W~~	1,667,041		~~W~~	1,120,156		~~W~~	2,026,032		~~W~~	191,097		~~W~~	1,058,994		~~W~~	—		~~W~~	16,178,836
Intersegment net operating revenues(expenses)		116,967			—			225,401			342,368			52,940			(17,993	)		(147,290	)		16,209			348,113			(594,347	)		—

	~~W~~	5,757,630		~~W~~	4,443,943		~~W~~	256,311		~~W~~	10,457,884		~~W~~	1,719,981		~~W~~	1,102,163		~~W~~	1,878,742		~~W~~	207,306		~~W~~	1,407,107		~~W~~	(594,347	)	~~W~~	16,178,836

Net interest income(expenses)	~~W~~	5,645,899		~~W~~	3,397,242		~~W~~	826,926		~~W~~	9,870,067		~~W~~	614,140		~~W~~	(219,734	)	~~W~~	1,639,486		~~W~~	(206,562	)	~~W~~	659,052		~~W~~	(175,589	)	~~W~~	12,180,860
Interest income		11,687,624			7,723,196			2,936,303			22,347,123			1,763,009			808,296			2,343,014			582,463			1,407,563			(109,444	)		29,142,024
Interest expense		(6,041,725	)		(4,325,954	)		(2,109,377	)		(12,477,056	)		(1,148,869	)		(1,028,030	)		(703,528	)		(789,025	)		(748,511	)		(66,145	)		(16,961,164	)
Net fee and commission income(expenses)		427,004			252,118			489,161			1,168,283			742,613			(34,468	)		613,721			(7,636	)		1,213,154			(22,143	)		3,673,524
Fee and commission income		612,643			403,042			587,135			1,602,820			981,954			20,658			1,740,517			5,478			1,364,830			(348,183	)		5,368,074
Fee and commission expense		(185,639	)		(150,924	)		(97,974	)		(434,537	)		(239,341	)		(55,126	)		(1,126,796	)		(13,114	)		(151,676	)		326,040			(1,694,550	)
Net Insurance income(expenses)		—			—			—			—			—			960,395			9,539			446,745			—			30,173			1,446,852
Insurance income		—			—			—			—			—			10,088,869			19,000			933,665			—			(36,063	)		11,005,471
Insurance expense		—			—			—			—			—			(9,128,474	)		(9,461	)		(486,920	)		—			66,236			(9,558,619	)
Net gains on financial instruments at fair value through profit or loss		(6,449	)		—			766,434			759,985			356,837			454,729			6,915			658,530			283,591			(357,522	)		2,163,065
Net other insurance finance expense		—			—			—			—			—			(25,841	)		—			(546,635	)		—			—			(572,476	)
Net other operating income(expenses)		(308,824	)		794,583			(1,826,210	)		(1,340,451	)		6,391			(32,918	)		(390,919	)		(137,136	)		(748,690	)		(69,266	)		(2,712,989	)

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

5.1 Overall Segment Information and Business Segments (cont’d)

(In millions of Korean won)
	2024
	Banking business												Securities			Non-life<br>insurance			Credit card			Life<br>insurance			Others			Consolidation<br>adjustments			Total
	Corporate<br>banking			Retail banking			Other banking<br>services			Sub-total
General and administrative expenses	~~W~~	(1,959,016	)	~~W~~	(1,952,434	)	~~W~~	(610,316	)	~~W~~	(4,521,766	)	~~W~~	(903,329	)	~~W~~	(142,165	)	~~W~~	(624,628	)	~~W~~	(99,663	)	~~W~~	(483,366	)	~~W~~	127,511		~~W~~	(6,647,406	)
Operating income(expenses) before provision for credit losses		3,798,614			2,491,509			(354,005	)		5,936,118			816,652			959,998			1,254,114			107,643			923,741			(466,836	)		9,531,430
Reversal(provision) of credit losses		(1,563,255	)		(92,464	)		47,591			(1,608,128	)		(144,016	)		(13,988	)		(826,922	)		(2,190	)		(554,176	)		3,011			(3,146,409	)
Net operating income(expenses)		2,235,359			2,399,045			(306,414	)		4,327,990			672,636			946,010			427,192			105,453			369,565			(463,825	)		6,385,021
Share of profit (loss) of associates and joint ventures		—			—			117			117			2,898			2,440			1,049			(135	)		11,386			15,355			33,110
Net other non-operating income(expenses)		(14,754	)		—			(83,576	)		(98,330	)		(190,199	)		15,235			44,310			4,700			(11,162	)		(62,534	)		(297,980	)
Segment profit (loss) before income tax expense		2,220,605			2,399,045			(389,873	)		4,229,777			485,335			963,685			472,551			110,018			369,789			(511,004	)		6,120,151
Income tax benefit(expense)		(633,917	)		(633,348	)		187,440			(1,079,825	)		(102,705	)		(250,125	)		(121,333	)		(25,262	)		(64,432	)		49,865			(1,593,817	)

Profit (loss) for the year	~~W~~	1,586,688		~~W~~	1,765,697		~~W~~	(202,433	)	~~W~~	3,149,952		~~W~~	382,630		~~W~~	713,560		~~W~~	351,218		~~W~~	84,756		~~W~~	305,357		~~W~~	(461,139	)	~~W~~	4,526,334

Profit(loss) attributable to shareholders of the Parent Company	~~W~~	1,612,409		~~W~~	1,765,697		~~W~~	(116,607	)	~~W~~	3,261,499		~~W~~	389,618		~~W~~	713,281		~~W~~	351,133		~~W~~	84,756		~~W~~	303,578		~~W~~	(509,030	)	~~W~~	4,594,835
Profit(loss) attributable to non-controlling<br>interests		(25,721	)		—			(85,826	)		(111,547	)		(6,988	)		279			85			—			1,779			47,891			(68,501	)
Total assets *		221,851,975			165,821,667			142,339,211			530,012,853			61,266,989			37,716,952			29,365,575			31,953,218			63,413,640			(38,003,811	)		715,725,416
Total liabilities *		201,871,592			203,560,029			88,032,505			493,464,126			54,967,833			31,470,771			24,545,751			28,050,931			25,562,612			(972,798	)		657,089,226
*	Assets and liabilities of the reporting segments are amounts before intersegment transactions.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

5.2 Services and Geographical Segments

5.2.1 Services information

Net operating revenues from external customers by service for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Banking service	~~W~~	10,084,160	~~W~~	10,115,516
Securities service		1,772,379		1,667,041
Non-life insurance service		1,447,658		1,120,156
Credit card service		2,107,801		2,026,032
Life insurance service		366,433		191,097
Others		1,249,740		1,058,994

	~~W~~	17,028,171	~~W~~	16,178,836

5.2.2 Geographical information

Geographical net operating revenues from external customers for the years ended December 31, 2024 and 2023, and major non-current assets as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Net operating revenues<br>from external customers				Major non-current assets
	2024		2023		December 31,<br>2024		December 31,<br>2023
Domestic	~~W~~	15,530,844	~~W~~	14,763,248	~~W~~	9,915,068	~~W~~	9,851,765
United States		128,325		75,944		35,576		55,125
New Zealand		12,580		12,611		829		1,051
China		167,621		177,175		22,271		21,138
Cambodia		595,562		572,858		101,879		53,322
United Kingdom		71,545		52,372		9,023		4,616
Indonesia		320,741		327,599		430,632		418,115
Others		200,953		197,029		35,746		32,405
Consolidation adjustments		—		—		564,851		568,804

	~~W~~	17,028,171	~~W~~	16,178,836	~~W~~	11,115,875	~~W~~	11,006,341

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6. Financial Assets and Financial Liabilities

6.1 Classification and Fair Value of Financial Instruments

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Carrying amount		Fair value
Financial assets
Cash and due from financial institutions	~~W~~	29,869,111	~~W~~	29,869,335
Financial assets at fair value through profit or loss:		79,450,093		79,450,093
Due from financial institutions		59,838		59,838
Debt securities		73,768,636		73,768,636
Equity securities		4,275,337		4,275,337
Loans		1,187,763		1,187,763
Others		158,519		158,519
Derivatives held for trading		10,954,870		10,954,870
Derivatives held for hedging		775,897		775,897
Loans measured at amortized cost		472,071,840		473,234,273
Securities measured at amortized cost		37,113,552		36,572,012
Financial assets at fair value through other comprehensive income:		93,895,912		93,895,912
Debt securities		88,735,996		88,735,996
Equity securities		3,713,288		3,713,288
Loans		1,446,628		1,446,628
Other financial assets		14,404,227		14,404,227

	~~W~~	738,535,502	~~W~~	739,156,619

Financial liabilities
Financial liabilities at fair value through profit or loss	~~W~~	2,717,732	~~W~~	2,717,732
Financial liabilities designated at fair value through profit or loss		8,002,499		8,002,499
Derivatives held for trading		11,409,695		11,409,695
Derivatives held for hedging		373,799		373,799
Deposits		435,687,897		435,991,820
Borrowings		68,077,012		68,046,196
Debentures		76,171,257		76,583,392
Other financial liabilities		33,594,883		33,594,883

	~~W~~	636,034,774	~~W~~	636,720,016

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Carrying amount		Fair value
Financial assets
Cash and due from financial institutions	~~W~~	29,836,311	~~W~~	29,833,886
Financial assets at fair value through profit or loss:		77,038,267		77,038,267
Due from financial institutions		79,811		79,811
Debt securities		72,658,432		72,658,432
Equity securities		4,022,555		4,022,555
Loans		183,726		183,726
Others		93,743		93,743
Derivatives held for trading		5,777,682		5,777,682
Derivatives held for hedging		379,946		379,946
Loans measured at amortized cost		444,805,287		445,144,428
Securities measured at amortized cost		39,701,389		38,763,702
Financial assets at fair value through other comprehensive income:		82,498,140		82,498,140
Debt securities		78,926,437		78,926,437
Equity securities		2,770,653		2,770,653
Loans		801,050		801,050
Other financial assets		16,544,513		16,544,513

	~~W~~	696,581,535	~~W~~	695,980,564

Financial liabilities
Financial liabilities at fair value through profit or loss	~~W~~	2,953,472	~~W~~	2,953,472
Financial liabilities designated at fair value through profit or loss		7,966,963		7,966,963
Derivatives held for trading		5,966,512		5,966,512
Derivatives held for hedging		244,127		244,127
Deposits		406,512,434		406,711,081
Borrowings		69,583,561		69,390,346
Debentures		69,176,668		68,975,750
Other financial liabilities		37,416,916		37,416,916

	~~W~~	599,820,653	~~W~~	599,625,167

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Group discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is a quoted price in an active market.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2023, are as follows: (cont’d)

Methods of determining fair value of financial instruments are as follows:

Cash and due from financial institutions		Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable<br>on demand. Fair value of general deposit is measured using Discounted Cash Flow (“DCF”) Model.
Securities		Fair value of securities and others that are traded in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The<br>institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Free Cash Flow to Equity Model, Comparable Company Analysis, Dividend Discount Model, Risk<br>Adjusted Discount Rate Method, and Net Asset Value Method.
Loans		Fair value of loans is determined using DCF Model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Derivatives and financial instruments at fair value through profit or loss		Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Group uses internally developed valuation models that<br>are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued<br>using appropriate models developed from generally accepted market valuation models including Finite Difference Method (“FDM”), MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Closed Form, and Tree Model or valuation results<br>from independent external professional valuation institutions.
Deposits		Carrying amount of demand deposits is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of time deposits is determined using DCF Model discounting the expected<br>cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Borrowings		Carrying amount of overdrafts in foreign currency is a reasonable approximation of fair value because they do not have a fixed maturity and are payable on demand. Fair value of other borrowings is determined using DCF<br>Model.
Debentures		Fair value is determined using valuation results of external professional valuation institutions, which are calculated using market inputs.
Other financial assets and other financial liabilities		Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not<br>defined.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2 Fair value hierarchy

The Group believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the consolidated statement of financial position is appropriate. However, the fair value of the financial instruments recognized in the consolidated statement of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Group classifies and discloses fair value of the financial instruments into the three fair value levels as follows:

Level 1:	The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities<br>that the entity can access at the measurement date.
Level 2:	The fair values are based on inputs other than quoted prices included within Level 1 that are observable<br>for the asset or liability, either directly or indirectly.
:---	:---
Level 3:	The fair values are based on unobservable inputs for the asset or liability.
:---	:---

The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement would be categorized within Level 3 of the fair value hierarchy.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position

Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Fair value hierarchy
	Level 1		Level 2		Level 3 *		Total
Financial assets
Financial assets at fair value through profit or loss:	~~W~~	25,554,893	~~W~~	33,768,117	~~W~~	20,127,083	~~W~~	79,450,093
Due from financial institutions		—		—		59,838		59,838
Debt securities		22,775,948		33,630,189		17,362,499		73,768,636
Equity securities		2,620,426		137,928		1,516,983		4,275,337
Loans		—		—		1,187,763		1,187,763
Others		158,519		—		—		158,519
Derivatives held for trading		20,638		10,682,718		251,515		10,954,870
Derivatives held for hedging		—		775,897		—		775,897
Financial assets at fair value through other comprehensive income:		43,858,598		48,537,327		1,499,987		93,895,912
Debt securities		43,319,466		45,416,530		—		88,735,996
Equity securities		539,132		1,674,169		1,499,987		3,713,288
Loans		—		1,446,628		—		1,446,628

	~~W~~	69,434,129	~~W~~	93,764,059	~~W~~	21,878,585	~~W~~	185,076,772

Financial liabilities
Financial liabilities at fair value through profit or loss	~~W~~	2,717,732	~~W~~	—	~~W~~	—	~~W~~	2,717,732
Financial liabilities designated at fair value through profit or loss		300,489		1,529,492		6,172,518		8,002,499
Derivatives held for trading		353,074		10,458,585		598,036		11,409,695
Derivatives held for hedging		—		373,799		—		373,799

	~~W~~	3,371,295	~~W~~	12,361,876	~~W~~	6,770,554	~~W~~	22,503,725

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)

(In millions of Korean won)	December 31, 2023
	Fair value hierarchy						Total
	Level 1		Level 2		Level 3
Financial assets
Financial assets at fair value through profit or loss:	~~W~~	20,695,760	~~W~~	38,118,478	~~W~~	18,224,029	~~W~~	77,038,267
Due from financial institutions		—		26,020		53,791		79,811
Debt securities		18,541,335		37,663,855		16,453,242		72,658,432
Equity securities		2,060,682		428,367		1,533,506		4,022,555
Loans		—		236		183,490		183,726
Others		93,743		—		—		93,743
Derivatives held for trading		58,948		5,624,691		94,043		5,777,682
Derivatives held for hedging		—		379,946		—		379,946
Financial assets at fair value through other comprehensive income:		38,630,447		42,416,785		1,450,908		82,498,140
Debt securities		37,921,922		41,004,515		—		78,926,437
Equity securities		708,525		611,220		1,450,908		2,770,653
Loans		—		801,050		—		801,050

	~~W~~	59,385,155	~~W~~	86,539,900	~~W~~	19,768,980	~~W~~	165,694,035

Financial liabilities
Financial liabilities at fair value through profit or loss	~~W~~	2,953,472	~~W~~	—	~~W~~	—	~~W~~	2,953,472
Financial liabilities designated at fair value through profit or loss		56,686		881,791		7,028,486		7,966,963
Derivatives held for trading		104,866		5,100,869		760,777		5,966,512
Derivatives held for hedging		—		244,127		—		244,127

	~~W~~	3,115,024	~~W~~	6,226,787	~~W~~	7,789,263	~~W~~	17,131,074

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the consolidated statements of financial position as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:	~~W~~	33,768,117
Debt securities		33,630,189	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset<br>Value Method, Binomial Model, and others	Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset,<br>Interest rate, Discount rate, Volatility, Correlation coefficient, and others
Equity securities		137,928	DCF Model	Interest rate, Discount rate, and others
Derivatives held for trading		10,872,214	DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model,<br>Binomial Model, Option Model, and others	Price of underlying asset, Underlying asset index, Interest rate, Dividend yield, Volatility,<br>Foreign exchange rate, Discount rate, and others
Derivatives held for hedging		775,897	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange<br>rate, CRS interest rate, and others
Financial assets at fair value through other comprehensive income:		48,537,327
Debt securities		45,416,530	DCF Model, Option Model	Underlying asset index, Discount rate, and others
Equity securities		1,674,169	DCF Model	Discount rate
Loans		1,446,628	DCF Model	Discount rate

	~~W~~	93,953,555

Financial liabilities
Financial liabilities designated at fair value through profit or loss	~~W~~	1,529,492	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial<br>Model, Net Asset Value Method	Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate, Foreign<br>exchange rate
Derivatives held for trading		10,527,569	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial<br>Model, and others	Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate,<br>Volatility, and others
Derivatives held for hedging		373,799	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange<br>rate, Risk free interest rate, and others

	~~W~~	12,430,860

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the consolidated statements of financial position (cont’d)

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Inputs
Financial assets
Financial assets at fair value through profit or loss:	~~W~~	38,118,478
Due from financial institutions		26,020	DCF Model, Hull-white Model	Projected cash flow, Discount rate, Volatility, Correlation coefficient
Debt securities		37,663,855	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset<br>Value Method, Binomial Model, and others	Projected cash flow, Fair value of underlying asset, Dividend yield, Price of underlying asset,<br>Interest rate, Discount rate, Volatility, Correlation coefficient, and others
Equity securities		428,367	DCF Model	Interest rate, Discount rate, and others
Loans		236	DCF Model	Interest rate, Discount rate, and others
Derivatives held for trading		5,624,691	DCF Model, Closed Form, FDM, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model,<br>Binomial Model, Option Model, and others	Price of underlying asset, Underlying asset index, Interest rate, Dividend yield, Volatility,<br>Foreign exchange rate, Discount rate, and others
Derivatives held for hedging		379,946	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange<br>rate, CRS interest rate, and others
Financial assets at fair value through other comprehensive income:		42,416,785
Debt securities		41,004,515	DCF Model, Option Model	Underlying asset index, Discount rate, and others
Equity securities		611,220	DCF Model	Discount rate
Loans		801,050	DCF Model	Discount rate

	~~W~~	86,539,900

Financial liabilities
Financial liabilities designated at fair value through profit or loss	~~W~~	881,791	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial<br>Model, Net Asset Value Method	Price of underlying asset, Interest rate, Dividend yield, Volatility, Discount rate, Foreign<br>exchange rate
Derivatives held for trading		5,100,869	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Binomial<br>Model, and others	Interest rate, Price of underlying asset, Foreign exchange rate, Credit spread, Discount rate,<br>Volatility, and others
Derivatives held for hedging		244,127	DCF Model, Closed Form, FDM	Projected cash flow, Discount rate, Forward foreign exchange rate, Volatility, Foreign exchange<br>rate, Risk free interest rate, and others

	~~W~~	6,226,787

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Fair value hierarchy						Total
		Level 1		Level 2		Level 3
Financial assets
Cash and due from financial institutions<br>^1^		~~W~~	2,353,334	~~W~~	24,731,260	~~W~~	2,784,741	~~W~~	29,869,335
Loans measured at amortized cost			—		106,823		473,127,450		473,234,273
Securities measured at amortized cost<br>^2^			4,746,587		31,799,265		26,160		36,572,012
Other financial assets ^2^			—		—		14,404,227		14,404,227

		~~W~~	7,099,921	~~W~~	56,637,348	~~W~~	490,342,578	~~W~~	554,079,847

Financial liabilities
Deposits ^1^		~~W~~	—	~~W~~	174,567,804	~~W~~	261,424,016	~~W~~	435,991,820
Borrowings ^3^			—		4,441,612		63,604,584		68,046,196
Debentures			—		67,455,577		9,127,815		76,583,392
Other financial liabilities ^2^			—		—		33,594,883		33,594,883

		~~W~~	—	~~W~~	246,464,993	~~W~~	367,751,298	~~W~~	614,216,291

(In millions of Korean won)		December 31, 2023
		Fair value hierarchy						Total
		Level 1		Level 2		Level 3
Financial assets
Cash and due from financial institutions<br>^1^		~~W~~	2,775,618	~~W~~	24,501,232	~~W~~	2,557,036	~~W~~	29,833,886
Loans measured at amortized cost			—		145,330		444,999,098		445,144,428
Securities measured at amortized cost<br>^2^			4,328,010		34,410,808		24,884		38,763,702
Other financial assets ^2^			—		—		16,544,513		16,544,513

		~~W~~	7,103,628	~~W~~	59,057,370	~~W~~	464,125,531	~~W~~	530,286,529

Financial liabilities
Deposits ^1^		~~W~~	—	~~W~~	167,135,143	~~W~~	239,575,938	~~W~~	406,711,081
Borrowings ^3^			—		5,835,132		63,555,214		69,390,346
Debentures			—		61,678,464		7,297,286		68,975,750
Other financial liabilities ^2^			—		—		37,416,916		37,416,916

		~~W~~	—	~~W~~	234,648,739	~~W~~	347,845,354	~~W~~	582,494,093

^1^	The amounts included in Level 2 are the carrying amounts which are reasonable approximations of fair<br>value.
:---	:---
^2^	The amounts included in Level 3 are the carrying amounts which are reasonable approximations of fair<br>value.
:---	:---
^3^	Borrowings of ~~W~~ 15,155 million and ~~W~~ 38,191 million included in<br>Level 2 are the carrying amounts which are reasonable approximations of fair value as of December 31, 2024 and 2023, respectively.
:---	:---

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

For financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

Valuation techniques and inputs of financial assets and liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Fair value				Valuation<br>techniques				Inputs
Financial assets
Loans measured at amortized cost		~~W~~	106,823				DCF Model				Discount rate
Securities measured at amortized cost			31,799,265				DCF Model,<br><br>MonteCarlo<br>Simulation				Discount<br>rate, Interest<br>rate

		~~W~~	31,906,088

Financial liabilities
Borrowings		~~W~~	4,426,457				DCF Model				Discount rate
Debentures			67,455,577				DCF Model				Discount rate

		~~W~~	71,882,034

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Fair value				Valuation<br>techniques				Inputs
Financial assets
Loans measured at amortized cost		~~W~~	145,330				DCF Model				Discount rate
Securities measured at amortized cost			34,410,808				DCF Model,<br><br>MonteCarlo<br>Simulation				Discount<br>rate, Interest<br>rate

		~~W~~	34,556,138

Financial liabilities
Borrowings		~~W~~	5,796,941				DCF Model				Discount rate
Debentures			61,678,464				DCF Model				Discount rate

		~~W~~	67,475,405

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 3, and whose fair value is disclosed as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Fair value				Valuation<br>techniques			Inputs
Financial assets
Cash and due from financial institutions		~~W~~	2,784,741				DCF Model		Credit spread, Other spread, Interest rate
Loans measured at amortized cost			473,127,450				DCF Model		Credit spread, Other spread, Prepayment rate, Interest rate

		~~W~~	475,912,191

Financial liabilities
Deposits		~~W~~	261,424,016				DCF Model		Other spread, Prepayment rate, Interest rate
Borrowings			63,604,584				DCF Model		Other spread, Interest rate
Debentures			9,127,815				DCF Model		Other spread, Interest rate

		~~W~~	334,156,415

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---
		Fair value				Valuation<br>techniques			Inputs
Financial assets
Cash and due from financial institutions		~~W~~	2,557,036				DCF Model		Credit spread, Other spread, Interest rate
Loans measured at amortized cost			444,999,098				DCF Model		Credit spread, Other spread, Prepayment rate, Interest rate

		~~W~~	447,556,134

Financial liabilities
Deposits		~~W~~	239,575,938				DCF Model		Other spread, Prepayment rate, Interest rate
Borrowings			63,555,214				DCF Model		Other spread, Interest rate
Debentures			7,297,286				DCF Model		Other spread, Interest rate

		~~W~~	310,428,438

6.2 Disclosure of Fair Value Hierarchy Level 3

6.2.1 Valuation policy and process of Level 3 fair value

The Group uses external, independent and qualified valuation service in addition to internal valuation models to determine the fair value of financial instruments at the end of every reporting period.

If the changes in situation and events which cause transfers between the fair value hierarchy level for a financial asset or liability occur, the Group’s policy is to recognize such transfers as having occurred at the beginning of the reporting period.

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Financial assets at fair value through profit<br>or loss								Financial investments					Financial<br>liabilities at<br>fair value<br>through profit<br>or loss			Net<br>derivative<br>financial<br>instruments
	Due from<br>financial<br>institutions<br>measured at fair<br>value through<br>profit or loss		Securities<br>measured at<br>fair value<br>through profit<br>or loss			Loans<br>measured at<br>fair value<br>through<br>profit or<br>loss			Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income			Loans<br>measured at<br>fair value<br>through other<br>comprehensive<br>income		Financial<br>liabilities<br>designated at<br>fair value<br>through profit<br>or loss			Derivatives<br>held for<br>trading
Beginning	~~W~~	53,791	~~W~~	17,986,748		~~W~~	183,490		~~W~~	1,450,908		~~W~~	—	~~W~~	(7,028,486	)	~~W~~	(666,734	)
Total gains or losses:
Profit or loss		6,047		488,988			44,863			—			—		(268,251	)		(256,240	)
Other comprehensive income (loss)		—		2			—			(197,070	)		—		(10,816	)		—
Purchases		—		3,820,317			1,493,924			246,560			—		—			5,042
Sales		—		(3,280,871	)		(534,676	)		(411	)		—		—			(5,362	)
Issues		—		—			—			—			—		(4,200,664	)		(2,960	)
Settlements		—		—			—			—			—		5,335,699			579,732
Transfers into Level 3 *		—		6,142			162			—			—		—			—
Transfers out of Level 3 *		—		(141,844	)		—			—			—		—			—

Ending	~~W~~	59,838	~~W~~	18,879,482		~~W~~	1,187,763		~~W~~	1,499,987		~~W~~	—	~~W~~	(6,172,518	)	~~W~~	(346,522	)

100

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Financial assets at fair value through profit or<br>loss								Financial investments					Financial<br>liabilities at fair<br>value through<br>profit or loss			Net derivative<br>financial<br>instruments
	Due from<br>financial<br>institutions<br>measured at fair<br>value through<br>profit or loss		Securities<br>measured at<br>fair value<br>through profit<br>or loss			Loans<br>measured at fair<br>value through<br>profit or loss			Equity<br>securities<br>measured at<br>fair value<br>through other<br>comprehensive<br>income			Loans<br>measured at fair<br>value through<br>other<br>comprehensive<br>income		Financial<br>liabilities<br>designated at fair<br>value through<br>profit or loss			Derivatives<br>held for trading
Beginning	~~W~~	45,025	~~W~~	16,479,588		~~W~~	149,074		~~W~~	1,458,280		~~W~~	—	~~W~~	(8,231,303	)	~~W~~	(659,816	)
Total gains or losses:
Profit or loss		8,766		347,251			(11,954	)		—			—		(338,726	)		(74,870	)
Other comprehensive income (loss)		—		—			—			(65,983	)		—		(32,370	)		—
Purchases		—		3,448,093			50,435			98,697			—		—			11,646
Sales		—		(2,222,518	)		(4,065	)		(40,086	)		—		—			(6,654	)
Issues		—		—			—			—			—		(4,431,945	)		(6,275	)
Settlements		—		—			—			—			—		6,005,858			69,235
Transfers into Level 3 *		—		13,027			—			—			—		—			—
Transfers out of Level 3 *		—		(78,693	)		—			—			—		—			—

Ending	~~W~~	53,791	~~W~~	17,986,748		~~W~~	183,490		~~W~~	1,450,908		~~W~~	—	~~W~~	(7,028,486	)	~~W~~	(666,734	)

*	Transfers into or out of Level 3 of the fair value hierarchy occurred due to the change in the<br>availability of observable market data.
:---	:---

101

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024							2023
	Net gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss			Other<br>operating<br>income		Net<br>interest<br>income		Net gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss			Other<br>operating<br>income		Net<br>interest<br>income
Total gains (losses) recognized in profit or loss for the period	~~W~~	(364,765	)	~~W~~	380,172	~~W~~	=	~~W~~	(107,729	)	~~W~~	38,196	~~W~~	—
Total gains (losses) recognized in profit or loss from financial instruments held at the end of<br>the reporting period		(45,787	)		322,839		=		267,666			56,810		—

102

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3 Sensitivity analysis of changes in unobservable inputs

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Fair value		Valuation techniques	Unobservable inputs	Range of<br>unobservable<br>inputs (%)	Relationship of<br><br>unobservable inputs to fair<br>value
Financial assets
Financial assets at fair value through profit or loss:
Due from financial institutions	~~W~~	59,838	Hull-white Model	Volatility	46.00 ~ 62.00	The higher the volatility, the higher the fair value fluctuation
Debt securities		17,362,499	DCF Model, Closed Form, FDM, MonteCarlo Simulation, Hull-white Model, Black-Scholes<br>Model, Option Model, Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others	Growth rate	1.00 ~ 3.00	The higher the growth rate, the higher the fair value
				Volatility	29.98 ~ 76.22	The higher the volatility, the higher the fair value fluctuation
				Discount rate	0.00 ~ 15.53	The lower the discount rate, the higher the fair value
				Volatility of Stock price	10.00 ~ 29.90	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient between underlying assets	90	The higher the correlation coefficient, the higher the fair value fluctuation
				Liquidation value	-1.00 ~ 1.00	The higher the liquidation value, the higher the fair value
				Recovery rate	40.00	The higher the recovery rate, the higher the fair value
				Rate of real estate price fluctuation	-1.00 ~ 1.00	The higher the sale price of real estate, the higher the fair value
Equity securities		1,516,983	Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable<br>Company Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others	Growth rate	0.00 ~ 1.00	The higher the growth rate, the higher the fair value
				Discount rate	5.90 ~ 33.90	The lower the discount rate, the higher the fair value
				Volatility	0.47 ~ 34.80	The higher the volatility, the higher the fair value fluctuation
Loans		1,187,763	DCF Model	Discount rate	8.54	The lower the discount rate, the higher the fair value

103

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2024
	Fair value		Valuation techniques	Unobservable inputs	Range of<br>unobservable<br>inputs (%)		Relationship of<br><br>unobservable inputs to fair<br>value
Derivatives held for trading:
Stock and index	~~W~~	30,246	DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Binomial<br>Model, Net Asset Value Method	Volatility of underlying asset		18.85 ~ 65.13	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient		-58.46 ~ 74.20	The higher the correlation coefficient, the higher the fair value fluctuation
Currency, interest rate, and others		31,772	DCF Model, Hull-white Model, MonteCarlo Simulation, Closed	Volatility		0.57 ~ 25.22	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient		-58.46 ~ 100.00	The higher the correlation coefficient, the higher the fair value fluctuation
Financial assets at fair value through other comprehensive income:
Equity securities		1,499,987	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, IMV Model, Income<br>Approach, Net Asset Value Method, Market Approach, Tree Model, Monte Carlo Simulation, and others	Growth rate		0.00 ~ 1.00	The higher the growth rate, the higher the fair value
				Discount rate		6.01 ~ 16.00	The lower the discount rate, the higher the fair value
				Volatility		22.95 ~ 71.00	The higher the volatility, the higher the fair value fluctuation

	~~W~~	21,689,088

104

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2024
	Fair value		Valuation techniques	Unobservable inputs	Range of<br>unobservable<br>inputs (%)		Relationship of<br><br>unobservable inputs to fair<br>value
Financial liabilities
Financial liabilities designated at fair value through profit or loss:
Derivative-linked securities	~~W~~	6,172,518	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset<br>Value Method, and others	Volatility of underlying asset		0.51 ~ 58.87	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient		-58.46 ~ 100.00	The higher the correlation coefficient, the higher the fair value fluctuation
Derivatives held for trading:
Stock and index		90,785	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model, Net Asset<br>Value Method, and others	Volatility of underlying asset		22.50 ~ 58.87	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient		-59.63 ~ 100.00	The higher the correlation coefficient, the higher the fair value fluctuation
Others		438,267	DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form	Discount rate		3.85 ~ 4.00	The lower the discount rate, the higher the fair value
				Volatility of underlying asset		50.86 ~ 57.61	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient between underlying assets		-26.00 ~ 100.00	The higher the correlation coefficient, the higher the fair value fluctuation

	~~W~~	6,701,570

105

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Unobservable inputs	Range of<br>unobservable<br>inputs (%)	Relationship of<br><br>unobservable inputs to fair<br>value
Financial assets
Financial assets at fair value<br>through profit or loss:
Due from financial institutions	~~W~~	53,791	Hull-white Model	Interest rate	3.20	The lower the interest rate, the higher the fair value
Debt securities		16,453,242	DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes Model, Option Model,<br>Binomial Model, Net Asset Value Method, Milestone Method, Income Approach, Market Value Approach, and others	Growth rate	1.00 ~ 3.00	The higher the growth rate, the higher the fair value
				Volatility	14.01 ~ 76.22	The higher the volatility, the higher the fair value fluctuation
				Discount rate	2.48 ~ 16.27	The lower the discount rate, the higher the fair value
				Correlation coefficient between underlying assets	10.00 ~ 32.55	The higher the correlation coefficient, the higher the fair value fluctuation
				Liquidation value	-60.02 ~ 89.73	The higher the liquidation value, the higher the fair value
				Recovery rate	-1.00 ~ 1.00	The higher the recovery rate, the higher the fair value
				Rate of real estate price fluctuation	40.00	The higher the sale price of real estate, the higher the fair value
				Volatility of Stock price	-1.00 ~ 1.00	The higher the volatility, the higher the fair value fluctuation
Equity securities		1,533,506	Income Approach, Market Value Approach, Asset Value Approach, DCF Model, Comparable Company<br>Analysis, Risk Adjusted Discount Rate Method, Dividend Discount Model, Usage of Past Transactions, Binomial Model, and others	Growth rate	0.00 ~ 1.00	The higher the growth rate, the higher the fair value
				Discount rate	2.15 ~ 38.00	The lower the discount rate, the higher the fair value
				Volatility	0.51 ~ 45.50	The higher the volatility, the higher the fair value fluctuation
Loans		183,490	DCF Model	Discount rate	9.87	The lower the discount rate, the higher the fair value

106

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Unobservable inputs	Range of<br>unobservable<br>inputs (%)		Relationship of<br><br>unobservable inputs to fair<br>value
Derivatives held for trading:
Stock and index	~~W~~	72,540	DCF Model, Closed Form, MonteCarlo Simulation, Hull-white Model, Black-Scholes<br>Model, Binomial Model, Net Asset Value Method	Volatility of<br>underlying asset		13.79 ~ 52.45	The higher the volatility, the higher the fair value fluctuation
				Correlation<br>coefficient		-60.02 ~ 77.96	The higher the correlation coefficient, the higher the fair value fluctuation
Currency, interest rate, and others		21,503	DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form	Volatility		9.10 ~ 107.11	The higher the volatility, the higher the fair value fluctuation
				Correlation coefficient		60.17 ~ 78.88	The higher the correlation coefficient, the higher the fair value fluctuation
Financial assets at fair value through other comprehensive income:
Equity securities		1,450,908	DCF Model, Comparable Company Analysis, Risk Adjusted Discount Rate Method, IMV<br>Model, Income Approach, Net Asset Value Method, Market Value Approach, and others	Growth rate		0.00 ~ 2.00	The higher the growth rate, the higher the fair value
				Discount rate		8.83 ~ 19.90	The lower the discount rate, the higher the fair value
				Volatility		20.60 ~ 27.96	The higher the volatility, the higher the fair value fluctuation

	~~W~~	19,768,980

107

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Fair value		Valuation techniques	Unobservable<br>inputs		Range of<br>unobservable<br>inputs (%)		Relationship of<br><br>unobservable inputs to fair<br>value
Financial liabilities
Financial liabilities designated at fair value through profit or loss:
Derivative-linked securities	~~W~~	7,028,486	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model,<br>Net Asset Value Method, and others		Volatility<br>of<br>underlying<br>asset		1.00 ~ 107.11	The higher the volatility, the higher the fair value fluctuation
					Correlation<br>coefficient		-60.02 ~ 89.73	The higher the correlation coefficient, the higher the fair value fluctuation
Derivatives held for trading:
Stock and index		437,662	DCF Model, Closed Form, MonteCarlo Simulation, Black-Scholes Model, Hull-white Model,<br>Net Asset Value Method, and others		Volatility<br>of<br>underlying<br>asset		13.79 ~ 52.45	The higher the volatility, the higher the fair value fluctuation
					Correlation<br>coefficient		-60.02 ~ 77.96	The higher the correlation coefficient, the higher the fair value fluctuation
Others		323,115	DCF Model, Hull-white Model, MonteCarlo Simulation, Closed Form		Discount<br>rate		5.07 ~ 5.19	The lower the discount rate, the higher the fair value
					Volatility<br>of<br>underlying<br>asset		4.49 ~ 107.11	The higher the volatility, the higher the fair value fluctuation
					Correlation<br>coefficient<br>between<br>underlying<br>assets		-60.02 ~ 89.73	The higher the correlation coefficient, the higher the fair value fluctuation

	~~W~~	7,789,263

108

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.2 Sensitivity analysis of changes in unobservable inputs

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in fair value of financial instruments which are affected by unobservable parameters, using a statistical technique. When the fair value is affected by more than one input parameter, the amounts represent the most favorable or most unfavorable outcome. Level 3 financial instruments subject to sensitivity analysis are (a) equity-related derivatives, currency-related derivatives, and interest rate related derivatives whose fair value changes are recognized in profit or loss, (b) financial liabilities designated at fair value through profit or loss, and (c) due from financial institutions, debt securities (including beneficiary certificates), equity securities, and loans whose fair value changes are recognized in profit or loss or other comprehensive income or loss.

Results of the sensitivity analysis of changes in unobservable inputs as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Profit or loss					Other comprehensive<br>income or loss
	Favorable<br>changes		Unfavorable<br>changes			Favorable<br>changes		Unfavorable<br>changes
Financial assets
Financial assets at fair value through profit or loss: ^1^
Due from financial institutions	~~W~~	141	~~W~~	(151	)	~~W~~	—	~~W~~	—
Debt securities ^4^		103,717		(102,842	)		—		—
Equity securities ^3^		35,920		(19,754	)		—		—
Loans ^5^		2,329		(2,119	)		—		—
Derivatives held for trading ^2^		14,878		(16,535	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities ^3^		—		—			57,795		(36,073	)

	~~W~~	156,985	~~W~~	(141,401	)	~~W~~	57,795	~~W~~	(36,073	)

Financial liabilities
Financial liabilities designated at fair value through profit or loss ^1^	~~W~~	16,840	~~W~~	(16,760	)	~~W~~	—	~~W~~	—
Derivatives held for trading ^2^		22,119		(24,506	)		—		—

	~~W~~	38,959	~~W~~	(41,266	)	~~W~~	—	~~W~~	—

109

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.3.2 Sensitivity analysis of changes in unobservable inputs (cont’d)

(In millions of Korean won)		December 31, 2023
		Profit or loss					Other comprehensive<br>income or loss
		Favorable<br>changes		Unfavorable<br>changes			Favorable<br>changes		Unfavorable<br>changes
Financial assets
Financial assets at fair value through profit or loss: ^1^
Due from financial institutions		~~W~~	211	~~W~~	(224	)	~~W~~	—	~~W~~	—
Debt securities ^4^			94,310		(94,063	)		—		—
Equity securities ^3^			25,683		(17,107	)		—		—
Loans ^5^			2,218		(2,010	)		—		—
Derivatives held for trading ^2^			8,150		(8,723	)		—		—
Financial assets at fair value through other comprehensive income:
Equity securities ^3^			—		—			95,829		(56,625	)

		~~W~~	130,572	~~W~~	(122,127	)	~~W~~	95,829	~~W~~	(56,625	)

Financial liabilities
Financial liabilities designated at fair value through profit or loss ^1^		~~W~~	43,114	~~W~~	(42,487	)	~~W~~	—	~~W~~	—
Derivatives held for trading ^2^			17,983		(19,125	)		—		—

		~~W~~	61,097	~~W~~	(61,612	)	~~W~~	—	~~W~~	—

^1^	For financial instruments at fair value through profit or loss, changes in fair value are calculated by<br>shifting principal unobservable input parameters such as discount rate, recovery rate, liquidation value by ±1%p and volatility of underlying asset, growth rate by ±1%p or ±10% and correlation coefficient by ±10%.
:---	:---
^2^	For derivative financial instruments, changes in fair value are calculated by shifting principal unobservable<br>input parameters such as price of underlying asset and volatility by ± 10%.
:---	:---
^3^	For equity securities, changes in fair value are calculated by shifting principal unobservable input parameters<br>such as correlation between discount rate (-1%p~1%p) and growth rate (-1%p~1%p).
:---	:---
^4^	For beneficiary certificates, it is practically impossible to analyze sensitivity of changes in unobservable<br>inputs. However, for beneficiary certificates whose underlying assets are real estates, changes in fair value are calculated by shifting rate of real estate price fluctuation by -1%p~1%p, and for beneficiary certificates whose underlying assets are<br>equity investments, changes in fair value are calculated by shifting principal unobservable input parameters such as liquidation value by -1%p~1%p and discount rate by -1%p~1%p. There is no significant correlation among major unobservable inputs.
:---	:---
^5^	For loans, changes in fair value are calculated by shifting principal unobservable input parameters such as<br>discount rate by -1%p~1%p.
:---	:---

110

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.2.4 Day one gains or losses

When the Group measures the fair value of OTC derivatives using inputs that are not based on observable market data, there could be a difference between the transaction price and the amount determined using that valuation technique. In these circumstances, the fair value of financial instruments is recognized as the transaction price, and the difference is not recognized in profit or loss but deferred and amortized using the straight-line method over the life of the financial instrument. When the fair value of the financial instruments is subsequently determined using observable market inputs, the remaining deferred amount is recognized in profit or loss.

Changes in deferred day one gains or losses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Balance at the beginning of the year	~~W~~	23,430		~~W~~	71,504
New transactions		49,078			85,920
Changes during the year		(60,367	)		(133,994	)

Balance at the end of the year	~~W~~	12,141		~~W~~	23,430

111

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.3 Carrying Amount of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortized cost. Carrying amount of financial assets and liabilities by category as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Financial<br>instruments at<br>fair value<br>through profit<br>or loss				Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income				Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income				Financial<br>instruments at<br>amortized cost				Derivatives<br>held for<br>hedging			Total
Financial assets
Cash and due from financial institutions		~~W~~	—			~~W~~	—			~~W~~	—			~~W~~	29,869,111			~~W~~	—		~~W~~	29,869,111
Financial assets at fair value through profit or loss			79,450,093				—				—				—				—			79,450,093
Derivative financial assets			10,954,870				—				—				—				775,897			11,730,767
Loans measured at amortized cost			—				—				—				472,071,840				—			472,071,840
Financial investments			—				90,182,623				3,713,289				37,113,552				—			131,009,464
Other financial assets			—				—				—				14,404,227				—			14,404,227

		~~W~~	90,404,963			~~W~~	90,182,623			~~W~~	3,713,289			~~W~~	553,458,730			~~W~~	775,897		~~W~~	738,535,502

(In millions of Korean won)		December 31, 2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Financial<br>instruments at<br>fair value<br>through profit<br>or loss				Financial<br>instruments<br>designated at<br>fair value<br>through profit<br>or loss				Financial<br>instruments at<br>amortized cost				Derivatives<br>held for<br>hedging				Total
Financial liabilities
Financial liabilities at fair value through profit or loss		~~W~~	2,717,732			~~W~~	8,002,499			~~W~~	—			~~W~~	—			~~W~~	10,720,231
Derivative financial liabilities			11,409,695				—				—				373,799				11,783,494
Deposits			—				—				435,687,897				—				435,687,897
Borrowings			—				—				68,077,012				—				68,077,012
Debentures			—				—				76,171,257				—				76,171,257
Other financial liabilities *			—				—				33,594,883				—				33,594,883

		~~W~~	14,127,427			~~W~~	8,002,499			~~W~~	613,531,049			~~W~~	373,799			~~W~~	636,034,774

112

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.3 Carrying Amount of Financial Instruments by Category (cont’d)

(In millions of Korean won)		December 31, 2023
		Financial<br>instruments at<br>fair value<br>through profit<br>or loss				Financial<br>instruments at<br>fair value<br>through other<br>comprehensive<br>income				Financial<br>instruments<br>designated at<br>fair value<br>through other<br>comprehensive<br>income				Financial<br>instruments at<br>amortized cost				Derivatives<br>held for<br>hedging			Total
Financial assets
Cash and due from financial institutions		~~W~~	—			~~W~~	—			~~W~~	—			~~W~~	29,836,311			~~W~~	—		~~W~~	29,836,311
Financial assets at fair value through profit or loss			77,038,267				—				—				—				—			77,038,267
Derivative financial assets			5,777,682				—				—				—				379,946			6,157,628
Loans measured at amortized cost			—				—				—				444,805,287				—			444,805,287
Financial investments			—				79,727,487				2,770,653				39,701,389				—			122,199,529
Other financial assets			—				—				—				16,544,513				—			16,544,513

		~~W~~	82,815,949			~~W~~	79,727,487			~~W~~	2,770,653			~~W~~	530,887,500			~~W~~	379,946		~~W~~	696,581,535

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Financial<br>instruments at<br>fair value<br>through profit or<br>loss				Financial<br>instruments<br>designated at<br>fair value<br>through profit or<br>loss				Financial<br>instruments at<br>amortized cost				Derivatives held<br>for hedging				Total
Financial liabilities
Financial liabilities at fair value through profit or loss		~~W~~	2,953,472			~~W~~	7,966,963			~~W~~	—			~~W~~	—			~~W~~	10,920,435
Derivative financial liabilities			5,966,512				—				—				244,127				6,210,639
Deposits			—				—				406,512,434				—				406,512,434
Borrowings			—				—				69,583,561				—				69,583,561
Debentures			—				—				69,176,668				—				69,176,668
Other financial liabilities*			—				—				37,416,916				—				37,416,916

		~~W~~	8,919,984			~~W~~	7,966,963			~~W~~	582,689,579			~~W~~	244,127			~~W~~	599,820,653

*	Other financial liabilities include lease liabilities that are not included in the category of financial<br>instruments measured at amortized cost.
:---	:---

113

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.4 Transfer of Financial Assets

6.4.1 Transferred financial assets that are derecognized in their entirety

The Group transferred loans and other financial assets to companies specialized in asset-backed securitization and derecognized them from the consolidated financial statement, while the maximum exposure to loss (carrying amount) from its continuing involvement and fair value of its continuing involvement of the derecognized financial assets as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Type of continuing<br>involvement			Classification of<br>financial<br>instruments		Carrying amount<br>of continuing<br>involvement				Fair value of<br>continuing<br>involvement
Discovery 2^nd^ Securitization Specialty Co.,<br>Ltd.			Subordinated bond		Financial assets at fair value through profit or loss		~~W~~	564			~~W~~	564
AP 4D ABS Ltd.			Subordinated bond		Financial assets at fair value through profit or loss			39				39

							~~W~~	603			~~W~~	603

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
		Type of<br>continuing<br>involvement			Classification of<br>financial instruments		Carrying amount<br>of continuing<br>involvement				Fair value of<br>continuing<br>involvement
Discovery 2^nd^ Securitization Specialty Co.,<br>Ltd.			Subordinated bond		Financial assets at fair value through profit or loss		~~W~~	564			~~W~~	564
AP 4D ABS Ltd.			Subordinated bond		Financial assets at fair value through profit or loss			257				257

							~~W~~	821			~~W~~	821

114

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.4.2 Transferred financial assets that are not derecognized in their entirety

The Group issued securitized debentures using loans as underlying assets. Details of underlying assets and senior debentures in relation to securitization as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Carrying<br>amount of<br>underlying<br>assets				Fair value of<br>underlying<br>assets				Carrying<br>amount of<br>senior<br>debentures				Fair value of<br>senior<br>debentures
KB Kookmin Card 8^th^ Securitization Co., Ltd. ^1^		~~W~~	472,066			~~W~~	469,890			~~W~~	99,987			~~W~~	99,614
KB Kookmin Card 9^th^ Securitization Co., Ltd. ^1^			524,464				521,961				249,894				240,491
KB Kookmin Card 10^th^ Securitization Co., Ltd.<br>^1^			882,641				878,117				586,517				579,432
KB Kookmin Card 11^th^ Securitization Co., Ltd.<br>^1^			677,194				673,664				399,932				390,463
KB Kookmin Card 12^th^ Securitization Co., Ltd.<br>^1^			1,196,421				1,190,160				732,558				719,230
KB Kookmin Card 13^rd^ Securitization Co., Ltd.<br>^1^			935,938				931,006				586,980				570,700
KB Auto Fifth Asset Securitization Specialty Co., Ltd. ^2^			383,856				381,391				209,594				217,115

		~~W~~	5,072,580			~~W~~	5,046,189			~~W~~	2,865,462			~~W~~	2,817,045

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Carrying<br>amount of<br>underlying<br>assets				Fair value of<br>underlying<br>assets				Carrying<br>amount of<br>senior<br>debentures				Fair value of<br>senior<br>debentures
KB Kookmin Card 8^th^ Securitization Co., Ltd. ^1^		~~W~~	487,532			~~W~~	485,230			~~W~~	299,913			~~W~~	287,628
KB Kookmin Card 9^th^ Securitization Co., Ltd. ^1^			541,645				538,984				349,842				358,616
KB Kookmin Card 10^th^ Securitization Co., Ltd.<br>^1^			919,380				914,470				513,232				491,656
KB Kookmin Card 11^th^ Securitization Co., Ltd.<br>^1^			701,955				698,248				399,890				375,738
KB Kookmin Card 12^th^ Securitization Co., Ltd.<br>^1^			1,234,204				1,227,724				641,079				607,621
KB Auto Fifth Asset Securitization Specialty Co., Ltd. ^2^			415,041				388,008				286,906				284,351

		~~W~~	4,299,757			~~W~~	4,252,664			~~W~~	2,490,862			~~W~~	2,405,610

^1^	The Group has an obligation to early redeem the securitized debentures in the event of situations prescribed by<br>the asset securitization contract, such as the remaining balance of the eligible underlying assets in trust-type asset securitization is below the solvency ratio (minimum ratio: 104.5%) of the beneficiary interest in the trust. To avoid such early<br>redemption, the Group entrusts credit card accounts and deposits in addition to the previously entrusted credit card accounts.
:---	:---
^2^	The Group has an obligation to early redeem the securitized debentures in the event of situations prescribed by<br>the asset securitization contract, such as when the trusted assets do not meet the eligibility requirements.
:---	:---

115

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.4.3 Bonds sold under repurchase agreements and loaned securities

The Group continues to recognize the financial assets related to bonds sold under repurchase agreements and securities lending transactions in the consolidated statement of financial position since those transactions are not qualified for derecognition even though the Group transfers the financial assets. Bonds sold under repurchase agreements are sold on the condition that they will be repurchased at a fixed price and loaned securities will be returned at the expiration of the loan period. Thus, the Group retains substantially all the risks and rewards of ownership of the financial assets.

The carrying amount of transferred assets and related liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Carrying amount of<br>transferred assets				Carrying amount of<br>related liabilities
Bonds sold under repurchase agreements		~~W~~	9,520,281			~~W~~	9,287,665
Loaned securities:
Government and public bonds			3,854,697				—
Stock			6,046				—
Others			75,293				—

		~~W~~	13,456,317			~~W~~	9,287,665

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---
		Carrying amount of<br>transferred assets				Carrying amount of<br>related liabilities
Bonds sold under repurchase agreements		~~W~~	12,888,189			~~W~~	12,107,718
Loaned securities:
Government and public bonds			3,395,703				—
Stock			30,025				—
Others			70,513				—

		~~W~~	16,384,430			~~W~~	12,107,718

116

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.4.4 Securitization of Financial Assets

The structured entities subject to consolidation have issued asset-backed securities using the loans and other receivables held by the Group as securitized assets. As a result of these securitization transactions, the contractual cash flows of the securitized assets are transferred to the holders of the asset-backed securities. The Group, in relation to the transfer of financial assets for securitization, bears the contractual obligation to pay the cash flows to one or more recipients, such as repurchase agreements, for all transferred financial assets that exist but have not been derecognized as of the reporting date.

Details of carrying amounts of the underlying assets and the associated liabilities related to securitization transactions as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)			December 31,<br>2024		December 31,<br>2023
Underlying assets		Financial assets at fair value through profit or loss	~~W~~	93,804	~~W~~	391,581
		Loans measured at amortized cost *		3,007,341		2,595,344

			~~W~~	3,101,145	~~W~~	2,986,925

Associated liabilities		Debentures	~~W~~	3,149,021	~~W~~	2,944,753
*	Before netting of allowance
:---	:---

6.5 Offsetting Financial Assets and Financial Liabilities

The Group enters into International Swaps and Derivatives Association (“ISDA”) master netting agreements and other similar arrangements with the Group’s OTC derivative and spot exchange counterparties. Similar netting agreements are also entered into with the Group’s (a) sales or purchases of bonds under repurchase agreements and (b) securities lending and borrowing transactions, etc. Pursuant to these agreements, in the event of default by one party, contracts are to be terminated and receivables and payables are to be offset. Domestic exchange settlement debits and domestic exchange settlement credits are recognized in its net settlement balance in the consolidated statement of financial position because the Group has the legal right of offset and settles in net amount.

117

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.5.1 Details of financial assets subject to enforceable master netting agreements or similar arrangements as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Gross assets				Gross liabilities<br>offset			Net amount in<br>the statement<br>of financial<br>position				Non-offsetting amount						Net amount
													Financial<br>instruments			Cash<br>collateral
Derivatives held for trading and derivative-linked securities		~~W~~	11,227,882			~~W~~	—		~~W~~	11,227,882
Derivatives held for hedging			775,897				—			775,897			~~W~~	(6,621,613	)	~~W~~	(195,584	)	~~W~~	5,186,582
Unsettled spot exchange receivable			6,287,655				—			6,287,655				(6,213,292	)		—			74,363
Bonds purchased under repurchase agreements			5,405,878				—			5,405,878				(4,910,653	)		—			495,225
Securities borrowing agreements			75,293				—			75,293				(75,293	)		—			—
Domestic exchange settlement debits			63,055,082				(62,577,496	)		477,586				(3,315	)		—			474,271
Other financial instruments			1,719,547				(1,687,731	)		31,816				—			—			31,816

		~~W~~	88,547,234			~~W~~	(64,265,227	)	~~W~~	24,282,007			~~W~~	(17,824,166	)	~~W~~	(195,584	)	~~W~~	6,262,257

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Gross assets				Gross liabilities<br>offset			Net amount in<br>the statement<br>of financial<br>position				Non-offsetting amount						Net amount
													Financial<br>instruments			Cash<br>collateral
Derivatives held for trading and derivative-linked securities		~~W~~	6,025,704			~~W~~	—		~~W~~	6,025,704
Derivatives held for hedging			379,945				—			379,945			~~W~~	(4,904,616	)	~~W~~	(203,414	)	~~W~~	1,297,619
Unsettled spot exchange receivable			7,125,645				—			7,125,645				(6,838,231	)		—			287,414
Bonds purchased under repurchase agreements			3,948,358				—			3,948,358				(3,927,790	)		—			20,568
Securities borrowing agreements			165,842				—			165,842				(165,842	)		—			—
Domestic exchange settlement debits			63,223,652				(62,396,548	)		827,104				—			—			827,104
Other financial instruments			2,885,128				(2,859,006	)		26,122				—			—			26,122

		~~W~~	83,754,274			~~W~~	(65,255,554	)	~~W~~	18,498,720			~~W~~	(15,836,479	)	~~W~~	(203,414	)	~~W~~	2,458,827

118

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

6.5.2 Details of financial liabilities subject to enforceable master netting agreements or similar arrangements as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Gross liabilities				Gross<br>assets offset			Net amount in<br>the statement<br>of financial<br>position				Non-offsetting amount						Net amount
													Financial<br>instruments			Cash<br>collateral
Derivatives held for trading and derivative-linked securities		~~W~~	12,543,672			~~W~~	—		~~W~~	12,543,672			~~W~~	(10,689,585	)	~~W~~	(76,853	)	~~W~~	2,151,033
Derivatives held for hedging			373,799				—			373,799
Unsettled spot exchange payable			6,289,630				—			6,289,630				(6,213,292	)		—			76,338
Bonds sold under repurchase agreements *			12,794,534				—			12,794,534				(12,794,534	)		—			—
Securities borrowing agreements			2,558,520				—			2,558,520				(2,558,520	)		—			—
Domestic exchange settlement credits			62,872,822				(62,577,496	)		295,326				(292,699	)		—			2,627
Other financial instruments			1,784,437				(1,687,731	)		96,706				—			—			96,706

		~~W~~	99,217,414			~~W~~	(64,265,227	)	~~W~~	34,952,187			~~W~~	(32,548,630	)	~~W~~	(76,853	)	~~W~~	2,326,704

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Gross liabilities				Gross<br>assets offset			Net amount in<br>the statement<br>of financial<br>position				Non-offsetting amount						Net amount
													Financial<br>instruments			Cash<br>collateral
Derivatives held for trading and derivative-linked securities		~~W~~	6,817,326			~~W~~	—		~~W~~	6,817,326			~~W~~	(5,519,403	)	~~W~~	(75,882	)	~~W~~	1,466,169
Derivatives held for hedging			244,128				—			244,128
Unsettled spot exchange payable			7,124,998				—			7,124,998				(6,838,231	)		—			286,767
Bonds sold under repurchase agreements *			15,645,498				—			15,645,498				(15,645,498	)		—			—
Securities borrowing agreements			2,860,034				—			2,860,034				(2,860,034	)		—			—
Domestic exchange settlement credits			65,260,751				(62,396,548	)		2,864,203				(2,864,203	)		—			—
Other financial instruments			3,090,690				(2,859,006	)		231,684				—			—			231,684

		~~W~~	101,043,425			~~W~~	(65,255,554	)	~~W~~	35,787,871			~~W~~	(33,727,369	)	~~W~~	(75,882	)	~~W~~	1,984,620

*	Includes bonds sold under repurchase agreements to customers.
:---	:---

119

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

7. Due from Financial Institutions Measured at Amortized Cost

7.1 Details of due from financial institutions as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)			Financial<br><br>institutions		December 31,<br>2024		December 31,<br>2023
Due from financial institutions in Korean won		Due from the Bank of Korea	The Bank of Korea	—	~~W~~	11,635,481	~~W~~	13,731,708
		Due from banks	Hana Bank and others	0.00 ~ 4.71		3,342,114		3,953,940
		Due from others	Samsung securities and others	0.00 ~ 3.86		1,473,585		1,030,310

						16,451,180		18,715,958

Due from financial institutions in foreign currencies		Due from banks in foreign currencies	The Bank of Korea. and others	0.00 ~ 5.25		7,767,797		6,210,917
		Time deposits in foreign currencies	Industrial Bank Changsha BR. and others	0.00 ~ 7.55		634,903		442,122
		Due from others	The Bank of New York Mellon and others	0.00 ~ 7.50		2,937,813		2,211,303

						11,340,513		8,864,342

					~~W~~	27,791,693	~~W~~	27,580,300

*	Before netting of allowance
:---	:---

120

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

7.2 Details of restricted due from financial institutions as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)			Financial<br><br>institutions	December 31,<br>2024		December 31,<br>2023		Reasons of restriction
Due from financial institutions in Korean won		Due from the Bank of Korea	The Bank of Korea	~~W~~	11,635,481	~~W~~	13,731,708	Bank of Korea Act
		Due from banks	KEB Hana Bank and others		106,500		40,721	Net settlement and others
		Due from others	Korea Securities Finance Corporation and others		1,254,615		799,361	Derivatives margin account and others

					12,996,596		14,571,790

Due from financial institutions in foreign currencies		Due from banks in foreign currencies	The Bank of Korea and others		2,736,871		1,630,348	Bank of Korea Act and others
		Time deposits in foreign currencies	Agricultural Bank of China New York Branch and others		98,264		86,406	Bank Act of the State of New York and others
		Due from others	The Bank of New York Mellon and others		2,709,177		1,689,065	Derivatives margin account and others

					5,544,312		3,405,819

				~~W~~	18,540,908	~~W~~	17,977,609

*	Before netting of allowance.
:---	:---

121

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

7.3 Changes in allowances for credit losses of due from financial institutions for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		12-month<br>expected credit<br>losses				Lifetime expected credit<br>losses
						Non-impaired				Impaired
Beginning		~~W~~	1,021			~~W~~	—			~~W~~	—
Transfer between stages:
Transfer to 12-month expected credit losses			—				—				—
Transfer to lifetime expected credit losses			—				—				—
Impairment			—				—				—
Provision (reversal) of credit losses			472				—				—
Business Combination			—				—				—
Others			79				—				—

Ending		~~W~~	1,572			~~W~~	—			~~W~~	—

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		12-month<br>expected credit<br>losses				Lifetime expected credit<br>losses
						Non-impaired				Impaired
Beginning		~~W~~	2,743			~~W~~	—			~~W~~	—
Transfer between stages:
Transfer to 12-month expected credit losses			—				—				—
Transfer to lifetime expected credit losses			—				—				—
Impairment			—				—				—
Provision (reversal) of credit losses			(1,724	)			—				—
Business Combination			6				—				—
Others			(4	)			—				—

Ending		~~W~~	1,021			~~W~~	—			~~W~~	—

122

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

8. Assets Pledged as Collateral

8.1 Details of assets pledged as collateral as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
Assets pledged	Pledgee	Carrying<br>amount		Reasons of pledge
Due from financial institutions	KEB Hana Bank and others	~~W~~	651,988	Performance guarantee for loan transactions
Financial assets at fair value through profit or loss	The Korea Securities Depository and others		4,366,425	Repurchase agreements
	The Korea Securities Depository and others		9,908,291	Securities borrowing transactions
	Samsung Futures Inc. and others		1,644,059	Derivatives transactions

			15,918,775

Financial assets at fair value through other comprehensive income	The Bank of Korea and others		4,058,186	Repurchase agreements
	The Korea Securities Depository and others		2,510,368	Securities borrowing transactions
	The Bank of Korea		2,237,952	Borrowings from the Bank of Korea
	MUFG Bank and others		994,678	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		2,511,706	Derivatives transactions
	Others		662,227	Others

			12,975,117

Securities measured at amortized cost	The Bank of Korea and others		1,031,256	Repurchase agreements
	The Bank of Korea		2,802,901	Borrowings from the Bank of Korea
	The Bank of Korea		7,627,587	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		1,065,109	Derivatives transactions
	The Bank of Korea and others		818,270	Others

			13,345,123

Loans	Others		14,572,142	Covered bond and others
Real estate	Hanwha Life Insurance Co., Ltd. and others		1,223,346	Borrowings from bank and others

		~~W~~	58,686,491

123

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

8.1 Details of assets pledged as collateral as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023
Assets pledged	Pledgee	Carrying<br>amount		Reasons of pledge
Due from financial institutions	KEB Hana Bank and others	~~W~~	822,407	Borrowings from bank and others
Financial assets at fair value through profit or loss	The Korea Securities Depository and others		10,150,629	Repurchase agreements
	The Korea Securities Depository and others		1,556,234	Securities borrowing transactions
	The Bank of Korea		266,576	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		3,200,511	Derivatives transactions

			15,173,950

Financial assets at fair value through other comprehensive income	The Bank of Korea and others		7,502,666	Repurchase agreements
	The Korea Securities Depository and others		167,879	Securities borrowing transactions
	The Bank of Korea		527,494	Borrowings from the Bank of Korea
	MUFG Bank and others		830,504	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		4,215,092	Derivatives transactions

			13,243,635

Securities measured at amortized cost	The Bank of Korea and others		625,003	Repurchase agreements
	The Bank of Korea		2,357,018	Borrowings from the Bank of Korea
	The Bank of Korea		6,746,440	Settlement risk of the Bank of Korea
	Samsung Futures Inc. and others		344,432	Derivatives transactions
	The Bank of Korea and others		1,623,715	Others

			11,696,608

Loans	KEB Hana Bank and 12 others		13,733,820	Covered bond and others
Real estate	Capital LLC and others		628,619	Borrowings from bank and others

		~~W~~	55,299,039

In addition, the Group provided ~~W~~ 8,027,229 million and ~~W~~ 7,916,155 million of debt securities among its borrowed securities and other assets held as collateral to Korea Securities Finance Corporation and others as collateral as of December 31, 2024 and 2023, respectively.

124

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

8.2 Fair value of collateral available to sell or repledge, and collateral sold or repledged, regardless of debtor’s default as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Fair value of<br>collateral held				Fair value of collateral<br>sold or repledged				Total
Securities		~~W~~	4,933,491			~~W~~	—			~~W~~	4,933,491
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Fair value of<br>collateral held				Fair value of collateral<br>sold or repledged				Total
Securities		~~W~~	3,892,709			~~W~~	—			~~W~~	3,892,709

9. Derivative Financial Instruments and Hedge Accounting

The Group’s derivative operations focus on addressing the needs of the Group’s corporate clients to hedge their risk exposure and hedging the Group’s risk exposure that results from such client contracts. The Group also engages in derivative trading activities to hedge the interest rate risk and currency risk arising from the Group’s own assets and liabilities. In addition, the Group engages in proprietary trading of derivatives within the predetermined transaction limit.

The Group provides and trades a range of derivative financial instruments, including:

•	Interest rate swaps relating to interest rate risk in Korean won
•	Cross-currency swaps, forwards, and options relating to currency risk
:---	:---
•	Stock index options linked with the Korea Composite Stock Price Index (“KOSPI”)
:---	:---

In particular, the Group applies fair value hedge accounting using interest rate swaps, currency forwards, and others to hedge the risk of changes in fair value due to the changes in interest rate and foreign exchange rate of structured debentures in Korean won, debentures in foreign currencies, structured deposits in foreign currencies, and others. The Group applies cash flow hedge accounting using interest rate swaps, currency swaps, and others to hedge the risk of changes in cash flows of floating rate debt securities in Korean won, borrowings in foreign currencies, group of loans measured at amortized cost, and others. In addition, the Group applies net investments in foreign operations hedge accounting by designating debentures in foreign currencies and cross currency forwards as hedging instruments to hedge the currency risk of net investments in foreign operations.

125

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.1 Details of derivative financial instruments held for trading as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024						December 31, 2023
		Notional<br>amount		Assets		Liabilities		Notional<br>amount		Assets		Liabilities
Interest rate
Forwards		~~W~~	18,253,487	~~W~~	577,037	~~W~~	736,622	~~W~~	14,872,481	~~W~~	488,542	~~W~~	465,983
Futures*			6,388,783		1,178		5,407		5,398,495		6,226		4,576
Swaps			334,595,285		405,611		552,316		416,613,927		556,985		574,865
Options			7,108,100		152,220		146,648		9,384,000		203,718		208,277

			366,345,655		1,136,046		1,440,993		446,268,903		1,255,471		1,253,701

Currency
Forwards			136,815,645		5,848,876		3,326,427		136,805,906		1,316,968		1,273,558
Futures*			723,795		1,694		234		576,730		696		989
Swaps			82,498,194		3,587,141		5,960,622		84,027,181		2,731,314		2,426,152
Options			1,999,773		23,808		25,374		1,238,475		7,668		4,713

			222,037,407		9,461,519		9,312,657		222,648,292		4,056,646		3,705,412

Stock and index
Futures*			2,151,606		3,260		7,963		1,352,920		11,179		13,232
Swaps			4,963,174		278,278		156,825		5,165,523		330,132		493,475
Options			2,641,003		15,331		171,368		4,880,805		80,576		240,274

			9,755,783		296,869		336,156		11,399,248		421,887		746,981

Credit
Swaps			4,797,110		37,123		27,397		2,864,357		17,799		8,695

			4,797,110		37,123		27,397		2,864,357		17,799		8,695

Commodity
Futures*			42,764		1,191		1,012		26,037		1,305		106
Swaps			1,297,183		12,390		11,781		31,635		4,348		4,352
Options			292,290		3,018		3,130		100,484		1,091		1,147

			1,632,237		16,599		15,923		158,156		6,744		5,605

Others			891,012		6,715		276,569		788,841		19,135		246,118

		~~W~~	605,459,204	~~W~~	10,954,871	~~W~~	11,409,695	~~W~~	684,127,797	~~W~~	5,777,682	~~W~~	5,966,512

*	Gains or losses arising from some daily<br>mark-to-market futures are reflected in the margin accounts.
:---	:---

126

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	1 year		2 years		3 years		4 years		5 years		Over<br>5 years		Total
Fair value hedge
Nominal amount of the hedging instrument	~~W~~	5,071,561	~~W~~	1,674,709	~~W~~	444,487	~~W~~	189,448	~~W~~	941,835	~~W~~	1,998,080	~~W~~	10,320,120
Average price condition (%)		4.58		4.65		4.71		5.74		6.69		3.81		4.68
Average price condition (KRW/USD)		1,341.52		1,298.73		1,276.69		—		—		—		1,325.95
Average price condition (KRW/EUR)		1,464.04		1,469.25		1,447.53		—		—		—		1,464.60
Average price condition (KRW/AUD)		891.13		885.60		—		—		—		—		890.56
Average price condition (KRW/GBP)		1,539.22		—		—		—		—		—		1,539.22
Cash flow hedge
Nominal amount of the hedging instrument	~~W~~	2,385,743	~~W~~	3,059,818	~~W~~	2,779,439	~~W~~	981,453	~~W~~	545,140	~~W~~	—	~~W~~	9,751,593
Average price condition (%)		3.05		4.14		4.98		4.91		3.71		—		4.43
Average price condition (KRW/USD)		1,228.80		1,250.67		1,331.02		1,254.81		1,373.85		—		1,282.82
Average price condition (KRW/EUR)		1,374.73		1,501.00		—		1,392.00		—		—		1,423.08
Average price condition (KRW/AUD)		851.50		889.00		932.60		—		—		—		885.25
Hedge of net investments in foreign operations
Nominal amount of the hedging instrument	~~W~~	15,876	~~W~~	236,670	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	252,546
Average price condition (KRW/USD)		1,071.00		1,178.91		—		—		—		—		1,172.13

127

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.2 Average price conditions of future nominal cash flows by type of hedge accounting as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	1 year		2 years		3 years		4 years		5 years		Over<br>5 years		Total
Fair value hedge
Nominal amount of the hedging instrument	~~W~~	2,998,238	~~W~~	3,555,510	~~W~~	1,667,087	~~W~~	349,482	~~W~~	267,778	~~W~~	2,304,270	~~W~~	11,142,365
Average price condition (%)		4.77		4.86		5.18		5.23		5.73		4.93		4.95
Average price condition (KRW/USD)		1,257.22		1,277.42		1,242.04		—		—		—		1,257.90
Average price condition (KRW/EUR)		1,373.58		1,427.96		1,436.77		—		—		—		1,404.28
Average price condition (KRW/AUD)		872.12		840.73		—		—		—		—		869.67
Average price condition (KRW/GBP)		—		1,536.92		—		—		—		—		1,536.92
Cash flow hedge
Nominal amount of the hedging instrument	~~W~~	1,651,669	~~W~~	2,035,885	~~W~~	1,994,375	~~W~~	1,364,708	~~W~~	154,813	~~W~~	160,000	~~W~~	7,361,450
Average price condition (%)		4.60		3.05		11.94		7.98		2.67		3.11		10.68
Average price condition (KRW/USD)		1,220.93		1,221.93		1,230.48		1,325.04		1,147.95		—		1,235.39
Average price condition (KRW/EUR)		1,364.00		1,374.73		—		—		1,392.00		—		1,372.29
Average price condition (KRW/AUD)		856.40		851.50		889.00		—		—		—		866.92
Hedge of net investments in foreign operations
Nominal amount of the hedging instrument	~~W~~	31,332	~~W~~	—	~~W~~	207,593	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	238,925
Average price condition (KRW/USD)		1,071.00		—		1,178.92		—		—		—		1,164.76

128

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.3 Fair Value Hedge

9.3.1 Details of fair value hedged items as of December 31, 2024 and 2023 and changes in fair value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)				December 31, 2024														2024
				Carrying amount								Accumulated amount of<br>hedge adjustments						Changes in<br>fair value
				Assets				Liabilities				Assets			Liabilities
Hedge accounting
Interest rate		Debt securities in Korean won		~~W~~	2,062,063			~~W~~	—			~~W~~	(15,065	)	~~W~~	—		~~W~~	27,699
		Debt securities in foreign currencies			1,699,241				—				(44,081	)		—			21,357
		Deposits in Korean won			—				246,258				—			6,258			(6,272	)
		Deposits in foreign currencies			—				301,107				—			(7,593	)		926
		Debentures in Korean won			—				2,320,923				—			(109,077	)		(35,453	)
		Debentures in foreign currencies			—				1,523,883				—			(63,717	)		(4,989	)

					3,761,304				4,392,171				(59,146	)		(174,129	)		3,268

Currency		Debt securities in foreign currencies			1,798,273				—				301,740			—			217,776

					1,798,273				—				301,740			—			217,776

				~~W~~	5,559,577			~~W~~	4,392,171			~~W~~	242,594		~~W~~	(174,129	)	~~W~~	221,044

(In millions of Korean won)				December 31, 2023														2023
---	---	---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	:---:	---	---
				Carrying amount								Accumulated amount of<br>hedge adjustments						Changes in<br>fair value
				Assets				Liabilities				Assets			Liabilities
Hedge accounting
Interest rate		Debt securities in Korean won		~~W~~	1,975,442			~~W~~	—			~~W~~	(50,746	)	~~W~~	—		~~W~~	49,323
		Debt securities in foreign currencies			2,585,073				—				(111,902	)		—			74,080
		Deposits in Korean won			—				49,985				—			(15	)		15
		Deposits in foreign currencies			—				32,016				—			(6,667	)		(1,924	)
		Debentures in Korean won			—				5,678,927				—			(141,073	)		(94,418	)
		Debentures in foreign currencies			—				1,310,952				—			(68,706	)		(27,159	)

					4,560,515				7,071,880				(162,648	)		(216,461	)		(83	)

Currency		Debt securities in foreign currencies			1,525,072				—				140,391			—			40,857

					1,525,072				—				140,391			—			40,857

				~~W~~	6,085,587			~~W~~	7,071,880			~~W~~	(22,257	)	~~W~~	(216,461	)	~~W~~	40,774

129

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.3.2 Details of derivative instruments designated as fair value hedge as of December 31, 2024 and 2023 and changes in fair value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024												2024
		Notional amount				Assets				Liabilities				Changes in<br>fair value
Interest rate
Futures		~~W~~	720,000			~~W~~	—			~~W~~	—			~~W~~	1,787
Swaps			7,648,200				84,530				62,666				(3,658	)

		~~W~~	8,368,200			~~W~~	84,530			~~W~~	62,666			~~W~~	(1,871	)
Currency
Forwards			1,951,920				62				119,228				(190,426	)

		~~W~~	10,320,120			~~W~~	84,592			~~W~~	181,894			~~W~~	(192,297	)

(In millions of Korean won)		December 31, 2023												2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	:---:	---	---
		Notional amount				Assets				Liabilities				Changes in<br>fair value
Interest rate
Swaps		~~W~~	9,654,617			~~W~~	111,360			~~W~~	75,776			~~W~~	(15,927	)
Currency
Forwards			1,487,748				18,916				28,793				(42,969	)

		~~W~~	11,142,365			~~W~~	130,276			~~W~~	104,569			~~W~~	(58,896	)

9.3.3 Details of hedge ineffectiveness recognized in profit or loss on derivative instruments designated as fair value hedge for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Hedge accounting
Interest rate	~~W~~	1,397	~~W~~	6,513
Currency		27,351		(2,112	)

	~~W~~	28,748	~~W~~	4,401

9.3.4 Gains or losses on fair value hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Gains (losses) on hedging instruments	~~W~~	(192,297	)	~~W~~	(36,372	)
Gains (losses) on hedged items attributable to the hedged risk		223,358			35,011

	~~W~~	31,061		~~W~~	(1,361	)

130

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.4 Cash Flow Hedge

9.4.1 Details of cash flow hedged items as of December 31, 2024 and 2023 and changes in fair value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Cash flow hedge reserve						Changes in fair value
	December 31,<br>2024			December 31,<br>2023			2024			2023
Hedge accounting
Interest rate risk	~~W~~	160,165		~~W~~	113,361		~~W~~	(62,558	)	~~W~~	(89,536	)
Currency risk		(51,847	)		(39,806	)		(154,144	)		68,868

	~~W~~	108,318		~~W~~	73,555		~~W~~	(216,702	)	~~W~~	(20,668	)

9.4.2 Details of derivative instruments designated as cash flow hedge as of December 31, 2024 and 2023 and changes in fair value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024												2024
		Notional amount				Assets				Liabilities				Changes in<br>fair value
Interest rate
Forwards		~~W~~	1,705,449			~~W~~	179,580			~~W~~	8			~~W~~	75,162
Swaps			2,988,310				48,738				5,760				(10,122	)
Currency
Swaps			5,057,834				462,986				181,828				278,039

		~~W~~	9,751,593			~~W~~	691,304			~~W~~	187,596			~~W~~	343,079

(In millions of Korean won)		December 31, 2023												2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	:---:	---	---
		Notional amount				Assets				Liabilities				Changes in<br>fair value
Interest rate
Forwards		~~W~~	750,396			~~W~~	105,124			~~W~~	7,856			~~W~~	57,623
Swaps			3,115,818				59,376				3,547				(40,188	)
Currency
Swaps			3,495,236				85,170				122,848				(8,604	)

		~~W~~	7,361,450			~~W~~	249,670			~~W~~	134,251			~~W~~	8,831

131

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.4.3 Gains or losses on cash flow hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Gains (losses) on hedging instruments:	~~W~~	343,079	~~W~~	8,831
Effective portion of gains (losses) on cash flow hedging instruments (recognized in other<br>comprehensive income or loss)		341,834		7,328
Ineffective portion of gains (losses) on cash flow hedging instruments (recognized in profit or<br>loss)		1,245		1,503

9.4.4 Amounts recognized in other comprehensive income (loss) and reclassified from equity to profit or loss related to derivative instruments designated as cash allow hedge for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Other comprehensive income (loss)	~~W~~	341,834		~~W~~	7,328
Reclassification to profit or loss		(294,592	)		48,508
Income tax effect		(12,500	)		(1,913	)

	~~W~~	34,742		~~W~~	53,923

9.5 Hedge of Net Investments in Foreign Operations

9.5.1 Details of net investments in foreign operations hedged items as of December 31, 2024 and 2023 and changes in fair value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Foreign currency<br>translation reserve						Changes in fair value
	December 31,<br>2024			December 31,<br>2023			2024		2023
Hedge accounting
Currency risk	~~W~~	(316,109	)	~~W~~	(129,401	)	~~W~~	253,679	~~W~~	19,590

132

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.5.2 Details of financial instruments designated as hedge of net investments in foreign operations as of December 31, 2024 and 2023 and changes in fair value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024												2024
		Notional<br>amount				Assets				Liabilities				Changes in<br>fair value
Currency
Forwards		~~W~~	15,876			~~W~~	—			~~W~~	4,309			~~W~~	998
Debentures in foreign currencies			2,077,155				—				2,077,155				(254,677	)

		~~W~~	2,093,031			~~W~~	—			~~W~~	2,081,464			~~W~~	(253,679	)

(In millions of Korean won)		December 31, 2023												2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	:---:	---	---
		Notional<br>amount				Assets				Liabilities				Changes in<br>fair value
Currency
Forwards		~~W~~	31,332			~~W~~	—			~~W~~	5,307			~~W~~	6,923
Debentures in foreign currencies			1,435,817				—				1,435,817				(26,513	)

		~~W~~	1,467,149			~~W~~	—			~~W~~	1,441,124			~~W~~	(19,590	)

9.5.3 Fair value of non-derivative financial instruments designated as hedge of net investments in foreign operations as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024				December 31,<br>2023
Debentures in foreign currencies		~~W~~	2,180,537			~~W~~	1,509,978

9.5.4 Gains or losses on net investments in foreign operations hedging instruments and hedged items attributable to the hedged risk for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Gains (losses) on hedging instruments:	~~W~~	(253,679	)	~~W~~	(19,590	)
Effective portion of gains (losses) on hedge of net investments in foreign operations (recognized<br>in other comprehensive income or loss)		(253,679	)		(19,590	)
Ineffective portion of gains (losses) on hedge of net investments in foreign operations<br>(recognized in profit or loss)		—			—

133

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

9.5.5 Effective portion of gains or losses on net investments in foreign operations hedging instruments recognized in other comprehensive income (loss) for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Other comprehensive income (loss)	~~W~~	(253,679	)	~~W~~	(19,590	)
Reclassification to profit or loss		—			—
Income tax effect		66,971			4,931

	~~W~~	(186,708	)	~~W~~	(14,659	)

10. Loans Measured at Amortized Cost

10.1 Details of loans as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Loans measured at amortized cost	~~W~~	477,066,990		~~W~~	449,676,848
Deferred loan origination fees and costs		638,230			591,244
Less: Allowances for credit losses		(5,633,380	)		(5,462,805	)

	~~W~~	472,071,840		~~W~~	444,805,287

10.2 Details of loans to banks as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Loans measured at amortized cost	~~W~~	9,830,773		~~W~~	11,569,466
Less: Allowances for credit losses		(31,158	)		(20,429	)

	~~W~~	9,799,615		~~W~~	11,549,037

134

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Retail			Corporate			Credit card			Total
Loans in Korean won	~~W~~	188,109,614		~~W~~	203,391,791		~~W~~	—		~~W~~	391,501,405
Loans in foreign currencies		5,978,891			26,954,295			—			32,933,186
Domestic import usance bills		—			3,790,808			—			3,790,808
Off-shore funding loans		—			626,058			—			626,058
Bills bought in Korean won		—			1,862			—			1,862
Bills bought in foreign currencies		—			2,379,270			—			2,379,270
Guarantee payments under acceptances and guarantees		—			16,930			—			16,930
Credit card receivables in Korean won		—			—			23,436,170			23,436,170
Credit card receivables in foreign currencies		—			—			42,304			42,304
Bonds purchased under repurchase agreements		—			4,967,067			—			4,967,067
Privately placed bonds		—			389,783			—			389,783
Factored receivables		7			62,602			—			62,609
Lease receivables		406,844			194,057			—			600,901
Loans for installment credit		6,327,692			798,402			—			7,126,094

		200,823,048			243,572,925			23,478,474			467,874,447

Proportion (%)		42.92			52.06			5.02			100.00
Less: Allowances for credit losses		(1,587,817	)		(3,137,665	)		(876,740	)		(5,602,222	)

	~~W~~	199,235,231		~~W~~	240,435,260		~~W~~	22,601,734		~~W~~	462,272,225

135

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

10.3 Details of loan types and customer types of loans to customers other than banks as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Retail			Corporate			Credit card			Total
Loans in Korean won	~~W~~	178,476,837		~~W~~	190,160,636		~~W~~	—		~~W~~	368,637,473
Loans in foreign currencies		4,859,698			25,449,011			—			30,308,709
Domestic import usance bills		—			3,398,981			—			3,398,981
Off-shore funding loans		—			507,683			—			507,683
Call loans		—			269,198			—			269,198
Bills bought in Korean won		—			1,861			—			1,861
Bills bought in foreign currencies		—			1,276,579			—			1,276,579
Guarantee payments under acceptances and guarantees		—			20,085			—			20,085
Credit card receivables in Korean won		—			—			22,304,522			22,304,522
Credit card receivables in foreign currencies		—			—			45,449			45,449
Bonds purchased under repurchase agreements		—			3,633,073			—			3,633,073
Privately placed bonds		—			901,609			—			901,609
Factored receivables		70			99			—			169
Lease receivables		447,494			337,407			—			784,901
Loans for installment credit		5,908,190			700,144			—			6,608,334

		189,692,289			226,656,366			22,349,971			438,698,626

Proportion (%)		43.24			51.67			5.09			100.00
Less: Allowances for credit losses		(1,369,081	)		(3,137,470	)		(935,825	)		(5,442,376	)

	~~W~~	188,323,208		~~W~~	223,518,896		~~W~~	21,414,146		~~W~~	433,256,250

136

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

10.4 Changes in deferred loan origination fees and costs for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning				Increase				Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won		~~W~~	623,493			~~W~~	464,364			~~W~~	(406,506	)	~~W~~	—		~~W~~	681,351
Others ^1^			76,997				73,259				(57,159	)		3,886			96,983

			700,490				537,623				(463,665	)		3,886			778,334

Deferred loan origination fees
Loans in Korean won			37,002				44,345				(27,267	)		—			54,080
Others ^2^			72,244				42,950				(38,031	)		8,861			86,024

			109,246				87,295				(65,298	)		8,861			140,104

		~~W~~	591,244			~~W~~	450,328			~~W~~	(398,367	)	~~W~~	(4,975	)	~~W~~	638,230

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning				Increase				Decrease			Others			Ending
Deferred loan origination costs
Loans in Korean won		~~W~~	594,509			~~W~~	416,003			~~W~~	(387,019	)	~~W~~	—		~~W~~	623,493
Others ^1^			68,167				53,006				(43,812	)		(364	)		76,997

			662,676				469,009				(430,831	)		(364	)		700,490

Deferred loan origination fees
Loans in Korean won			42,835				11,859				(17,692	)		—			37,002
Others ^2^			67,007				9,255				(7,597	)		3,579			72,244

			109,842				21,114				(25,289	)		3,579			109,246

		~~W~~	552,834			~~W~~	447,895			~~W~~	(405,542	)	~~W~~	(3,943	)	~~W~~	591,244

^1^	Includes deferred loan origination costs related to credit card receivables, loans for installment credit, and<br>finance lease receivables.
:---	:---
^2^	Includes deferred loan origination fees related to loans in foreign currencies.
:---	:---

137

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

11. Allowances for Credit Losses

11.1 Changes in allowances for credit losses of loans measured at amortized cost for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Retail									Corporate									Credit card
	12-month<br>expected<br>credit losses			Lifetime<br>expected credit losses						12-month<br>expected<br>credit losses			Lifetime<br>expected credit losses						12-month<br>expected<br>credit losses			Lifetime<br>expected credit losses
				Non-impaired			Impaired						Non-impaired			Impaired						Non-impaired			Impaired
Beginning	~~W~~	584,650		~~W~~	283,382		~~W~~	501,049		~~W~~	939,640		~~W~~	935,715		~~W~~	1,282,544		~~W~~	206,525		~~W~~	328,152		~~W~~	401,148
Transfer between stages:
Transfer to 12-month expected credit losses		130,047			(122,955	)		(7,092	)		365,392			(306,167	)		(59,225	)		55,076			(53,048	)		(2,028	)
Transfer to lifetime expected credit losses		(117,019	)		237,066			(120,047	)		(273,328	)		340,311			(66,983	)		(27,518	)		34,364			(6,846	)
Impairment		(11,838	)		(166,139	)		177,977			(54,667	)		(191,344	)		246,011			(3,753	)		(23,914	)		27,667
Write-offs		—			—			(684,223	)		—			(2	)		(593,492	)		—			—			(706,501	)
Sales		(4,177	)		(1,668	)		(56,116	)		—			(499	)		(102,759	)		—			—			(136,344	)
Provision (reversal) for credit losses<br>^1,2^		23,910			101,072			824,942			(56,320	)		123,219			585,169			10,142			87,067			715,149
Others (exchange differences, etc.)		1,778			677			12,541			(7,577	)		22,331			40,854			(38	)		19			(28,579	)

Ending	~~W~~	607,351		~~W~~	331,435		~~W~~	649,031		~~W~~	913,140		~~W~~	923,564		~~W~~	1,332,119		~~W~~	240,434		~~W~~	372,640		~~W~~	263,666

138

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

11.1 Changes in allowances for credit losses of loans measured at amortized cost for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Retail									Corporate									Credit card
	12-month<br>expected<br>credit losses			Lifetime<br>expected credit losses						12-month<br>expected<br>credit losses			Lifetime<br>expected credit losses						12-month<br>expected<br>credit losses			Lifetime<br>expected credit losses
				Non-impaired			Impaired						Non-impaired			Impaired						Non-impaired			Impaired
Beginning	~~W~~	602,037		~~W~~	284,816		~~W~~	450,513		~~W~~	522,552		~~W~~	561,936		~~W~~	901,288		~~W~~	163,185		~~W~~	354,315		~~W~~	320,342
Transfer between stages:
Transfer to 12-month expected credit losses		153,560			(141,775	)		(11,785	)		123,441			(119,940	)		(3,501	)		78,420			(75,980	)		(2,440	)
Transfer to lifetime expected credit losses		(118,734	)		145,827			(27,093	)		(121,027	)		155,094			(34,067	)		(20,898	)		24,754			(3,856	)
Impairment		(9,672	)		(72,265	)		81,937			(8,864	)		(95,732	)		104,596			(2,592	)		(25,843	)		28,435
Write-offs		—			14			(657,670	)		—			9			(436,246	)		—			—			(664,027	)
Sales		(1,126	)		(631	)		(13,346	)		—			(315	)		(31,716	)		—			—			—
Provision (reversal) for credit losses<br>^1,2^		(45,014	)		67,219			679,687			429,706			435,633			779,310			(11,611	)		50,867			766,581
Others (exchange differences, etc.)		3,599			177			(1,194	)		(6,168	)		(970	)		2,880			21			39			(43,887	)

Ending	~~W~~	584,650			283,382			501,049			939,640			935,715			1,282,544			206,525			328,152			401,148

^1^	Provision for credit losses in the consolidated statements of comprehensive income also includes provision<br>(reversal) for credit losses of due from financial institutions (Note 7.3), provision (reversal) for credit losses of financial investments (Note 12.5), provision (reversal) for credit losses of unused commitments, acceptances and guarantees (Note<br>24.2), provision (reversal) for credit losses of financial guarantee contracts (Note 24.3), and provision (reversal) for credit losses of other financial assets (Note 19.2).
:---	:---
^2^	Includes ~~W~~ 317,140 million and ~~W~~ 289,139 million of collections<br>from written-off loans for the years ended December 31, 2024 and 2023, respectively.
:---	:---

The amount of financial assets that the Group wrote off during the current year but is continuing recovery activities is ~~W~~ 1,984,218 million. Also, the Group manages the written-off loans that their legal extinctive prescriptions have not been completed, and that have not been collected. The balances of those loans are ~~W~~ 11,468,928 million and ~~W~~ 10,301,118 million as of December 31, 2024 and 2023, respectively.

139

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

11.2 Changes in gross carrying amount of loans for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	12-month expected<br>credit losses			Lifetime expected credit losses
				Non-impaired			Impaired
Beginning	~~W~~	408,283,402		~~W~~	37,076,587		~~W~~	4,908,103
Transfer between stages:
Transfer to 12-month expected credit losses		29,092,806			(28,622,325	)		(470,481	)
Transfer to lifetime expected credit losses<br>(non-impaired)		(36,987,630	)		38,887,946			(1,900,316	)
Transfer to lifetime expected credit losses (impaired)		(1,489,772	)		(4,423,007	)		5,912,779
Write-offs		—			(2	)		(1,984,216	)
Sales		(3,563,046	)		(98,684	)		(1,028,807	)
Net increase (decrease)<br><br>(execution, repayment, and others)		36,418,238			(1,879,924	)		(426,431	)

Ending	~~W~~	431,753,998		~~W~~	40,940,591		~~W~~	5,010,631

(In millions of Korean won)	2023
	12-month expected<br>credit losses			Lifetime expected credit losses
				Non-impaired			Impaired
Beginning	~~W~~	399,089,134		~~W~~	34,563,171		~~W~~	3,547,610
Transfer between stages:
Transfer to 12-month expected credit losses		35,319,563			(34,990,464	)		(329,099	)
Transfer to lifetime expected credit losses<br>(non-impaired)		(42,180,074	)		42,841,909			(661,835	)
Transfer to lifetime expected credit losses (impaired)		(1,808,878	)		(2,785,016	)		4,593,894
Write-offs		—			23			(1,757,943	)
Sales		(3,256,122	)		(38,205	)		(429,916	)
Net increase (decrease)<br><br>(execution, repayment, and others)		21,119,779			(2,514,831	)		(54,608	)

Ending	~~W~~	408,283,402		~~W~~	37,076,587		~~W~~	4,908,103

140

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

12. Financial Assets at Fair Value through Profit or Loss and Financial Investments

12.1 Details of financial assets at fair value through profit or loss and financial investments as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Financial assets at fair value through profit or loss
Debt securities:
Government and public bonds	~~W~~	13,389,804		~~W~~	10,100,109
Financial bonds		11,601,280			12,793,559
Corporate bonds		7,323,299			6,677,388
Asset-backed securities		39,444			68,093
Beneficiary certificates		20,644,681			20,511,995
Derivative-linked securities		1,924,109			2,197,575
Other debt securities		18,846,019			20,309,713
Equity securities:
Stocks		3,964,021			3,498,880
Other equity securities		311,316			523,675
Loans:
Privately placed bonds		208,856			150,208
Other loans		978,907			33,518
Due from financial institutions:
Other due from financial institutions		59,838			79,811
Others		158,519			93,743

	~~W~~	79,450,093		~~W~~	77,038,267

Financial investments
Financial assets at fair value through other comprehensive income
Debt securities:
Government and public bonds	~~W~~	38,108,213		~~W~~	33,455,476
Financial bonds		26,091,249			20,898,723
Corporate bonds		22,059,099			22,492,869
Asset-backed securities		2,366,140			1,963,242
Other debt securities		111,295			116,127
Equity securities:
Stocks		1,643,898			1,951,150
Equity investments		9,410			9,560
Other equity securities		2,059,980			809,943
Loans:
Privately placed bonds		1,446,628			801,050

		93,895,912			82,498,140

Financial assets at amortized cost
Debt securities:
Government and public bonds		6,029,059			6,507,625
Financial bonds		12,761,712			14,257,747
Corporate bonds		8,946,009			9,368,943
Asset-backed securities		9,321,199			9,418,498
Other debt securities		72,969			167,848
Less: Allowances for credit losses		(17,396	)		(19,272	)

		37,113,552			39,701,389

	~~W~~	131,009,464		~~W~~	122,199,529

141

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

12.2 Dividend income from equity securities designated at fair value through other comprehensive income for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024				2023
		From the<br>equity securities<br>derecognized		From the<br>equity<br>securities<br>held		From the<br>equity securities<br>derecognized		From the<br>equity securities<br>held
Equity securities measured at fair value through other comprehensive income:
Stocks	Listed	~~W~~	—	~~W~~	3,597		—	~~W~~	1,999
	Unlisted		—		19,724		—		14,498
Equity investments			—		—		—		110
Other equity securities			699		62,505		2,774		28,388

		~~W~~	699	~~W~~	85,826	~~W~~	2,774	~~W~~	44,995

12.3 Derecognized equity securities measured at fair value through other comprehensive income for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024					2023
		Disposal<br>price		Accumulated<br>other<br>comprehensive<br>income (loss)<br>as of disposal<br>date			Disposal<br>price		Accumulated<br>other<br>comprehensive<br>income as of<br>disposal date
Equity securities measured at fair value through other comprehensive income:
Stocks	Listed	~~W~~	8,054	~~W~~	(5,586	)	~~W~~	36,877	~~W~~	36,739
	Unlisted		—		—			—		(758	)
Other equity securities			131,788		1,937			71,470		(3,680	)

		~~W~~	139,842	~~W~~	(3,649	)	~~W~~	108,347	~~W~~	32,301

142

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

12.4 Provision (reversal) for credit losses of financial investments for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Provision				Reversal				Total
Securities measured at fair value through other comprehensive income		~~W~~	6,913			~~W~~	(6,433	)		~~W~~	480
Loans measured at fair value through other comprehensive income			1,039				(241	)			798
Securities measured at amortized cost			2,300				(4,267	)			(1,967	)

		~~W~~	10,252			~~W~~	(10,941	)		~~W~~	(689	)

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Provision				Reversal				Total
Securities measured at fair value through other comprehensive income		~~W~~	17,104			~~W~~	(2,547	)		~~W~~	14,557
Loans measured at fair value through other comprehensive income			920				(3	)			917
Securities measured at amortized cost			15,184				(1,475	)			13,709

		~~W~~	33,208			~~W~~	(4,025	)		~~W~~	29,183

12.5 Changes in allowances for credit losses of financial investments for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		12-month expected<br>credit losses				Lifetime expected credit losses
						Non-impaired				Impaired
Beginning		~~W~~	44,465			~~W~~	—			~~W~~	77
Transfer between stages:
Transfer to 12-month expected credit losses			—				—				—
Transfer to lifetime expected credit losses			—				—				—
Sales			(2,065	)			—				—
Provision (reversal) for credit losses			(694	)			—				5
Others (exchange differences, etc.)			1,325				—				—

Ending		~~W~~	43,031			~~W~~	—			~~W~~	82

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		12-month expected<br>credit losses				Lifetime expected credit losses
						Non-impaired				Impaired
Beginning		~~W~~	16,343			~~W~~	270			~~W~~	76
Transfer between stages:
Transfer to 12-month expected credit losses			—				—				—
Transfer to lifetime expected credit losses			—				—				—
Sales			(532	)			(270	)			—
Provision (reversal) for credit losses			29,182				—				1
Others (exchange differences, etc.)			(528	)			—				—

Ending		~~W~~	44,465			~~W~~	—			~~W~~	77

143

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13. Investments in Associates and Joint Ventures

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Ownership<br>(%)		Acquisition<br>cost		Share of<br>net asset<br>amount			Carrying<br>amount		Industry	Location
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund ^2^		66.66	~~W~~	3,001	~~W~~	5,203		~~W~~	5,203	Investment finance	Korea
Balhae Infrastructure Company ^1^		16.37		138,678		139,015			139,015	Investment finance	Korea
Aju Good Technology Venture Fund		38.46		343		9,313			9,313	Investment finance	Korea
Incheon Bridge Co., Ltd. ^1^		14.99		9,158		(535	)		—	Operation<br>of highways and<br>related facilities	Korea
Big Dipper Co., Ltd. ^1^		17.77		440		32			32	Research,<br>consulting, and big<br>data	Korea
Food Factory Co., Ltd.		22.22		1,000		684			1,541	Farm product<br>distribution	Korea
KBSP Private Equity Fund No.4 ^1^		14.95		6,100		3,995			3,995	Investment finance	Korea
Korea Credit Bureau Co., Ltd. ^1^		9.00		4,500		7,948			7,948	Credit information	Korea
KB Social Impact Investment Fund		30.00		4,500		3,514			3,514	Investment finance	Korea
KB-Solidus Global Healthcare Fund ^2^		43.33		17,217		16,829			17,525	Investment finance	Korea
POSCO-KB Shipbuilding Fund		31.25		1,826		3,223			3,223	Investment finance	Korea
KB-TS Technology Venture Private Equity Fund ^2^		56.00		6,608		11,129			11,129	Investment finance	Korea
KB-SJ Tourism Venture Fund ^1^		18.52		568		1,781			1,781	Investment finance	Korea
UNION Media Commerce Fund		28.99		1,000		946			946	Investment finance	Korea
KB-Stonebridge Secondary Private Equity Fund ^1^		14.56		16,171		16,867			16,867	Investment finance	Korea
KB SPROTT Renewable Private Equity Fund<br>No.1 ^2^		37.69		9,216		5,764			7,640	Investment finance	Korea
KB-UTC Inno-Tech Venture Fund ^2^		44.29		18,849		11,730			15,482	Investment finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,423			9,423	Investment finance	Korea
All Together Korea Fund No.2 ^4^		99.99		10,000		10,847			10,847	Asset management	Korea
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund ^1^		12.00		10,758		16,043			16,043	Asset management	Korea
2020 KB Fintech Renaissance Fund ^1^		5.05		550		1,077			1,077	Investment finance	Korea

144

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2024
	Ownership<br>(%)	Acquisition<br>cost		Share of<br>net asset<br>amount		Carrying<br>amount		Industry	Location
FineKB Private Equity Fund No.1	25.00	~~W~~	15,940	~~W~~	13,712	~~W~~	13,712	Investment<br>finance	Korea
G payment Joint Stock Company	43.84		7,445		1,504		2,521	Investment<br>advisory<br>and<br>securities<br>trading	Vietnam
KB-GeneN Medical Venture Fund No.1	22.52		2,000		1,880		1,880	Investment<br>finance	Korea
DA-Friend New Technology Investment Fund No.2	27.40		988		906		906	Investment<br>finance	Korea
Cornerstone Pentastone Fund No.4	21.05		818		764		764	Investment<br>finance	Korea
Star-Lord General Investors Private Real Estate Investment Company No.10	26.24		46,700		24,452		—	Real estate<br>investment	Korea
KB-Badgers Future Mobility ESG Fund No.1	40.91		18,076		13,109		13,109	Investment<br>finance	Korea
JS Private Equity Fund No.3	20.48		945		742		742	Investment<br>finance	Korea
Mirae Asset Mobility Investment Fund No.1	22.99		2,000		1,918		1,918	Investment<br>finance	Korea
KB-FT Green Growth 1st Technology Investment Association ^1^	10.34		2,000		1,889		1,889	Investment<br>finance	Korea
Glenwood Credit Private Equity Fund No.2	29.89		42,000		44,380		44,380	Investment<br>finance	Korea
THE CHAEUL FUND NO.1	31.25		1,000		954		954	Investment<br>finance	Korea
Smart Korea KB Future9-Sejong Venture Fund	38.46		2,366		2,325		2,325	Investment<br>finance	Korea
KB-KTB Technology Venture Fund ^2^	50.90		28,001		25,446		25,448	Investment<br>finance	Korea
KB-SOLIDUS Healthcare Investment Fund ^2^	90.40		65,810		62,383		62,282	Investment<br>finance	Korea
Paramark KB Fund No.1 ^1^	17.34		23,671		23,219		23,219	Investment<br>finance	Korea
KB Co-Investment Private Equity Fund No.1 ^1^	7.12		15,509		15,968		15,968	Investment<br>finance	Korea
POSITIVE Sobujang Venture Fund No.1	44.00		879		869		869	Investment<br>finance	Korea
History 2022 Fintech Fund	34.80		2,000		1,896		1,896	Investment<br>finance	Korea
KB-NP Green ESG New Technology Venture Capital Fund	29.85		40,249		38,592		38,592	Investment<br>finance	Korea

145

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2024
	Ownership<br>(%)	Acquisition<br>cost		Share of<br>net asset<br>amount		Carrying<br>amount		Industry	Location
TMAP Mobility Co., Ltd. ^1^	8.25	~~W~~	199,981	~~W~~	52,287	~~W~~	182,000	Application<br>software<br>development<br>and supply	Korea
Nextrade Co., Ltd. ^1^	6.64		9,700		8,180		8,180	Investment<br>finance	Korea
Shinhan Global Mobility Fund No.1	24.56		1,345		1,294		1,294	Investment<br>finance	Korea
SKB Next Unicorn K-Battery Fund No.1	24.84		1,908		1,850		1,850	Investment<br>finance	Korea
MW-Pyco NewWave New Technology Investment Fund 4th ^2^	51.30		2,000		1,922		1,922	Investment<br>finance	Korea
Bitgoeul Cheomdan Green 1st Co., Ltd. ^1^	19.00		342		241		241	Electricity	Korea
KB-SUSUNG 1st Investment Fund ^1^	15.00		1,614		2,188		2,188	Investment<br>finance	Korea
Shinhan-Eco Venture Fund 2nd	20.00		2,050		1,973		1,973	Investment<br>finance	Korea
Leading H2O Fund 1	48.20		1,500		1,455		1,455	Investment<br>finance	Korea
2023 JB Newtech No.2 Fund	25.70		1,406		1,705		1,705	Investment<br>finance	Korea
U-KB Credit No.1S Private Equity	33.33		7,300		8,006		8,006	Investment<br>finance	Korea
KB-BridgePole Venture Investment Fund No.2 ^1^	14.29		1,500		1,463		1,463	Investment<br>finance	Korea
Sirius Silicon Valley I New Technology Fund	23.81		500		474		474	Investment<br>finance	Korea
FineKB Private Equity Fund No.2 ^1^	0.85		250		248		248	Investment<br>finance	Korea
Timefolio Athleisure Investment Fund	48.19		4,000		3,923		3,923	Investment<br>finance	Korea
VIG Private Equity Fund V-3	39.60		1,636		4,126		1,636	Investment<br>finance	Korea
COMPA Global Scale-Up Fund No.3	30.00		1,000		980		980	Investment<br>finance	Korea
AKK Robotech Valueup New Technology Investment Fund ^1^	5.00		1,000		1,127		1,127	Investment<br>finance	Korea
YG MCE PROJECT NO.1 Fund	27.80		1,500		1,477		1,477	Investment<br>finance	Korea
HI YG Win-win Fund No.2	20.62		2,000		1,973		1,973	Investment<br>finance	Korea
KB-CJ Venture Fund 1st	40.00		1,800		1,733		1,733	Investment<br>finance	Korea

146

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2024
	Ownership<br>(%)		Acquisition<br>cost		Share of net<br>asset<br>amount		Carrying<br>amount		Industry	Location
Elohim-Bilanx aerospace No.1 Fund		20.94	~~W~~	2,000	~~W~~	1,978	~~W~~	1,978	Investment<br>finance		Korea
KB-SUSUNG 2st Investment Fund ^1^		12.66		2,000		1,981		1,981	Investment<br>finance		Korea
IMM global Secondary 1-1 Equity Private Fund		41.65		2,819		3,754		3,754	Investment<br>finance		Korea
LIB Material Investment Fund		25.49		4,098		1,475		1,475	Investment<br>finance		Korea
NOVORSEC-SJG Consumer Secondary Fund		24.30		1,700		1,688		1,688	Investment<br>finance		Korea
Allra Fintech Corp. ^1^		15.77		8,532		1,638		8,684	System<br>software<br>development<br>and supply		Korea
Reboot Private Equity Fund		21.50		7,000		6,946		6,946	Investment<br>finance		Korea
KB-SBI Global Strategic Capital Fund		36.39		11,299		10,782		10,784	Investment<br>finance		Korea
KB-Cyrus Tourism Venture Fund ^1^		18.52		1,000		977		977	Investment<br>finance		Korea
IBKS Design Fund		46.51		2,000		1,996		1,996	Investment<br>finance		Korea
NICE DATA INTELLIGENCE VENTURE FUND		23.53		1,000		998		998	Investment<br>finance		Korea
Pectus Hanhwa Fund 2		29.41		2,000		1,950		1,950	Investment<br>finance		Korea
KB-IMM New Star Real Estate Private Fund I ^2^		61.67		31,563		33,074		33,074	Investment<br>finance		Korea
Korea Environment Technology Co.,Ltd.		24.31		107,428		43,156		107,428	Non-designated<br>waste treatment		Korea
Others				2,841		2,367		1,911

				1,020,492		765,121		947,390

147

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Ownership<br>(%)		Acquisition<br>cost		Share of net<br>asset<br>amount			Carrying<br>amount		Industry	Location
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund ^2^		66.66	~~W~~	3,601	~~W~~	6,063		~~W~~	6,063	Investment<br>finance	Korea
Balhae Infrastructure Company ^1^		12.61		95,437		93,803			93,766	Investment<br>finance	Korea
Aju Good Technology Venture Fund		38.46		343		14,296			14,296	Investment<br>finance	Korea
Incheon Bridge Co., Ltd. ^1^		14.99		9,158		(12,640	)		—	Operation<br>of highways<br>and related<br>facilities	Korea
Big Dipper Co., Ltd. ^1^		17.77		440		94			94	Research,<br>consulting,<br>and big data	Korea
Food Factory Co., Ltd. ^3^		22.22		1,000		654			1,483	Farm<br>product<br>distribution	Korea
KBSP Private Equity Fund No.4 ^1^		14.95		6,100		2,494			2,494	Investment<br>finance	Korea
Korea Credit Bureau Co., Ltd. ^1^		9.00		4,500		5,617			5,617	Credit<br>information	Korea
KB Social Impact Investment Fund		30.00		4,500		4,853			4,853	Investment<br>finance	Korea
KB-Solidus Global Healthcare Fund ^2^		43.33		17,217		17,789			18,485	Investment<br>finance	Korea
POSCO-KB Shipbuilding Fund		31.25		1,826		4,738			4,738	Investment<br>finance	Korea
KB-TS Technology Venture Private Equity Fund ^2^		56.00		9,072		12,372			12,372	Investment<br>finance	Korea
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund ^2^		42.55		—		6,145			5,395	Investment<br>finance	Korea
KB-SJ Tourism Venture Fund ^1^		18.52		4,599		3,242			3,242	Investment<br>finance	Korea
UNION Media Commerce Fund		28.99		1,000		952			952	Investment<br>finance	Korea
KB-Stonebridge Secondary Private Equity Fund ^1^		14.56		16,837		18,885			18,885	Investment<br>finance	Korea
KB SPROTT Renewable Private Equity Fund No.1<br>^2^		37.69		17,566		15,946			15,910	Investment<br>finance	Korea
KB-UTC Inno-Tech Venture Fund ^2^		44.29		19,124		15,680			17,977	Investment<br>finance	Korea
WJ Private Equity Fund No.1		26.95		10,000		9,482			9,482	Investment<br>finance	Korea
All Together Korea Fund No.2 ^4^		99.99		10,000		10,541			10,541	Asset<br>management	Korea
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund ^1^		12.00		9,572		17,810			17,810	Asset<br>management	Korea

148

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	December 31, 2023
	Ownership<br>(%)	Acquisition<br>cost		Share of net<br>asset<br>amount		Carrying<br>amount		Industry	Location
2020 KB Fintech Renaissance Fund ^1^	5.05	~~W~~	550	~~W~~	1,041	~~W~~	1,041	Investment<br>finance	Korea
KB Material and Parts No.1 PEF ^1^	14.47		3,400		3,300		3,300	Investment<br>finance	Korea
FineKB Private Equity Fund No.1	25.00		10,650		7,697		7,697	Investment<br>finance	Korea
G payment Joint Stock Company	43.84		8,950		3,319		8,966	Investment<br>advisory<br>and<br>securities<br>trading	Vietnam
KB-GeneN Medical Venture Fund No.1	22.52		2,000		1,923		1,923	Investment<br>finance	Korea
KB-BridgePole Venture Investment Fund ^1^	6.30		136		863		863	Investment<br>finance	Korea
KB-Kyobo New Mobility Power Fund	28.57		3,000		2,622		2,622	Investment<br>finance	Korea
DA-Friend New Technology Investment Fund No.2	27.40		988		928		928	Investment<br>finance	Korea
Cornerstone Pentastone Fund No.4	21.05		818		775		775	Investment<br>finance	Korea
Star-Lord General Investors Private Real Estate Investment Company No.10	26.24		46,700		27,213		—	Real estate<br>investment	Korea
KB-Badgers Future Mobility ESG Fund No.1	40.91		7,675		6,105		6,105	Investment<br>finance	Korea
JS Private Equity Fund No.3	20.48		1,700		1,862		1,862	Investment<br>finance	Korea
Mirae Asset Mobility Investment Fund No.1	22.99		2,000		1,949		1,949	Investment<br>finance	Korea
KB-FT Green Growth 1st Technology Investment Association ^1^	10.34		2,000		1,928		1,928	Investment<br>finance	Korea
Glenwood Credit Private Equity Fund No.2	29.89		42,000		43,922		43,922	Investment<br>finance	Korea
THE CHAEUL FUND NO.1	31.25		1,000		972		972	Investment<br>finance	Korea
Smart Korea KB Future9-Sejong Venture Fund	38.46		2,366		2,398		2,398	Investment<br>finance	Korea
KB-KTB Technology Venture Fund ^2^	50.90		22,401		21,391		21,391	Investment<br>finance	Korea
KB-SOLIDUS Healthcare Investment Fund ^2^	90.40		42,540		41,326		40,172	Investment<br>finance	Korea
Paramark KB Fund No.1 ^1^	17.34		15,541		13,645		13,645	Investment<br>finance	Korea
KB Co-Investment Private Equity Fund No.1 ^1^	7.12		9,476		9,477		9,376	Investment<br>finance	Korea
POSITIVE Sobujang Venture Fund No.1	44.00		2,000		1,965		1,965	Investment<br>finance	Korea

149

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023
		Ownership<br>(%)		Acquisition<br>cost		Share of net<br>asset<br>amount		Carrying<br>amount		Industry		Location
History 2022 Fintech Fund			34.80	~~W~~	2,000	~~W~~	1,938	~~W~~	1,938		Investment<br>finance		Korea
KB-NP Green ESG New Technology Venture Capital Fund			29.85		20,449		19,429		19,429		Investment<br>finance		Korea
TMAP Mobility Co., Ltd. ^1^			8.25		199,981		51,866		183,572		Application<br>software<br>development<br>and supply		Korea
Nextrade Co., Ltd. ^1^			6.64		9,700		9,225		9,225		Investment<br>finance		Korea
Shinhan Global Mobility Fund No.1			24.56		1,345		1,324		1,324		Investment<br>finance		Korea
SKB Next Unicorn K-Battery Fund No.1			24.84		1,908		1,890		1,890		Investment<br>finance		Korea
Lakewood-AVES Fund No.1			39.06		2,000		1,977		1,977		Investment<br>finance		Korea
MW-Pyco NewWave New Technology Investment Fund 4th ^2^			51.30		2,000		1,965		1,965		Investment<br>finance		Korea
Bitgoeul Cheomdan Green 1st Co., Ltd. ^1^			19.00		190		165		165		Electricity		Korea
KB-SUSUNG 1st Investment Fund ^1^			15.00		3,000		2,953		2,953		Investment<br>finance		Korea
KY Global Cell & Gene Private Equity Fund 2nd			20.43		27,034		26,969		26,969		Investment<br>finance		Korea
Friend 55 New Technology Business Investment Fund ^2^			53.30		1,200		1,182		1,182		Investment<br>finance		Korea
DSIP-Pharos Bioenergy Fund			34.10		4,000		16,458		16,458		Investment<br>finance		Korea
Shinhan-Eco Venture Fund 2nd			20.00		1,825		1,800		1,800		Investment<br>finance		Korea
Leading H2O Fund 1			48.20		1,500		1,489		1,489		Investment<br>finance		Korea
2023 JB Newtech No.2 Fund			25.70		1,800		1,786		1,786		Investment<br>finance		Korea
U-KB Credit No.1S Private Equity			33.33		6,900		6,850		6,850		Investment<br>finance		Korea
KB-BridgePole Venture Investment Fund No.2 ^1^			14.29		1,500		1,494		1,494		Investment<br>finance		Korea
Sirius Silicon Valley I New Technology Fund			20.43		500		485		485		Investment<br>finance		Korea
Others					1,978		1,731		1,016

				~~W~~	760,593	~~W~~	598,413	~~W~~	722,222

^1^	As of December 31, 2024 and 2023, the Group can exercise significant influence on the decision-making<br>processes of the associate’s financial and business policies through participation in governing bodies.
:---	:---
^2^	In order to direct relevant activities, it is necessary to obtain the consent of the two co-operative members; the Group has applied the equity method as the Group cannot control the investee by itself.
:---	:---

150

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.1 Details of investments in associates and joint ventures as of December 31, 2024 and 2023, are as follows: (cont’d)

^3^	The ownership of Food Factory Co., Ltd. would be 30.00% as of December 31, 2023, considering the potential<br>voting rights of convertible bonds.
^4^	As of December 31, 2024 and 2023, the Group participates in the investment management committee but cannot<br>exercise control.
:---	:---

In accordance with Korean IFRS No.1028 Investments in Associates and Joint Ventures, the Group elected an exemption from applying the equity method for 64 companies including Banksalad Co., Ltd. and classified them as financial assets at fair value through profit or loss.

Although the Group holds 20% or more of the ownership, investment trusts with limited influence on related activities according to trust contracts, and companies with limited influence on related activities due to bankruptcy and corporate rehabilitation proceedings are excluded from associates.

151

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.2 Condensed financial information, adjustments to the carrying amount, and dividend from major investments in associates and joint ventures as of and for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity			Share of<br>net asset<br>amount			Unrealized<br>gains (losses)<br>and others		Consolidated<br>carrying<br>amount
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	~~W~~	7,804	~~W~~	—	~~W~~	4,500	~~W~~	7,804		~~W~~	5,203		~~W~~	—	~~W~~	5,203
Balhae Infrastructure Company		971,597		122,393		882,264		849,204			139,015			—		139,015
Aju Good Technology Venture Fund		24,214		—		900		24,214			9,313			—		9,313
Incheon Bridge Co., Ltd.		517,004		520,577		61,096		(3,573	)		(535	)		535		—
Big Dipper Co., Ltd.		1,527		1,345		495		182			32			—		32
Food Factory Co., Ltd.		8,330		5,253		450		3,077			684			857		1,541
KBSP Private Equity Fund No.4		22,631		560		33,700		22,071			3,995			—		3,995
Korea Credit Bureau Co., Ltd.		150,657		62,343		10,000		88,314			7,948			—		7,948
KB Social Impact Investment Fund		11,965		253		15,000		11,712			3,514			—		3,514
KB-Solidus Global Healthcare Fund		38,836		—		3,000		38,836			16,829			696		17,525
POSCO-KB Shipbuilding Fund		10,316		1		5,840		10,315			3,223			—		3,223
KB-TS Technology Venture Private Equity Fund		26,460		6,587		11,800		19,873			11,129			—		11,129
KB-SJ Tourism Venture Fund		9,893		276		3,078		9,617			1,781			—		1,781
UNION Media Commerce Fund		3,318		56		3,450		3,262			946			—		946
KB-Stonebridge Secondary Private Equity Fund		115,993		193		111,020		115,800			16,867			—		16,867
KB SPROTT Renewable Private Equity Fund No.1		24,548		251		29,313		24,297			5,764			1,876		7,640
KB-UTC Inno-Tech Venture Fund		26,935		448		42,418		26,487			11,730			3,752		15,482
WJ Private Equity Fund No.1		35,435		475		37,100		34,960			9,423			—		9,423
All Together Korea Fund No.2		10,849		1		10,001		10,848			10,847			—		10,847
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		123,434		408		82,500		123,026			16,043			—		16,043
2020 KB Fintech Renaissance Fund		21,377		38		10,900		21,339			1,077			—		1,077

152

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2024 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity		Share of<br>net asset<br>amount		Unrealized<br>gains (losses)<br>and others			Consolidated<br>carrying<br>amount
FineKB Private Equity Fund No.1	~~W~~	55,144	~~W~~	294	~~W~~	63,760	~~W~~	54,850	~~W~~	13,712	~~W~~	—		~~W~~	13,712
G payment Joint Stock Company		10,253		2,994		2,950		7,259		1,504		1,017			2,521
KB-GeneN Medical Venture Fund No.1		8,526		178		8,880		8,348		1,880		—			1,880
DA-Friend New Technology Investment Fund No.2		3,500		151		3,650		3,349		906		—			906
Cornerstone Pentastone Fund No.4		3,553		3		3,800		3,550		764		—			764
Star-Lord General Investors Private Real Estate Investment Company No.10		514,425		421,241		178,000		93,184		24,452		(24,452	)		—
KB-Badgers Future Mobility ESG Fund No.1		32,051		—		44,198		32,051		13,109		—			13,109
JS Private Equity Fund No.3		3,625		—		4,614		3,625		742		—			742
Mirae Asset Mobility Investment Fund No.1		8,417		75		8,700		8,342		1,918		—			1,918
KB-FT Green Growth 1st Technology Investment<br>Association		18,271		—		19,345		18,271		1,889		—			1,889
Glenwood Credit Private Equity Fund No.2		148,970		508		140,500		148,462		44,380		—			44,380
THE CHAEUL FUND NO.1		3,053		—		3,200		3,053		954		—			954
Smart Korea KB Future9-Sejong Venture Fund		6,044		—		6,152		6,044		2,325		—			2,325
KB-KTB Technology Venture Fund		50,673		687		55,000		49,986		25,446		2			25,448
KB-SOLIDUS Healthcare Investment Fund		69,004		3		72,930		69,001		62,383		(101	)		62,282
Paramark KB Fund No.1		133,926		28		136,324		133,898		23,219		—			23,219

153

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2024 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity		Share of<br>net asset<br>amount		Unrealized<br>gains (losses)<br>and others			Consolidated<br>carrying<br>amount
KB Co-Investment Private Equity Fund No.1	~~W~~	224,659	~~W~~	417	~~W~~	217,807	~~W~~	224,242	~~W~~	15,968	~~W~~	—		~~W~~	15,968
POSITIVE Sobujang Venture Fund No.1		2,003		26		2,000		1,977		869		—			869
History 2022 Fintech Fund		5,507		55		5,750		5,452		1,896		—			1,896
KB-NP Green ESG New Technology Venture Capital<br>Fund		133,929		775		138,872		133,154		38,592		—			38,592
TMAP Mobility Co., Ltd.		797,292		163,070		8,681		634,222		52,287		129,713			182,000
Nextrade Co., Ltd.		125,776		2,563		146,100		123,213		8,180		—			8,180
Shinhan Global Mobility Fund No.1		5,320		51		5,700		5,269		1,294		—			1,294
SKB Next Unicorn K-Battery Fund No.1		7,446		—		7,700		7,446		1,850		—			1,850
MW-Pyco NewWave New Technology Investment Fund 4th		3,747		—		3,900		3,747		1,922		—			1,922
Bitgoeul Cheomdan Green 1st Co., Ltd.		1,274		5		1,800		1,269		241		—			241
KB-SUSUNG 1st Investment Fund		14,590		—		10,760		14,590		2,188		—			2,188
Shinhan-Eco Venture Fund 2nd		9,868		3		10,250		9,865		1,973		—			1,973
Leading H2O Fund 1		3,018		1		3,110		3,017		1,455		—			1,455
2023 JB Newtech No.2 Fund		6,634		3		5,466		6,631		1,705		—			1,705
U-KB Credit No.1S Private Equity		24,988		974		21,900		24,014		8,006		—			8,006
KB-BridgePole Venture Investment Fund No.2		10,244		—		10,500		10,244		1,463		—			1,463
Sirius Silicon Valley I New Technology Fund		1,994		1		2,100		1,993		474		—			474
FineKB Private Equity Fund No.2		29,324		78		29,501		29,246		248		—			248
Timefolio Athleisure Investment Fund		8,140		—		8,300		8,140		3,923		—			3,923
VIG Private Equity Fund V-3		4,131		5		4,131		4,126		4,126		(2,490	)		1,636

154

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2024 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity		Share of<br>net asset<br>amount		Unrealized<br>gains (losses)<br>and others		Consolidated<br>carrying<br>amount
COMPA Global Scale-Up Fund No.3	~~W~~	3,266	~~W~~	—	~~W~~	3,334	~~W~~	3,266	~~W~~	980	~~W~~	—	~~W~~	980
AKK Robotech Valueup New Technology Investment Fund		22,651		6		20,100		22,645		1,127		—		1,127
YG MCE PROJECT NO.1 Fund		5,317		—		5,400		5,317		1,477		—		1,477
HI YG Win-win Fund No.2		9,568		—		9,700		9,568		1,973		—		1,973
KB-CJ Venture Fund 1st		4,333		1		4,500		4,332		1,733		—		1,733
Elohim-Bilanx aerospace No.1 Fund		9,451		5		9,550		9,446		1,978		—		1,978
KB-SUSUNG 2st Investment Fund		15,649		—		15,800		15,649		1,981		—		1,981
IMM global Secondary 1-1 Equity Private Fund		9,503		490		6,769		9,013		3,754		—		3,754
LIB Material Investment Fund		5,787		—		31,387		5,787		1,475		—		1,475
NOVORSEC-SJG Consumer Secondary Fund		6,949		—		7,000		6,949		1,688		—		1,688
Allra Fintech Corp.		185,699		175,310		174		10,389		1,638		7,046		8,684
Reboot Private Equity Fund		32,376		127		32,500		32,249		6,946		—		6,946
KB-SBI Global Strategic Capital Fund		30,205		575		31,046		29,630		10,782		2		10,784
KB-Cyrus Tourism Venture Fund		5,277		—		5,400		5,277		977		—		977
IBKS Design Fund		4,292		—		4,300		4,292		1,996		—		1,996
NICE DATA INTELLIGENCE VENTURE FUND		4,241		—		4,250		4,241		998		—		998
Pectus Hanhwa Fund 2		6,631		—		6,800		6,631		1,950		—		1,950
KB-IMM New Star Real Estate Private Fund I		53,736		110		51,177		53,626		33,074		—		33,074
Korea Environment Technology Co.,Ltd.		232,104		54,581		25,000		177,523		43,156		64,272		107,428

155

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	2024 *
	Operating<br>revenue		Net profit<br>(loss)			Other<br>comprehensive<br>income (loss)			Total<br>comprehensive<br>income (loss)			Dividends
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	~~W~~	398	~~W~~	(541	)	~~W~~	—		~~W~~	(541	)	~~W~~	—
Balhae Infrastructure Company		63,727		70,486			—			70,486			1,541
Aju Good Technology Venture Fund		3,396		(7,447	)		—			(7,447	)		2,120
Incheon Bridge Co., Ltd.		171,687		66,701			—			66,701			—
Big Dipper Co., Ltd.		251		(346	)		—			(346	)		—
Food Factory Co., Ltd.		8,804		428			—			428			—
KBSP Private Equity Fund No.4		8,363		8,143			—			8,143			—
Korea Credit Bureau Co., Ltd.		175,338		26,589			—			26,589			90
KB Social Impact Investment Fund		476		(4,465	)		—			(4,465	)		—
KB-Solidus Global Healthcare Fund		11,049		(114	)		—			(114	)		910
POSCO-KB Shipbuilding Fund		944		(4,848	)		—			(4,848	)		—
KB-TS Technology Venture Private Equity Fund		1,832		946			—			946			—
KB-SJ Tourism Venture Fund		26,720		22,068			—			22,068			1,517
UNION Media Commerce Fund		—		(23	)		—			(23	)		—
KB-Stonebridge Secondary Private Equity Fund		6,646		(8,923	)		—			(8,923	)		52
KB SPROTT Renewable Private Equity Fund No.1		1		(681	)		—			(681	)		—
KB-UTC Inno-Tech Venture Fund		963		(2,620	)		(561	)		(3,181	)		—
WJ Private Equity Fund No.1		425		(222	)		—			(222	)		—
All Together Korea Fund No.2		313		307			—			307			—
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		24,534		(28,117	)		—			(28,117	)		—
2020 KB Fintech Renaissance Fund		868		714			—			714			—
FineKB Private Equity Fund No.1		4,809		3,028			—			3,028			32
G payment Joint Stock Company		1,411		(944	)		—			(944	)		—
KB-GeneN Medical Venture Fund No.1		—		(187	)		—			(187	)		—
DA-Friend New Technology Investment Fund No.2		—		(79	)		—			(79	)		—
Cornerstone Pentastone Fund No.4		—		(50	)		—			(50	)		—
Star-Lord General Investors Private Real Estate Investment Company No.10		18,279		(4,135	)		—			(4,135	)		—
KB-Badgers Future Mobility ESG Fund No.1		954		(8,304	)		—			(8,304	)		2
JS Private Equity Fund No.3		309		(1,778	)		—			(1,778	)		—
Mirae Asset Mobility Investment Fund No.1		14		(135	)		—			(135	)		—
KB-FT Green Growth 1st Technology Investment<br>Association		12		(379	)		—			(379	)		—
Glenwood Credit Private Equity Fund No.2		10,374		9,632			—			9,632			2,430
THE CHAEUL FUND NO.1		1		(58	)		—			(58	)		—
Smart Korea KB Future9-Sejong Venture Fund		37		(190	)		—			(190	)		—
KB-KTB Technology Venture Fund		693		(3,031	)		—			(3,031	)		—
KB-SOLIDUS Healthcare Investment Fund		40		(1,284	)		—			(1,284	)		—
Paramark KB Fund No.1		12,737		8,329			—			8,329			—

156

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	2024 *
	Operating<br>revenue		Net profit<br>(loss)			Other<br>comprehensive<br>income (loss)		Total<br>comprehensive<br>income (loss)			Dividends
KB Co-Investment Private Equity Fund No.1	~~W~~	24,679	~~W~~	23,302		~~W~~	—	~~W~~	23,302		~~W~~	—
POSITIVE Sobujang Venture Fund No.1		5,742		4,900			—		4,900			2,129
History 2022 Fintech Fund		1		(120	)		—		(120	)		—
KB-NP Green ESG New Technology Venture Capital<br>Fund		767		(2,197	)		—		(2,197	)		—
TMAP Mobility Co., Ltd.		321,542		(58,287	)		—		(58,287	)		—
Nextrade Co., Ltd.		3,856		(15,737	)		—		(15,737	)		—
Shinhan Global Mobility Fund No.1		—		(120	)		—		(120	)		—
SKB Next Unicorn K-Battery Fund No.1		—		(162	)		—		(162	)		—
MW-Pyco NewWave New Technology Investment Fund<br>4th		1		(84	)		—		(84	)		—
Bitgoeul Cheomdan Green 1st Co., Ltd.		1		(396	)		—		(396	)		—
KB-SUSUNG 1st Investment Fund		5,164		4,140			—		4,140			—
Shinhan-Eco Venture Fund 2nd		—		(260	)		—		(260	)		—
Leading H2O Fund 1		3		(71	)		—		(71	)		—
2023 JB Newtech No.2 Fund		2,533		1,804			—		1,804			150
U-KB Credit No.1S Private Equity		4,487		2,263			—		2,263			—
KB-BridgePole Venture Investment Fund No.2		4		(216	)		—		(216	)		—
Sirius Silicon Valley I New Technology Fund		10		(45	)		—		(45	)		—
FineKB Private Equity Fund No.2		4		(255	)		—		(255	)		—
Timefolio Athleisure Investment Fund		6		(160	)		—		(160	)		—
VIG Private Equity Fund V-3		—		(5	)		—		(5	)		—
COMPA Global Scale-Up Fund No.3		9		(68	)		—		(68	)		—
AKK Robotech Valueup New Technology Investment Fund		2,976		2,545			—		2,545			—
YG MCE PROJECT NO.1 Fund		2		(83	)		—		(83	)		—
HI YG Win-win Fund No.2		4		(132	)		—		(132	)		—
KB-CJ Venture Fund 1st		34		(168	)		—		(168	)		—
Elohim-Bilanx aerospace No.1 Fund		2		(104	)		—		(104	)		—
KB-SUSUNG 2st Investment Fund		43		(151	)		—		(151	)		—
IMM global Secondary 1-1 Equity Private Fund		2,318		2,245			—		2,245			—
LIB Material Investment Fund		—		(19,096	)		—		(19,096	)		—
NOVORSEC-SJG Consumer Secondary Fund		7		(51	)		—		(51	)		—
Allra Fintech Corp.		6,475		966			—		966			—
Reboot Private Equity Fund		1		(251	)		—		(251	)		—
KB-SBI Global Strategic Capital Fund		2		(1,416	)		—		(1,416	)		—
KB-Cyrus Tourism Venture Fund		5		(123	)		—		(123	)		—
IBKS Design Fund		—		(8	)		—		(8	)		—
NICE DATA INTTELIGENCE VENTURE FUND		—		(9	)		—		(9	)		—
Pectus Hanhwa Fund 2		—		(169	)		—		(169	)		—
KB-IMM New Star Real Estate Private Fund I		2,681		2,449			—		2,449			—
Korea Environment Technology Co.,Ltd.		63,024		21,181			—		21,181			—

157

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2023 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity			Share of<br>net asset<br>amount			Unrealized<br>gains (losses)<br>and others			Consolidated<br>carrying<br>amount
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	~~W~~	9,095	~~W~~	1	~~W~~	5,400	~~W~~	9,094		~~W~~	6,062		~~W~~	1		~~W~~	6,063
Balhae Infrastructure Company		818,545		74,665		794,860		743,880			93,803			(37	)		93,766
Aju Good Technology Venture Fund		37,569		395		900		37,174			14,297			(1	)		14,296
Incheon Bridge Co., Ltd.		518,134		602,460		61,096		(84,326	)		(12,640	)		12,640			—
Big Dipper Co., Ltd.		813		285		495		528			94			—			94
Food Factory Co., Ltd.		9,138		6,196		450		2,942			654			829			1,483
KBSP Private Equity Fund No.4		16,807		571		39,700		16,236			2,495			(1	)		2,494
Korea Credit Bureau Co., Ltd.		131,164		68,756		10,000		62,408			5,617			—			5,617
KB Social Impact Investment Fund		16,440		263		15,000		16,177			4,853			—			4,853
KB-Solidus Global Healthcare Fund		41,567		517		3,000		41,050			17,789			696			18,485
POSCO-KB Shipbuilding Fund		16,520		1,357		5,840		15,163			4,738			—			4,738
KB-TS Technology Venture Private Equity Fund		28,233		6,139		16,200		22,094			12,372			—			12,372
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund		14,441		—		—		14,441			6,145			(750	)		5,395
KB-SJ Tourism Venture Fund		18,003		498		24,840		17,505			3,242			—			3,242
UNION Media Commerce Fund		3,318		32		3,450		3,286			952			—			952
KB-Stonebridge Secondary Private Equity Fund		129,860		205		115,598		129,655			18,885			—			18,885
KB SPROTT Renewable Private Equity Fund No.1		42,868		379		46,868		42,489			15,946			(36	)		15,910
KB-UTC Inno-Tech Venture Fund		35,978		573		43,180		35,405			15,680			2,297			17,977
WJ Private Equity Fund No.1		35,342		161		37,100		35,181			9,483			(1	)		9,482

158

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2023 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity		Share of<br>net asset<br>amount		Unrealized<br>gains (losses)<br>and others			Consolidated<br>carrying<br>amount
All Together Korea Fund No.2	~~W~~	10,543	~~W~~	1	~~W~~	10,001	~~W~~	10,542	~~W~~	10,541	~~W~~	—		~~W~~	10,541
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		145,519		474		76,400		145,045		17,810		—			17,810
2020 KB Fintech Renaissance Fund		20,664		38		10,900		20,626		1,041		—			1,041
KB Material and Parts No.1 PEF		22,808		2		23,500		22,806		3,300		—			3,300
FineKB Private Equity Fund No.1		30,930		141		42,600		30,789		7,697		—			7,697
G payment Joint Stock Company		10,018		2,386		2,950		7,632		3,319		5,647			8,966
KB-GeneN Medical Venture Fund No.1		8,583		48		8,880		8,535		1,922		1			1,923
KB-BridgePole Venture Investment Fund		13,781		72		2,160		13,709		863		—			863
KB-Kyobo New Mobility Power Fund		9,216		40		10,500		9,176		2,622		—			2,622
DA-Friend New Technology Investment Fund No.2		3,502		74		3,650		3,428		927		1			928
Cornerstone Pentastone Fund No.4		3,623		22		3,800		3,601		775		—			775
Star-Lord General Investors Private Real Estate Investment Company No.10		522,947		419,224		178,000		103,723		27,213		(27,213	)		—
KB-Badgers Future Mobility ESG Fund No.1		15,600		672		18,766		14,928		6,106		(1	)		6,105
JS Private Equity Fund No.3		9,090		1		8,300		9,089		1,862		—			1,862
Mirae Asset Mobility Investment Fund No.1		8,551		74		8,700		8,477		1,949		—			1,949
KB-FT Green Growth 1st Technology Investment<br>Association		18,649		—		19,345		18,649		1,928		—			1,928

159

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2023 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity		Share of<br>net asset<br>amount		Unrealized<br>gains (losses)<br>and others			Consolidated<br>carrying<br>amount
Glenwood Credit Private Equity Fund No.2	~~W~~	147,385	~~W~~	455	~~W~~	140,500	~~W~~	146,930	~~W~~	43,922	~~W~~	—		~~W~~	43,922
THE CHAEUL FUND NO.1		3,111		—		3,200		3,111		972		—			972
Smart Korea KB Future9-Sejong Venture Fund		6,314		81		6,152		6,233		2,398		—			2,398
KB-KTB Technology Venture Fund		42,263		246		44,000		42,017		21,389		2			21,391
KB-SOLIDUS Healthcare Investment Fund		44,875		330		47,190		44,545		41,326		(1,154	)		40,172
Paramark KB Fund No.1		78,715		28		89,441		78,687		13,645		—			13,645
KB Co-Investment Private Equity Fund No.1		131,929		257		133,075		131,672		9,477		(101	)		9,376
POSITIVE Sobujang Venture Fund No.1		4,494		23		4,550		4,471		1,965		—			1,965
History 2022 Fintech Fund		5,611		39		5,750		5,572		1,938		—			1,938
KB-NP Green ESG New Technology Venture Capital<br>Fund		68,228		1,193		70,557		67,035		19,429		—			19,429
TMAP Mobility Co., Ltd.		849,894		220,824		8,680		629,070		51,866		131,706			183,572
Nextrade Co., Ltd.		139,245		296		146,100		138,949		9,225		—			9,225
Shinhan Global Mobility Fund No.1		5,389		1		5,700		5,388		1,324		—			1,324
SKB Next Unicorn K-Battery Fund No.1		7,609		—		7,700		7,609		1,890		—			1,890
Lakewood-AVES Fund No.1		5,065		4		5,120		5,061		1,977		—			1,977
MW-Pyco NewWave New Technology Investment Fund<br>4th		3,832		—		3,900		3,832		1,965		—			1,965
Bitgoeul Cheomdan Green 1st Co., Ltd		877		6		1,000		871		165		—			165
KB-SUSUNG 1st Investment Fund		19,690		—		20,000		19,690		2,953		—			2,953

160

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	December 31, 2023 *
	Total<br>assets		Total<br>liabilities		Paid-in<br>capital		Equity		Share of<br>net asset<br>amount		Unrealized<br>gains (losses)<br>and others			Consolidated<br>carrying<br>amount
Friend 55 New Technology Business Investment Fund	~~W~~	2,220	~~W~~	3	~~W~~	2,250	~~W~~	2,217	~~W~~	1,182	~~W~~	—		~~W~~	1,182
KY Global Cell & Gene Private Equity Fund 2nd		132,025		11		132,331		132,014		26,969		—			26,969
DSIP-Pharos Bioenergy Fund		48,307		44		11,730		48,263		16,458		—			16,458
Shinhan-Eco Venture Fund 2nd		9,067		66		9,125		9,001		1,800		—			1,800
Leading H2O Fund 1		3,088		1		3,110		3,087		1,489		—			1,489
2023 JB Newtech No.2 Fund		6,946		2		7,000		6,944		1,786		—			1,786
U-KB Credit No.1S Private Equity		20,557		6		20,700		20,551		6,851		(1	)		6,850
KB-BridgePole Venture Investment Fund No.2		10,502		41		10,500		10,461		1,494		—			1,494
Sirius Silicon Valley I New Technology Fund		2,040		2		2,100		2,038		485		—			485

161

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	2023 *
	Operating<br>revenue		Net profit<br>(loss)			Other<br>comprehensive<br>income (loss)		Total<br>comprehensive<br>income (loss)			Dividends
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	~~W~~	—	~~W~~	(12	)	~~W~~	—	~~W~~	(12	)	~~W~~	—
Balhae Infrastructure Company		126,682		121,783			—		121,783			9,582
Aju Good Technology Venture Fund		20,386		15,176			—		15,176			3,577
Incheon Bridge Co., Ltd.		128,860		22,110			—		22,110			—
Big Dipper Co., Ltd.		324		(242	)		—		(242	)		—
Food Factory Co., Ltd.		10,283		(89	)		—		(89	)		—
KBSP Private Equity Fund No.4		3,894		4,073			—		4,073			—
Korea Credit Bureau Co., Ltd.		163,707		8,012			—		8,012			90
KB Social Impact Investment Fund		2,230		1,958			—		1,958			—
KB-Solidus Global Healthcare Fund		42,005		36,193			—		36,193			10,920
POSCO-KB Shipbuilding Fund		709		(191	)		—		(191	)		—
KB-TS Technology Venture Private Equity Fund		836		362			—		362			—
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund		7,610		2,302			—		2,302			—
KB-SJ Tourism Venture Fund		664		(2,870	)		—		(2,870	)		—
UNION Media Commerce Fund		—		(16	)		—		(16	)		—
KB-Stonebridge Secondary Private Equity Fund		9,698		7,558			—		7,558			396
KB SPROTT Renewable Private Equity Fund No.1		26		(689	)		—		(689	)		—
KB-UTC Inno-Tech Venture Fund		758		(5,024	)		2,208		(2,816	)		3
WJ Private Equity Fund No.1		430		(218	)		—		(218	)		—
All Together Korea Fund No.2		303		297			—		297			—
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		58,734		47,415			—		47,415			—
2020 KB Fintech Renaissance Fund		8,289		8,134			—		8,134			—
KB Material and Parts No.1 PEF		451		90			—		90			34
FineKB Private Equity Fund No.1		820		(2,578	)		—		(2,578	)		16
G payment Joint Stock Company		11,434		(539	)		—		(539	)		—
KB-GeneN Medical Venture Fund No.1		—		(187	)		—		(187	)		—
KB-BridgePole Venture Investment Fund		22,202		21,916			—		21,916			638
KB-Kyobo New Mobility Power Fund		1		(715	)		—		(715	)		—
DA-Friend New Technology Investment Fund No.2		—		(78	)		—		(78	)		—
Cornerstone Pentastone Fund No.4		—		(81	)		—		(81	)		—
Star-Lord General Investors Private Real Estate Investment Company No.10		33,947		(55,599	)		—		(55,599	)		—
KB-Badgers Future Mobility ESG Fund No.1		150		(2,219	)		—		(2,219	)		—
JS Private Equity Fund No.3		1,135		963			—		963			—
Mirae Asset Mobility Investment Fund No.1		19		(133	)		—		(133	)		—
KB-FT Green Growth 1st Technology Investment<br>Association		3		(402	)		—		(402	)		—
Glenwood Credit Private Equity Fund No.2		10,374		9,611			—		9,611			2,428
THE CHAEUL FUND NO.1		1		(55	)		—		(55	)		—

162

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)		2023 *
		Operating<br>revenue		Net profit<br>(loss)			Other<br>comprehensive<br>income (loss)			Total<br>comprehensive<br>income (loss)			Dividends
Smart Korea KB Future9-Sejong Venture Fund		~~W~~	667	~~W~~	391		~~W~~	—		~~W~~	391		~~W~~	—
KB-KTB Technology Venture Fund			166		(917	)		—			(917	)		—
KB-SOLIDUS Healthcare Investment Fund			16		(1,344	)		—			(1,344	)		—
Paramark KB Fund No.1			1,085		(3,824	)		—			(3,824	)		—
KB Co-Investment Private Equity Fund No.1			21		(908	)		—			(908	)		—
POSITIVE Sobujang Venture Fund No.1			75		(28	)		—			(28	)		—
History 2022 Fintech Fund			1		(123	)		—			(123	)		—
KB-NP Green ESG New Technology Venture Capital<br>Fund			21		(2,463	)		—			(2,463	)		—
TMAP Mobility Co., Ltd.			294,016		(100,432	)		—			(100,432	)		—
Nextrade Co., Ltd.			—		(7,150	)		—			(7,150	)		—
Shinhan Global Mobility Fund No.1			—		(115	)		—			(115	)		—
SKB Next Unicorn K-Battery Fund No.1			123		(87	)		—			(87	)		—
Lakewood-AVES Fund No.1			—		(60	)		—			(60	)		—
MW-Pyco NewWave New Technology Investment Fund<br>4th			1		(68	)		—			(68	)		—
Bitgoeul Cheomdan Green 1st Co., Ltd.			—		(124	)		—			(124	)		—
KB-SUSUNG 1st Investment Fund			47		(310	)		—			(310	)		—
Friend 55 New Technology Business Investment Fund			3		(33	)		—			(33	)		—
KY Global Cell & Gene Private Equity Fund 2nd			—		(225	)		(93	)		(318	)		—
DSIP-Pharos Bioenergy Fund			36,813		36,533			—			36,533			—
Shinhan-Eco Venture Fund 2nd			2		(125	)		—			(125	)		—
Leading H2O Fund 1			5		(23	)		—			(23	)		—
2023 JB Newtech No.2 Fund			2		(56	)		—			(56	)		—
U-KB Credit No.1S Private Equity			345		(149	)		—			(149	)		—
KB-BridgePole Venture Investment Fund No.2			2		(39	)		—			(39	)		—
Sirius Silicon Valley I New Technology Fund			1		(62	)		—			(62	)		—
*	The condensed financial information of the associates and joint ventures is adjusted to reflect adjustments,<br>such as fair value adjustments recognized at the time of acquisition and adjustments for differences in accounting policies.
:---	:---

163

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024 *
	Beginning		Acquisition<br>and others		Disposal<br>and<br>others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)			Others		Ending
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	~~W~~	6,063	~~W~~	—	~~W~~	(600	)	~~W~~	—		~~W~~	(260	)	~~W~~	—		~~W~~	—	~~W~~	5,203
Balhae Infrastructure Company		93,766		48,051		(4,810	)		(1,541	)		3,549			—			—		139,015
Aju Good Technology Venture Fund		14,296		—		—			(2,120	)		(2,863	)		—			—		9,313
Big Dipper Co., Ltd.		94		—		—			—			(62	)		—			—		32
Food Factory Co., Ltd.		1,483		—		—			—			57			1			—		1,541
KBSP Private Equity Fund No.4		2,494		—		—			—			832			668			—		3,994
Korea Credit Bureau Co., Ltd.		5,617		—		—			(90	)		2,422			—			—		7,949
KB Social Impact Investment Fund		4,853		—		—			—			(1,340	)		—			—		3,513
KB-Solidus Global Healthcare Fund		18,485		—		—			(910	)		(50	)		—			—		17,525
POSCO-KB Shipbuilding Fund		4,738		—		—			—			(1,515	)		—			—		3,223
KB-TS Technology Venture Private Equity Fund		12,372		—		(2,464	)		—			1,221			—			—		11,129
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund		5,395		—		(2,460	)		(3,152	)		217			—			—		—
KB-SJ Tourism Venture Fund		3,242		—		(4,031	)		(1,517	)		4,087			—			—		1,781
UNION Media Commerce Fund		952		—		—			—			(7	)		—			—		945
KB-Stonebridge Secondary Private Equity Fund		18,885		—		(666	)		(52	)		(1,300	)		—			—		16,867
KB SPROTT Renewable Private Equity Fund No.1		15,910		—		(8,350	)		—			80			—			—		7,640
KB-UTC Inno-Tech Venture Fund		17,977		—		(275	)		—			(2,054	)		(166	)		—		15,482
WJ Private Equity Fund No.1		9,482		—		—			—			(60	)		—			—		9,422
All Together Korea Fund No.2		10,541		—		—			—			307			—			—		10,848
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		17,810		8,964		(7,778	)		—			(2,952	)		—			—		16,044
2020 KB Fintech Renaissance Fund		1,041		—		—			—			36			—			—		1,077

164

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024 *
	Beginning		Acquisition<br>and others		Disposal<br>and<br>others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)			Others		Ending
KB Material and Parts No.1 PEF	~~W~~	3,300	~~W~~	—	~~W~~	(3,300	)	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—	~~W~~	—
FineKB Private Equity Fund No.1		7,697		6,790		(1,500	)		(32	)		757			—			—		13,712
G payment Joint Stock Company		8,966		—		(1,505	)		—			(5,373	)		—			433		2,521
KB-GeneN Medical Venture Fund No.1		1,923		—		—			—			(42	)		—			—		1,881
KB-BridgePole Venture Investment Fund		863		—		(863	)		—			—			—			—		—
KB-Kyobo New Mobility Power Fund		2,622		—		(2,622	)		—			—			—			—		—
DA-Friend New Technology Investment Fund No.2		928		—		—			—			(21	)		—			—		907
Cornerstone Pentastone Fund No.4		775		—		—			—			(11	)		—			—		764
KB-Badgers Future Mobility ESG Fund No.1		6,105		10,401		—			(2	)		(3,396	)		—			—		13,108
JS Private Equity Fund No.3		1,862		—		(755	)		—			(364	)		—			—		743
Mirae Asset Mobility Investment Fund No.1		1,949		—		—			—			(31	)		—			—		1,918
KB-FT Green Growth 1st Technology Investment<br>Association		1,928		—		—			—			(39	)		—			—		1,889
Glenwood Credit Private Equity Fund No.2		43,922		—		—			(2,430	)		2,888			—			—		44,380
THE CHAEUL FUND NO.1		972		—		—			—			(18	)		—			—		954
Smart Korea KB Future9-Sejong Venture Fund		2,398		—		—			—			(73	)		—			—		2,325
KB-KTB Technology Venture Fund		21,391		5,600		—			—			(1,543	)		—			—		25,448
KB-SOLIDUS Healthcare Investment Fund		40,172		23,270		—			—			(1,160	)		—			—		62,282
Paramark KB Fund No.1		13,645		8,130		—			—			1,444			—			—		23,219
KB Co-Investment Private Equity Fund No.1		9,376		9,131		(3,098	)		—			558			—			—		15,967
POSITIVE Sobujang Venture Fund No.1		1,965		—		(1,121	)		(2,129	)		2,154			—			—		869
History 2022 Fintech Fund		1,938		—		—			—			(42	)		—			—		1,896
KB-NP Green ESG New Technology Venture Capital<br>Fund		19,429		19,800		—			—			(637	)		—			—		38,592
TMAP Mobility Co., Ltd.		183,572		—		—			—			(1,385	)		(187	)		—		182,000
Nextrade Co., Ltd.		9,225		—		—			—			(1,045	)		—			—		8,180

165

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024 *
	Beginning		Acquisition<br>and others		Disposal<br>and others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)			Others		Ending
Shinhan Global Mobility Fund No.1	~~W~~	1,324	~~W~~	—	~~W~~	—		~~W~~	—		~~W~~	(30	)	~~W~~	—		~~W~~	—	~~W~~	1,294
SKB Next Unicorn K-Battery Fund No.1		1,890		—		—			—			(40	)		—			—		1,850
Lakewood-AVES Fund No.1		1,977		—		(1,977	)		—			—			—			—		—
MW-Pyco NewWave New Technology Investment Fund<br>4th		1,965		—		—			—			(43	)		—			—		1,922
Bitgoeul Cheomdan Green 1st Co., Ltd.		165		152		—			—			(75	)		(1	)		—		241
KB-SUSUNG 1st Investment Fund		2,953		—		(1,386	)		—			621			—			—		2,188
Friend 55 New Technology Business Investment Fund		1,182		—		(1,182	)		—			—			—			—		—
KY Global Cell & Gene Private Equity Fund 2nd		26,969		—		(26,969	)		—			—			—			—		—
DSIP-Pharos Bioenergy Fund		16,458		—		(16,458	)		—			—			—			—		—
Shinhan-Eco Venture Fund 2nd		1,800		225		—			—			(52	)		—			—		1,973
Leading H2O Fund 1		1,489		—		—			—			(34	)		—			—		1,455
2023 JB Newtech No.2 Fund		1,786		—		(394	)		(150	)		464			—			—		1,706
U-KB Credit No.1S Private Equity		6,850		400		—			—			754			—			—		8,004
KB-BridgePole Venture Investment Fund No.2		1,494		—		—			—			(31	)		—			—		1,463
Sirius Silicon Valley I New Technology Fund		485		—		—			—			(11	)		—			—		474
FineKB Private Equity Fund No.2		—		250		—			—			(2	)		—			—		248
Timefolio Athleisure Investment Fund		—		4,000		—			—			(77	)		—			—		3,923
VIG Private Equity Fund V-3		—		1,636		—			—			—			—			—		1,636
COMPA Global Scale-Up Fund No.3		—		1,000		—			—			(20	)		—			—		980
AKK Robotech Valueup New Technology Investment Fund		—		1,000		—			—			127			—			—		1,127
YG MCE PROJECT NO.1 Fund		—		1,500		—			—			(23	)		—			—		1,477
HI YG Win-win Fund No.2		—		2,000		—			—			(27	)		—			—		1,973
KB-CJ Venture Fund 1st		—		1,800		—			—			(67	)		—			—		1,733

166

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024 *
	Beginning		Acquisition<br>and others		Disposal<br>and others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)		Others		Ending
Elohim-Bilanx aerospace No.1 Fund	~~W~~	—	~~W~~	2,000	~~W~~	—		~~W~~	—		~~W~~	(22	)	~~W~~	—	~~W~~	—	~~W~~	1,978
KB-SUSUNG 2st Investment Fund		—		2,000		—			—			(19	)		—		—		1,981
IMM global Secondary 1-1 Equity Private Fund		—		2,819		—			—			935			—		—		3,754
LIB Material Investment Fund		—		4,098		—			—			(2,623	)		—		—		1,475
NOVORSEC-SJG Consumer Secondary Fund		—		1,700		—			—			(12	)		—		—		1,688
Allra Fintech Corp.		—		8,532		—			—			152			—		—		8,684
Reboot Private Equity Fund		—		7,000		—			—			(54	)		—		—		6,946
KB-SBI Global Strategic Capital Fund		—		11,299		—			—			(515	)		—		—		10,784
KB-Cyrus Tourism Venture Fund		—		1,000		—			—			(23	)		—		—		977
IBKS Design Fund		—		2,000		—			—			(4	)		—		—		1,996
NICE DATA INTELLIGENCE VENTURE FUND		—		1,000		—			—			(2	)		—		—		998
Pectus Hanhwa Fund 2		—		2,000		—			—			(50	)		—		—		1,950
KB-IMM New Star Real Estate Private Fund I		—		31,563		—			—			1,510			—		—		33,073
Korea Environment Technology Co.,Ltd.		—		107,428		—			—			—			—		—		107,428
Others		1,016		930		(67	)		—			(5	)		21		18		1,913

		722,222		339,469		(94,631	)		(14,125	)		(6,332	)		336		451		947,390

167

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023 *
	Beginning		Acquisition<br>and others		Disposal<br>and others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)			Others			Ending
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	~~W~~	5,978	~~W~~	—	~~W~~	—		~~W~~	—		~~W~~	85		~~W~~	—		~~W~~	—		~~W~~	6,063
Balhae Infrastructure Company		90,617		—		(1,079	)		(9,582	)		13,810			—			—			93,766
Hahn & Company No. 4-3 Private Equity<br>Fund		—		8,188		(7,253	)		—			(935	)		—			—			—
Aju Good Technology Venture Fund		19,836		—		(7,800	)		(3,577	)		5,837			—			—			14,296
SY Auto Capital Co., Ltd.		19,162		—		—			—			252			(2	)		(19,412	)		—
Big Dipper Co., Ltd.		60		—		—			—			17			17			—			94
Paycoms Co., Ltd.		213		—		—			—			(57	)		—			(156	)		—
Food Factory Co., Ltd.		1,399		—		—			—			83			1			—			1,483
KBSP Private Equity Fund No.4		1,892		—		—			—			509			93			—			2,494
Korea Credit Bureau Co., Ltd.		4,959		—		—			(90	)		748			—			—			5,617
KB Social Impact Investment Fund		4,266		—		—			—			587			—			—			4,853
KB-Solidus Global Healthcare Fund		22,432		—		(8,710	)		(10,920	)		15,683			—			—			18,485
POSCO-KB Shipbuilding Fund		4,798		—		—			—			(60	)		—			—			4,738
KB-TS Technology Venture Private Equity Fund		13,794		—		(672	)		—			(750	)		—			—			12,372
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund		17,051		—		(13,200	)		—			1,544			—			—			5,395
KB-SJ Tourism Venture Fund		3,773		—		—			—			(531	)		—			—			3,242
UNION Media Commerce Fund		957		—		—			—			(5	)		—			—			952
KB-Stonebridge Secondary Private Equity Fund		25,144		—		(6,964	)		(396	)		1,101			—			—			18,885
KB SPROTT Renewable Private Equity Fund No.1		16,539		—		(475	)		—			(154	)		—			—			15,910
KB-UTC Inno-Tech Venture Fund		19,180		—		(2,251	)		(3	)		399			652			—			17,977
WJ Private Equity Fund No.1		9,542		—		—			—			(60	)		—			—			9,482
All Together Korea Fund No.2		10,244		—		—			—			297			—			—			10,541

168

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023 *
	Beginning		Acquisition<br>and others		Disposal<br>and others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)		Others			Ending
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	~~W~~	12,554	~~W~~	1,800	~~W~~	(2,234	)	~~W~~	—		~~W~~	5,690		~~W~~	—	~~W~~	—		~~W~~	17,810
December & Company Inc.		16,029		—		(14,864	)		—			—			—		(1,165	)		—
2020 KB Fintech Renaissance Fund		630		—		—			—			411			—		—			1,041
KB Material and Parts No.1 PEF		3,321		—		—			(34	)		13			—		—			3,300
FineKB Private Equity Fund No.1		10,483		—		(2,125	)		(16	)		(645	)		—		—			7,697
G payment Joint Stock Company		9,281		—		(79	)		—			(236	)		—		—			8,966
KB-GeneN Medical Venture Fund No.1		1,965		—		—			—			(42	)		—		—			1,923
KB-BridgePole Venture Investment Fund		835		—		(714	)		(638	)		1,380			—		—			863
KB-Kyobo New Mobility Power Fund		2,826		—		—			—			(204	)		—		—			2,622
DA-Friend New Technology Investment Fund No.2		949		—		—			—			(21	)		—		—			928
Cornerstone Pentastone Fund No.4		792		—		—			—			(17	)		—		—			775
SKS-VLP New Technology Investment Fund No.2		1,121		—		(1,121	)		—			—			—		—			—
KB-Badgers Future Mobility ESG Fund No.1		1,475		5,538		—			—			(908	)		—		—			6,105
JS Private Equity Fund No.3		1,664		—		—			—			198			—		—			1,862
Mirae Asset Mobility Investment Fund No.1		1,979		—		—			—			(30	)		—		—			1,949
KB-FT Green Growth 1st Technology Investment<br>Association		1,970		—		—			—			(42	)		—		—			1,928
Glenwood Credit Private Equity Fund No.2		43,468		—		—			(2,428	)		2,882			—		—			43,922
THE CHAEUL FUND NO.1		989		—		—			—			(17	)		—		—			972
Smart Korea KB Future9-Sejong Venture Fund		1,870		1,000		(634	)		—			162			—		—			2,398
KB-KTB Technology Venture Fund		16,256		5,601		—			—			(466	)		—		—			21,391

169

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023 *
	Beginning		Acquisition<br>and others		Disposal<br>and others			Dividends		Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)			Others		Ending
KB-SOLIDUS Healthcare Investment Fund	~~W~~	18,651	~~W~~	22,752	~~W~~	(12	)	~~W~~	—	~~W~~	(1,219	)	~~W~~	—		~~W~~	—	~~W~~	40,172
Paramark KB Fund No.1		10,966		3l,342		—			—		(663	)		—			—		13,645
KB Co-Investment Private Equity Fund No.1		7,233		2,208		—			—		(65	)		—			—		9,376
POSITIVE Sobujang Venture Fund No.1		1,977		—		—			—		(12	)		—			—		1,965
History 2022 Fintech Fund		1,981		—		—			—		(43	)		—			—		1,938
PEBBLES-MW M.C.E New Technology Investment Fund 1^st^		1,982		—		(1,982	)		—		—			—			—		—
KB-NP Green ESG New Technology Venture Capital<br>Fund		9,043		11,099		—			—		(713	)		—			—		19,429
TMAP Mobility Co., Ltd.		194,455		—		(19	)		—		(11,893	)		1,029			—		183,572
Nextrade Co., Ltd.		9,700		—		—			—		(475	)		—			—		9,225
Shinhan Global Mobility Fund No.1		1,345		—		—			—		(21	)		—			—		1,324
SKB Next Unicorn K-Battery Fund No.1		1,995		—		(87	)		—		(18	)		—			—		1,890
Lakewood-AVES Fund No.1		—		2,000		—			—		(23	)		—			—		1,977
MW-Pyco NewWave New Technology Investment Fund<br>4th		—		2,000		—			—		(35	)		—			—		1,965
Bitgoeul Cheomdan Green 1st Co., Ltd.		—		190		—			—		(24	)		(1	)		—		165
KB-SUSUNG 1st Investment Fund		—		3,000		—			—		(47	)		—			—		2,953
Friend 55 New Technology Business Investment Fund		—		1,200		—			—		(18	)		—			—		1,182
KY Global Cell & Gene Private Equity Fund 2nd		—		27,034		—			—		(46	)		(19	)		—		26,969
DSIP-Pharos Bioenergy Fund		—		4,000		—			—		12,458			—			—		16,458
Shinhan-Eco Venture Fund 2nd		—		1,825		—			—		(25	)		—			—		1,800
Leading H2O Fund 1		—		1,500		—			—		(11	)		—			—		1,489
2023 JB Newtech No.2 Fund		—		1,800		—			—		(14	)		—			—		1,786

170

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.3 Changes in carrying amount of investments in associates and joint ventures for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2023 *
		Beginning		Acquisition<br>and others		Disposal<br>and others			Dividends			Gains<br>(losses)<br>on equity-<br>method<br>accounting			Other<br>comprehensive<br>income<br>(loss)			Others			Ending
U-KB Credit No.1S Private Equity		~~W~~	—	~~W~~	6,900	~~W~~	—		~~W~~	—		~~W~~	(50	)	~~W~~	—		~~W~~	—		~~W~~	6,850
KB-BridgePole Venture Investment Fund No.2			—		1,500		—			—			(6	)		—			—			1,494
Sirius Silicon Valley I New Technology Fund			—		500		—			—			(15	)		—			—			485
Others			1,049		15		(208	)		—			1,899			(1,739	)		—			1,016

		~~W~~	682,670	~~W~~	114,992	~~W~~	(72,483	)	~~W~~	(27,684	)	~~W~~	45,429		~~W~~	31		~~W~~	(20,733	)	~~W~~	722,222

*^^**	Gains (losses) on disposal of investments in associates and joint ventures amount to ~~W~~<br>(10,552) million ~~W~~ 6,853 million for the years ended December 31, 2024 and 2023, respectively.
:---	:---

171

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

13.4 Unrecognized share of losses of investments in associates and joint ventures due to the discontinuation of recognizing share of losses, for the years ended December 31, 2024 and 2023, and accumulated amount of unrecognized losses as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Unrecognized losses<br>(gains)<br>for the period						Accumulated<br>unrecognized losses
	2024			2023			December 31,<br>2024		December 31,<br>2023
DSMETAL Co., Ltd.	~~W~~	—		~~W~~	—		~~W~~	103	~~W~~	103
Incheon Bridge Co., Ltd.		(12,105	)		(3,323	)		535		12,640
Jungdong Steel Co., Ltd.		—			—			—		489
Shinla Construction Co., Ltd.		—			—			—		183
Jaeyang Industry Co., Ltd.		—			—			30		30
Terra Corporation		—			—			14		14
Jungdo Co., Ltd.		—			(120	)		423		423
Jinseung Tech Co., Ltd.		—			(18	)		—		—
Korea NM Tech Co., Ltd.		7			3			41		34
Chongil Machine & Tools Co., Ltd.		—			—			75		75
Skydigital Inc.		(3	)		20			194		197
Imt Technology Co., Ltd.		2			—			2		—
Jo Yang Industrial Co., Ltd.		127			36			276		149
MJT&I Corp.		1			(1	)		153		152
Dae-A Leisure Co., Ltd.		286			87			885		599
Il-Kwang Electronic Materials Co., Ltd.		—			—			158		158
Dongjo Co., Ltd.		(26	)		(147	)		523		549
Iwon Alloy Co., Ltd.		4			(1	)		22		18
Chunsung-meat co., ltd.		—			9			33		33
ALTSCS CO., LTD.		(15	)		395			381		396
E-won Chemical Co.,Ltd.		8			—			12		—
TKDS Co., Ltd		69			—			177		—
Taeyoungjungkong Co., Ltd.		42			—			42		—
MJ K Trading Co.		36			—			36		—
DNGV Co.,Ltd.		46			—			46		—
Alpa Information&Communication Co.,Ltd.		77			—			77		—
JC TECHNO Co.,Ltd.		243			—			243		—
RAND Bio Science Co., Ltd.		150			187			877		727
Star-Lord General Investors Private Real Estate Investment Company No.10		5,643			7,691			23,075		17,432

	~~W~~	(5,408	)	~~W~~	4,818		~~W~~	28,433	~~W~~	34,401

172

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

14. Property and Equipment, and Investment Properties

14.1 Property and Equipment

14.1.1 Details of property and equipment as of December 31, 2024 and 2023, are as follows:

	December 31, 2024
(In millions of Korean won)	Acquisition<br>cost		Accumulated<br>depreciation			Accumulated<br>impairment<br>losses			Carrying<br>amount
Land	~~W~~	2,471,259	~~W~~	—		~~W~~	(4	)	~~W~~	2,471,255
Buildings		2,481,041		(962,953	)		(5,746	)		1,512,342
Leasehold improvements		1,107,922		(1,025,640	)		—			82,282
Equipment and vehicles		2,148,574		(1,850,044	)		—			298,530
Construction in-progress		65,941		—			—			65,941
Right-of-use<br>assets		2,241,126		(1,280,489	)		(972	)		959,665

	~~W~~	10,515,863	~~W~~	(5,119,126	)	~~W~~	(6,722	)	~~W~~	5,390,015

	December 31, 2023
(In millions of Korean won)	Acquisition<br>cost		Accumulated<br>depreciation			Accumulated<br>impairment<br>losses			Carrying<br>amount
Land	~~W~~	2,442,186	~~W~~	—		~~W~~	(4	)	~~W~~	2,442,182
Buildings		2,449,394		(899,839	)		(5,747	)		1,543,808
Leasehold improvements		1,052,550		(976,520	)		—			76,030
Equipment and vehicles		2,027,842		(1,774,850	)		—			252,992
Construction in-progress		56,971		—			—			56,971
Right-of-use<br>assets		1,608,541		(1,034,825	)		—			573,716

	~~W~~	9,637,484	~~W~~	(4,686,034	)	~~W~~	(5,751	)	~~W~~	4,945,699

173

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

14.1.2 Changes in property and equipment for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning				Acquisition				Transfer ^1^			Disposal			Depreciation ^2^			Others				Ending
Land		~~W~~	2,442,182			~~W~~	66			~~W~~	15,892		~~W~~	(806	)	~~W~~	—		~~W~~	13,921			~~W~~	2,471,255
Buildings			1,543,808				6,229				31,602			(3,498	)		(68,707	)		2,908				1,512,342
Leasehold improvements			76,030				17,211				39,857			(710	)		(51,790	)		1,684				82,282
Equipment and vehicles			252,992				153,309				16,972			(1,933	)		(139,788	)		16,978				298,530
Construction in-progress			56,971				124,419				(114,761	)		(1,402	)		—			714				65,941
Right-of-use<br>assets			573,716				1,285,013				(12,759	)		(552,340	)		(360,401	)		26,436				959,665

		~~W~~	4,945,699			~~W~~	1,586,247			~~W~~	(23,197	)	~~W~~	(560,689	)	~~W~~	(620,686	)	~~W~~	62,641			~~W~~	5,390,015

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning				Acquisition				Transfer ^1^			Disposal			Depreciation ^2^			Business<br>combination				Others			Ending
Land		~~W~~	2,416,726			~~W~~	51,324			~~W~~	3,501		~~W~~	(2,074	)	~~W~~	—		~~W~~	6,585			~~W~~	(33,880	)	~~W~~	2,442,182
Buildings			1,581,433				28,344				22,976			(543	)		(66,062	)		677				(23,017	)		1,543,808
Leasehold improvements			76,384				8,390				41,522			(170	)		(52,555	)		2				2,457			76,030
Equipment and vehicles			304,338				113,823				(14	)		(1,217	)		(164,724	)		3,206				(2,420	)		252,992
Construction in-progress			28,045				143,439				(89,168	)		—			—			—				(25,345	)		56,971
Right-of-use<br>assets			584,541				556,043				(9,735	)		(239,365	)		(299,599	)		672				(18,841	)		573,716

		~~W~~	4,991,467			~~W~~	901,363			~~W~~	(30,918	)	~~W~~	(243,369	)	~~W~~	(582,940	)	~~W~~	11,142			~~W~~	(101,046	)	~~W~~	4,945,699

^1^	Includes transfers with investment properties and assets held for sale.
:---	:---
^2^	Includes depreciation expenses amounting to ~~W~~ 65,452 million and<br>~~W~~ 62,098 million recorded as insurance service expenses, other operating expenses and others for the years ended December 31, 2024 and 2023, respectively.
:---	:---

14.1.3 Changes in accumulated impairment losses of property and equipment for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning			Impairment			Reversal				Disposal<br>and others				Ending
Accumulated impairment losses of property and equipment		~~W~~	(5,751	)	~~W~~	(971	)	~~W~~	—			~~W~~	—			~~W~~	(6,722	)
(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning			Impairment				Reversal				Disposal<br>and others				Ending
Accumulated impairment losses of property and equipment		~~W~~	(5,751	)	~~W~~	—			~~W~~	—			~~W~~	—			~~W~~	(5,751	)

174

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

14.2 Investment Properties

14.2.1 Details of investment properties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Acquisition<br>cost				Accumulated<br>depreciation			Accumulated<br>impairment<br>losses			Carrying<br>amount
Land		~~W~~	1,990,096			~~W~~	—		~~W~~	(13,226	)	~~W~~	1,976,870
Buildings			1,998,943				(186,500	)		(30,137	)		1,782,306

		~~W~~	3,989,039			~~W~~	(186,500	)	~~W~~	(43,363	)	~~W~~	3,759,176

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---
		Acquisition<br>cost				Accumulated<br>depreciation			Accumulated<br>impairment<br>losses			Carrying<br>amount
Land		~~W~~	2,237,030			~~W~~	—		~~W~~	(486	)	~~W~~	2,236,544
Buildings			2,027,919				(149,390	)		(5,289	)		1,873,240

		~~W~~	4,264,949			~~W~~	(149,390	)	~~W~~	(5,775	)	~~W~~	4,109,784

14.2.2 Valuation techniques and inputs used to measure the fair value of investment properties as of December 31, 2024, are as follows:

(In millions of Korean won)	December 31, 2024
	Fair value		Valuation techniques	Inputs
Land and buildings	~~W~~	236,575	Cost approach method	- Price per square meter<br><br>- Replacement cost
		2,478,182	Market comparison method	- Price per square meter
		472,840	Discounted cash flow method	- Prospective rental market growth rate<br><br>- Period of vacancy<br><br>- Rental ratio<br><br>- Discount rate and others
		89,225	Market price

Fair value of investment properties amounts to ~~W~~ 3,276,822 million and ~~W~~ 3,602,196 million as of December 31, 2024 and 2023, respectively. Investment properties are measured by qualified independent appraisers with recent experience in valuing similar properties in the same area. In addition, all investment properties are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

Rental income from above investment properties amounts to ~~W~~ 147,151 million and ~~W~~ 134,250 million for the years ended December 31, 2024 and 2023, respectively.

175

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

14.2.3 Changes in investment properties for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
		2024
		Beginning				Acquisition				Transfer*				Disposal			Depreciation			Others				Ending
Land		~~W~~	2,236,544			~~W~~	48,931			~~W~~	2,792			~~W~~	(324,787	)	~~W~~	—		~~W~~	13,390			~~W~~	1,976,870
Buildings			1,873,240				39,825				10,084				(118,174	)		(50,426	)		27,757				1,782,306

		~~W~~	4,109,784			~~W~~	88,756			~~W~~	12,876			~~W~~	(442,961	)	~~W~~	(50,426	)	~~W~~	41,147			~~W~~	3,759,176

(In millions of Korean won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		2023
		Beginning				Acquisition				Transfer*			Disposal			Depreciation			Others			Ending
Land		~~W~~	1,495,529			~~W~~	1,062,748			~~W~~	(3,080	)	~~W~~	(268,800	)	~~W~~	—		~~W~~	(49,853	)	~~W~~	2,236,544
Buildings			1,652,811				456,680				1,190			(162,854	)		(48,790	)		(25,797	)		1,873,240

		~~W~~	3,148,340			~~W~~	1,519,428			~~W~~	(1,890	)	~~W~~	(431,654	)	~~W~~	(48,790	)	~~W~~	(75,650	)	~~W~~	4,109,784

*	Includes transfers with property and equipment and assets held for sale.
:---	:---

15. Intangible Assets

15.1 Details of intangible assets as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
		December 31, 2024
		Acquisition<br>cost				Accumulated<br>amortization			Accumulated<br>impairment<br>losses			Others				Carrying<br>amount
Goodwill		~~W~~	922,959			~~W~~	—		~~W~~	(137,937	)	~~W~~	89,026			~~W~~	874,048
Other intangible assets			3,766,460				(2,630,666	)		(43,159	)		—				1,092,635

		~~W~~	4,689,419			~~W~~	(2,630,666	)	~~W~~	(181,096	)	~~W~~	89,026			~~W~~	1,966,683

(In millions of Korean won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		December 31, 2023
		Acquisition<br>cost				Accumulated<br>amortization			Accumulated<br>impairment<br>losses			Others				Carrying<br>amount
Goodwill		~~W~~	918,913			~~W~~	—		~~W~~	(76,785	)	~~W~~	24,846			~~W~~	866,974
Other intangible assets			3,572,298				(2,456,769	)		(31,645	)		—				1,083,884

		~~W~~	4,491,211			~~W~~	(2,456,769	)	~~W~~	(108,430	)	~~W~~	24,846			~~W~~	1,950,858

176

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

15.2 Details of goodwill as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024				December 31, 2023
		Acquisition<br>cost		Carrying<br>amount ^1^		Acquisition<br>cost		Carrying<br>amount ^1^
Housing & Commercial Bank		~~W~~	65,288	~~W~~	65,288	~~W~~	65,288	~~W~~	65,288
KB Securities Co., Ltd.			70,265		58,889		70,265		58,889
KB Capital Co., Ltd.			79,609		79,609		79,609		79,609
KB Savings Bank Co., Ltd.			115,343		57,403		115,343		57,403
KB Securities Vietnam Joint Stock Company			13,092		14,988		13,092		13,820
KB Daehan Specialized Bank Plc. ^2^			6,189		—		6,189		—
KB PRASAC Bank Plc. ^3^			398,144		419,918		398,144		422,575
PT Sunindo Kookmin Best Finance			2,963		3,172		2,963		2,911
PT Bank KB Bukopin Tbk			89,220		94,162		89,220		86,410
PT. KB Finansia Multi Finance			51,820		57,853		51,820		53,089
PT. KB Valbury Sekurita			11,070		12,063		11,070		11,070
Others			19,956		10,703		15,910		15,910

		~~W~~	922,959	~~W~~	874,048	~~W~~	918,913	~~W~~	866,974

^1^	Includes the effect of exchange differences and others.
:---	:---
^2^	KB Daehan Specialized Bank Plc. and I-Finance Leasing merged on<br>December 19, 2024.
:---	:---
^3^	Kookmin Bank Cambodia PLC. merged with KB PRASAC BANK PLC. on September 1, 2023.
:---	:---

15.3 Changes in accumulated impairment losses of goodwill for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Beginning			Impairment			Others			Ending
Accumulated impairment losses of goodwill	~~W~~	(76,785	)	~~W~~	(60,273	)	~~W~~	(879	)	~~W~~	(137,937	)
(In millions of Korean won)	2023
	Beginning			Impairment			Others			Ending
Accumulated impairment losses of goodwill	~~W~~	(70,517	)	~~W~~	(6,268	)	~~W~~	—		~~W~~	(76,785	)

177

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

15.4 Details of goodwill allocation to cash-generating units and related information for impairment testing as of December 31, 2024 are as follows:

(In millions of Korean won)			December 31, 2024
			Carrying<br>amount of<br>goodwill		Recoverable<br>amount<br>exceeding<br>carrying<br>amount *			Discount<br>rate (%)		Permanent<br>growth<br>rate (%)
Housing & Commercial Bank		Retail banking	~~W~~	49,315	~~W~~	7,134,305			16.15		1.00
		Corporate banking		15,973		19,335,298			15.01		1.00
KB Securities Co., Ltd.				58,889		145,385			10.70		1.00
KB Capital Co., Ltd.				79,609		1,903,621			11.41		1.00
KB Savings Bank Co., Ltd. and Yehansoul Savings Bank Co., Ltd.				57,403		170,695			12.99		1.00
KB Securities Vietnam Joint Stock Company				14,988		7,312			22.66		1.00
PT Bank KB Bukopin Tbk				94,162		497,709			26.12		4.00
KB PRASAC Bank Plc				419,918		(55,450	)		21.73		4.00
PT Sunindo Kookmin Best Finance				3,172		2,828			19.01		0.00
PT. KB Finansia Multi Finance				57,853		38,196			13.25		1.00
PT. KB Valbury Sekurita				12,063		1,500			16.42		1.00
Others				10,703		34,814			—		—

			~~W~~	874,048	~~W~~	29,216,213

*	The recoverable amount exceeding carrying amount is the amount at the time of impairment testing.
:---	:---

For impairment testing, goodwill is allocated to cash-generating units that are expected to benefit from the synergies of the business combination, and cash-generating units consist of an operating segment or units which are not larger than an operating segment.

Cash-generating units to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired, by comparing the carrying amount of the unit including the goodwill with the recoverable amount of the unit.

The recoverable amount of a cash-generating unit is measured at the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal is the amount obtainable from the disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. If it is difficult to measure the amount obtainable from the disposal of the cash-generating unit, the disposal amount of a similar cash-generating unit in the past transaction is used by reflecting the characteristics of the cash-generating unit to be measured. If it is not possible to obtain reliable information to measure the fair value less costs of disposal, the Group uses the asset’s value in use as its recoverable amount. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The estimated future cash flows are based on the most recent financial budget approved by management with maximum period of 5 years. In relation to subsequent cash flows, it is assumed that cash flows will grow at a certain permanent growth rate. The key assumptions used for the estimation of the future cash flows are based on the market size and the Group’s market share. The discount rate is a pre-tax rate that reflects assumptions regarding risk-free interest rate, market risk premium, and the risks specific to the cash-generating unit.

178

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

15.5 Details of intangible assets other than goodwill as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment<br>losses			Carrying<br>amount
Industrial property rights	~~W~~	2,632	~~W~~	(1,971	)	~~W~~	—		~~W~~	661
Software		2,718,892		(2,022,510	)		(1,476	)		694,906
Other intangible assets		1,009,809		(571,646	)		(41,683	)		396,480
Right-of-use<br>assets		35,127		(34,539	)		—			588

	~~W~~	3,766,460		(2,630,666	)		(43,159	)		1,092,635

(In millions of Korean won)	December 31, 2023
	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment<br>losses			Carrying<br>amount
Industrial property rights	~~W~~	4,541	~~W~~	(2,740	)	~~W~~	(715	)	~~W~~	1,086
Software		2,503,883		(1,936,689	)		(840	)		566,354
Other intangible assets		1,028,747		(483,808	)		(30,090	)		514,849
Right-of-use<br>assets		35,127		(33,532	)		—			1,595

	~~W~~	3,572,298	~~W~~	(2,456,769	)	~~W~~	(31,645	)	~~W~~	1,083,884

179

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

15.6 Changes in intangible assets other than goodwill for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
		2024
		Beginning				Acquisition &<br>transfer				Disposal			Amortization ^1^			Others			Ending
Industrial property rights		~~W~~	1,086			~~W~~	164			~~W~~	(431	)	~~W~~	(158	)	~~W~~	—		~~W~~	661
Software			566,354				419,582				(3,144	)		(292,596	)		4,710			694,906
Other intangible assets ^2^			514,849				3,548				(6,533	)		(105,206	)		(10,178	)		396,480
Right-of-use<br>assets			1,595				—				—			(1,007	)		—			588

		~~W~~	1,083,884			~~W~~	423,294			~~W~~	(10,108	)	~~W~~	(398,967	)	~~W~~	(5,468	)	~~W~~	1,092,635

(In millions of Korean won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		2023
		Beginning				Acquisition &<br>transfer				Disposal			Amortization ^1^			Business<br>combination				Others			Ending
Industrial property rights		~~W~~	1,111			~~W~~	243			~~W~~	—		~~W~~	(268	)	~~W~~	—			~~W~~	—		~~W~~	1,086
Software			620,248				238,191				—			(291,422	)		23				(686	)		566,354
Other intangible assets ^2^			389,354				239,749				(7,761	)		(96,674	)		4,991				(14,810	)		514,849
Right-of-use<br>assets			2,602				—				—			(1,007	)		—				—			1,595

		~~W~~	1,013,315			~~W~~	478,183			~~W~~	(7,761	)	~~W~~	(389,371	)	~~W~~	5,014			~~W~~	(15,496	)	~~W~~	1,083,884

^1^	Includes ~~W~~ 37,906 million and ~~W~~ 44,286 million recorded as<br>insurance service expenses, other operating expenses and others for the years ended December 31, 2024 and 2023, respectively.
:---	:---
^2^	Impairment losses for membership right with indefinite useful life among other intangible assets are recognized<br>when its recoverable amount is lower than its carrying amount, and reversal of impairment losses are recognized when its recoverable amount is higher than its carrying amount.
:---	:---

15.7 Changes in accumulated impairment losses of other intangible assets for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Beginning			Impairment			Reversal		Disposal<br>and others		Ending
Accumulated impairment losses of other intangible assets	~~W~~	(31,645	)	~~W~~	(15,468	)	~~W~~	1,020	~~W~~	2,934	~~W~~	(43,159	)
(In millions of Korean won)	2023
	Beginning			Impairment			Reversal		Disposal<br>and others		Ending
Accumulated impairment losses of other intangible assets	~~W~~	(32,766	)	~~W~~	(12,876	)	~~W~~	2,119	~~W~~	11,878	~~W~~	(31,645	)

180

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

16. Leases

16.1 The Group as a Lessee

16.1.1 Amounts recognized in the consolidated statements of financial position related to lease as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024		December 31, 2023
Right-of-use<br>property and equipment: *
Real estate		~~W~~	937,887	~~W~~	548,308
Vehicles			17,770		21,030
Others			4,008		4,378

			959,665		573,716

Right-of-use<br>intangible assets *			588		1,595

		~~W~~	960,253	~~W~~	575,311

Lease liabilities *		~~W~~	964,399	~~W~~	588,803
*	Included in property and equipment, intangible assets, and other liabilities.
:---	:---

16.1.2 Amounts recognized in the consolidated statements of comprehensive income related to lease for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Depreciation and amortization of<br>right-of-use assets:
Real estate	~~W~~	304,882	~~W~~	243,893
Vehicles		18,531		18,710
Others		1,882		2,748
Intangible assets		1,007		1,008

	~~W~~	326,302	~~W~~	266,359

Interest expenses on the lease liabilities	~~W~~	40,454	~~W~~	21,699
Expense relating to short-term lease		3,960		4,427
Expense relating to lease of low-value assets that are not<br>short-term lease		4,682		5,141
Expense relating to variable lease payments not included in lease liabilities (included in<br>administrative expenses)		147		165

Total cash outflows for lease for the years ended December 31, 2024 and 2023 are ~~W~~ 326,821 million and ~~W~~ 244,785 million, respectively.

181

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

16.2 The Group as a Lessor

16.2.1 The Group as a finance lessor

16.2.1.1 Gross investment in the lease and present value of minimum lease payments as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024				December 31, 2023
	Gross<br>investment in<br>the lease		Present value of<br>minimum lease<br>payments		Gross<br>investment in<br>the lease		Present value of<br>minimum lease<br>payments
Up to 1 year	~~W~~	291,341	~~W~~	218,942	~~W~~	368,316	~~W~~	269,111
1-5 years		348,909		264,617		465,321		364,770
Over 5 years		6,038		6,038		1,250		1,250

	~~W~~	646,288	~~W~~	489,597	~~W~~	834,887	~~W~~	635,131

16.2.1.2 Unearned finance income on finance lease as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Gross investment in the lease	~~W~~	646,288	~~W~~	834,887
Net investment in the lease:
Present value of minimum lease payments		489,597		635,131
Present value of unguaranteed residual value		104,846		141,969

		594,443		777,100

Unearned finance income	~~W~~	51,845	~~W~~	57,787

16.2.2 The Group as an operating lessor

Future minimum lease payments to be received from the non-cancellable lease contracts as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Minimum lease payments to be received:
Up to 1 year	~~W~~	876,011	~~W~~	934,238
1-5 years		1,710,770		1,827,136
Over 5 years		205,095		262,157

	~~W~~	2,791,876	~~W~~	3,023,531

182

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

17. Deferred Income Tax Assets and Liabilities

17.1 Details of deferred income tax assets and liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024
	Assets			Liabilities			Net amount
Other provisions	~~W~~	219,460		~~W~~	—		~~W~~	219,460
Allowances for credit losses		17,060			—			17,060
Impairment losses of property and equipment		10,543			(1,359	)		9,184
Share-based payments		36,962			—			36,962
Provisions for acceptances and guarantees		16,172			(163	)		16,009
Gains or losses on valuation of derivatives		296,164			(225,773	)		70,391
Present value discount		11,952			(14	)		11,938
Gains or losses on fair value hedge		—			(45,741	)		(45,741	)
Accrued interest		1,679			(262,437	)		(260,758	)
Deferred loan origination fees and costs		16,278			(189,207	)		(172,929	)
Advanced depreciation provision		—			(4,003	)		(4,003	)
Gains or losses on revaluation		313			(290,227	)		(289,914	)
Investments in subsidiaries and others		77,426			(248,692	)		(171,266	)
Gains or losses on valuation of security investment		489,018			(448,460	)		40,558
Defined benefit liabilities		619,544			—			619,544
Accrued expenses		365,702			—			365,702
Retirement insurance expense		—			(590,749	)		(590,749	)
Adjustments to the prepaid contributions		—			(49,134	)		(49,134	)
Derivative-linked securities		6,883			(86,112	)		(79,229	)
Others *		1,244,462			(2,391,015	)		(1,146,553	)

		3,429,618			(4,833,086	)		(1,403,468	)

Offsetting of deferred income tax assets and liabilities		(3,150,794	)		3,150,794			—

	~~W~~	278,824		~~W~~	(1,682,292	)	~~W~~	(1,403,468	)

183

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

17.1 Details of deferred income tax assets and liabilities as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31, 2023
		Assets			Liabilities			Net amount
Other provisions		~~W~~	317,698		~~W~~	—		~~W~~	317,698
Allowances for credit losses			29,768			—			29,768
Impairment losses of property and equipment			8,516			(1,407	)		7,109
Share-based payments			24,326			—			24,326
Provisions for acceptances and guarantees			48,917			—			48,917
Gains or losses on valuation of derivatives			238,875			(184,469	)		54,406
Present value discount			14,471			(13	)		14,458
Gains or losses on fair value hedge			—			(57,146	)		(57,146	)
Accrued interest			146			(213,708	)		(213,562	)
Deferred loan origination fees and costs			14,593			(179,868	)		(165,275	)
Advanced depreciation provision			—			(4,003	)		(4,003	)
Gains or losses on revaluation			313			(290,547	)		(290,234	)
Investments in subsidiaries and others			56,338			(216,908	)		(160,570	)
Gains or losses on valuation of security investment			912,706			(354,353	)		558,353
Defined benefit liabilities			575,599			(26	)		575,573
Accrued expenses			323,229			—			323,229
Retirement insurance expense			—			(627,556	)		(627,556	)
Adjustments to the prepaid contributions			—			(33,005	)		(33,005	)
Derivative-linked securities			5,735			(262,523	)		(256,788	)
Others *			1,066,496			(3,032,881	)		(1,966,385	)

			3,637,726			(5,458,413	)		(1,820,687	)

Offsetting of deferred income tax assets and liabilities			(3,363,501	)		3,363,501			—

		~~W~~	274,225		~~W~~	(2,094,912	)	~~W~~	(1,820,687	)

*	Includes Purchase Price Allocation (“PPA”) amount arising from the acquisition of KB Life Insurance<br>Co., Ltd., KB Insurance Co., Ltd..
:---	:---

17.2 Unrecognized Deferred Income Tax Assets

17.2.1 No deferred income tax assets have been recognized for the deductible temporary differences of ~~W~~ 3,914,339 million associated with investments in subsidiaries as of December 31, 2024, because it is not probable that these temporary differences will reverse in the foreseeable future.

17.2.2 No deferred income tax assets have been recognized for the deductible temporary differences of ~~W~~ 98,004 million associated with others as of December 31, 2024, due to the uncertainty that these temporary differences will be realized in the future.

17.3 Unrecognized Deferred Income Tax Liabilities

17.3.1 No deferred income tax liabilities have been recognized for the taxable temporary differences of ~~W~~ 1,744,044 million associated with investments in subsidiaries as of December 31, 2024, due to the following reasons:

•	The Group is able to control the timing of the reversal of the temporary differences.
•	It is probable that these temporary differences will not reverse in the foreseeable future.
:---	:---

17.3.2 No deferred income tax liabilities have been recognized as of December 31, 2024, for the taxable temporary differences of ~~W~~ 65,288 million related to the initial recognition of goodwill arising from the merger of Housing and Commercial Bank in 2001.

184

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

17.4 Changes in cumulative temporary differences for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions		~~W~~	1,202,725		~~W~~	1,173,243		~~W~~	800,375		~~W~~	829,857
Allowances for credit losses			113,157			114,700			66,566			65,023
Impairment losses of property and equipment			30,774			21,585			29,263			38,452
Deferred loan origination fees and costs			55,278			11,323			17,705			61,660
Share-based payments			92,146			81,835			129,695			140,006
Provisions for acceptances and guarantees			185,290			185,290			60,642			60,642
Gains or losses on valuation of derivatives			904,830			904,830			1,122,015			1,122,015
Present value discount			54,815			54,815			45,274			45,274
Investments in subsidiaries and others			3,112,619			102,105			1,173,735			4,184,249
Gains or losses on valuation of security investment			3,456,456			3,450,487			1,848,240			1,854,209
Defined benefit liabilities			2,174,727			306,292			478,321			2,346,756
Accrued expenses			1,225,697			1,220,348			1,381,574			1,386,923
Derivative-linked securities			21,725			21,725			26,070			26,070
Others ^1^			3,052,860			1,222,782			2,076,926			3,907,004

			15,683,099			8,871,360			9,256,401			16,068,140

Unrecognized deferred income tax assets
Other provisions			404									404
Investments in subsidiaries and others			2,948,424									3,914,339
Others			85,346									98,004

			12,648,925									12,055,393
Tax rate (%)			26.4									26.4

Total deferred income tax assets		~~W~~	3,637,726								~~W~~	3,429,618

Taxable temporary differences
Gains or losses on fair value hedge		~~W~~	(216,460	)	~~W~~	(43,200	)	~~W~~	—		~~W~~	(173,260	)
Accrued interest			(809,501	)		(718,384	)		(902,961	)		(994,078	)
Impairment losses of property and equipment			(3,288	)		(179	)		—			(3,109	)
Deferred loan origination fees and costs			(666,878	)		(666,878	)		(716,693	)		(716,693	)
Advanced depreciation provision			(15,163	)		(9,097	)		(9,097	)		(15,163	)
Gains or losses on valuation of derivatives			(698,745	)		(698,745	)		(855,200	)		(855,200	)
Present value discount			(2,745	)		(2,745	)		(3,719	)		(3,719	)
Goodwill arising from the merger			(65,288	)		—			—			(65,288	)
Gains or losses on revaluation			(1,100,555	)		(38,949	)		(37,738	)		(1,099,344	)
Investments in subsidiaries and others			(2,134,355	)		(146,755	)		(680,823	)		(2,668,423	)
Gains or losses on valuation of security investment			(1,282,875	)		(1,240,160	)		(1,648,762	)		(1,691,477	)
Defined benefit liabilities			(97	)		(97	)		—			—
Retirement insurance expense			(2,371,534	)		(326,432	)		(192,585	)		(2,237,687	)
Adjustments to the prepaid contributions			(125,019	)		(125,019	)		(186,113	)		(186,113	)
Derivative-linked securities			(994,405	)		(994,405	)		(326,181	)		(326,181	)
Others ^1^			(11,042,857	)		(2,848,140	)		(282,927	)		(8,477,644	)

			(21,529,765	)		(7,859,185	)		(5,842,799	)		(19,513,379	)

Unrecognized deferred income tax liabilities
Goodwill arising from the merger			(65,288	)								(65,288	)
Investments in subsidiaries and others			(1,220,925	)								(1,744,044	)
Others			(446	)								(522	)

			(20,243,106	)								(17,703,525	)
Tax rate (%)			26.4									26.4

Total deferred income tax liabilities		~~W~~	(5,458,413	)							~~W~~	(4,833,086	)

^1^	Includes PPA amount arising from the acquisition of KB Life Insurance Co., Ltd., KB Insurance Co., Ltd..
:---	:---

185

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

17.4 Changes in cumulative temporary differences for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2023
		Beginning			Decrease			Increase			Ending
Deductible temporary differences
Other provisions		~~W~~	739,371		~~W~~	710,907		~~W~~	1,174,261		~~W~~	1,202,725
Allowances for credit losses			748			275			112,684			113,157
Impairment losses of property and equipment			22,975			19,765			27,564			30,774
Deferred loan origination fees and costs			51,605			12,445			16,118			55,278
Share-based payments			80,777			71,512			82,881			92,146
Provisions for acceptances and guarantees			150,140			150,140			185,290			185,290
Gains or losses on valuation of derivatives			513,151			513,151			904,830			904,830
Present value discount			76,399			76,399			54,815			54,815
Investments in subsidiaries and others			1,324,236			26,849			1,815,232			3,112,619
Gains or losses on valuation of security investment			7,811,132			7,807,818			3,453,142			3,456,456
Defined benefit liabilities			2,027,346			310,440			457,821			2,174,727
Accrued expenses			1,013,323			1,027,723			1,240,097			1,225,697
Derivative-linked securities			38,123			38,123			21,725			21,725
Others ^1^			2,650,802			1,209,862			1,611,920			3,052,860

			16,500,128			11,975,409			11,158,380			15,683,099

Unrecognized deferred income tax assets
Other provisions			3,880									404
Investments in subsidiaries and others			1,154,111									2,948,424
Others			95,274									85,346

			15,246,863									12,648,925
Tax rate (%) ^2^			26.5									26.4

Total deferred income tax assets			4,264,566								~~W~~	3,637,726

Taxable temporary differences
Gains or losses on fair value hedge			(354,085	)	~~W~~	(354,085	)	~~W~~	(216,460	)	~~W~~	(216,460	)
Accrued interest			(634,218	)		(576,037	)		(751,320	)		(809,501	)
Allowances for credit losses			(46,262	)		(46,262	)		—			—
Impairment losses of property and equipment			(3,448	)		(160	)		—			(3,288	)
Deferred loan origination fees and costs			(690,979	)		(690,979	)		(666,878	)		(666,878	)
Advanced depreciation provision			(15,163	)		(9,097	)		(9,097	)		(15,163	)
Gains or losses on valuation of derivatives			(755,541	)		(756,668	)		(699,872	)		(698,745	)
Present value discount			(9,703	)		(9,703	)		(2,745	)		(2,745	)
Goodwill arising from the merger			(65,288	)		—			—			(65,288	)
Gains or losses on revaluation			(1,103,292	)		(40,475	)		(37,738	)		(1,100,555	)
Investments in subsidiaries and others			(1,311,712	)		(153,737	)		(976,380	)		(2,134,355	)
Gains or losses on valuation of security investment			(117,696	)		(100,797	)		(1,265,976	)		(1,282,875	)
Defined benefit liabilities			(3,014	)		(2,917	)		—			(97	)
Retirement insurance expense			(2,193,624	)		(92,124	)		(270,034	)		(2,371,534	)
Adjustments to the prepaid contributions			(105,608	)		(105,608	)		(125,019	)		(125,019	)
Derivative-linked securities			(1,071,093	)		(1,071,093	)		(994,405	)		(994,405	)
Others *			(12,763,953	)		(1,690,382	)		30,714			(11,042,857	)

			(21,244,679	)		(5,700,124	)		(5,985,210	)		(21,529,765	)

Unrecognized deferred income tax liabilities
Goodwill arising from the merger			(65,288	)								(65,288	)
Investments in subsidiaries and others			(560,489	)								(1,220,925	)
Others			(446	)								(446	)

			(20,618,456	)								(20,243,106	)
Tax rate (%) ^2^			26.5									26.4

Total deferred income tax liabilities		~~W~~	(5,638,051	)							~~W~~	(5,458,413	)

^1^	Includes PPA amount arising from the acquisition of KB Life Insurance Co., Ltd., KB Insurance Co., Ltd..
:---	:---
^2^	The corporate tax rate was changed due to the amendment of corporate tax law in 2023. Accordingly, the rate of<br>26.4% has been applied for the deferred tax assets and liabilities expected to be utilized in periods after December 31, 2024.
:---	:---

186

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

18. Assets Held for Sale

18.1 Details of assets held for sale as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Acquisition<br>cost *				Accumulated<br>impairment<br>losses			Carrying<br>amount				Fair value less<br>costs to sell
Land held for sale		~~W~~	82,878			~~W~~	(48,986	)	~~W~~	33,892			~~W~~	44,906
Buildings held for sale			179,430				(76,908	)		102,522				124,095
Other assets held for sale			2,664				(2,241	)		423				423

		~~W~~	264,972			~~W~~	(128,135	)	~~W~~	136,837			~~W~~	169,424

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
		Acquisition<br>cost *				Accumulated<br>impairment<br>losses			Carrying<br>amount				Fair value less<br>costs to sell
Land held for sale		~~W~~	107,452			~~W~~	(21,604	)	~~W~~	85,848			~~W~~	104,024
Buildings held for sale			162,004				(41,390	)		120,614				134,801
Other assets held for sale			3,432				(1,664	)		1,768				1,768

		~~W~~	272,888			~~W~~	(64,658	)	~~W~~	208,230			~~W~~	240,593

*	Acquisition cost of buildings held for sale is net of accumulated depreciation amount immediately before the<br>initial classification of the assets as held for sale.
:---	:---

18.2 Valuation techniques and inputs used to measure the fair value of assets held for sale as of December 31, 2024 are as follows:

(In millions of Korean won)

		December 31, 2024
		Fair value	Valuation<br>techniques ^1^	Unobservable<br>inputs ^2^	Estimated range<br>of unobservable<br>inputs (%)	Effect of<br>unobservable<br>inputs to fair<br>value
Land and buildings		~~W~~169,423	Sales<br>comparison<br>approach<br>model and<br>others	Adjustment index	0.54~2.01	Fair value<br>increases as the<br>adjustment<br>index rises
^1^	The appraisal value is adjusted by the adjustment ratio in the event the public sale is unsuccessful.
:---	:---
^2^	Adjustment index is calculated using the time factor correction or local factors or individual factors.
:---	:---

Among assets held for sale, real estate was measured by independent appraisers with professional qualifications and recent experience in evaluating similar properties in the area of the property to be assessed. All assets held for sale are classified as Level 3 in accordance with fair value hierarchy in Note 6.1.2.

187

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

18.3 Changes in accumulated impairment losses of assets held for sale for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning			Provision			Reversal				Others			Ending
Accumulated impairment losses of assets held for sale		~~W~~	(64,658	)	~~W~~	(49,259	)	~~W~~	2			~~W~~	(14,219	)	~~W~~	(128,134	)
(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning			Provision			Reversal				Others				Ending
Accumulated impairment losses of assets held for sale		~~W~~	(62,111	)	~~W~~	(5,660	)	~~W~~	—			~~W~~	3,113			~~W~~	(64,658	)

18.4 As of December 31, 2024, assets held for sale consist of 16 real estates of closed offices, and 352 foreclosure assets on loans of PT Bank KB Bukopin Tbk, which were determined to sell by management, but not yet sold as of December 31, 2024. The remaining 368 assets are being actively marketed.

19. Other Assets

19.1 Details of other assets as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Other financial assets
Other receivables	~~W~~	8,955,019		~~W~~	11,068,486
Accrued income		3,271,649			3,130,004
Guarantee deposits		918,515			946,356
Domestic exchange settlement debits		464,292			827,104
Others		1,322,780			887,661
Less: Allowances for credit losses		(518,864	)		(304,567	)
Less: Present value discount		(9,165	)		(10,530	)

		14,404,226			16,544,514

Other non-financial assets
Other receivables		5,435			1,407
Prepaid expenses		654,346			626,922
Guarantee deposits		5,121			4,776
Others		3,809,175			3,822,047
Less: Allowances for credit losses		(14,666	)		(12,769	)

		4,459,411			4,442,383

	~~W~~	18,863,637		~~W~~	20,986,897

188

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

19.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Other<br>financial assets			Other<br>non-financial assets			Total
Beginning		~~W~~	304,567		~~W~~	12,769		~~W~~	317,336
Write-offs			(13,552	)		(142	)		(13,694	)
Provision (reversal)			155,770			1,987			157,757
Business combination			—			—			—
Others			72,079			52			72,131

Ending		~~W~~	518,864		~~W~~	14,666		~~W~~	533,530

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---
		Other<br>financial assets			Other<br>non-financial assets			Total
Beginning		~~W~~	136,075		~~W~~	18,530		~~W~~	154,605
Write-offs			(8,292	)		(5,911	)		(14,203	)
Provision (reversal)			188,279			(1,450	)		186,829
Business combination			108			—			108
Others			(11,603	)		1,600			(10,003	)

Ending		~~W~~	304,567		~~W~~	12,769		~~W~~	317,336

20. Financial Liabilities at Fair Value through Profit or Loss

20.1 Details of financial liabilities at fair value through profit or loss and financial liabilities designated at fair value through profit or loss as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Financial liabilities at fair value through profit or loss
Borrowed securities sold	~~W~~	2,558,520	~~W~~	2,860,034
Others		159,212		93,438

		2,717,732		2,953,472

Financial liabilities designated at fair value through profit or loss
Derivative-linked securities		8,002,499		7,966,963

		8,002,499		7,966,963

	~~W~~	10,720,231	~~W~~	10,920,435

189

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

20.2 Difference between the amount contractually required to pay at maturity and carrying amount of financial liabilities designated at fair value through profit or loss as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Amount contractually required to pay at maturity	~~W~~	7,947,236		~~W~~	7,871,014
Carrying amount		8,002,499			7,966,963

Difference	~~W~~	(55,263	)	~~W~~	(95,949	)

21. Deposits

Details of deposits as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Demand deposits
Demand deposits in Korean won	~~W~~	156,242,487		~~W~~	151,836,599
Demand deposits in foreign currencies		13,667,783			11,517,076

		169,910,270			163,353,675

Time deposits
Time deposits in Korean won		221,342,787			201,194,217
Fair value adjustments of fair value hedged time deposits in Korean won		6,258			(15	)

		221,349,045			201,194,202

Time deposits in foreign currencies		28,299,460			24,602,818
Fair value adjustments of fair value hedged time deposits in foreign currencies		(7,593	)		(6,667	)

		28,291,867			24,596,151

		249,640,912			225,790,353

Certificates of deposits		9,805,371			12,145,510

Investment contract liabilites		6,331,344			5,222,896

	~~W~~	435,687,897		~~W~~	406,512,434

190

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

22. Borrowings

22.1 Details of borrowings as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
General borrowings	~~W~~	52,433,193	~~W~~	50,675,884
Bonds sold under repurchase agreements and others		12,803,106		15,652,135
Call money		2,840,713		3,255,542

	~~W~~	68,077,012	~~W~~	69,583,561

22.2 Details of general borrowings as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Lenders	Interest rate<br>(%) as<br>of<br>December 31,<br>2024	December 31,<br><br>2024	December 31,<br><br>2023
Borrowings in Korean won	Borrowings from the Bank of Korea	The Bank of Korea	1.50	~~W~~4,618,026	~~W~~2,520,472
	Borrowings from the government	SEMAS and others	0.00~3.50	2,409,409	2,500,160
	Borrowings from banks	Shinhan Bank and others	2.20~6.76	1,267,487	1,764,900
	Borrowings from non-banking financial<br>institutions	Korea Securities Finance Corporation and others	0.98~6.59	3,014,113	2,780,823
	Other borrowings	The Korea Development Bank and others	0.00~8.83	22,294,928	22,645,638

				33,603,963	32,211,993

Borrowings in foreign currencies	Due to banks	Woori Bank and others	—	15,155	38,191
	Borrowings from banks	Citicorp International Ltd. And others	1.97~9.15	15,914,710	15,437,388
	Borrowings from other financial institutions	The Export-Import Bank of Korea and others	5.00~5.26	6,027	24,662
	Other borrowings	DBS Bank and others	0.00~8.33	2,893,338	2,963,650

				18,829,230	18,463,891

				~~W~~52,433,193	~~W~~50,675,884

191

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

22.3 Details of bonds sold under repurchase agreements and others as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Lenders	Interest rate (%)<br>as of<br>December 31,<br>2024	December 31,<br>2024		December 31,<br>2023
Bonds sold under repurchase agreements	Individuals, groups, and corporations	0.00~6.60	~~W~~	12,794,534	~~W~~	15,645,498
Bills sold	Counter sale	1.55~2.00		8,572		6,637

			~~W~~	12,803,106	~~W~~	15,652,135

22.4 Details of call money as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Lenders		December 31,<br>2024		December 31,<br>2023
Call money in Korean won	Heungkuk Asset Management and others	3.28~3.43	~~W~~	820,000	~~W~~	1,540,000
Call money in foreign currencies	BANK CIMB NIAGA and others	1.45~8.80		2,020,713		1,715,542

			~~W~~	2,840,713	~~W~~	3,255,542

192

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

23. Debentures

23.1 Details of debentures as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)			December 31,<br>2024			December 31,<br>2023
Debentures in Korean won
Structured debentures		5.15~5.86	~~W~~	20,560		~~W~~	90,640
Exchangeable bonds *		—		—			240,000
Subordinated fixed rate debentures		2.02~4.90		4,445,150			4,453,970
Fixed rate debentures		1.39~9.50		54,370,733			45,624,127
Floating rate debentures		2.83~5.79		1,250,000			5,410,000

				60,086,443			55,818,737
Fair value adjustments of fair value hedged debentures in Korean won				(108,207	)		(141,073	)
Less: Discount on debentures in Korean won				(57,075	)		(29,670	)
Less: Adjustment for exchange right of exchangeable bonds in Korean won				—			(5,104	)

				59,921,161			55,642,890

Debentures in foreign currencies
Floating rate debentures		3.27~6.08		3,122,201			2,532,921
Fixed rate debentures		0.05~7.40		13,229,773			11,109,296

				16,351,974			13,642,217
Fair value adjustments of fair value hedged debentures in foreign currencies				(63,717	)		(68,706	)
Less: Discount on debentures in foreign currencies				(38,161	)		(39,733	)

				16,250,096			13,533,778

			~~W~~	76,171,257		~~W~~	69,176,668

*	Fair value of the liability component of exchangeable bonds is calculated by using market interest rate of<br>bonds under the same conditions without the exchange right. The residual amount after deducting the liability component from the issuance amount, represents the value of the exchange right and is recorded in equity. Shares to be exchanged are<br>5 million treasury shares of KB Financial Group Inc. with the exchange price of ~~W~~ 48,000. Exchange rights were fully exercised on February 14, 2024.
:---	:---

193

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

23.2 Changes in debentures based on par value for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning				Issue				Repayment			Others				Ending
Debentures in Korean won
Structured debentures		~~W~~	90,640			~~W~~	—			~~W~~	(70,080	)	~~W~~	—			~~W~~	20,560
Exchangeable bonds			240,000				—				(240,000	)		—				—
Subordinated fixed rate debentures			4,453,970				—				(8,820	)		—				4,445,150
Fixed rate debentures			45,624,127				82,306,421				(73,559,815	)		—				54,370,733
Floating rate debentures			5,410,000				440,000				(4,600,000	)		—				1,250,000

			55,818,737				82,746,421				(78,478,715	)		—				60,086,443

Debentures in foreign currencies
Floating rate debentures			2,532,921				975,755				(728,965	)		342,490				3,122,201
Fixed rate debentures			11,109,296				2,620,029				(1,880,406	)		1,380,854				13,229,773

			13,642,217				3,595,784				(2,609,371	)		1,723,344				16,351,974

		~~W~~	69,460,954			~~W~~	86,342,205			~~W~~	(81,088,086	)	~~W~~	1,723,344			~~W~~	76,438,417

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning				Issue				Repayment			Others				Ending
Debentures in Korean won
Structured debentures		~~W~~	710			~~W~~	90,000			~~W~~	(70	)	~~W~~	—			~~W~~	90,640
Exchangeable bonds			240,000				—				—			—				240,000
Subordinated fixed rate debentures			5,354,890				—				(900,920	)		—				4,453,970
Fixed rate debentures			45,424,094				74,530,666				(74,330,633	)		—				45,624,127
Floating rate debentures			5,455,000				4,470,000				(4,515,000	)		—				5,410,000

			56,474,694				79,090,666				(79,746,623	)		—				55,818,737

Debentures in foreign currencies
Floating rate debentures			2,168,341				1,673,645				(1,349,020	)		39,955				2,532,921
Fixed rate debentures			10,482,244				2,963,436				(2,587,629	)		251,245				11,109,296

			12,650,585				4,637,081				(3,936,649	)		291,200				13,642,217

		~~W~~	69,125,279			~~W~~	83,727,747			~~W~~	(83,683,272	)	~~W~~	291,200			~~W~~	69,460,954

194

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

24. Provisions

24.1 Details of provisions as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Provisions for credit losses of unused loan commitments	~~W~~	297,855	~~W~~	379,666
Provisions for credit losses of acceptances and guarantees		56,097		183,454
Provisions for credit losses of financial guarantee contracts		7,378		6,500
Provisions for restoration costs		180,590		155,214
Others		385,712		719,584

	~~W~~	927,632	~~W~~	1,444,418

24.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	2024
	Provisions for credit losses of unused<br>loan commitments									Provisions for credit losses of<br>acceptances and guarantees
	12-month<br>expected<br>credit<br>losses			Lifetime expected<br>credit losses						12-month<br>expected<br>credit<br>losses			Lifetime expected<br>credit losses
				Non-<br>impaired			Impaired						Non-<br>impaired			Impaired
Beginning	~~W~~	232,674		~~W~~	136,318		~~W~~	10,674		~~W~~	30,849		~~W~~	148,197		~~W~~	4,408
Transfer between stages:
Transfer to 12-month expected credit losses		90,484			(84,851	)		(5,633	)		87,306			(87,306	)		—
Transfer to lifetime expected credit losses		(19,576	)		20,367			(791	)		(464	)		464			—
Impairment		(720	)		(2,150	)		2,870			(52	)		(85	)		137
Provision (reversal) for credit losses		(88,390	)		9,139			(5,210	)		(90,285	)		(58,819	)		9,309
Others (exchange differences, etc.)		2,523			152			(25	)		12,111			36			291

Ending	~~W~~	216,995			78,975			1,885			39,465			2,487			14,145

195

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

24.2 Changes in provisions for credit losses of unused loan commitments, and acceptances and guarantees for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)
	2023
	Provisions for credit losses of unused<br>loan commitments									Provisions for credit losses of<br>acceptances and guarantees
	12-month<br>expected<br>credit<br>losses			Lifetime expected<br>credit losses						12-month<br>expected<br>credit<br>losses			Lifetime expected<br>credit losses
				Non-<br>impaired			Impaired						Non-<br>impaired			Impaired
Beginning	~~W~~	179,885		~~W~~	151,067		~~W~~	11,230		~~W~~	26,906		~~W~~	118,724		~~W~~	7,899
Transfer between stages:
Transfer to 12-month expected credit losses		60,499			(58,210	)		(2,289	)		421			(421	)		—
Transfer to lifetime expected credit losses		(17,814	)		18,142			(328	)		(356	)		457			(101	)
Impairment		(476	)		(2,177	)		2,653			(3,994	)		(113	)		4,107
Provision (reversal) for credit losses		8,946			26,988			(553	)		7,708			28,401			(7,603	)
Others (exchange differences, etc.)		1,634			508			(39	)		164			1,149			106

Ending	~~W~~	232,674		~~W~~	136,318		~~W~~	10,674		~~W~~	30,849		~~W~~	148,197		~~W~~	4,408

24.3 Changes in provisions for credit losses of financial guarantee contracts for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Beginning	~~W~~	6,500		~~W~~	2,955
Provision (reversal)		15,779			3,545
Others		(14,901	)		—

Ending	~~W~~	7,378		~~W~~	6,500

196

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

24.4 Changes in provisions for restoration costs for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Beginning	~~W~~	155,214		~~W~~	159,033
Provision		7,846			6,885
Reversal		(1,422	)		(3,681	)
Used		(4,632	)		(14,534	)
Unwinding of discount		5,221			6,177
Effect of changes in discount rate		18,363			1,334

Ending	~~W~~	180,590		~~W~~	155,214

Provisions for restoration costs are the present value of estimated costs to be incurred for the restoration of the leased properties. The expenditure of the restoration cost will be incurred at the end of each lease contract, and the lease period is used to reasonably estimate the time of expenditure. Also, the average restoration expense based on actual three-year historical data and three-year historical average inflation rate are used to estimate the present value of estimated costs.

24.5 Changes in other provisions for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
		2024
		Membership<br>rewards<br>program			Dormant<br>accounts			Litigations			Others ^1, 2, 3^			Total
Beginning		~~W~~	47		~~W~~	3,359		~~W~~	185,667		~~W~~	530,511		~~W~~	719,584
Increase			80			2,803			53,125			806,860			862,868
Decrease			(54	)		(3,009	)		(84,490	)		(1,115,767	)		(1,203,320	)
Others			—			—			1,912			4,668			6,580

Ending ^1, 2, 3^		~~W~~	73		~~W~~	3,153		~~W~~	156,214		~~W~~	226,272		~~W~~	385,712

(In millions of Korean won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		2023
		Membership<br>rewards<br>program			Dormant<br>accounts			Litigations			Others ^1, 3^			Total
Beginning		~~W~~	46		~~W~~	2,794		~~W~~	113,527		~~W~~	159,635		~~W~~	276,002
Increase			64			4,686			78,392			391,849			474,991
Decrease			(63	)		(4,121	)		(10,358	)		(19,602	)		(34,144	)
Others			—			—			4,106			(1,371	)		2,735

Ending ^1, 3^		~~W~~	47		~~W~~	3,359		~~W~~	185,667		~~W~~	530,511		~~W~~	719,584

^1^	Includes other provisions of ~~W~~ 17,064 million and<br>~~W~~ 333,290 million related to the Livelihood finance support program as of December 31, 2024 and 2023, respectively
:---	:---
^2^	Includes other provisions of ~~W~~ 55,182 million related to the voluntary compensation<br>for the performance of the Hang Seng China Enterprise Index as of December 31, 2024.
:---	:---
^3^	Includes other provisions of ~~W~~ 33,776 million and<br>~~W~~ 59,823 million related to the completion guarantee management-type land trust business agreement of KB Real Estate Trust Co., Ltd. as of December 31, 2024 and 2023, respectively.
:---	:---

197

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

25. Net Defined Benefit Liabilities

25.1 Defined Benefit Plan

The Group operates defined benefit plans which have the following characteristics:

•	The Group has the obligation to pay the agreed benefits to all its current and former employees.
•	The Group assumes actuarial risk (that benefits will cost more than expected) and investment risk.
:---	:---

The net defined benefit liabilities recognized in the consolidated statement of financial position are calculated by the independent actuary in accordance with actuarial valuation method. The defined benefit obligation is calculated using the projected unit credit method. Assumptions based on market data and historical data such as discount rate, future salary increase rate, mortality, and consumer price index are used which are updated annually.

Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends which may affect net defined benefit liabilities and future payments. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in the period incurred through other comprehensive income.

25.2 Changes in net defined benefit liabilities for the years ended December 31, 2024 and 2023, are as follows:

	2024
(In millions of Korean won)	Present value of<br>defined benefit<br>obligation			Fair value of<br>plan assets			Net defined benefit<br>liabilities(assets)
Beginning	~~W~~	2,362,952		~~W~~	(2,655,173	)	~~W~~	(292,221	)
Current service cost		216,612			—			216,612
Gains on settlement		(1,751	)		—			(1,751	)
Interest expense (income)		94,050			(107,712	)		(13,662	)
Remeasurements:
Actuarial gains and losses by changes in demographic assumptions		(2,786	)		—			(2,786	)
Actuarial gains and losses by changes in financial assumptions		145,060			—			145,060
Actuarial gains and losses by experience adjustments		2,670			—			2,670
Return on plan assets (excluding amounts included in interest income)		—			(27,251	)		(27,251	)
Contributions by the Group		—			(131,400	)		(131,400	)
Payments from plans (settlement)		(457	)		457			—
Payments from plans (benefit payments)		(225,551	)		225,551			—
Payments from the Group		(54,902	)		—			(54,902	)
Transfer in (out)		952			(201	)		751
Effect of exchange differences		613			(76	)		537
Others		72			(42	)		30

Ending *	~~W~~	2,537,534		~~W~~	(2,695,847	)	~~W~~	(158,313	)

198

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

25.2 Changes in net defined benefit liabilities for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

		2023
(In millions of Korean won)		Present value of<br>defined benefit<br>obligation			Fair value of<br>plan assets			Net defined benefit<br>liabilities(assets)
Beginning		~~W~~	2,215,330		~~W~~	(2,608,519	)	~~W~~	(393,189	)
Current service cost			199,882			—			199,882
Gains on settlement			55			—			55
Interest expense (income)			107,586			(130,632	)		(23,046	)
Remeasurements:
Actuarial gains and losses by changes in demographic assumptions			(3,950	)		—			(3,950	)
Actuarial gains and losses by changes in financial assumptions			123,238			—			123,238
Actuarial gains and losses by experience adjustments			1,558			—			1,558
Return on plan assets (excluding amounts included in interest income)			—			(18,228	)		(18,228	)
Contributions by the Group			—			(121,799	)		(121,799	)
Payments from plans (settlement)			(6,755	)		6,755			—
Payments from plans (benefit payments)			(217,031	)		217,031			—
Payments from the Group			(53,606	)		—			(53,606	)
Transfer in (out)			457			202			659
Effect of exchange differences			(3,450	)		(177	)		(3,627	)
Effect of business acquisition and disposal			(309	)		—			(309	)
Others			(53	)		194			141

Ending *		~~W~~	2,362,952		~~W~~	(2,655,173	)	~~W~~	(292,221	)

*	The net defined benefit assets of ~~W~~ 158,313 million is calculated by subtracting<br>~~W~~ 100,187 million of net defined benefit liabilities from ~~W~~ 258,500 million of net defined benefit assets as of December 31, 2024. The net defined benefit liabilities of<br>~~W~~ 292,221 million is calculated by subtracting ~~W~~ 81,869 million of net defined benefit assets from ~~W~~ 374,090 million of net defined benefit liabilities as of<br>December 31, 2024.
:---	:---

199

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

25.3 Details of net defined benefit liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Present value of defined benefit obligation	~~W~~	2,537,534		~~W~~	2,362,952
Fair value of plan assets		(2,695,847	)		(2,655,173	)

Net defined benefit liabilities	~~W~~	(158,313	)	~~W~~	(292,221	)

25.4 Details of post-employment benefits recognized in profit or loss for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024			2023
Current service cost		~~W~~	216,612		~~W~~	199,882
Net interest expense on net defined benefit liabilities			(13,662	)		(23,046	)
Gains on settlement			(1,751	)		55

Post-employment benefits *		~~W~~	201,199		~~W~~	176,891

*	Includes post-employment benefits amounting to ~~W~~ 20,326 million recognized as insurance<br>service expenses, ~~W~~ 3,302 million recognized as other operating expenses and ~~W~~ 90 million recognized as prepayment for the year ended December 31, 2024, and post-employment benefits amounting to<br>~~W~~ 18,308 recognized as insurance service expenses and ~~W~~ 2,824 million recognized as other operating expenses and ~~W~~ 189 million recognized as prepayment for the year ended December 31,<br>2024.
:---	:---

25.5 Details of remeasurements of net defined benefit liabilities recognized in other comprehensive income (loss) for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Remeasurements:
Return on plan assets (excluding amounts included in interest income)	~~W~~	27,251		~~W~~	18,228
Actuarial gains and losses		(144,944	)		(120,846	)
Income tax effect		31,076			25,895
Effect of exchange differences		1,242			4,553

Remeasurements after income tax expense	~~W~~	(85,375	)	~~W~~	(72,170	)

200

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

25.6 Details of fair value of plan assets as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Assets quoted in<br>an active market				Assets not quoted<br>in an active market				Total
Cash and due from financial institutions		~~W~~	—			~~W~~	2,601,582			~~W~~	2,601,582
Debt securities			—				93,416				93,416
Investment fund			—				849				849

		~~W~~	—			~~W~~	2,695,847			~~W~~	2,695,847

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Assets quoted in<br>an active market				Assets not quoted<br>in an active market				Total
Cash and due from financial institutions		~~W~~	—			~~W~~	2,604,272			~~W~~	2,604,272
Derivative instruments			—				45,833				45,833
Investment fund			—				5,068				5,068

		~~W~~	—			~~W~~	2,655,173			~~W~~	2,655,173

25.7 Details of significant actuarial assumptions used as of December 31, 2024 and 2023, are as follows:

	December 31,<br>2024	December 31,<br>2023
Discount rate (%)	3.10~3.70	3.80~4.40
Salary increase rate (%)	0.00~7.00	0.00~7.00
Turnover rate (%)	0.00~38.60	0.00~38.60

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2019.

25.8 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 20234, are as follows:

	Changes in<br>assumptions	Effect on defined benefit obligation
		Increase in<br>assumptions	Decrease in<br>assumptions
Discount rate	0.5%p	3.37% decrease	3.59% increase
Salary increase rate	0.5%p	3.57% increase	3.38% decrease
Turnover rate	0.5%p	0.21% decrease	0.22% increase

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The sensitivity of the defined benefit obligation to changes in significant actuarial assumptions is calculated using the same projected unit credit method used in calculating the defined benefit obligation recognized in the consolidated statement of financial position.

201

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

25.9 Expected maturity analysis of undiscounted pension benefit payments (including expected future benefit) as of December 31, 2024, are as follows:

(In millions of Korean won)
		Up to<br>1 year		1~2 years		2~5 years		5~10 years		Over<br>10 years		Total
Pension benefits *		~~W~~	234,553	~~W~~	267,161	~~W~~	915,032	~~W~~	1,560,220	~~W~~	7,019,755	~~W~~	9,996,721
*	Amount determined under the promotion compensation type defined contribution plan is excluded.
:---	:---

The weighted average duration of the defined benefit obligation is 1 ~ 11 years**.**

25.10 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2024 is ~~W~~ 161,184 million.

26. Other Liabilities

Details of other liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Other financial liabilities
Other payables	~~W~~	15,229,554	~~W~~	17,953,030
Prepaid card and debit card payables		36,125		36,005
Accrued expenses		5,862,874		5,592,853
Financial guarantee contracts liabilities		31,668		47,199
Deposits for letter of guarantees and others		1,079,417		1,139,506
Domestic exchange settlement credits		295,326		2,864,203
Foreign exchange settlement credits		268,794		215,730
Borrowings of other accounting businesses		4,404		2,793
Due to trust accounts		8,232,002		8,142,102
Liabilities incurred from agency relationships		794,661		514,642
Account for agency business		733,654		249,379
Dividend payables		1,836		7,455
Lease liabilities		964,399		588,803
Others		60,169		63,216

		33,594,883		37,416,916

Other non-financial liabilities
Other payables		395,951		353,074
Unearned revenue		367,468		351,677
Accrued expenses		1,153,956		961,464
Deferred revenue on credit card points		238,584		242,346
Withholding taxes		286,435		306,709
Others		392,385		632,749

		2,834,779		2,848,019

	~~W~~	36,429,662	~~W~~	40,264,935

202

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

27. Equity

27.1 Share Capital

27.1.1 Details of share capital as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won and in number of shares)		December 31,<br>2024		December 31,<br>2023
Type of share		Ordinary share		Ordinary share
Number of authorized shares			1,000,000,000		1,000,000,000
Par value per share (In Korean won)		~~W~~	5,000	~~W~~	5,000
Number of issued shares			393,528,423		403,511,072
Share capital *		~~W~~	2,090,558	~~W~~	2,090,558
*	Due to the retirement of shares deducted through retained earnings, it is different from the total par value of<br>the shares issued.
:---	:---

27.1.2 Changes in outstanding shares for the years ended December 31, 2024 and 2023, are as follows:

(In number of shares)
Beginning	378,663,825		389,634,335
Increase	5,000,000		—
Decrease	(10,063,106	)	(10,970,510	)

Ending	373,600,719		378,663,825

203

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

27.2 Hybrid Securities

Details of hybrid securities classified as equity as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)

Hybrid<br><br>securities		Issuance date	Maturity		December 31,<br>2024		December 31,<br>2023
Series 1-1 *		May 2, 2019	Perpetual bond	—	~~W~~	—	~~W~~	349,309
Series 1-2		May 2, 2019	Perpetual bond	3.44		49,896		49,896
Series 2-1		May 8, 2020	Perpetual bond	3.30		324,099		324,099
Series 2-2		May 8, 2020	Perpetual bond	3.43		74,812		74,812
Series 3-1		Jul. 14, 2020	Perpetual bond	3.17		369,099		369,099
Series 3-2		Jul. 14, 2020	Perpetual bond	3.38		29,922		29,922
Series 4-1		Oct. 20, 2020	Perpetual bond	3.00		433,996		433,996
Series 4-2		Oct. 20, 2020	Perpetual bond	3.28		64,855		64,855
Series 5-1		Feb. 19, 2021	Perpetual bond	2.67		419,071		419,071
Series 5-2		Feb. 19, 2021	Perpetual bond	2.87		59,862		59,862
Series 5-3		Feb. 19, 2021	Perpetual bond	3.28		119,727		119,727
Series 6-1		May 28, 2021	Perpetual bond	3.20		165,563		165,563
Series 6-2		May 28, 2021	Perpetual bond	3.60		109,708		109,708
Series 7-1		Oct. 8, 2021	Perpetual bond	3.57		208,468		208,468
Series 7-2		Oct. 8, 2021	Perpetual bond	3.80		59,834		59,834
Series 8-1		Feb. 16, 2022	Perpetual bond	4.00		442,970		442,970
Series 8-2		Feb. 16, 2022	Perpetual bond	4.30		155,626		155,626
Series 9-1		May 12, 2022	Perpetual bond	4.68		478,829		478,829
Series 9-2		May 12, 2022	Perpetual bond	4.97		19,906		19,906
Series 10-1		Aug. 26, 2022	Perpetual bond	4.90		407,936		407,936
Series 10-2		Aug. 26, 2022	Perpetual bond	5.15		70,819		70,819
Series 10-3		Aug. 26, 2022	Perpetual bond	5.30		19,944		19,944
Series 11-1		Feb. 03, 2023	Perpetual bond	4.90		548,681		548,681
Series 11-2		Feb. 03, 2023	Perpetual bond	5.03		49,871		49,871
Series 12		Feb. 28, 2024	Perpetual bond	4.39		399,084		—

					~~W~~	5,082,578	~~W~~	5,032,803

*	As a result of exercising the call option for the Company’s write-down contingent convertible bonds on<br>May 2, 2024, ~~W~~350,000 million was fully redeemed before maturity.
:---	:---

The above hybrid securities are early redeemable by the Group after 5 or 7 or 10 years from the issuance date. On the other hand, hybrid securities of ~~W~~ 1,065,613 million issued by Kookmin Bank, hybrid securities of ~~W~~ 232,647 million issued by KB Securities Co., Ltd. and hybrid securities of ~~W~~ 49,800 million issued by KB Life Insurance Co., Ltd., hybrid securities of ~~W~~ 249,150 million issued by KB Kookmin Card Co., Ltd. and hybrid securities of ~~W~~ 19,993 million issued by KB Real Estate Trust. Co., Ltd. are recognized as non-controlling interests and are early redeemable after 5 years from the issuance date and each interest payment date thereafter.

204

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

27.3 Capital Surplus

Details of capital surplus as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Paid-in capital in excess of par value	~~W~~	13,190,274		~~W~~	13,190,274
Losses on sales of treasury shares		(477,358	)		(481,332	)
Other capital surplus		3,933,818			3,927,041
Consideration for exchange right of exchangeable bonds		—			11,933

	~~W~~	16,646,734		~~W~~	16,647,916

27.4 Accumulated Other Comprehensive Income

Details of accumulated other comprehensive income as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Remeasurements of net defined benefit liabilities	~~W~~	(247,241	)	~~W~~	(161,295	)
Currency translation differences		809,089			261,752
Gains (losses) on financial instruments at fair value through other comprehensive income		(1,518,990	)		(2,735,499	)
Share of other comprehensive loss of associates and joint ventures		(3,153	)		(3,318	)
Gains (losses) on cash flow hedging instruments		108,318			73,555
Losses on hedging instruments of net investments in foreign operations		(316,109	)		(129,401	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk		(17,314	)		(11,800	)
Finance gains or losses on insurance contract assets (liabilities)		1,682,322			4,858,650

	~~W~~	496,922		~~W~~	2,152,644

205

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

27.5 Retained Earnings

27.5.1 Details of retained earnings as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Legal reserves ^1^		~~W~~	1,219,810	~~W~~	1,007,686
Voluntary reserves			982,000		982,000
Retained earnings ^2^			32,606,410		29,944,914

		~~W~~	34,808,220	~~W~~	31,934,600

^1^	With respect to the allocation of net profit earned in a fiscal term, the Parent Company must set aside in its<br>legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 53 of the Financial Holding Company Act. This reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce<br>accumulated deficit.
:---	:---
^2^	The regulatory reserve for credit losses the Group appropriated in retained earnings is ~~W~~<br>4,370,051 million and ~~W~~ 4,320,506 million for the years ended December 31, 2024 and 2023, respectively.
:---	:---

27.5.2 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of Regulations on Supervision of Financial Holding Companies.

27.5.2.1 Details of regulatory reserve for credit losses as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Regulatory reserve for credit losses attributable to:
Shareholders of the Parent Company	~~W~~	4,370,051	~~W~~	4,320,506
Non-controlling interests		169,603		173,393

	~~W~~	4,539,654	~~W~~	4,493,899

27.5.2.2 Regulatory reserve for credit losses estimated to be appropriated and adjusted profit after provision of regulatory reserve for credit losses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won, except for earnings per share)		2024		2023
Provision of regulatory reserve for credit losses		~~W~~	49,545	~~W~~	(35,228	)
Adjusted profit after provision of regulatory reserve for credit losses ^1,2^			4,828,877		4,445,148
Adjusted basic earnings per share after provision of regulatory reserve for credit losses ^1^			12,749		11,575
Adjusted diluted earnings per share after provision of regulatory reserve for credit losses ^1^			12,597		11,308
^1^	Adjusted profit after provision of regulatory reserve for credit losses is not based on Korean IFRS. It is<br>calculated by reflecting provision of regulatory reserve for credit losses before tax to the net profit attributable to shareholders of the Parent Company.
:---	:---
^2^	After deducting dividends on hybrid securities
:---	:---

206

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

27.6 Treasury Shares

Changes in treasury shares for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won and in number of shares)

	2024
	Beginning		Acquisition		Disposal			Retirement			Ending
Number of treasury shares *		24,847,247		10,063,106		(5,000,000	)		(9,982,649	)		19,927,704
Carrying amount	~~W~~	1,165,837	~~W~~	820,000	~~W~~	(234,600	)	~~W~~	(515,177	)		1,236,060

(In millions of Korean won and in number of shares)

		2023
		Beginning		Acquisition		Disposal		Retirement			Ending
Number of treasury shares			19,262,733		10,970,510		—		(5,385,996	)		24,847,247
Carrying amount		~~W~~	836,188	~~W~~	571,745	~~W~~	—	~~W~~	(242,096	)		1,165,837
*	5 million treasury shares are deposited at the Korea Securities Depository for the exchange of<br>exchangeable bonds.
:---	:---

The Group retired 5,584,514 shares (~~W~~ 300,000 million) and 4,398,135 shares (~~W~~ 320,000 million) of the treasury shares on August 14, 2024, each acquired in accordance with the resolution of the Board of Directors on July 25, 2023, and February 7, 2024, respectively.

Additionally, in accordance with the resolution of the Board of Directors on Jully 23, 2024, the Group plans to acquire shares worth ~~W~~ 400,000 million of treasury shares through a trust contract by March 4, 2025, and plans to retire the shares after the termination of the trust contract and in accordance with the resolution of the Board of Directors on October 24, 2024, the Group plans to acquire shares worth ~~W~~ 100,000 million of treasury shares through a trust contract by April 30, 2025, and plans to retire the shares after the termination of the trust contract.

207

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

28. Net Interest Income

Details of interest income, interest expense, and net interest income for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Interest income
Due from financial institutions measured at fair value through profit or loss	~~W~~	2,889	~~W~~	1,746
Securities measured at fair value through profit or loss		1,422,251		1,400,912
Loans measured at fair value through profit or loss		33,372		12,708
Securities measured at fair value through other comprehensive income		2,693,188		2,225,549
Loans measured at fair value through other comprehensive income		55,314		39,084
Due from financial institutions measured at amortized cost		395,886		351,797
Securities measured at amortized cost		1,236,448		1,123,957
Loans measured at amortized cost		24,006,088		23,439,034
Insurance finance income		31,317		20,899
Others		614,632		526,338

		30,491,385		29,142,024

Interest expense
Deposits		10,379,055		10,052,830
Borrowings		2,548,842		2,519,463
Debentures		2,623,198		2,306,823
Insurance finance expense		1,477,757		1,534,458
Others		635,819		547,590

		17,664,671		16,961,164

Net interest income	~~W~~	12,826,714	~~W~~	12,180,860

Interest income recognized on impaired loans is ~~W~~ 92,741 million and ~~W~~ 73,543 million for the years ended December 31, 2024 and 2023, respectively.

208

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

29. Net Fee and Commission Income

Details of fee and commission income, fee and commission expense, and net fee and commission income for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024		2023
Fee and commission income
Banking activity fees		~~W~~	187,563	~~W~~	181,841
Lending activity fees			113,553		96,469
Credit card and debit card related fees			1,661,516		1,598,964
Agent activity fees			215,382		198,402
Trust and other fiduciary fees			288,097		375,007
Fund management related fees			140,107		133,027
Acceptances and guarantees fees			95,588		77,291
Foreign currency related fees			362,449		308,747
Securities agency fees			123,833		113,476
Other business account commission on consignment			34,453		33,873
Commissions received on securities business			663,054		656,424
Lease fees			1,120,384		1,096,933
Others			475,864		497,620

			5,481,843		5,368,074

Fee and commission expense
Trading activity related fees *			49,631		56,331
Lending activity fees			35,312		34,040
Credit card and debit card related fees			824,532		861,639
Outsourcing related fees			149,810		167,927
Foreign currency related fees			118,475		93,277
Others			454,456		481,336

			1,632,216		1,694,550

Net fee and commission income		~~W~~	3,849,627	~~W~~	3,673,524

*	Fees from financial instruments at fair value through profit or loss
:---	:---

209

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

30. Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

30.1 Net Gains or Losses on Financial Instruments at Fair Value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments at fair value through profit or loss for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Gains on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities	~~W~~	3,571,736	~~W~~	3,904,088
Equity securities		750,633		818,610

		4,322,369		4,722,698

Derivatives held for trading:
Interest rate		5,053,285		7,195,387
Currency		17,434,391		9,230,401
Stock or stock index		2,394,867		2,027,294
Credit		46,619		41,234
Commodity		63,666		30,829
Others		64,960		173,215

		25,057,788		18,698,360

Financial liabilities at fair value through profit or loss		356,827		192,334
Other financial instruments		522		502

		29,737,506		23,613,894

Losses on financial instruments at fair value through profit or loss
Financial assets at fair value through profit or loss:
Debt securities		1,491,166		1,106,981
Equity securities		917,182		372,969

		2,408,348		1,479,950

Derivatives held for trading:
Interest rate		5,170,159		7,439,802
Currency		18,093,278		9,271,983
Stock or stock index		2,120,380		2,164,455
Credit		43,821		44,971
Commodity		57,086		42,150
Others		155,760		166,403

		25,640,484		19,129,764

Financial liabilities at fair value through profit or loss		358,441		509,835
Other financial instruments		692		387

		28,407,965		21,119,936

Net gains(losses) on financial instruments at fair value through profit or loss	~~W~~	1,329,541	~~W~~	2,493,958

210

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

30.2 Net Gains or Losses on Financial Instruments Designated at Fair Value through Profit or Loss

Net gains or losses on financial instruments designated at fair value through profit or loss include gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial instruments designated at fair value through profit or loss for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Gains on financial instruments designated at fair value through profit or loss
Financial liabilities designated at fair value through profit or loss	~~W~~	323,412		~~W~~	726,277

		323,412			726,277

Losses on financial instruments designated at fair value through profit or loss
Financial liabilities designated at fair value through profit or loss		640,872			1,057,170

		640,872			1,057,170

Net gains(losses) on financial instruments designated at fair value through profit or<br>loss	~~W~~	(317,460	)	~~W~~	(330,893	)

211

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

31. Net Other Operating Income and Expenses

Details of other operating income and expenses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Other operating income
Gains on securities at fair value through other comprehensive income:
Gains on redemption of securities at fair value through other comprehensive income	~~W~~	9,738		~~W~~	7,326
Gains on disposal of securities at fair value through other comprehensive income		128,169			59,666

		137,907			66,992

Gains on financial assets at amortized cost:
Gains on sale of loans measured at amortized cost		136,706			99,942
Gains on disposal of securities measured at amortized cost		1,019			174

		137,725			100,116

Gains on hedge accounting		480,584			361,281
Gains on foreign exchange transactions		6,070,151			6,480,621
Dividend income		86,524			47,769
Others		673,191			593,871

		7,586,082			7,650,650

Other operating expenses
Losses on securities at fair value through other comprehensive income:
Losses on redemption of securities at fair value through other comprehensive income		66			8
Losses on disposal of securities at fair value through other comprehensive income		242,846			323,147

		242,912			323,155

Losses on financial assets at amortized cost:
Losses on sale of loans measured at amortized cost		115,318			49,534

		115,318			49,534

Losses on hedge accounting		425,612			379,343
Losses on foreign exchange transactions		5,375,351			6,130,076
Deposit insurance fee		590,148			570,465
Credit guarantee fund fee		362,234			327,764
Depreciation expenses of operating lease assets		701,917			713,056
Others		1,645,601			1,870,246

		9,459,093			10,363,639

Net other operating expenses	~~W~~	(1,873,011	)	~~W~~	(2,712,989	)

212

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32. General and Administrative Expenses

32.1 Details of general and administrative expenses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Expenses related to employee
Employee benefits - salaries	~~W~~	2,707,446	~~W~~	2,621,008
Employee benefits - others		855,152		860,038
Post-employment benefits - defined benefit plans		177,481		155,720
Post-employment benefits - defined contribution plans		33,995		32,160
Termination benefits		306,617		275,632
Share-based payments		140,453		69,703

		4,221,144		4,014,261

Depreciation and amortization		916,295		865,927

Other general and administrative expenses
Rental expense		92,392		100,761
Tax and dues		324,621		303,987
Communication		48,223		48,704
Electricity and utilities		49,063		45,255
Publication		7,813		9,263
Repairs and maintenance		52,298		51,202
Vehicle		18,313		18,015
Travel		16,881		18,177
Training		43,118		44,275
Service fees		249,774		233,403
Electronic data processing expenses		352,985		354,842
Advertising		230,656		230,192
Others		315,048		309,142

		1,801,185		1,767,218

	~~W~~	6,938,624	~~W~~	6,647,406

213

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2 Share-based Payments

32.2.1 Stock grants

The Group changed the scheme of share-based payments awarded to executives and employees from stock options to stock grants in November 2007. The stock grants award program is an incentive plan that sets on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

32.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2024, are as follows:

(In number of shares)	Grant date		Vesting conditions ^2^
KB Financial Group Inc.
Series 34	Feb. 1, 2022	644	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 36	Jan. 1, 2023	26,071	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 37	Apr. 1, 2023	1,830	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 38	Nov. 21, 2023	55,547	Services fulfillment, market performance ^3^ 35%, and non-market performance ^5^<br>65%
Series 39	Jan. 1, 2024	69,628	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^70~100%
Series 40	Feb. 1, 2024	511	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 41	Apr. 6, 2024	6,270	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^70%
Series 42	Apr. 26, 2024	616	Services fulfillment, market performance ^3^ 0%, and non-market performance ^4^<br>100%
Deferred grant in 2015		2,123	Satisfied
Deferred grant in 2020		284	Satisfied
Deferred grant in 2021		9,060	Satisfied
Deferred grant in 2022		26,240	Satisfied
Deferred grant in 2023		71,682	Satisfied

		270,506

Kookmin Bank
Series 85	Jan. 1, 2022	6,740	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 86	Feb. 1, 2022	1,525	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 90	Jul. 18, 2022	3,716	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 91	Aug. 24, 2022	7,277	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%

214

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2.1.1 Details of stock grants linked to long-term performance as of December 31, 2024, are as follows: (cont’d)

(In number of shares)		Grant date		Vesting conditions ^2^
Series 92		Jan. 1, 2023	160,673	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 94		Apr. 1, 2023	5,849	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 96		Jan. 1, 2024	291,303	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^ 70~100%<br><br>Services fulfillment, market<br>performance ^3^ 30%, and EPS, Asset Quality ^6^ 70%
Series 97		Feb. 1, 2024	2,045	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 98		Apr. 22, 2024	2,959	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 99		July. 5, 2024	4,926	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 100		July. 18, 2024	549	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Series 101		Aug. 24, 2024	4,453	Services fulfillment, market performance ^3^ 0~30%, and non-market performance<br>^4^ 70~100%
Deferred grant in 2021			52,347	Satisfied
Deferred grant in 2022			58,485	Satisfied
Deferred grant in 2023			137,828	Satisfied
Deferred grant in 2024			6,993	Satisfied

			747,668	Satisfied

Other subsidiaries
Stock granted in 2012			160	Services fulfillment,<br><br>market performance ^3^ 0~50%,<br><br>and non-market performance ^4^ 50~100%
Stock granted in 2013			219
Stock granted in 2014			1,028
Stock granted in 2015			1,287
Stock granted in 2016			234
Stock granted in 2017			5,834
Stock granted in 2018			13,883
Stock granted in 2019			18,106
Stock granted in 2020			53,629
Stock granted in 2021			52,505
Stock granted in 2022			146,378
Stock granted in 2023			385,023
Stock granted in 2024			307,922

			986,208

			2,004,382

^1^	Granted shares represent the total number of shares initially granted to executives and employees who have<br>residual shares as of December 31, 2024 (Deferred grants are residual shares vested as of December 31, 2024).
:---	:---
^2^	Executives and employees were given the right of choice about the timing of the deferred payment (after the<br>date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.
:---	:---
^3^	Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract - Fair value at the beginning<br>of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract
:---	:---
^4^	Performance results of company and employee
:---	:---
^5^	EPS (Earnings Per Share), Asset Quality, HCROI (Human Capital Return On Investment), Non-bank segment profit
:---	:---
^6^	EPS, Asset Quality
:---	:---

215

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2.1.2 Details of stock grants linked to short-term performance as of December 31, 2024, are as follows:

(In number of shares)			Vesting<br><br>conditions
KB Financial Group Inc.
Stock granted in 2015		1,078	Satisfied
Stock granted in 2016		2,076	Satisfied
Stock granted in 2020		156	Satisfied
Stock granted in 2021		11,857	Satisfied
Stock granted in 2022		29,285	Satisfied
Stock granted in 2023		40,280	Satisfied
Stock granted in 2024		23,659	Proportional to service period
Kookmin Bank
Stock granted in 2016		706	Satisfied
Stock granted in 2021		42,816	Satisfied
Stock granted in 2022		107,840	Satisfied
Stock granted in 2023		178,808	Satisfied
Stock granted in 2024		86,113	Proportional to service period
Other subsidiaries
Stock granted in 2015		2,672	Satisfied
Stock granted in 2016		12,312	Satisfied
Stock granted in 2017		26,375	Satisfied
Stock granted in 2018		64,040	Satisfied
Stock granted in 2019		56,724	Satisfied
Stock granted in 2020		75,969	Satisfied
Stock granted in 2021		234,222	Satisfied
Stock granted in 2022		349,858	Satisfied
Stock granted in 2023		575,294	Satisfied
Stock granted in 2024		154,299	Proportional to service period

		2,076,439

*	Executives and employees were given the right of choice about the timing of the deferred payment (after the<br>date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.
:---	:---

216

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2024, are as follows:

(In Korean won)
Linked to long-term performance
(KB Financial Group Inc.)
Series 34	2.69	63,498~76,618	72,231~87,156
Series 36	2.69	72,231~87,156	52,755~87,156
Series 37	2.69	72,231~87,156	72,231~87,156
Series 38	2.69	64,306~73,900	66,306~76,198
Series 39	2.69	68,992~87,156	68,992~87,156
Series 40	2.69	65,949~75,790	65,949~75,790
Series 41	2.69	65,949~75,790	65,949~75,790
Series 42	2.69	72,231~87,156	72,231~87,156
Deferred grant in 2015	2.69	—	79,280~87,156
Deferred grant in 2020	2.69	—	79,280~87,156
Deferred grant in 2021	2.69	—	87,156
Deferred grant in 2022	2.69	—	75,790~87,156
Deferred grant in 2023	2.69	—	72,231~87,156
(Kookmin Bank)
Series 85	2.69	65,860~79,468	72,231~87,156
Series 86	2.69	63,498~76,618	72,231~87,156
Series 90	2.69	72,231~87,156	72,231~87,156
Series 91	2.69	72,231~87,156	72,231~87,156
Series 92	2.69	72,231~87,156	72,231~87,156
Series 94	2.69	72,231~87,156	72,231~87,156
Series 96	2.69	68,992~87,156	68,992~87,156
Series 97	2.69	65,949~75,790	65,949~75,790
Series 98	2.69	65,949~75,790	65,949~75,790
Series 99	2.69	65,949~75,790	65,949~75,790
Series 100	2.69	72,231~87,156	72,231~87,156
Series 101	2.69	65,949~75,790	65,949~75,790
Grant deferred in 2021	2.69	—	0~87,156
Grant deferred in 2022	2.69	—	75,790~87,156
Grant deferred in 2023	2.69	—	68,298~87,156
Grant deferred in 2024	2.69	—	70,431~87,156
(Other subsidiaries)
Stock granted in 2012	2.69	—	79,280
Stock granted in 2013	2.69	—	79,280
Stock granted in 2014	2.69	—	52,755~79,280
Stock granted in 2015	2.69	—	47,631~87,156
Stock granted in 2016	2.69	—	87,156

217

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2.1.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2024, are as follows: (cont’d)

(In Korean won)
Linked to long-term performance
Stock granted in 2017	2.69	—	45,096~87,156
Stock granted in 2018	2.69	—	45,096~87,156
Stock granted in 2019	2.69	—	45,096~87,156
Stock granted in 2020	2.69	—	45,096~87,156
Stock granted in 2021	2.69	—	56,379~87,156
Stock granted in 2022	2.69	64,263~87,156	52,755~87,156
Stock granted in 2023	2.69	68,992~87,156	52,755~87,156
Stock granted in 2024	2.69	65,949~87,156	65,949~87,156
Linked to short-term performance
(KB Financial Group Inc.)
Stock granted in 2015	2.69	—	79,280~87,156
Stock granted in 2016	2.69	—	72,231~87,156
Stock granted in 2020	2.69	—	79,280~87,156
Stock granted in 2021	2.69	—	87,156
Stock granted in 2022	2.69	—	79,280~87,156
Stock granted in 2023	2.69	—	75,790~87,156
Stock granted in 2024	2.69	—	68,992~79,280
(Kookmin Bank)
Stock granted in 2016	2.69	—	87,156
Stock granted in 2021	2.69	—	87,156
Stock granted in 2022	2.69	—	72,231~87,156
Stock granted in 2023	2.69	—	75,790~87,156
Stock granted in 2024	2.69	—	68,992~82,229
(Other subsidiaries)
Stock granted in 2015	2.69	—	75,790~87,156
Stock granted in 2016	2.69	—	47,631~87,156
Stock granted in 2017	2.69	—	45,096~87,156
Stock granted in 2018	2.69	—	45,096~87,156
Stock granted in 2019	2.69	—	45,096~87,156
Stock granted in 2020	2.69	—	50,973~87,156
Stock granted in 2021	2.69	—	52,755~87,156
Stock granted in 2022	2.69	—	52,755~87,156
Stock granted in 2023	2.69	—	68,992~87,156
Stock granted in 2024	2.69	—	68,992~82,774

The Group uses the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

32.2.1.4 The accrued expenses for share-based payments related to stock grants are ~~W~~ 295,867 million and ~~W~~ 202,243 million as of December 31, 2024 and 2023, respectively, and the compensation costs amounting to ~~W~~ 162,406 million and ~~W~~ 77,932 million were recognized for the years ended December 31, 2024 and 2023, respectively.

218

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2.2 Mileage stock

32.2.2.1 Details of mileage stock as of December 31, 2024, are as follows:

(In number of shares)

Grant date
Stock granted in 2020
Jan. 18, 2020	28,645	0.00~0.04	10,037
May 12, 2020	46	0.00~0.36	25
Jun. 30, 2020	206	0.00~0.49	118
Aug. 26, 2020	40	0.00~0.65	16
Oct. 29, 2020	160	0.00~0.82	80
Nov. 6, 2020	45	0.00~0.85	35
Nov. 30, 2020	35	0.00~0.91	26
Dec. 2, 2020	57	0.00~0.92	22
Dec. 4, 2020	154	0.00~0.92	21
Dec. 30, 2020	88	0.00~0.99	25
Stock granted in 2021
Jan. 15, 2021	28,156	0.00~1.04	10,375
Apr. 5, 2021	89	0.00~1.26	53
Jul. 1, 2021	54	0.00~1.50	18
Jul. 2, 2021	11	0.00~1.50	11
Jul. 27, 2021	70	0.00~1.57	32
Nov. 1, 2021	71	0.00~1.83	53
Nov. 16, 2021	53	0.00~1.87	13
Dec. 3, 2021	91	0.00~1.92	39
Dec. 6, 2021	87	0.00~1.93	26
Dec. 30, 2021	76	0.00~1.99	38
Stock granted in 2022
Jan. 14, 2022	20,909	0.00~2.04	10,827
Apr. 4, 2022	65	0.00~2.25	33
Apr. 19, 2022	33	0.00~2.30	20
Aug. 3, 2022	62	0.00~2.59	6
Aug. 9, 2022	80	0.00~2.60	21
Oct. 19, 2022	55	0.00~2.80	5
Nov. 1, 2022	177	0.00~2.83	90
Dec. 1, 2022	49	0.00~2.92	48
Dec. 6, 2022	88	0.00~2.93	10
Dec. 12, 2022	114	0.00~2.95	48
Dec. 15, 2022	42	0.00~2.95	28
Dec. 30, 2022	114	0.00~2.99	63

219

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

32.2.2.1 Details of mileage stock as of December 31, 2024, are as follows: (cont’d)

(In number of shares)

Grant date
Stock granted in 2023
Jan. 9, 2023		23,071	0.00~3.02	9,867
Jan. 14, 2023		742	0.00~3.04	377
Mar. 7, 2023		58	0.00~3.18	29
Mar. 27, 2023		58	0.00~3.23	54
Mar. 31, 2023		97	0.00~3.24	38
May 4, 2023		105	0.00~3.34	56
Jul. 3, 2023		63	0.00~3.50	21
Jul. 26, 2023		38	0.00~3.56	31
Jul. 31, 2023		220	0.00~3.58	126
Oct. 20, 2023		80	0.00~3.80	59
Nov. 1, 2023		78	0.00~3.83	58
Dec. 1, 2023		49	0.00~3.92	36
Dec. 13, 2023		115	0.00~3.95	115
Dec. 14, 2023		57	0.00~3.95	57
Dec. 27, 2023		19	0.00~3.99	19
Dec. 28, 2023		162	0.00~3.99	162
Dec. 29, 2023		95	0.00~3.99	95
Stock granted in 2024
Jan. 13, 2024		17,523	0.00~4.03	16,849
Jan. 31, 2024		297	0.00~4.08	297
Apr. 1, 2024		89	0.00~4.25	87
Jul. 1, 2024		38	0.00~4.50	38
Aug. 1, 2024		141	0.00~4.58	141
Sep. 2, 2024		14	0.00~4.67	14
Nov. 1, 2024		55	0.00~4.84	55
Dec. 4, 2024		26	0.00~4.93	26
Dec. 19, 2024		88	0.00~4.97	88
Dec. 30, 2024		73	0.00~5.00	73

		123,473		61,130

^1^	Mileage stock is exercisable for four years after one year from the grant date at the closing price of the end<br>of the previous month. However, mileage stock can be exercised at the closing price of the end of the previous month on the date of occurrence of retirement or transfer despite a one-year lock-up period.
:---	:---
^2^	Assessed based on the stock price as of December 31, 2024. These shares are vested immediately at grant<br>date.
:---	:---

32.2.2.2 The accrued expenses for share-based payments related to mileage stock are ~~W~~ 5,067 million and ~~W~~ 3,183 million as of December 31, 2024 and 2023, respectively. The compensation costs amounting to ~~W~~ 3,183 million and ~~W~~ 1,645 million were recognized as expenses for the years ended December 31, 2024 and 2023, respectively.

220

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

33. Net Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024			2023
Other non-operating income
Gains on disposal of property and equipment		~~W~~	29,515		~~W~~	1,790
Rental income			26,023			23,682
Others			128,794			131,995

			184,332			157,467

Other non-operating expenses
Losses on disposal of property and equipment			5,080			1,839
Donation			152,037			120,560
Restoration costs			2,922			3,642
Management cost for written-off loans			3,888			3,769
Impairment losses on goodwill			60,273			6,268
Others *			1,003,262			319,369

			1,227,462			455,447

Net other non-operating income (expenses)		~~W~~	(1,043,130	)	~~W~~	(297,980	)

*	Includes expenses of ~~W~~ 744,764 million related to the voluntary compensation for the<br>performance of the Hang Seng China Enterprise Index as of December 31, 2024.
:---	:---

221

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

34. Income Tax Expense

34.1 Details of income tax expense for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Income tax payable
Current income tax expense	~~W~~	1,594,917		~~W~~	1,468,269
Adjustments of income tax of prior years recognized in current tax		(27,266	)		(35,326	)

		1,567,651			1,432,943

Changes in deferred income tax assets and liabilities *		(417,219	)		557,002

Income tax recognized directly in equity and others
Remeasurements of net defined benefit liabilities		31,076			25,895
Currency translation differences		(12,919	)		(11,866	)
Net gains or losses on financial assets at fair value through other comprehensive income		(421,425	)		(1,198,075	)
Share of other comprehensive income or loss of associates and joint ventures		(170	)		(7	)
Gains or losses on cash flow hedging instruments		(12,501	)		(1,913	)
Gains or losses on hedging instruments of net investments in foreign operations		66,971			4,931
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk		1,979			19,038
Finance gains or losses on insurance contract assets (liabilities)		1,139,335			772,435

		792,346			(389,562	)

Others		13,863			(6,566	)

Income tax expense	~~W~~	1,956,641		~~W~~	1,593,817

34.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024						2023
	Tax rate (%)			Amount			Tax rate (%)			Amount
Profit before income tax expense				~~W~~	6,985,247					~~W~~	6,120,151
Income tax at the applicable tax rate *		26.25			1,833,743			26.23			1,605,358
Non-taxable income		(0.98	)		(68,560	)		(0.72	)		(44,197	)
Non-deductible expenses		0.34			23,879			0.35			21,133
Tax credit and tax exemption		(0.03	)		(2,067	)		(0.03	)		(2,006	)
Temporary difference for which no deferred tax is recognized		(1.08	)		(75,701	)		(0.07	)		(4,312	)
Changes in recognition and measurement of deferred tax		3.32			231,943			1.12			68,362
Income tax refund for tax of prior years		(1.11	)		(77,423	)		(0.70	)		(42,952	)
Income tax expense of overseas branches		0.81			56,373			0.92			56,285
Tax rate change effect		0.00			—			0.01			622
Others		0.50			34,454			(1.05	)		(64,476	)

Average effective tax rate and income tax expense		28.01		~~W~~	1,956,641			26.04		~~W~~	1,593,817

222

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

34.2 Analysis of the relationship between net profit before income tax expense and income tax expense for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

*	Applicable income tax rate for ~~W~~ 200 million and below is 9.9%, for over<br>~~W~~ 200 million to ~~W~~ 20,000 million is 20.9%, for over ~~W~~ 20,000 million to ~~W~~ 300,000 million is 23.1% and for over ~~W~~ 300,000 million is 26.4%<br>for the years ended December 31, 2024 and 2023 respectively.

34.3 The impact of the global minimum tax

As a result, the Pillar 2 income tax expense recognized during the year ended December 31, 2024 is ~~W~~ 471 million, and exceptions have been applied regarding the recognition and disclosure of related deferred tax assets and liabilities.

35. Dividends

The annual dividends to the shareholders of the Parent Company for the year ended December 31, 2023, amounting to ~~W~~ 587,006 million (~~W~~ 1,530 per share) were declared at the annual general shareholders’ meeting on March 22, 2024 and paid in April 11, 2024.

According to the resolution of the board of directors on April 25, 2024, the quarterly dividend amounting to ~~W~~ 300,087 million (~~W~~ 784 per share) with dividend record date of March 31, 2024 were paid on May 9, 2024; according to the resolution of the board of directors on July 23, 2024, the quarterly dividend amounting to ~~W~~ 299,999 million (~~W~~ 791 per share) with dividend record date of June 30, 2024 were paid on August 8, 2024; and according to the resolution of the board of directors on October 24, 2024, the quarterly dividend amounting to ~~W~~ 299,886 million (~~W~~ 795 per share) with dividend record date of September 30, 2024 were paid on November 7, 2024.

The annual dividends to the shareholders of the Company for the year ended December 31, 2024, amounting to ~~W~~ 298,285 million (~~W~~ 804 per share) is to be proposed at the general shareholders’ meeting scheduled for March 26, 2024. The Company’s financial statements as of and for the year ended December 31, 2024, do not reflect this dividend payable.

223

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

36. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Beginning			Changes<br>except for<br>reclassification			Reclassification<br>to profit or loss			Transfer<br>within equity		Tax effect			Ending
Remeasurements of net defined benefit liabilities	~~W~~	(161,295	)	~~W~~	(117,022	)	~~W~~	—		~~W~~	—	~~W~~	31,076		~~W~~	(247,241	)
Currency translation differences		261,752			560,256			—			—		(12,919	)		809,089
Gains (losses) on financial instruments at fair value through other comprehensive income		(2,735,499	)		1,462,875			171,410			3,649		(421,425	)		(1,518,990	)
Share of other comprehensive income (loss) of associates and joint ventures		(3,318	)		336			(1	)		—		(170	)		(3,153	)
Gains (losses) on cash flow hedging instruments		73,555			341,856			(294,592	)		—		(12,501	)		108,318
Gains (losses) on hedging instruments of net investments in foreign operations		(129,401	)		(253,679	)		—			—		66,971			(316,109	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk		(11,800	)		(7,493	)		—			—		1,979			(17,314	)
Finance gains or losses on insurance contract assets (liabilities)		4,858,650			(4,315,663	)		—			—		1,139,335			1,682,322

	~~W~~	2,152,644		~~W~~	(2,328,534	)	~~W~~	(123,183	)	~~W~~	3,649	~~W~~	792,346		~~W~~	496,922

224

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

36. Accumulated Other Comprehensive Income (Loss) (cont’d)

(In millions of Korean won)	2023
	Beginning			Changes<br>except for<br>reclassification			Reclassification<br>to profit or loss			Transfer<br>within equity			Tax effect			Ending
Remeasurements of net defined benefit liabilities	~~W~~	(88,770	)	~~W~~	(98,420	)	~~W~~	—		~~W~~	—		~~W~~	25,895		~~W~~	(161,295	)
Currency translation differences		254,446			42,925			(23,753	)		—			(11,866	)		261,752
Gains (losses) on financial instruments at fair value through other comprehensive income		(6,081,560	)		4,299,541			281,849			(37,254	)		(1,198,075	)		(2,735,499	)
Share of other comprehensive income (loss) of associates and joint ventures		(3,342	)		31			—			—			(7	)		(3,318	)
Gains (losses) on cash flow hedging instruments		19,632			7,328			48,508			—			(1,913	)		73,555
Gains (losses) on hedging instruments of net investments in foreign operations		(114,742	)		(19,590	)		—			—			4,931			(129,401	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk		41,063			(71,901	)		—			—			19,038			(11,800	)
Finance gains or losses on insurance contract assets (liabilities)		6,976,154			(2,889,939	)		—			—			772,435			4,858,650

	~~W~~	1,002,881		~~W~~	1,269,975		~~W~~	306,604		~~W~~	(37,254	)	~~W~~	(389,562	)	~~W~~	2,152,644

225

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

37. Earnings per Share

37.1 Basic Earnings per Share

Basic earnings per share is calculated by dividing profit attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding.

37.1.1 Weighted average number of ordinary shares outstanding

(In number of shares)		2024						2023
		Number of<br>shares			Accumulated<br>number of shares			Number of<br>shares			Accumulated<br>number of shares
Number of issued ordinary shares			393,528,423			146,287,481,492			403,511,072			147,787,824,904
Number of treasury shares *			(19,927,704	)		(7,659,481,944	)		(24,847,247	)		(7,617,096,867	)

Average number of ordinary shares outstanding			373,600,719			138,627,999,548			378,663,825			140,170,728,037

Number of days						366						365
Weighted average number of ordinary shares outstanding						378,765,026						384,029,392
*	Treasury shares retired during the year ended December 31, 2024 and 2023 were deducted from August 14, 2024 and<br>April 4, 2023, respectively.
:---	:---

37.1.2 Basic earnings per share

(In Korean won and in number of shares)	2024			2023
Profit attributable to shareholders of the Parent Company	~~W~~	5,078,220,543,511		~~W~~	4,594,834,837,385
Deduction: Dividends on hybrid securities		(199,798,800,000	)		(184,915,050,000	)

Profit attributable to ordinary equity holders of the Parent Company (A)		4,878,421,743,511			4,409,919,787,385
Weighted average number of ordinary shares outstanding (B)		378,765,026			384,029,392
Basic earnings per share (A/B)	~~W~~	12,880		~~W~~	11,483

37.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the year) based on the monetary value of stock grants. The number of shares calculated above is compared with the number of shares that would have been issued assuming the settlement of stock grants.

Exchangeable bonds are included in potential ordinary shares from the exercisable date of the exchange right, and interest expense after tax for the period is added to profit for diluted earnings per share.

226

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

37.2.1 Adjusted profit for diluted earnings per share

(In Korean won)	2024			2023
Profit attributable to shareholders of the Parent Company	~~W~~	5,078,220,543,511		~~W~~	4,594,834,837,385
Deduction: Dividends on hybrid securities		(199,798,800,000	)		(184,915,050,000	)

Profit attributable to ordinary equity holders of the Parent Company		4,878,421,743,511			4,409,919,787,385
Adjustments: Interest expense on exchangeable bonds		306,631,690			2,451,851,049

Adjusted profit for diluted earnings per share	~~W~~	4,878,728,375,201		~~W~~	4,412,371,638,434

37.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share

(In number of shares)
Weighted average number of ordinary shares outstanding	378,765,026	384,029,392
Adjustment:
Stock grants	4,001,803	4,300,774
Exchangeable bonds	601,093	5,000,000

Adjusted weighted average number of ordinary shares outstanding for diluted earnings per<br>share	383,367,922	393,330,166

37.2.3 Diluted earnings per share

(In Korean won and in number of shares)	2024		2023
Adjusted profit for diluted earnings per share	~~W~~	4,878,728,375,201	~~W~~	4,412,371,638,434
Adjusted weighted average number of ordinary shares outstanding for diluted earnings per<br>share		383,367,922		393,330,166

Diluted earnings per share	~~W~~	12,726	~~W~~	11,218

227

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38. Insurance Contracts

38.1 Details of insurance contract assets and insurance contract liabilities as of December 31, 2024 and December 31, 2023, are as follows:

(In millions of Korean won)

	December 31, 2024
	Life insurance												Non-life insurance
	Death			Health			Pension		Variables		Compound		Long-term		General		Automobile		Overseas
Insurance contract assets	~~W~~	—		~~W~~	—		~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	265,762	~~W~~	10,429	~~W~~	—	~~W~~	—
Insurance contract liabilities		14,687,315			579,725			7,431,564		6,644,117		—		22,838,534		1,327,191		2,145,366		209,889

Net insurance contract liabilities	~~W~~	14,687,315		~~W~~	579,725		~~W~~	7,431,564	~~W~~	6,644,117	~~W~~	—	~~W~~	22,572,772	~~W~~	1,316,762	~~W~~	2,145,366	~~W~~	209,889

Reinsurance contract assets	~~W~~	81		~~W~~	—		~~W~~	—	~~W~~	—	~~W~~	2,442	~~W~~	492,051	~~W~~	831,272	~~W~~	6,953	~~W~~	164,348
Reinsurance contract liabilities		18,022			16,265			—		—		—		122		21,857		—		—

Net reinsurance contract assets (liabilities)	~~W~~	(17,941	)	~~W~~	(16,265	)	~~W~~	—	~~W~~	—	~~W~~	2,442	~~W~~	491,929	~~W~~	809,415	~~W~~	6,953	~~W~~	164,348

228

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.1 Details of insurance contract assets and insurance contract liabilities as of December 31, 2024 and December 31, 2023, are as follows: (cont’d)

(In millions of Korean won)

	December 31, 2023
	Life insurance												Non-life insurance
	Death			Health			Pension		Variables		Compound		Long-term		General		Automobile		Overseas
Insurance contract assets	~~W~~	—		~~W~~	—		~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	219,782	~~W~~	9,858	~~W~~	—	~~W~~	—
Insurance contract liabilities		12,184,805			449,459			6,992,772		6,565,561		—		20,429,882		1,505,850		2,224,924		264,737

Net insurance contract liabilities	~~W~~	12,184,805		~~W~~	449,459		~~W~~	6,992,772	~~W~~	6,565,561	~~W~~	—	~~W~~	20,210,100	~~W~~	1,495,992	~~W~~	2,224,924	~~W~~	264,737

Reinsurance contract assets	~~W~~	455		~~W~~	(90	)	~~W~~	—	~~W~~	—	~~W~~	5,545	~~W~~	442,280	~~W~~	957,040	~~W~~	10,513	~~W~~	226,689
Reinsurance contract liabilities		14,913			17,275			—		—		—		—		3,842		—		—

Net reinsurance contract assets (liabilities)	~~W~~	(14,458	)	~~W~~	(17,365	)	~~W~~	—	~~W~~	—	~~W~~	5,545	~~W~~	442,280	~~W~~	953,198	~~W~~	10,513	~~W~~	226,689

229

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2 Changes in insurance and reinsurance contract liabilities

38.2.1 Changes in insurance contract assets and insurance contract liabilities not applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Liability for Remaining Coverage									Total
	Other than Loss<br>Component			Loss Component			Liability for<br>Incurred Claims
Beginning	~~W~~	43,732,306		~~W~~	540,113		~~W~~	2,130,278		~~W~~	46,402,697
Insurance revenue		(6,771,649	)								(6,771,649	)
Insurance service expenses
Insurance claims and expenses		—			(44,783	)		4,939,938			4,895,155
Amortization of insurance acquisition cash flows		294,733			—			—			294,733
Changes in fulfilment cash flows relating to incurred claims		—			—			(190,946	)		(190,946	)
Losses on onerous contracts and reversals		—			174,282			—			174,282
Other insurance service expenses		129			—			—			129
Insurance service result		(6,476,787	)		129,499			4,748,992			(1,598,296	)
Insurance finance income and expenses		6,091,991			20,987			54,062			6,167,040
Investment components		(5,265,357	)		—			5,265,357			—
Cashflow
Premiums received		13,777,045			—			—			13,777,045
Insurance acquisition cash flows		(2,815,098	)		—			—			(2,815,098	)
Incurred claims and expenses		—			—			(7,017,862	)		(7,017,862	)
Other cashflow		—			—			(3,000,166	)		(3,000,166	)
Total cashflow		10,961,947			—			(10,018,028	)		943,919
Other		134			—			—			134

Ending	~~W~~	49,044,234		~~W~~	690,599		~~W~~	2,180,661		~~W~~	51,915,494

230

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.1 Changes in insurance contract assets and insurance contract liabilities not applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Liability for Remaining Coverage									Total
	Other than Loss<br>Component			Loss Component			Liability for<br>Incurred Claims
Beginning		~~W~~40,174,308			~~W~~272,629			~~W~~1,981,290			~~W~~42,428,227
Insurance revenue		(6,232,135	)								(6,232,135	)
Insurance service expenses
Insurance claims and expenses		—			(18,663	)		4,505,137			4,486,474
Amortization of insurance acquisition cash flows		206,367			—			—			206,367
Changes in fulfilment cash flows relating to incurred claims		—			—			(47,991	)		(47,991	)
Losses on onerous contracts and reversals		—			280,872			—			280,872
Other insurance service expenses		3,791			—			—			3,791
Insurance service result		(6,021,977	)		262,209			4,457,146			(1,302,622	)
Insurance finance income and expenses		4,937,386			5,275			50,296			4,992,957
Investment components		(5,233,167	)		—			5,233,167			—
Cashflow
Premiums received		12,118,916			—			—			12,118,916
Insurance acquisition cash flows		(2,243,231	)		—			—			(2,243,231	)
Incurred claims and expenses		—			—			(6,796,305	)		(6,796,305	)
Other cashflow		—			—			(2,795,316	)		(2,795,316	)
Total cashflow		9,875,685			—			(9,591,621	)		284,064
Other		71			—			—			71

Ending	~~W~~	43,732,306		~~W~~	540,113		~~W~~	2,130,278		~~W~~	46,402,697

231

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.2 Changes in insurance contract assets and insurance contract liabilities applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Liability for Remaining<br>Coverage					Liability for Incurred Claims
	Other than<br>Loss Component			Loss<br>Component		Present value of<br>estimated<br>future cashflow			Risk<br>adjustment for<br>non-financial<br>risks			Total
Beginning	~~W~~	1,933,331		~~W~~	2,107	~~W~~	1,953,780		~~W~~	96,435		~~W~~	3,985,653
Insurance revenue		(4,245,506	)		—		—			—			(4,245,506	)
Insurance service expenses
Insurance claims and expenses		—			—		3,370,974			32,254			3,403,228
Amortization of insurance acquisition cash flows		468,844			—		—			—			468,844
Changes in fulfilment cash flows relating to incurred claims		—			—		(123,122	)		(45,089	)		(168,211	)
Losses on onerous contracts and reversals		—			3,673		—			—			3,673
Other insurance service expenses		3,281			—		—			—			3,281
Insurance service result		(3,773,381	)		3,673		3,247,852			(12,835	)		(534,691	)
Insurance finance income and expenses		13,011			—		48,140			4,948			66,099
Investment components		(15,439	)		—		15,439			—			—
Cashflow
Premiums received		4,255,795			—		—			—			4,255,795
Insurance acquisition cash flows		(478,578	)		—		—			—			(478,578	)
Incurred claims and expenses		—			—		(3,659,534	)		—			(3,659,534	)
Other cashflow		—			—		—			—			—
Total cashflow		3,777,217			—		(3,659,534	)		—			117,683
Other		12,930			—		22,579			1,763			37,272

Ending	~~W~~	1,947,669		~~W~~	5,780	~~W~~	1,628,256		~~W~~	90,311		~~W~~	3,672,016

232

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.2 Changes in insurance contract assets and insurance contract liabilities applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Liability for Remaining<br>Coverage					Liability for Incurred Claims
	Other than<br>Loss Component			Loss<br>Component		Present value of<br>estimated<br>future cashflow			Risk<br>adjustment for<br>non-financial<br>risks			Total
Beginning	~~W~~	1,839,419		~~W~~	1,300	~~W~~	1,941,475		~~W~~	78,709		~~W~~	3,860,903
Insurance revenue		(4,090,221	)		—		—			—			(4,090,221	)
Insurance service expenses
Insurance claims and expenses		—			—		3,545,909			55,663			3,601,572
Amortization of insurance acquisition cash flows		449,062			—		—			—			449,062
Changes in fulfilment cash flows relating to incurred claims		—			—		(226,333	)		(39,009	)		(265,342	)
Losses on onerous contracts and reversals		—			807		—			—			807
Other insurance service expenses		4,956			—		—			—			4,956
Insurance service result		(3,636,203	)		807		3,319,576			16,654			(299,166	)
Insurance finance income and expenses		(2,047	)		—		13,943			1,005			12,901
Investment components		—			—		—			—			—
Cashflow
Premiums received		4,176,452			—		—			—			4,176,452
Insurance acquisition cash flows		(455,528	)		—		—			—			(455,528	)
Incurred claims and expenses		—			—		(3,323,187	)		—			(3,323,187	)
Other cashflow		—			—		—			—			—
Total cashflow		3,720,924			—		(3,323,187	)		—			397,737
Other		11,238			—		1,973			67			13,278

Ending	~~W~~	1,933,331		~~W~~	2,107	~~W~~	1,953,780		~~W~~	96,435		~~W~~	3,985,653

233

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.3 Changes in reinsurance contract assets and reinsurance contract liabilities not applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Liability for Remaining Coverage									Total
	Other than Loss<br>Recovery<br>Component			Loss Component			Liability for<br>Incurred Claims
Beginning	~~W~~	(52,816	)	~~W~~	73,821		~~W~~	392,106		~~W~~	413,111
Allocation of Reinsurance Premiums		(218,453	)		—			—			(218,453	)
Reinsurance Recoverables
Reinsurance claims and expenses		—			(2,511	)		194,879			192,368
Changes in fulfilment cash flows relating to incurred claims		—			—			(16,953	)		(16,953	)
Recovery from loss recovery component and reversals		—			21,764			—			21,764
Reinsurance service result		(218,453	)		19,253			177,926			(21,274	)
Reinsurance finance income and expenses		27,452			2,185			4,162			33,799
Effect of changes in exchange rate		(111	)		17			—			(94	)
Effect of changes in credit default risk of reinsurer		141			—			9			150
Total reinsurance finance income and expenses		27,482			2,202			4,171			33,855
Investment components		(435,632	)		—			435,632			—
Cashflow					—
Reinsurance Premiums Paid		666,604			—			—			666,604
Amounts recovered from reinsurer		—			—			(634,257	)		(634,257	)
Total cashflow		666,604			—			(634,257	)		32,347
Other		—			—			—			—

Ending	~~W~~	(12,815	)	~~W~~	95,276		~~W~~	375,578		~~W~~	458,039

234

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.3 Changes in reinsurance contract assets and reinsurance contract liabilities not applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Liability for Remaining Coverage									Total
	Other than Loss<br>Recovery<br>Component			Loss Component			Liability for<br>Incurred Claims
Beginning	~~W~~	(1,289	)	~~W~~	24,149		~~W~~	320,357		~~W~~	343,217
Allocation of Reinsurance Premiums		(158,698	)		—			—			(158,698	)
Reinsurance Recoverables
Reinsurance claims and expenses		—			(2,554	)		129,701			127,147
Changes in fulfilment cash flows relating to incurred claims		—			—			4,519			4,519
Recovery from loss recovery component and reversals		—			51,439			—			51,439
Reinsurance service result		(158,698	)		48,885			134,220			24,407
Reinsurance finance income and expenses		43,712			788			2,765			47,265
Effect of changes in exchange rate		4			(1	)		—			3
Effect of changes in credit default risk of reinsurer		161			—			138			299
Total reinsurance finance income and expenses		43,877			787			2,903			47,567
Investment components		(435,701	)		—			435,701			—
Cashflow					—
Reinsurance Premiums Paid		498,995			—			—			498,995
Amounts recovered from reinsurer		—			—			(501,075	)		(501,075	)
Total cashflow		498,995			—			(501,075	)		(2,080	)
Other		—			—			—			—

Ending	~~W~~	(52,816	)	~~W~~	73,821		~~W~~	392,106		~~W~~	413,111

235

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.4 Changes in reinsurance contract assets and reinsurance contract liabilities applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Liability for Remaining Coverage					Liability for Incurred Claims
	Other than Loss<br>Recovery<br>Component			Loss<br>Component		Present value<br>of estimated<br>future cashflow			Risk<br>adjustment for<br>non-financial<br>risks			Total
Beginning	~~W~~	112,534		~~W~~	380	~~W~~	1,033,601		~~W~~	46,776		~~W~~	1,193,291
Reinsurance service income		(703,809	)		—		—			—			(703,809	)
Reinsurance service expenses
Reinsurance claims and expenses		2,816			—		329,207			8,854			340,877
Changes in fulfilment cash flows relating to incurred claims		—			—		(76,406	)		(23,188	)		(99,594	)
Recovery from loss recovery component and reversals		—			574		—			—			574
Reinsurance service result		(700,993	)		574		252,801			(14,334	)		(461,952	)
Reinsurance finance income and expenses		425			—		(78,147	)		3,108			(74,614	)
Effect of changes in exchange rate		8,161			—		41,005			20			49,186
Effect of changes in credit default risk of reinsurer		18			—		24,009			—			24,027
Total reinsurance finance income and expenses		8,604			—		(13,133	)		3,128			(1,401	)
Investment components		(16,003	)		—		16,003			—			—
Cashflow
Reinsurance Premiums Paid		678,583			—		—			—			678,583
Amounts recovered from reinsurer		—			—		(441,280	)		—			(441,280	)
Total cashflow		678,583			—		(441,280	)		—			237,303
Other		6,723			—		8,128			750			15,601

Ending	~~W~~	89,448		~~W~~	954	~~W~~	856,120		~~W~~	36,320		~~W~~	982,842

236

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.2.4 Changes in reinsurance contract assets and reinsurance contract liabilities applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Liability for Remaining Coverage					Liability for Incurred Claims
	Other than Loss<br>Recovery<br>Component			Loss<br>Component		Present value<br>of estimated<br>future cashflow			Risk<br>adjustment for<br>non-financial<br>risks			Total
Beginning	~~W~~	12,516		~~W~~	229	~~W~~	1,066,910		~~W~~	30,022		~~W~~	1,109,677
Reinsurance service income		(679,353	)		—		—			—			(679,353	)
Reinsurance service expenses
Reinsurance claims and expenses		4,485			—		665,538			29,797			699,820
Changes in fulfilment cash flows relating to incurred claims		—			—		(187,486	)		(12,475	)		(199,961	)
Recovery from loss recovery component and reversals		—			151		—			—			151
Reinsurance service result		(674,868	)		151		478,052			17,322			(179,343	)
Reinsurance finance income and expenses		750			—		(4,247	)		(455	)		(3,952	)
Effect of changes in exchange rate		(1,736	)		—		6,033			—			4,297
Effect of changes in credit default risk of reinsurer		(43	)		—		(20,273	)		—			(20,316	)
Total reinsurance finance income and expenses		(1,029	)		—		(18,487	)		(455	)		(19,971	)
Investment components		(3,723	)		—		3,723			—			—
Cashflow
Reinsurance Premiums Paid		785,809			—		—			—			785,809
Amounts recovered from reinsurer		—			—		(496,962	)		—			(496,962	)
Total cashflow		785,809			—		(496,962	)		—			288,847
Other		(6,171	)		—		365			(113	)		(5,919	)

Ending	~~W~~	112,534		~~W~~	380	~~W~~	1,033,601		~~W~~	46,776		~~W~~	1,193,291

237

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.3 Changes in components of insurance and reinsurance Liability

38.3.1 Changes in components of insurance contract assets and insurance contract liabilities not applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Present value of<br>estimated future<br>cashflow			Risk adjustment<br>for non-financial<br>risks			Contractual<br>service margin			Total
Beginning	~~W~~	30,870,548		~~W~~	1,673,727		~~W~~	13,858,422		~~W~~	46,402,697
Future service related changes:
Changes in estimations adjusting contractual service margin		1,506,457			31,292			(1,537,734	)		15
Losses on onerous contracts and reversals		87,130			13,314			—			100,444
Effect of new contracts		(2,682,862	)		323,077			2,433,624			73,839
Current period service related changes:
Contractual service margin recognized in profit or loss for the services provided		—			—			(1,279,258	)		(1,279,258	)
Changes in risk adjustment due to release of risk		—			(187,399	)		—			(187,399	)
Experience adjustment		(114,992	)		—			—			(114,992	)
Past period service related changes:
Changes in fulfilment cash flows relating to incurred claims		(161,134	)		(29,811	)		—			(190,945	)
Insurance service result		(1,365,401	)		150,473			(383,368	)		(1,598,296	)
Insurance finance income and expenses		5,534,419			143,697			488,924			6,167,040
Cashflow for the period:
Premiums received		13,777,045			—			—			13,777,045
Insurance acquisition cash flows		(2,815,098	)		—			—			(2,815,098	)
Incurred claims and expenses		(7,017,862	)		—			—			(7,017,862	)
Other cashflow		(3,000,166	)		—			—			(3,000,166	)
Total cashflow		943,919			—			—			943,919
Other		134			—			—			134

Ending	~~W~~	35,983,619		~~W~~	1,967,897		~~W~~	13,963,978		~~W~~	51,915,494

238

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	2023
	Present value of<br>estimated future<br>cashflow			Risk adjustment<br>for non-financial<br>risks			Contractual<br>service margin			Total
Beginning	~~W~~	27,291,670		~~W~~	1,475,440		~~W~~	13,661,117		~~W~~	42,428,227
Future service related changes:
Changes in estimations adjusting contractual service margin		1,412,517			22,145			(1,434,662	)		—
Losses on onerous contracts and reversals		219,891			27,494			—			247,385
Effect of new contracts		(2,690,035	)		251,886			2,471,636			33,487
Current period service related changes:
Contractual service margin recognized in profit or loss for the services provided		—			—			(1,271,662	)		(1,271,662	)
Changes in risk adjustment due to release of risk		—			(186,989	)		—			(186,989	)
Experience adjustment		(76,853	)		—			—			(76,853	)
Past period service related changes:
Changes in fulfilment cash flows relating to incurred claims		(15,528	)		(32,462	)		—			(47,990	)
Insurance service result		(1,150,008	)		82,074			(234,688	)		(1,302,622	)
Insurance finance income and expenses		4,444,751			116,213			431,993			4,992,957
Cashflow for the period:
Premiums received		12,118,916			—			—			12,118,916
Insurance acquisition cash flows		(2,243,231	)		—			—			(2,243,231	)
Incurred claims and expenses		(6,796,305	)		—			—			(6,796,305	)
Other cashflow		(2,795,316	)		—			—			(2,795,316	)
Total cashflow		284,064			—			—			284,064
Other		71			—			—			71

Ending	~~W~~	30,870,548		~~W~~	1,673,727		~~W~~	13,858,422		~~W~~	46,402,697

239

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.3.2 Changes in components of reinsurance contract assets and reinsurance contract liabilities not applying the premium allocation approach for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Present value of<br>estimated future<br>cashflow			Risk adjustment<br>for non-financial<br>risks			Contractual<br>service margin			Total
Beginning	~~W~~	335,494		~~W~~	73,397		~~W~~	4,220		~~W~~	413,111
Future service related changes
Changes in estimations adjusting contractual service margin		(8,865	)		(15,731	)		24,596			—
Losses on onerous contracts and reversals		16,720			5,663			—			22,383
Effect of new contracts		10,913			14,625			(25,525	)		13
Current period service related changes
Contractual service margin recognized in profit or loss for the services provided		—			—			291			291
Changes in risk adjustment due to release of risk		—			(6,850	)		—			(6,850	)
Experience adjustment		(20,155	)		—			—			(20,155	)
Past period service related changes
Changes in fulfilment cash flows relating to incurred claims		(14,073	)		(2,883	)		—			(16,956	)
Reinsurance service result		(15,460	)		(5,176	)		(638	)		(21,274	)
Reinsurance finance income and expenses		24,832			8,152			815			33,799
Effect of changes in exchange rate		(48	)		9			(55	)		(94	)
Effect of changes in credit default risk of reinsurer		150			—			—			150
Total reinsurance finance income and expenses		24,934			8,161			760			33,855
Cashflow for the period
Reinsurance Premiums Paid		666,604			—			—			666,604
Amounts recovered from reinsurer		(634,257	)		—			—			(634,257	)
Other cashflow		—			—			—			—
Total cashflow		32,347			—			—			32,347
Other		—			—			—			—

Ending	~~W~~	377,315		~~W~~	76,382		~~W~~	4,342		~~W~~	458,039

240

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)	2023
	Present value of<br>estimated future<br>cashflow			Risk adjustment<br>for non-financial<br>risks			Contractual<br>service margin			Total
Beginning	~~W~~	369,776		~~W~~	69,907		~~W~~	(96,466	)	~~W~~	343,217
Future service related changes
Changes in estimations adjusting contractual service margin		(113,886	)		(19,901	)		133,787			—
Losses on onerous contracts and reversals		39,189			12,007			—			51,196
Effect of new contracts		24,733			10,910			(35,401	)		242
Current period service related changes
Contractual service margin recognized in profit or loss for the services provided		—			—			4,978			4,978
Changes in risk adjustment due to release of risk		—			(5,353	)		—			(5,353	)
Experience adjustment		(31,173	)		—			—			(31,173	)
Past period service related changes
Changes in fulfilment cash flows relating to incurred claims		7,598			(3,081	)		—			4,517
Reinsurance service result		(73,539	)		(5,418	)		103,364			24,407
Reinsurance finance income and expenses		41,043			8,908			(2,686	)		47,265
Effect of changes in exchange rate		(5	)		—			8			3
Effect of changes in credit default risk of reinsurer		299			—			—			299
Total reinsurance finance income and expenses		41,337			8,908			(2,678	)		47,567
Cashflow for the period
Reinsurance Premiums Paid		498,995			—			—			498,995
Amounts recovered from reinsurer		(501,075	)		—			—			(501,075	)
Other cashflow		—			—			—			—
Total cashflow		(2,080	)		—			—			(2,080	)
Other		—			—			—			—

Ending	~~W~~	335,494		~~W~~	73,397		~~W~~	4,220		~~W~~	413,111

241

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4 Details of insurance service results for the year ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses	~~W~~	265,682		~~W~~	35,551		~~W~~	46,448		~~W~~	90,456		~~W~~	—	~~W~~	4,565,702	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	5,003,839
Changes in risk adjustment due to release of risk		17,924			2,715			7,207			5,795			—		179,271		—		—		—		212,912
Contractual service margin recognized in profit or loss for the services provided		268,784			17,205			54,498			101,106			—		837,664		—		—		—		1,279,257
Experience adjustments on premium related to current and past services		—			—			—			—			—		—		—		—		—		—
Recovery of insurance acquisition cash flows		29,544			3,495			19,204			10,855			—		217,639		—		—		—		280,737
Other insurance revenues		(2,936	)		(713	)		(896	)		(551	)		—		—		—		—		—		(5,096	)

Insurance revenue for insurance contracts not applying the<br>premium allocation approach		578,998			58,253			126,461			207,661			—		5,800,276		—		—		—		6,771,649
Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		1,362,030		2,820,406		63,070		4,245,506

Total insurance revenue	~~W~~	578,998		~~W~~	58,253		~~W~~	126,461		~~W~~	207,661		~~W~~	—	~~W~~	5,800,276	~~W~~	1,362,030	~~W~~	2,820,406	~~W~~	63,070	~~W~~	11,017,155

242

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4 Details of insurance service results for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024
	Life insurance															Non-life insurance												Total
	Death			Health			Pension			Variables			Compound			Long-term			General			Automobile			Overseas
Insurance service expenses:
Incurred claims and expenses	~~W~~	(219,260	)	~~W~~	(36,144	)	~~W~~	(36,385	)	~~W~~	(89,201	)	~~W~~	—		~~W~~	(4,519,263	)	~~W~~	(850,413	)	~~W~~	(2,537,651	)	~~W~~	(18,445	)	~~W~~	(8,306,762	)
Amortization of insurance acquisition cash flows		(29,544	)		(3,495	)		(19,204	)		(10,855	)		—			(231,635	)		(146,582	)		(318,873	)		(3,389	)		(763,577	)
Changes in fulfilment cash flows relating to incurred claims		802			1,370			(1,648	)		(133	)		—			190,555			103,682			64,529			—			359,157
Losses on onerous contracts and reversals		(473	)		10,935			(4,242	)		(7,481	)		—			(167,924	)		(3,673	)		—			—			(172,858	)
Other insurance service expenses		1,766			1,634			(1,464	)		(2,064	)		—			—			—			—			—			(128	)

Insurance service expenses for insurance contracts not applying the premium allocation<br>approach		(246,709	)		(25,700	)		(62,943	)		(109,734	)		—			(4,728,267	)		—			—			—			(5,173,353	)
Insurance service expenses for insurance contracts applying the premium allocation<br>approach		—			—			—			—			—			—			(896,986	)		(2,791,995	)		(21,834	)		(3,710,815	)

Total insurance service expenses	~~W~~	(246,709	)	~~W~~	(25,700	)	~~W~~	(62,943	)	~~W~~	(109,734	)	~~W~~	—		~~W~~	(4,728,267	)	~~W~~	(896,986	)	~~W~~	(2,791,995	)	~~W~~	(21,834	)	~~W~~	(8,884,168	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses	~~W~~	8,886		~~W~~	12,465		~~W~~	—		~~W~~	—		~~W~~	13,569		~~W~~	162,127		~~W~~	291,179		~~W~~	201		~~W~~	44,816		~~W~~	533,243
Changes in fulfilment cash flows relating to incurred claims		1,044			884			—			—			2,017			(25,781	)		(94,031	)		(679	)		—			(116,546	)
Recognition and reversal of loss-recovery component		162			(120	)		—			—			(2,042	)		23,765			574			—			—			22,339
Other reinsurance income		—			—			—			—			—			—			—			—			—			—

Reinsurance income for reinsurance contracts not applying the premium allocation<br>approach		10,092			13,229			—			—			13,544			160,316			—			—			—			197,181
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—			(205	)		197,722			(478	)		44,816			241,855

Total reinsurance income	~~W~~	10,092		~~W~~	13,229		~~W~~	—		~~W~~	—		~~W~~	13,544		~~W~~	160,111		~~W~~	197,722		~~W~~	(478	)	~~W~~	44,816		~~W~~	439,036

243

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4 Details of insurance service results for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-term			General			Automobile			Overseas
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses	~~W~~	(9,577	)	~~W~~	(10,893	)	~~W~~	—	~~W~~	—	~~W~~	(11,195	)	~~W~~	(188,354	)	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	(220,019	)
Changes in risk adjustment due to release of risk		(169	)		(86	)		—		—		(37	)		(9,232	)		—			—			—			(9,524	)
Contractual service margin recognized in profit or loss for the services received		(1,640	)		121			—		—		(403	)		2,211			—			—			—			289
Experience adjustments on reinsurance premium related to current and past services		—			—			—		—		—			16,785			—			—			—			16,785
Other reinsurance expenses		507			(1,471	)		—		—		(5,021	)		—			—			—			—			(5,985	)

		(10,879	)		(12,329	)		—		—		(16,656	)		(178,590	)		—			—			—			(218,454	)
Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(1,625	)		(605,882	)		(7,206	)		(89,095	)		(703,808	)

Total reinsurance expense		(10,879	)		(12,329	)		—		—		(16,656	)		(180,215	)		(605,882	)		(7,206	)		(89,095	)		(922,262	)

Total insurance service result	~~W~~	331,502		~~W~~	33,453		~~W~~	63,518	~~W~~	97,927	~~W~~	(3,112	)	~~W~~	1,051,905		~~W~~	56,884		~~W~~	20,727		~~W~~	(3,043	)	~~W~~	1,649,761

244

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4 Details of insurance service results for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Life insurance														Non-life insurance								Total
	Death			Health			Pension			Variables			Compound		Long-term		General		Automobile		Overseas
Insurance revenue:
Insurance contracts not applying the premium allocation approach:
Expected insurance claims and expenses	~~W~~	254,876		~~W~~	33,177		~~W~~	35,907		~~W~~	85,464		~~W~~	—	~~W~~	4,138,267	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	4,547,691
Changes in risk adjustment due to release of risk		18,099			2,846			4,720			4,992			—		184,724		—		—		—		215,381
Contractual service margin recognized in profit or loss for the services provided		287,724			19,960			35,629			116,255			—		812,094		—		—		—		1,271,662
Experience adjustments on premium related to current and past services		—			—			—			—			—		—		—		—		—		—
Recovery of insurance acquisition cash flows		18,996			2,835			6,167			5,339			—		170,819		—		—		—		204,156
Other insurance revenues		(3,444	)		(228	)		(2,409	)		(674	)		—		—		—		—		—		(6,755	)

Insurance revenue for insurance contracts not applying the premium allocation approach		576,251			58,590			80,014			211,376			—		5,305,904		—		—		—		6,232,135
Insurance revenue for insurance contracts applying the premium allocation approach		—			—			—			—			—		—		1,291,887		2,714,974		83,360		4,090,221

Total insurance revenue	~~W~~	576,251		~~W~~	58,590		~~W~~	80,014		~~W~~	211,376		~~W~~	—	~~W~~	5,305,904	~~W~~	1,291,887	~~W~~	2,714,974	~~W~~	83,360	~~W~~	10,322,356

245

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4 Details of insurance service results for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Life insurance														Non-life insurance												Total
	Death			Health			Pension			Variables			Compound		Long-term			General			Automobile			Overseas
Insurance service expenses:
Incurred claims and expenses	~~W~~	(255,897	)	~~W~~	(36,962	)	~~W~~	(36,344	)	~~W~~	(89,211	)	~~W~~	—	~~W~~	(4,074,815	)	~~W~~	(1,058,394	)	~~W~~	(2,388,765	)	~~W~~	(159,369	)	~~W~~	(8,099,757	)
Amortization of insurance acquisition cash flows		(18,996	)		(2,835	)		(6,167	)		(5,339	)		—		(173,030	)		(131,289	)		(314,720	)		(3,054	)		(655,430	)
Changes in fulfilment cash flows relating to incurred claims		12,947			(650	)		(1,595	)		1,823			—		35,466			204,283			61,059			—			313,333
Losses on onerous contracts and reversals		(10,570	)		(13,678	)		(9,537	)		5,804			—		(246,136	)		(807	)		—			—			(274,924	)
Other insurance service expenses		2,359			79			(4,453	)		(1,775	)		—		—			—			—			—			(3,790	)

Insurance service expenses for insurance contracts not applying the premium allocation<br>approach		(270,157	)		(54,046	)		(58,096	)		(88,698	)		—		(4,458,515	)		—			—			—			(4,929,512	)
Insurance service expenses for insurance contracts applying the premium allocation<br>approach		—			—			—			—			—		—			(986,207	)		(2,642,426	)		(162,423	)		(3,791,056	)

Total insurance service expenses	~~W~~	(270,157	)	~~W~~	(54,046	)	~~W~~	(58,096	)	~~W~~	(88,698	)	~~W~~	—	~~W~~	(4,458,515	)	~~W~~	(986,207	)	~~W~~	(2,642,426	)	~~W~~	(162,423	)	~~W~~	(8,720,568	)

Reinsurance income:
Recovery of incurred reinsurance claims and expenses	~~W~~	437		~~W~~	1,759		~~W~~	—		~~W~~	—		~~W~~	2,233	~~W~~	127,608		~~W~~	566,668		~~W~~	825		~~W~~	128,534		~~W~~	828,064
Changes in fulfilment cash flows relating to incurred claims		(203	)		(198	)		—			—			410		1,979			(196,236	)		(1,193	)		—			(195,441	)
Recognition and reversal of loss-recovery component		242			148			—			—			1,651		48,300			151			—			—			50,492
Other reinsurance income		—			—			—			—			—		—			—			—			—			—

Reinsurance income for reinsurance contracts not applying the premium allocation approach		476			1,709			—			—			4,294		176,626			—			—			—			183,105
Reinsurance income for reinsurance contracts applying the premium allocation approach		—			—			—			—			—		1,261			370,583			(368	)		128,534			500,010

Total reinsurance income	~~W~~	476		~~W~~	1,709		~~W~~	—		~~W~~	—		~~W~~	4,294	~~W~~	177,887		~~W~~	370,583		~~W~~	(368	)	~~W~~	128,534		~~W~~	683,115

246

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.4 Details of insurance service results for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Life insurance													Non-life insurance												Total
	Death			Health			Pension		Variables		Compound			Long-<br>term			General			Automobile			Overseas
Reinsurance expense:
Reinsurance contracts not applying the premium allocation approach:
Expected recovery of incurred claims and expenses	~~W~~	(951	)	~~W~~	(2,081	)	~~W~~	—	~~W~~	—	~~W~~	(1,318	)	~~W~~	(149,313	)	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	(153,663	)
Changes in risk adjustment due to release of risk		(126	)		(120	)		—		—		(47	)		(7,865	)		—			—			—			(8,158	)
Contractual service margin recognized in profit or loss for the services received		(1,280	)		(369	)		—		—		(2,784	)		9,409			—			—			—			4,976
Experience adjustments on reinsurance premium related to current and past services		—			—			—		—		—			(2,951	)		—			—			—			(2,951	)
Other reinsurance expenses		14			8			—		—		1,075			—			—			—			—			1,097

		(2,343	)		(2,562	)		—		—		(3,074	)		(150,720	)		—			—			—			(158,699	)
Reinsurance expenses for reinsurance contracts applying the premium allocation approach		—			—			—		—		—			(1,812	)		(602,471	)		(9,478	)		(65,591	)		(679,352	)

Total reinsurance expense		(2,343	)		(2,562	)		—		—		(3,074	)		(152,532	)		(602,471	)		(9,478	)		(65,591	)		(838,051	)

Total insurance service result	~~W~~	304,227		~~W~~	3,691		~~W~~	21,918	~~W~~	122,678	~~W~~	1,220		~~W~~	872,744		~~W~~	73,792		~~W~~	62,702		~~W~~	(16,120	)	~~W~~	1,446,852

247

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.5 The effect of new insurance contracts not applying the premium allocation approach for the year ended December 31, 2024 and 2023, are as follows:

38.5.1 Insurance contract

(In millions of Korean won)		2024
		Issued contract								Total
		Other than onerous<br>contract				Onerous<br>contract
Estimated Present Value of Future Cash Outflows		~~W~~	15,805,702			~~W~~	1,196,403			~~W~~	17,002,105
Insurance Acquisition Cash Flow			2,900,605				160,020				3,060,625
Insurance Claims and Service Expenses			12,905,097				1,036,383				13,941,480
Estimated Present Value of Future Cash Inflows			(18,547,325	)			(1,137,642	)			(19,684,967	)
Risk Adjustment for Non-Financial Risks			307,999				15,078				323,077
Contractual service margin			2,433,624				—				2,433,624

Effect on financial statements of initial recognition of contracts		~~W~~	—			~~W~~	73,839			~~W~~	73,839

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Issued contract								Total
		Other than onerous<br>contract				Onerous<br>contract
Estimated Present Value of Future Cash Outflows		~~W~~	11,999,588			~~W~~	467,686			~~W~~	12,467,274
Insurance Acquisition Cash Flow			2,354,262				80,797				2,435,059
Insurance Claims and Service Expenses			9,645,326				386,889				10,032,215
Estimated Present Value of Future Cash Inflows			(14,716,101	)			(441,208	)			(15,157,309	)
Risk Adjustment for Non-Financial Risks			244,877				7,009				251,886
Contractual service margin			2,471,636				—				2,471,636

Effect on financial statements of initial recognition of contracts		~~W~~	—			~~W~~	33,487			~~W~~	33,487

248

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.5.2 Reinsurance contract

(In millions of Korean won)		2024
		Purchased contract								Total
		Net cost contract				Net gain contract
Estimated Present Value of Future Cash Inflows		~~W~~	72,931			~~W~~	977,258			~~W~~	1,050,189
Estimated Present Value of Future Cash Outflows			(76,259	)			(963,017	)			(1,039,276	)
Risk Adjustment for Non-Financial Risks			831				13,794				14,625
Contractual service margin			2,510				(28,035	)			(25,525	)

Effect on financial statements of initial recognition of contracts		~~W~~	13			~~W~~	—			~~W~~	13

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Purchased contract								Total
		Net cost contract				Net gain contract
Estimated Present Value of Future Cash Inflows		~~W~~	50,455			~~W~~	948,180			~~W~~	998,635
Estimated Present Value of Future Cash Outflows			(52,749	)			(921,153	)			(973,902	)
Risk Adjustment for Non-Financial Risks			532				10,378				10,910
Contractual service margin			2,004				(37,405	)			(35,401	)

Effect on financial statements of initial recognition of contracts		~~W~~	242			~~W~~	—			~~W~~	242

249

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.6 The annual expected amortization schedule of contractual service margin of insurance contracts and reinsurance contracts not applying the premium allocation approach as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
	December 31, 2024
	Less than a<br>year			1 ~ 2 years			2 ~ 3 years			3 ~ 4 years			4 ~ 5 years			5 ~ 10 years			10 ~ 20 years			20 ~ 30 years			Over 30<br>years
Insurance contract issued
Life insurance Death	~~W~~	146,413		~~W~~	137,161		~~W~~	130,082		~~W~~	123,783		~~W~~	117,286		~~W~~	518,904		~~W~~	800,072		~~W~~	621,889		~~W~~	606,390
Health		10,289			9,391			8,712			8,140			7,620			31,118			34,523			22,563			40,050
Pension		34,533			30,178			26,981			24,871			22,681			91,418			151,649			105,300			61,326
Variables		61,000			57,634			54,830			52,244			50,011			216,644			295,763			221,994			210,052
Non-life insurance		484,976			433,328			381,336			339,983			309,393			1,274,043			1,908,588			1,333,457			2,355,379

Total insurance contract issued	~~W~~	737,211		~~W~~	667,692		~~W~~	601,941		~~W~~	549,021		~~W~~	506,991		~~W~~	2,132,127		~~W~~	3,190,595		~~W~~	2,305,203		~~W~~	3,273,197

Reinsurance contract held
Life insurance Death	~~W~~	1,032		~~W~~	902		~~W~~	798		~~W~~	721		~~W~~	652		~~W~~	2,243		~~W~~	1,653		~~W~~	1,200		~~W~~	938
Health		(40	)		(41	)		(53	)		(77	)		(88	)		(885	)		(1,784	)		(1,556	)		(2,975	)
Compound		172			128			99			78			67			176			192			147			142
Non-life insurance		(2,468	)		(1,566	)		(1,051	)		(733	)		(486	)		36			4,797			6,300			(4,328	)

Total reinsurance contract held	~~W~~	(1,304	)	~~W~~	(577	)	~~W~~	(207	)	~~W~~	(11	)	~~W~~	145		~~W~~	1,570		~~W~~	4,858		~~W~~	6,091		~~W~~	(6,223	)

250

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)
	December 31, 2023
	Less than a<br>year			1 ~ 2 years			2 ~ 3 years			3 ~ 4 years			4 ~ 5 years			5 ~ 10 years			10 ~ 20 years			20 ~ 30 years			Over 30<br>years
Insurance contract issued
Life insurance Death	~~W~~	140,060		~~W~~	130,826		~~W~~	124,658		~~W~~	118,954		~~W~~	113,536		~~W~~	504,786		~~W~~	784,752		~~W~~	637,225		~~W~~	686,775
Health		11,232			10,358			9,627			9,046			8,539			35,752			39,851			25,667			52,706
Pension		19,921			18,156			16,641			15,763			15,110			71,111			123,283			90,283			61,206
Variables		64,926			62,030			59,475			57,261			55,237			247,114			353,963			278,011			286,662
Non-life insurance		491,522			443,310			394,891			357,703			327,251			1,372,922			2,001,464			1,275,066			1,853,790

Total insurance contract issued	~~W~~	727,661		~~W~~	664,680		~~W~~	605,292		~~W~~	558,727		~~W~~	519,673		~~W~~	2,231,685		~~W~~	3,303,313		~~W~~	2,306,252		~~W~~	2,941,139

Reinsurance contract held
Life insurance Death	~~W~~	1,712		~~W~~	1,474		~~W~~	1,310		~~W~~	1,179		~~W~~	1,071		~~W~~	3,951		~~W~~	2,102		~~W~~	1,589		~~W~~	1,418
Health		(44	)		(39	)		(42	)		(61	)		(94	)		(834	)		(2,069	)		(1,851	)		(3,945	)
Compound		1,077			463			396			346			307			874			812			594			527
Non-life insurance		(5,343	)		(4,358	)		(3,198	)		(2,409	)		(1,924	)		(5,253	)		(92	)		7,335			7,239

Total reinsurance contract held	~~W~~	(2,598	)	~~W~~	(2,460	)	~~W~~	(1,534	)	~~W~~	(945	)	~~W~~	(640	)	~~W~~	(1,262	)	~~W~~	753		~~W~~	7,667		~~W~~	5,239

251

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.7 The details and fair value of the underlying items of insurance contracts with direct participation features as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024		December 31, 2023
Underlying items held by the Group
Cash and cash equivalents	~~W~~	137,021	~~W~~	209,187
Equity securities		853,971		1,019,502
Debt securities		2,583,976		2,121,367
Beneficiary certificates		1,749,807		1,833,608
Other securities		276,907		446,193
Loans		94,300		57,400
Others		48,074		33,487

Total	~~W~~	5,744,056	~~W~~	5,720,744

252

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.8 The relationship between investment income(expenses) and insurance financial income(expenses) for the year ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Life insurance									Non-life insurance												Total
	Retirement			Variables			Others			Long-term			General and<br>Automobile			Overseas			Others
Investment income (expenses)
Investment income (expenses) recognized in profit or loss:
Net Interest Income (Expense)	~~W~~	14,139		~~W~~	83,095		~~W~~	539,964		~~W~~	580,215		~~W~~	134,613		~~W~~	5,803		~~W~~	(21,354	)	~~W~~	1,336,475
Dividend income		—			21,037			13,172			11,667			13,028			8			5,518			64,430
Gains (losses) on valuation and disposal of securities		6,317			136,200			(72,391	)		(48,289	)		(15,083	)		(409	)		1,228			7,573
Gains (losses) on valuation and disposal of loans and receivables		—			—			—			5,183			(3,644	)		—			(758	)		781
Gains (losses) on derivatives		(5,464	)		(47,360	)		(192,899	)		(255,227	)		(249,021	)		—			—			(749,971	)
Gains (losses) on investments in subsidiaries		—			—			(259	)		(704	)		—			—			—			(963	)
Foreign exchange gains (losses)		4,821			113,507			213,545			242,021			215,968			168			—			790,030
Other investment income (expenses)		(25,554	)		35,326			90,607			(74,543	)		306,342			(877	)		14,930			346,231

		(5,741	)		341,805			591,739			460,323			402,203			4,693			(436	)		1,794,586
Investment income (expenses) recognized in other comprehensive income		8,747			—			937,243			715,023			32,901			219			69,601			1,763,734

Total investment income (expenses)	~~W~~	3,006		~~W~~	341,805		~~W~~	1,528,982		~~W~~	1,175,346		~~W~~	435,104		~~W~~	4,912		~~W~~	69,165		~~W~~	3,558,320

253

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.8 The relationship between investment income(expenses) and insurance financial income(expenses) for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024
	Life insurance								Non-life insurance											Total
	Retirement		Variables			Others			Long-term			General and<br>Automobile			Overseas			Others
Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)	~~W~~	—	~~W~~	(895	)	~~W~~	(741,055	)	~~W~~	(715,762	)	~~W~~	(3,806	)	~~W~~	—		~~W~~	—	~~W~~	(1,461,518	)
Effect of changes in discount rates and financial assumptions		—		—			(616	)		—			—			—			—		(616	)
Effect of exchange rate fluctuations		—		(15,470	)		(35,568	)		—			(50,526	)		—			—		(101,564	)
Changes in the fair value of the underlying assets of insurance contract with direct participation<br>features		—		(329,336	)		—			—			—			—			—		(329,336	)
Other insurance finance income (expenses)		—		—			—			7,754			(1,410	)		(426	)		—		5,918

		—		(345,701	)		(777,239	)		(708,008	)		(55,742	)		(426	)		—		(1,887,116	)
Insurance finance income (expenses) recognized in other comprehensive income		—		(138	)		(2,091,444	)		(2,244,510	)		(9,932	)		—			—		(4,346,024	)

Total insurance finance income (expenses)	~~W~~	—	~~W~~	(345,839	)	~~W~~	(2,868,683	)	~~W~~	(2,952,518	)	~~W~~	(65,674	)	~~W~~	(426	)	~~W~~	—	~~W~~	(6,233,140	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)	~~W~~	—	~~W~~	—		~~W~~	(1,020	)	~~W~~	14,269		~~W~~	1,829		~~W~~	—		~~W~~	—	~~W~~	15,078
Effect of changes in discount rates and financial assumptions		—		—			(13	)		—			—			—			—		(13	)
Effect of exchange rate fluctuations		—		—			(112	)		—			49,186			—			—		49,074
Other reinsurance finance income (expenses)		—		—			7			(5,017	)		(55,516	)		62			—		(60,464	)

		—		—			(1,138	)		9,252			(4,501	)		62			—		3,675
Reinsurance finance income (expenses) recognized in other comprehensive income		—		—			(5,201	)		30,943			3,038			—			—		28,780

Total reinsurance finance income (expenses)		—		—			(6,339	)		40,195			(1,463	)		62			—		32,455

Net investment income (expenses)	~~W~~	3,006	~~W~~	(4,034	)	~~W~~	(1,346,040	)	~~W~~	(1,736,977	)	~~W~~	367,967		~~W~~	4,548		~~W~~	69,165	~~W~~	(2,642,365	)

254

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.8 Details of other insurance finance income and expenses for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Life insurance									Non-life insurance												Total
	Retirement			Variables			Others			Long-term			General and<br>Automobile			Overseas			Others
Investment income (expenses)
Investment income (expenses) recognized in profit or loss:
Net Interest Income (Expense)	~~W~~	10,394		~~W~~	71,348		~~W~~	497,110		~~W~~	514,745		~~W~~	129,246		~~W~~	7,017		~~W~~	(79,289	)	~~W~~	1,150,571
Dividend income		450			33,520			8,965			4,210			29,316			2			1,851			78,314
Gains (losses) on valuation and disposal of securities		(3,375	)		446,698			(129,888	)		24,789			48,870			(9,160	)		8,895			386,829
Gains (losses) on valuation and disposal of loans and receivables		—			—			—			1,563			(10,400	)		—			1,671			(7,166	)
Gains (losses) on derivatives		(2,269	)		(9,153	)		(34,523	)		(80,755	)		(44,211	)		—			—			(170,911	)
Gains (losses) on investments in subsidiaries		—			—			(135	)		999			—			—			—			864
Foreign exchange gains (losses)		1,518			14,633			34,594			60,644			31,552			(47	)		—			142,894
Other investment income (expenses)		(26,831	)		23,874			93,458			(48,446	)		198,876			(1,162	)		66,718			306,487

		(20,113	)		580,920			469,581			477,749			383,249			(3,350	)		(154	)		1,887,882
Investment income (expenses) recognized in other comprehensive income		30,623			—			1,831,878			1,517,293			129,012			9,947			154,660			3,673,413

Total investment income (expenses)	~~W~~	10,510		~~W~~	580,920		~~W~~	2,301,459		~~W~~	1,995,042		~~W~~	512,261		~~W~~	6,597		~~W~~	154,506		~~W~~	5,561,295

255

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.8 The relationship between investment income(expenses) and insurance financial income(expenses) for the year ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Life insurance								Non-life insurance											Total
	Retirement		Variables			Others			Long-term			General and<br>Automobile			Overseas			Others
Insurance finance income (expenses)
Insurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)	~~W~~	—	~~W~~	(103	)	~~W~~	(744,571	)	~~W~~	(778,717	)	~~W~~	(3,875	)	~~W~~	—		~~W~~	—	~~W~~	(1,527,266	)
Effect of changes in discount rates and financial assumptions		—		1,121			4,100			—			—			—			—		5,221
Effect of exchange rate fluctuations		—		(2,792	)		(1,702	)		—			(5,416	)		—			—		(9,910	)
Changes in the fair value of the underlying assets of insurance contract with direct participation<br>features		—		(547,352	)		—			—			—			—			—		(547,352	)
Other insurance finance income (expenses)		—		—			—			4,228			(686	)		(41	)		—		3,501

		—		(549,126	)		(742,173	)		(774,489	)		(9,977	)		(41	)		—		(2,075,806	)
Insurance finance income (expenses) recognized in other comprehensive income		—		(44	)		(1,296,970	)		(1,630,155	)		(2,882	)		—			—		(2,930,051	)

Total insurance finance income (expenses)	~~W~~	—	~~W~~	(549,170	)	~~W~~	(2,039,143	)	~~W~~	(2,404,644	)	~~W~~	(12,859	)	~~W~~	(41	)	~~W~~	—	~~W~~	(5,005,857	)

Reinsurance finance income (expenses)
Reinsurance finance income (expenses) recognized in profit or loss:
Net Interest Income (Expense)	~~W~~	—	~~W~~	—		~~W~~	(1,031	)	~~W~~	12,180		~~W~~	2,558		~~W~~	—		~~W~~	—	~~W~~	13,707
Effect of changes in discount rates and financial assumptions		—		—			—			—			—			—			—		—
Effect of exchange rate fluctuations		—		—			(8	)		—			4,297			—			—		4,289
Other reinsurance finance income (expenses)		—		—			(3	)		359			(28,312	)		(269	)		—		(28,225	)

		—		—			(1,042	)		12,539			(21,457	)		(269	)		—		(10,229	)
Reinsurance finance income (expenses) recognized in other comprehensive income		—		—			(3,311	)		39,381			1,755			—			—		37,825

Total reinsurance finance income (expenses)		—		—			(4,353	)		51,920			(19,702	)		(269	)		—		27,596

Net investment income (expenses)	~~W~~	10,510	~~W~~	31,750		~~W~~	257,963		~~W~~	(357,682	)	~~W~~	479,700		~~W~~	6,287		~~W~~	154,506	~~W~~	583,034

256

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.9 Insurance income and changes in contractual service margin of insurance contracts not applying the premium allocation approach by transition approaches for the year ended December 31, 2024 and 2023, are as follows:

38.9.1 Insurance contract

(In millions of Korean won)		2024
		Contracts applying<br>the fair value<br>approach				All other contracts				Total
Insurance income		~~W~~	2,765,232			~~W~~	4,006,417			~~W~~	6,771,649

Beginning contractual service margin			2,833,819				11,024,603				13,858,422
Current period service related changes
Profit or loss recognized related to service provided			(201,832	)			(1,077,426	)			(1,279,258	)
Future service related changes
Changes in estimations adjusting contractual service margin			322,158				(1,859,892	)			(1,537,734	)
Effect of new contracts			—				2,433,624				2,433,624
Insurance service result			120,326				(503,694	)			(383,368	)
Insurance finance income and expenses			87,773				401,151				488,924

Ending contractual service margin		~~W~~	3,041,918			~~W~~	10,922,060			~~W~~	13,963,978

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Contracts applying<br>the fair value<br>approach				All other contracts				Total
Insurance income		~~W~~	2,778,800			~~W~~	3,453,335			~~W~~	6,232,135

Beginning contractual service margin			2,324,961				11,336,156				13,661,117
Current period service related changes
Profit or loss recognized related to service provided			(203,369	)			(1,068,294	)			(1,271,663	)
Future service related changes
Changes in estimations adjusting contractual service margin			629,844				(2,064,505	)			(1,434,661	)
Effect of new contracts			—				2,471,636				2,471,636
Insurance service result			426,475				(661,163	)			(234,688	)
Insurance finance income and expenses			82,383				349,610				431,993

Ending contractual service margin		~~W~~	2,833,819			~~W~~	11,024,603			~~W~~	13,858,422

257

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.9.2 Reinsurance contract

(In millions of Korean won)		2024
		Contracts applying<br>the fair value<br>approach				All other contracts				Total
Allocation of Reinsurance Premiums		~~W~~	(70,095	)		~~W~~	(148,358	)		~~W~~	(218,453	)

Beginning contractual service margin			182,636				(178,416	)			4,220
Current period service related changes
Profit or loss recognized related to service received			(15,284	)			15,575				291
Future service related changes
Changes in estimations adjusting contractual service margin			(3,191	)			27,787				24,596
Effect of new contracts			—				(25,525	)			(25,525	)
Reinsurance service result			(18,475	)			17,837				(638	)
Reinsurance finance income and expenses			5,813				(5,053	)			760

Ending contractual service margin		~~W~~	169,974			~~W~~	(165,632	)		~~W~~	4,342

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Contracts applying<br>the fair value<br>approach				All other contracts				Total
Allocation of Reinsurance Premiums		~~W~~	(61,761	)		~~W~~	(96,937	)		~~W~~	(158,698	)

Beginning contractual service margin			103,222				(199,688	)			(96,466	)
Current period service related changes
Profit or loss recognized related to service received			(13,944	)			18,920				4,976
Future service related changes
Changes in estimations adjusting contractual service margin			88,767				45,021				133,788
Effect of new contracts			—				(35,399	)			(35,399	)
Reinsurance service result			74,823				28,542				103,365
Reinsurance finance income and expenses			4,591				(7,270	)			(2,679	)

Ending contractual service margin		~~W~~	182,636			~~W~~	(178,416	)		~~W~~	4,220

258

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.10 Changes in other comprehensive income of financial instruments related to insurance contract groups that applied the modified retrospective approach or the fair value approach at the transition date

Changes in other comprehensive income of financial instruments related to insurance contract groups for the year ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Beginning	~~W~~	(545,629	)	~~W~~	(965,165	)
Changes due to fair value measurement		153,390			533,590
Changes due to reclassification to profit or loss		11,691			38,216
Income tax effect		(43,581	)		(152,270	)

Ending	~~W~~	(424,129	)	~~W~~	(545,629	)

38.11 Risk Management of KB Insurance Co., Ltd.

38.11.1 Overview of insurance risk

Insurance risk is the risk that arises from a primary operation of insurance companies that is associated with underwriting of insurance contracts and payment of claims, which has the risk of greater loss incurring than anticipated by the Group. The Group manages insurance risk in different categories of long-term insurance, general insurance, and automobile insurance.

38.11.1.1 Key items of Long-term insurance

Mortality Risk		Risk of unexpected losses due to premature death compared to the insured’s expectations.
Longevity Risk		Risk of unexpected losses due to delayed death compared to the insured’s expectations.
Disability/Illness Risk		Risk of unexpected losses related to the insured’s disability and illness.
Long-term Property/Other Risks		Risk of unexpected losses related to property, expenses, indemnities, and other collateral in long-term insurance.
Termination Risk		Risk of losses due to unexpected exercise of legal rights or contractual options by policyholders.
Expense Risk		Risk of losses due to fluctuations in future costs and expenditure variations caused by inflation in relation to insurance contract costs.
Catastrophic Risk		Risk of extreme, exceptional losses (e.g., epidemics, major accidents) not considered in mortality risk, etc.

259

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.1.2 Key items of general and automobile insurance

Price Risk		Risk of losses exceeding the expected mortality rate and expense ratio calculated when determining insurance premiums.
Reserve Risk		Risk of being unable to cover future insurance payments reserved for incurred but not reported insurance accidents.
Catastrophic Risk		Risk of losses due to extreme, exceptional risks not considered in insurance price risk and reserve risk.

38.11.2 Purposes, policies, and procedures to manage risk arising from insurance contracts

The risks associated with insurance contracts that the Group faces are insurance actuarial risk and underwriting risk. Each risk occurs due to insurance contract’s pricing and conditions of underwriting. In order to minimize the possibility of acquiring a bad contract, the Group has established and operated detailed underwriting guidelines and underwriting procedures by insurance type that specify detailed underwriting conditions according to the type of risk covered through pre-analysis of insured property. In addition, the Group is making efforts to reduce insurance actuarial risk by follow-up measures such as adjustments of premium rate, changes of sales conditions, termination of selling specific product, development of new product, and others through comparing and analyzing the expected risk level at the date of pricing and actual risk level after the acceptance. The Group has prepared a process to minimize management risk other than insurance actuarial risk and underwriting risk by operating a committee that shares opinions on underwriting policies and premium rate policies and decides important matters.

In addition, by establishing a reinsurance operating strategy according to the reinsurance operating standards, the Group is preparing for the possibility of incurring high claim expenses at once due to unexpected catastrophic accidents while maintaining an appropriate holding level considering the solvency of the Group. The Group supports the protection and stable interests of policyholders, and comprehensively manages risks to maximize corporate value in the mid to long term.

38.11.3 Concentration of insurance risk

The Group is selling various insurance contracts such as general non-life insurances (fire, maritime, injury, technology, liability, package, title, guarantee, and other special type insurances), automobile insurances (for private use, for business use, for commercial use, bicycle, and others), long-term insurances (long-term non-life, property damage, injury, driver, savings, illness, nursing, and pension), and others. The Group’s risk is distributed through reinsurance, joint acceptance, and sales of diversified insurance products. In addition, insurances such as storm and flood insurance, which have a very low probability of occurrence but cover severe levels of risk, are controlled through acceptance limit and joint acquisition. The Group classifies concentration of insurance risk by type of insurance product and region.

260

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.3.1 Before reinsurance mitigation

(In millions of Korean won)		December 31, 2024
		Domestic				United States				China				Others
General insurance
Fire		~~W~~	14,775			~~W~~	—			~~W~~	—			~~W~~	—
Maritime			41,674				—				—				—
Others			1,282,134				105,543				63,516				40,830
Long-term insurance
Injury, illness, and property			17,963,247				—				—				—
Pension			4,873,238				—				—				—
Others			(263,714	)			—				—				—
Automobile insurance			2,145,366				—				—				—

Total		~~W~~	26,056,720			~~W~~	105,543			~~W~~	63,516			~~W~~	40,830

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Domestic				United States				China				Others
General insurance
Fire		~~W~~	8,422			~~W~~	—			~~W~~	—			~~W~~	—
Maritime			56,463				—				—				—
Others			1,447,462				151,891				86,167				26,679
Long-term insurance
Injury, illness, and property			15,215,463				—				—				—
Pension			5,211,720				—				—				—
Others			(217,084	)			—				—				—
Automobile insurance			2,224,924				—				—				—

Total		~~W~~	23,947,370			~~W~~	151,891			~~W~~	86,167			~~W~~	26,679

261

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.3.2 After reinsurance mitigation

(In millions of Korean won)		December 31, 2024
		Domestic				United States				China				Others
General insurance
Fire		~~W~~	18,764			~~W~~	—			~~W~~	—			~~W~~	—
Maritime			25,310				—				—				—
Others			486,222				2,854				25,842				16,845
Long-term insurance
Injury, illness, and property			17,471,358				—				—				—
Pension			4,873,238				—				—				—
Others			(263,754	)			—				—				—
Automobile insurance			2,138,413				—				—				—

Total		~~W~~	24,749,551			~~W~~	2,854			~~W~~	25,842			~~W~~	16,845

(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Domestic				United States				China				Others
General insurance
Fire		~~W~~	12,258			~~W~~	—			~~W~~	—			~~W~~	—
Maritime			29,637				—				—				—
Others			520,007				3,455				26,526				8,067
Long-term insurance
Injury, illness, and property			14,773,183				—				—				—
Pension			5,211,720				—				—				—
Others			(217,084	)			—				—				—
Automobile insurance			2,214,411				—				—				—

Total		~~W~~	22,544,132			~~W~~	3,455			~~W~~	26,526			~~W~~	8,067

262

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4 Claims development tables

The Group verifies and evaluates the adequacy of reserve for outstanding claims for general, automobile, and long-term insurance with methods such as paid loss development trend and incurred loss development trend. If the individually estimated claims are insufficient, the Group recognizes additional reserves. Claims development tables as of December 31, 2024 and 2023, are as follows:

38.11.4.1 Claims development tables as of December 31, 2024

38.11.4.1.1 Before reinsurance mitigation

General Insurance

(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	559,484		~~W~~	839,279		~~W~~	926,787		~~W~~	918,732		~~W~~	984,418		~~W~~	814,504		~~W~~	—
2 years		567,735			1,035,332			923,424			846,577			902,960			—			—
3 years		592,403			954,050			834,723			826,232			—			—			—
4 years		598,698			970,065			863,696			—			—			—			—
5 years		587,100			985,358			—			—			—			—			—
6 years		596,022			—			—			—			—			—			—

Estimated final loss	~~W~~	596,022		~~W~~	985,358		~~W~~	863,696		~~W~~	826,232		~~W~~	902,960		~~W~~	814,504		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(566,989	)	~~W~~	(926,208	)	~~W~~	(736,614	)	~~W~~	(734,104	)	~~W~~	(661,452	)	~~W~~	(401,239	)	~~W~~	—
Difference between estimated final loss and claim payments.		29,033			59,150			127,082			92,128			241,508			413,265			962,166
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			35,214
Incurred claims over 6 years ago		—			—			—			—			—			—			55,738
Incurred claims settled but not yet paid		—			—			—			—			—			—			(59,440	)
Discount rate effect		—			—			—			—			—			—			(50,183	)
Risk adjustment		—			—			—			—			—			—			66,819
Others		—			—			—			—			—			—			160,175

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	1,170,489

263

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.1 Before reinsurance mitigation (cont’d)

Automobile Insurance

(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,626,553		~~W~~	1,639,258		~~W~~	1,758,406		~~W~~	1,853,766		~~W~~	1,958,153		~~W~~	2,103,927		~~W~~	—
2 years		1,639,692			1,645,744			1,766,713			1,865,422			1,985,790			—			—
3 years		1,645,194			1,642,418			1,754,773			1,850,203			—			—			—
4 years		1,648,516			1,633,491			1,746,422			—			—			—			—
5 years		1,642,245			1,627,590			—			—			—			—			—
6 years		1,635,591			—			—			—			—			—			—

Estimated final loss	~~W~~	1,635,591		~~W~~	1,627,590		~~W~~	1,746,422		~~W~~	1,850,203		~~W~~	1,985,790		~~W~~	2,103,927		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,625,412	)	~~W~~	(1,612,431	)	~~W~~	(1,725,037	)	~~W~~	(1,815,770	)	~~W~~	(1,929,233	)	~~W~~	(1,785,195	)	~~W~~	—
Difference between estimated final loss and claim payments.		10,179			15,159			21,385			34,433			56,557			318,732			456,445
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			17,293
Incurred claims over 6 years ago		—			—			—			—			—			—			30,525
Incurred claims settled but not yet paid		—			—			—			—			—			—			40,596
Discount rate effect		—			—			—			—			—			—			(25,779	)
Risk adjustment		—			—			—			—			—			—			23,493
Others		—			—			—			—			—			—			5,506

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	548,079

264

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

8.11.4.1.1 Before reinsurance mitigation (cont’d)

Long-term Insurance

(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	2,314,936		~~W~~	2,593,514		~~W~~	3,003,522		~~W~~	3,159,835		~~W~~	3,485,979		~~W~~	3,865,301		~~W~~	—
2 years		2,322,571			2,551,274			2,965,954			3,180,537			3,481,470			—			—
3 years		2,332,331			2,554,205			2,972,948			3,176,257			—			—			—
4 years		2,339,839			2,557,951			2,960,640			—			—			—			—
5 years		2,339,712			2,535,147			—			—			—			—			—
6 years		2,331,162			—			—			—			—			—			—

Estimated final loss	~~W~~	2,331,162		~~W~~	2,535,147		~~W~~	2,960,640		~~W~~	3,176,257		~~W~~	3,481,470		~~W~~	3,865,301		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(2,323,338	)	~~W~~	(2,521,506	)	~~W~~	(2,934,570	)	~~W~~	(3,112,639	)	~~W~~	(3,315,239	)	~~W~~	(2,753,646	)	~~W~~	—
Difference between estimated final loss and claim payments.		7,824			13,641			26,070			63,618			166,231			1,111,655			1,389,039
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			58,757
Incurred claims over 6 years ago		—			—			—			—			—			—			10,042
Incurred claims settled but not yet paid		—			—			—			—			—			—			488,491
Discount rate effect		—			—			—			—			—			—			(34,095	)
Risk adjustment		—			—			—			—			—			—			25,696
Others		—			—			—			—			—			—			73

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	1,938,003

265

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.2 After reinsurance mitigation

General Insurance

(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	304,171		~~W~~	332,137		~~W~~	463,207		~~W~~	512,812		~~W~~	501,574		~~W~~	534,363		~~W~~	—
2 years		308,785			344,149			449,737			499,457			486,350			—			—
3 years		316,601			343,707			447,047			494,871			—			—			—
4 years		321,173			347,312			446,223			—			—			—			—
5 years		320,026			348,238			—			—			—			—			—
6 years		322,928			—			—			—			—			—			—

Estimated final loss	~~W~~	322,928		~~W~~	348,238		~~W~~	446,223		~~W~~	494,871		~~W~~	486,350		~~W~~	534,363		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(314,636	)	~~W~~	(329,592	)	~~W~~	(408,592	)	~~W~~	(440,061	)	~~W~~	(381,368	)	~~W~~	(271,173	)	~~W~~	—
Difference between estimated final loss and claim payments.		8,292			18,646			37,631			54,810			104,982			263,190			487,551
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			26,568
Incurred claims over 6 years ago		—			—			—			—			—			—			25,963
Incurred claims settled but not yet paid		—			—			—			—			—			—			(265,804	)
Discount rate effect		—			—			—			—			—			—			(20,346	)
Risk adjustment		—			—			—			—			—			—			30,498
Others		—			—			—			—			—			—			3,587

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	288,017

266

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.2 After reinsurance mitigation (cont’d)

Automobile Insurance

(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,581,086		~~W~~	1,615,387		~~W~~	1,745,376		~~W~~	1,849,405		~~W~~	1,958,153		~~W~~	2,103,927		~~W~~	—
2 years		1,594,400			1,621,647			1,753,171			1,861,151			1,985,790			—			—
3 years		1,599,550			1,618,230			1,741,566			1,845,928			—			—			—
4 years		1,602,565			1,609,312			1,733,214			—			—			—			—
5 years		1,596,518			1,603,558			—			—			—			—			—
6 years		1,590,109			—			—			—			—			—			—

Estimated final loss	~~W~~	1,590,109		~~W~~	1,603,558		~~W~~	1,733,214		~~W~~	1,845,928		~~W~~	1,985,790		~~W~~	2,103,927		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,580,312	)	~~W~~	(1,588,824	)	~~W~~	(1,712,162	)	~~W~~	(1,811,664	)	~~W~~	(1,929,233	)	~~W~~	(1,785,195	)	~~W~~	—
Difference between estimated final loss and claim payments.		9,797			14,734			21,052			34,264			56,557			318,732			455,136
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			17,243
Incurred claims over 6 years ago		—			—			—			—			—			—			28,972
Incurred claims settled but not yet paid		—			—			—			—			—			—			40,422
Discount rate effect		—			—			—			—			—			—			(25,708	)
Risk adjustment		—			—			—			—			—			—			23,493
Others		—			—			—			—			—			—			695

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	540,253

267

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.2 After reinsurance mitigation (cont’d)

Long-term Insurance

(In millions of Korean won)	Accident year
	2019			2020			2021			2022			2023			2024			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,947,243		~~W~~	2,171,401		~~W~~	2,514,713		~~W~~	2,664,628		~~W~~	2,932,961		~~W~~	3,270,270		~~W~~	—
2 years		1,954,658			2,138,663			2,492,911			2,691,880			2,940,423			—			—
3 years		1,963,266			2,141,754			2,499,670			2,688,097			—			—			—
4 years		1,970,030			2,145,240			2,487,607			—			—			—			—
5 years		1,970,227			2,122,645			—			—			—			—			—
6 years		1,961,657			—			—			—			—			—			—

Estimated final loss	~~W~~	1,961,657		~~W~~	2,122,645		~~W~~	2,487,607		~~W~~	2,688,097		~~W~~	2,940,423		~~W~~	3,270,270		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,954,871	)	~~W~~	(2,110,823	)	~~W~~	(2,464,887	)	~~W~~	(2,633,216	)	~~W~~	(2,796,696	)	~~W~~	(2,315,921	)	~~W~~	—
Difference between estimated final loss and claim payments.		6,786			11,822			22,720			54,881			143,727			954,349			1,194,285
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			51,640
Incurred claims over 6 years ago		—			—			—			—			—			—			8,799
Incurred claims settled but not yet paid		—			—			—			—			—			—			324,142
Discount rate effect		—			—			—			—			—			—			(29,354	)
Risk adjustment		—			—			—			—			—			—			22,645
Others		—			—			—			—			—			—			(1,997	)

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	1,570,160

268

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1 Claims development tables as of December 31, 2023

38.11.4.1.1 Before reinsurance mitigation

General Insurance

(In millions of Korean won)	Accident year
	2018			2019			2020			2021			2022			2023			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	513,396		~~W~~	559,484		~~W~~	839,279		~~W~~	926,787		~~W~~	918,732		~~W~~	984,418		~~W~~	—
2 years		545,691			567,735			1,035,332			923,424			846,577			—			—
3 years		543,816			592,403			954,050			834,723			—			—			—
4 years		565,489			598,698			970,065			—			—			—			—
5 years		570,120			587,100			—			—			—			—			—
6 years		563,739			—			—			—			—			—			—

Estimated final loss	~~W~~	563,739		~~W~~	587,100		~~W~~	970,065		~~W~~	834,723		~~W~~	846,577		~~W~~	984,418		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(558,954	)	~~W~~	(557,309	)	~~W~~	(779,235	)	~~W~~	(694,815	)	~~W~~	(655,922	)	~~W~~	(430,284	)	~~W~~	—
Difference between estimated final loss and claim payments.		4,785			29,791			190,830			139,908			190,655			554,134			1,110,103
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			41,413
Incurred claims over 6 years ago		—			—			—			—			—			—			42,564
Incurred claims settled but not yet paid		—			—			—			—			—			—			(52,545	)
Discount rate effect		—			—			—			—			—			—			(8,539	)
Risk adjustment		—			—			—			—			—			—			75,116
Others		—			—			—			—			—			—			213,113

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	1,421,225

269

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.1 Before reinsurance mitigation (cont’d)

Automobile Insurance

(In millions of Korean won)	Accident year
	2018			2019			2020			2021			2022			2023			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,504,699		~~W~~	1,626,553		~~W~~	1,639,258		~~W~~	1,758,406		~~W~~	1,853,766		~~W~~	1,958,153		~~W~~	—
2 years		1,491,522			1,639,692			1,645,744			1,766,713			1,865,422			—			—
3 years		1,490,896			1,645,194			1,642,418			1,754,773			—			—			—
4 years		1,495,058			1,648,516			1,633,491			—			—			—			—
5 years		1,497,956			1,642,245			—			—			—			—			—
6 years		1,492,463			—			—			—			—			—			—

Estimated final loss	~~W~~	1,492,463		~~W~~	1,642,245		~~W~~	1,633,491		~~W~~	1,754,773		~~W~~	1,865,422		~~W~~	1,958,153		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,480,005	)	~~W~~	(1,621,917	)	~~W~~	(1,608,054	)	~~W~~	(1,714,365	)	~~W~~	(1,796,293	)	~~W~~	(1,629,354	)	~~W~~	—
Difference between estimated final loss and claim payments.		12,458			20,328			25,437			40,408			69,129			328,799			496,559
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			22,411
Incurred claims over 6 years ago		—			—			—			—			—			—			35,670
Incurred claims settled but not yet paid		—			—			—			—			—			—			42,136
Discount rate effect		—			—			—			—			—			—			5,219
Risk adjustment		—			—			—			—			—			—			21,318
Others		—			—			—			—			—			—			5,677

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	628,990

270

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.1 Before reinsurance mitigation (cont’d)

Long-term Insurance

(In millions of Korean won)	Accident year
	2018			2019			2020			2021			2022			2023			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,937,997		~~W~~	2,314,936		~~W~~	2,593,514		~~W~~	3,003,522		~~W~~	3,159,835		~~W~~	3,485,979		~~W~~	—
2 years		1,958,540			2,322,571			2,551,274			2,965,954			3,180,537			—			—
3 years		1,966,566			2,332,331			2,554,205			2,972,948			—			—			—
4 years		1,978,019			2,339,839			2,557,951			—			—			—			—
5 years		1,979,283			2,339,712			—			—			—			—			—
6 years		1,977,945			—			—			—			—			—			—

Estimated final loss	~~W~~	1,977,945		~~W~~	2,339,712		~~W~~	2,557,951		~~W~~	2,972,948		~~W~~	3,180,537		~~W~~	3,485,979		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,971,631	)	~~W~~	(2,327,124	)	~~W~~	(2,533,413	)	~~W~~	(2,912,534	)	~~W~~	(3,016,892	)	~~W~~	(2,379,992	)	~~W~~	—
Difference between estimated final loss and claim payments.		6,314			12,588			24,538			60,414			163,645			1,105,987			1,373,486
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			52,983
Incurred claims over 6 years ago		—			—			—			—			—			—			7,786
Incurred claims settled but not yet paid		—			—			—			—			—			—			480,297
Discount rate effect		—			—			—			—			—			—			(35,235	)
Risk adjustment		—			—			—			—			—			—			26,924
Others		—			—			—			—			—			—			50

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	1,906,291

271

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.2 After reinsurance mitigation

General Insurance

(In millions of Korean won)	Accident year
	2018			2019			2020			2021			2022			2023			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	290,681		~~W~~	304,171		~~W~~	332,137		~~W~~	463,207		~~W~~	512,812		~~W~~	501,574		~~W~~	—
2 years		299,745			308,785			344,149			449,737			499,457			—			—
3 years		291,075			316,601			343,707			447,047			—			—			—
4 years		296,824			321,173			347,312			—			—			—			—
5 years		300,125			320,026			—			—			—			—			—
6 years		302,451			—			—			—			—			—			—

Estimated final loss	~~W~~	302,451		~~W~~	320,026		~~W~~	347,312		~~W~~	447,047		~~W~~	499,457		~~W~~	501,574		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(300,196	)	~~W~~	(310,243	)	~~W~~	(320,544	)	~~W~~	(386,251	)	~~W~~	(395,065	)	~~W~~	(251,845	)	~~W~~	—
Difference between estimated final loss and claim payments.		2,255			9,783			26,768			60,796			104,392			249,729			453,723
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			28,327
Incurred claims over 6 years ago		—			—			—			—			—			—			22,798
Incurred claims settled but not yet paid		—			—			—			—			—			—			(188,877	)
Discount rate effect		—			—			—			—			—			—			(1,904	)
Risk adjustment		—			—			—			—			—			—			28,338
Others		—			—			—			—			—			—			12,360

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	354,765

272

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.2 After reinsurance mitigation (cont’d)

Automobile Insurance

(In millions of Korean won)	Accident year
	2018			2019			2020			2021			2022			2023			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,463,857		~~W~~	1,581,086		~~W~~	1,615,387		~~W~~	1,745,376		~~W~~	1,849,405		~~W~~	1,958,153		~~W~~	—
2 years		1,450,943			1,594,400			1,621,647			1,753,171			1,861,151			—			—
3 years		1,450,102			1,599,550			1,618,230			1,741,566			—			—			—
4 years		1,454,108			1,602,565			1,609,312			—			—			—			—
5 years		1,456,542			1,596,518			—			—			—			—			—
6 years		1,451,085			—			—			—			—			—			—

Estimated final loss	~~W~~	1,451,085		~~W~~	1,596,518		~~W~~	1,609,312		~~W~~	1,741,566		~~W~~	1,861,151		~~W~~	1,958,153		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,439,301	)	~~W~~	(1,576,896	)	~~W~~	(1,584,585	)	~~W~~	(1,701,673	)	~~W~~	(1,792,264	)	~~W~~	(1,629,354	)	~~W~~	—
Difference between estimated final loss and claim payments.		11,784			19,622			24,727			39,893			68,887			328,799			493,712
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			22,283
Incurred claims over 6 years ago		—			—			—			—			—			—			33,999
Incurred claims settled but not yet paid		—			—			—			—			—			—			40,875
Discount rate effect		—			—			—			—			—			—			5,219
Risk adjustment		—			—			—			—			—			—			21,318
Others		—			—			—			—			—			—			575

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	617,981

273

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.4.1.2 After reinsurance mitigation (cont’d)

Long-term Insurance

(In millions of Korean won)	Accident year
	2018			2019			2020			2021			2022			2023			Total
Estimated final loss undiscounted
Development year
1 year	~~W~~	1,637,680		~~W~~	1,957,373		~~W~~	2,182,836		~~W~~	2,529,760		~~W~~	2,680,155		~~W~~	2,951,334		~~W~~	—
2 years		1,652,893			1,954,261			2,136,381			2,494,050			2,690,877			—			—
3 years		1,659,135			1,961,975			2,138,283			2,499,511			—			—			—
4 years		1,668,516			1,968,459			2,141,462			—			—			—			—
5 years		1,669,653			1,968,485			—			—			—			—			—
6 years		1,668,426			—			—			—			—			—			—

Estimated final loss	~~W~~	1,668,426		~~W~~	1,968,485		~~W~~	2,141,462		~~W~~	2,499,511		~~W~~	2,690,877		~~W~~	2,951,334		~~W~~	—

Gross cumulative claim payments
Total gross cumulative claim payments	~~W~~	(1,662,887	)	~~W~~	(1,957,612	)	~~W~~	(2,120,429	)	~~W~~	(2,448,085	)	~~W~~	(2,550,761	)	~~W~~	(2,003,225	)	~~W~~	—
Difference between estimated final loss and claim payments.		5,539			10,873			21,033			51,426			140,116			948,109			1,177,096
Estimated claim handling costs and expected indemnity		—			—			—			—			—			—			46,664
Incurred claims over 6 years ago		—			—			—			—			—			—			6,776
Incurred claims settled but not yet paid		—			—			—			—			—			—			299,202
Discount rate effect		—			—			—			—			—			—			(30,585	)
Risk adjustment		—			—			—			—			—			—			23,722
Others		—			—			—			—			—			—			(2,767	)

Liability for incurred claims book value	~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	1,520,108

274

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.5 Sensitivity analysis of insurance risk

The Group manages insurance risk by performing sensitivity analysis based on loss ratio, expense ratio, discount rate, and others which are considered to have significant influence on future cash flow, timing, and uncertainty.

Sensitivity analysis of insurance risk results of December 31, 2024 and 2023, are as follows:

38.11.5.1 Before reinsurance mitigation

(In millions of Korean won)				December 31, 2024
				Shock level		Baseline amount								Variance amount						Impact on profit or equity<br>(before tax)
						Fulfillment				Insurance				Fulfillment			Insurance			Profit or loss			OCI
						Cash flow				CSM				Cash flow			CSM
Loss rate		Mortality rate		3.27% increase										~~W~~	79,780		~~W~~	(77,540	)	~~W~~	(3,037	)	~~W~~	798
		Disability/illness<br><br>(fixed<br>compensation)		3.40% increase
		Disability/illness<br><br>(actual expense<br>compensation)		2.62% increase											1,053,006			(949,265	)		(85,659	)		(18,082	)
		Long-term property/other risks		4.19% increase											42,239			(37,387	)		(4,875	)		22
Lapse rate		Lapse rate (increase)		9.16% increase		~~W~~	11,808,026			~~W~~	8,820,482				522,472			(531,668	)		(25,011	)		34,207
		Lapse rate (decrease)		9.16% decrease											(566,932	)		582,665			20,546			(36,279	)
Expense ratio		Expense ratio (level)		2.62% increase
		Expense ratio<br>(inflation)		0.26%p										241,473			(221,783)			(16,958)			(2,732)
(In millions of Korean won)				December 31, 2023
---	---	---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
				Shock level		Baseline amount								Variance amount						Impact on profit or equity<br>(before tax)
						Fulfillment				Insurance				Fulfillment			Insurance			Profit or<br>loss			OCI
						Cash flow				CSM				Cash flow			CSM
Loss rate		Mortality rate		3.27% increase										~~W~~	69,439		~~W~~	(71,983	)	~~W~~	(1,918	)	~~W~~	4,461
		Disability/illness<br><br>(fixed<br>compensation)		3.40% increase
		Disability/illness<br><br>(actual expense<br>compensation)		2.62% increase											871,358			(875,889	)		(54,545	)		59,075
		Long-term property/other risks		4.19% increase											32,315			(29,956	)		(3,795	)		1,437
Lapse rate		Lapse rate (increase)		9.16% increase		~~W~~	9,779,523			~~W~~	8,517,921				492,113			(444,393	)		(20,940	)		(26,780	)
		Lapse rate (decrease)		9.16% decrease											(528,694	)		494,597			8,169			25,927
Expense ratio		Expense ratio (level)		2.62% increase
		Expense ratio (inflation)		0.26%p											199,053			(206,377	)		(10,337	)		17,661

275

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.5.2 After reinsurance mitigation

(In millions of Korean won)				December 31, 2024
				Shock level		Baseline amount								Variance amount						Impact on profit or equity<br>(before tax)
						Fulfillment				Insurance				Fulfillment			Insurance			Profit or<br>loss			OCI
						Cash flow				CSM				Cash flow			CSM
Loss rate		Mortality rate		3.27% increase										~~W~~	79,663		~~W~~	(77,421	)	~~W~~	(2,692	)	~~W~~	450
		Disability/illness<br><br>(fixed<br>compensation)		3.40% increase											1,121,328			(1,015,904	)		(71,346	)		(34,078	)
		Disability/illness<br><br>(actual<br>compensation)		2.62% increase
		Long-term property/other risks		4.19% increase											45,498			(40,649	)		(4,440	)		(409	)
Lapse rate		Lapse rate (increase)		9.16% increase		~~W~~	11,513,781			~~W~~	8,819,986				512,715			(522,140	)		(25,986	)		35,411
		Lapse rate (decrease)		9.16% decrease											(556,423	)		572,406			21,728			(37,711	)
Expense ratio		Expense ratio (level)		2.62% increase
		Expense ratio (inflation)		0.26%p											243,000			(223,277	)		(14,381	)		(5,342	)
(In millions of Korean won)				December 31, 2023
---	---	---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
				Shock level		Baseline amount								Variance amount						Impact on profit or equity<br>(before tax)
						Fulfillment				Insurance				Fulfillment			Insurance			Profit or<br>loss			OCI
						Cash flow				CSM				Cash flow			CSM
Loss rate		Mortality rate		3.27% increase										~~W~~	69,424		~~W~~	(71,830	)	~~W~~	(1,736	)	~~W~~	4,142
		Disability/illness<br><br>(fixed<br>compensation)		3.40% increase											936,787			(944,204	)		(44,973	)		52,390
		Disability/illness<br><br>(actual<br>compensation)		2.62% increase
		Long-term property/other risks		4.19% increase											35,024			(32,755	)		(3,439	)		1,170
Lapse rate		Lapse rate (increase)		9.16% increase		~~W~~	9,520,844			~~W~~	8,525,926				482,098			(433,044	)		(21,591	)		(27,464	)
		Lapse rate (decrease)		9.16% decrease											(517,837	)		482,289			9,046			26,502
Expense ratio		Expense ratio (level)		2.62% increase
		Expense ratio (inflation)		0.26%p											200,270			(207,666	)		(8,772	)		16,168

276

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.6 Liquidity risk of insurance contracts

Liquidity risk arising from insurance contracts arises from the increase in refunds at maturity caused by concentrations of maturity, the excessive increase in surrender values caused by unexpected mass cancelation, and the increase in payments of claims caused by major accidents. The Group manages payment of refunds at maturity by analyzing remaining maturity of insurance contracts.

38.11.6.1 Maturity structure of insurance contract group and reinsurance contract group as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)

	December 31, 2024
	1 year			1 year ~ 2 years			2 years ~<br>3 years			3 years ~<br>4 years			4 years ~<br>5 years			5 years ~<br>10 years			Over 10 years		Total
Net insurance contract liabilities	~~W~~	1,336,553		~~W~~	(1,378,015	)	~~W~~	(1,070,191	)	~~W~~	(1,095,687	)	~~W~~	(781,885	)	~~W~~	(1,050,291	)	~~W~~	59,564,350	~~W~~	55,524,834
Net reinsurance contract assets		(1,292,222	)		(9,362	)		(851	)		11,504			10,017			20,540			516,029		(744,345	)

(In millions of Korean won)

	December 31, 2023
	1 year			1 year ~ 2 years			2 years ~<br>3 years			3 years ~<br>4 years			4 years ~<br>5 years			5 years ~<br>10 years			Over 10 years		Total
Net insurance contract liabilities	~~W~~	1,637,409		~~W~~	(1,369,600	)	~~W~~	(1,001,841	)	~~W~~	(674,656	)	~~W~~	(700,585	)	~~W~~	(648,167	)	~~W~~	51,524,781	~~W~~	48,767,341
Net reinsurance contract assets		(1,390,791	)		(3,892	)		11,622			8,801			3,709			(3,614	)		446,099		(928,066	)

The net outflow amount is represented as positive numbers, while the net inflow amount is represented as negative numbers.

38.11.6.2 The amount payable upon demand as of December 31, 2024 and 2023, are ~~W~~ 26,374,280 million and ~~W~~ 25,446,211 million, respectively.

277

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.7 Credit risk of insurance contract

Credit risk of an insurance contract refers to economic losses in which the reinsurer, the counterparty, is unable to fulfil its contract obligations due to a decline in credit ratings or default or others. Through an internal review, only the insurers rated BBB- or higher of S&P rating or corresponding rating are selected as reinsurance companies.

38.11.7.1 Concentration and credit ratings for top three reinsurance companies as of December 31, 2024, are as follows:

Reinsurance company			Credit<br>rating
KOREANRE	36.43	%	AA0
MUNICHRE	5.93	%	AAA
HISCOX	3.23	%	AA+

38.11.7.2 Exposure to credit risk arising from reinsurance contract as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)

December 31, 2024			December 31, 2023
Reference	Amount		Reference	Amount
Reinsurance contract assets	~~W~~	1,493,495	Reinsurance contract assets	~~W~~	1,633,769
Reinsurance contract liabilities		21,978	Reinsurance contract liabilities		3,842

38.11.8 Interest rate risk of insurance contract

The Group measures interest rate risk for insurance contract liabilities exposed to interest rate risk, which include long-term, automobile, and general insurance.

The Group calculates the exposure of insurance contract liabilities for long-term liability for remaining coverage and liability for incurred claims that apply the general model in accordance with IFRS. The interest rate risk exposure as of December 31, 2024 is as follows:

38.11.8.1 Status of interest rate risk exposure of insurance contract

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Net insurance contract liabilities	~~W~~	24,291,340	~~W~~	22,260,315
Net reinsurance contract assets		1,382,244		1,519,766
Net asset effect	~~W~~	22,909,096	~~W~~	20,740,549

278

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.11.8.2 Interest rate Sensitivities

(In millions of Korean won)		December 31, 2024
		Equity
		1% increase				1% decrease
Net insurance contract liabilities		~~W~~	2,883,974			~~W~~	(3,493,031	)
Net reinsurance contract assets			(47,015	)			55,147
Net asset effect		~~W~~	2,836,959			~~W~~	(3,437,884	)
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---
		Equity
		1% increase				1% decrease
Net insurance contract liabilities		~~W~~	2,190,531			~~W~~	(2,714,587	)
Net reinsurance contract assets			(33,033	)			38,849
Net asset effect		~~W~~	2,157,498			~~W~~	(2,675,738	)

279

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12 Risk Management of KB Life Insurance Co., Ltd.

38.12.1 Overview of insurance risk

Insurance risk arises from the core activities of an insurance company, particularly the underwriting of insurance contracts and the payment of claims, which may result in greater losses than the Group has anticipated.

The Group manages potential economic loss risks arising from various risk factors associated with life insurance contracts. These risks are categorized into six subcategories: mortality risk, longevity risk, disability/illness risk, long-term property/other risks, termination risk, expense risk, and catastrophic risk. The Group measures these risks individually.

Except for catastrophic risk, which is assessed using a risk coefficient method, all other types of risks are evaluated using shock scenario methods. The definitions of each risks are as follows:

Mortality Risk		Risk of unexpected losses due to premature death compared to the insured’s expectations.
Longevity Risk		Risk of unexpected losses due to delayed death compared to the insured’s expectations.
Disability/Illness Risk		Risk of unexpected losses related to the insured’s disability and illness.
Long-term Property/Other Risks		Risk of unexpected losses related to property, expenses, indemnities, and other collateral in long-term insurance.
Termination Risk		Risk of losses due to unexpected exercise of legal rights or contractual options by policyholders.
Expense Risk		Risk of losses due to fluctuations in future costs and expenditure variations caused by inflation in relation to insurance contract costs.
Catastrophic Risk		Risk of extreme, exceptional losses (e.g., epidemics, major accidents) not considered in mortality risk, etc.

280

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.2 Management of insurance risk

The Group measures and manages insurance risk in accordance with internal models and the K-Insurance Capital Standard (K-ICS).

Insurance risks, excluding catastrophic risk, are managed under K-ICS, as well as being managed under IFRS 17 through sensitivity analysis.

In addition, the Group considers insurance risks inherent in insurance products during the product development stage and continues to measure and mitigate such risks through various methods after the product launch. Risks related to mortality and illness are mitigated through reinsurance. The Group selects appropriate reinsurers based on credit risk assessment and also determines the appropriate level of risk exposure for each reinsurer before making contract with reinsurers. For amounts exceeding pre-determined risk limits, the Group manages risk through facultative reinsurance.

38.12.3 Exposure by risk type

38.12.3.1 Insurance risk exposure

The Group sells life insurance products including death, health, pension, asset-linked, and variable contracts. Along with the sale of various products, the Group also diversifies risk through reinsurance cessions.

Insurance risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Exposure
	December 31,<br>2024			December 31,<br>2023
Insurance contract liabilities	~~W~~	23,706,824		~~W~~	20,356,903
Death		11,313,508			8,785,488
Health		302,911			128,659
Pension		6,682,897			6,351,320
Asset-linked		38,021			40,605
Variable death		1,854,208			1,527,905
Variable pension		3,515,279			3,522,926
Reinsurance contract assets		(40,641	)		(41,032	)
Death		(29,579	)		(30,447	)
Health		(10,078	)		(9,084	)
Compound		(984	)		(1,501	)

281

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.3.2 Interest rate risk exposure

Interest rate risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Exposure
		December 31,<br>2024			December 31,<br>2023
Insurance contracts		~~W~~	23,706,824		~~W~~	20,356,903
Fixed-rate			13,080,288			10,206,298
Interest rate-linked			5,257,050			5,099,774
Variable			5,369,486			5,050,831
Reinsurance contract assets ^1^			(40,641	)		(41,032	)
^1^	Reinsurance contract assets is the net amount after deducting reinsurance contract liabilities
:---	:---

38.12.3.3 Equity risk exposure

Equity risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Exposure
		December 31,<br>2024				December 31,<br>2023
Variable		~~W~~	5,369,486			~~W~~	5,050,831

38.12.3.4 Foreign exchange risk exposure

Foreign exchange risk exposure of insurance contracts and reinsurance contracts as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Exposure
		December 31,<br>2024				December 31,<br>2023
Foreign currency liability		~~W~~	707,517			~~W~~	649,301

38.12.3.5 Credit risk exposure

Credit risk exposure of reinsurance contracts assets and liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)

	December 31, 2024
	AAA~AA+			AA~A+			A~BBB+			Under BBB		Unrated		Total
Reinsurance contract assets	~~W~~	—		~~W~~	2,401		~~W~~	122		~~W~~	—	~~W~~	—	~~W~~	2,523
Reinsurance contract liabilities		(14,083	)		(15,851	)		(4,353	)		—		—		(34,287	)

282

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.3.5 Credit risk exposure (cont’d)

(In millions of Korean won)	December 31, 2023
	AAA~AA+			AA~A+			A~BBB+			Under BBB		Unrated		Total
Reinsurance contract assets	~~W~~	2,683		~~W~~	3,228		~~W~~	—		~~W~~	—	~~W~~	—	~~W~~	5,911
Reinsurance contract liabilities		(11,560	)		(15,181	)		(5,447	)		—		—		(32,188	)

38.12.4 Reinsurance policy

38.12.4.1 Summary

The purpose of reinsurance transactions is to ensure the Group’s ability to fulfill insurance claim obligations to policyholders and maintain the stability of the Group’s financial structure by ceding contracts that require diversification or risk transfer which could arise from the underwriting of insurance contracts. The Group adheres to the fundamental principle of operating an efficient and stable reinsurance framework by considering the scale of reinsurance transactions, the complexity of reinsurance products, risk exposure levels, profitability, and the credit ratings of reinsurers.

Based on insurance premium, since most of the retained contracts are concentrated in guarantee-type life insurance products, the Group manages insurance risk by securing reinsurance for life insurance policies exceeding a certain coverage amount. Additionally, reinsurance transactions are made when risk mitigation is deemed necessary for specific products or coverages. The Group currently holds contracts with eight reinsurers, and in addition to life insurance, risk for health insurance products such as cancer insurance are mitigated through reinsurance.

As of December 31, 2024, the eight reinsurers contracted by the Group hold credit ratings of AA- or higher, based on the criteria outlined in Annex 22 of the Korean DETAILED REGULATIONS ON SUPERVISION OF INSURANCE BUSINESS, indicating a stable financial position.

38.12.4.2 Concentration on top 5 reinsurers

the status of concentration among the top five reinsurers as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
^1^		Above AA-				A+ ~ A-				Below BBB+				Others
Reinsurance premiums		~~W~~	16,955			~~W~~	—			~~W~~	—			~~W~~	—
Ratio ^2^			91.7				—				—				—
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
^1^		Above AA-				A+ ~ A-				Below BBB+				Others

Reinsurance premiums		~~W~~	16,044			~~W~~	—			~~W~~	—			~~W~~	—
Ratio ^2^			91.9				—				—				—
^1^	Credit ratings from foreign credit rating agencies are converted to domestic credit ratings based on the<br>criteria outlined in Annex 22 of the Korean DETAILED REGULATIONS ON SUPERVISION OF INSURANCE BUSINESS.
:---	:---
^2^	The proportion of ceded insurance premiums represents the percentage relative to total insurance premiums.
:---	:---

283

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.4.3 Reinsurance premium by reinsurer group

The status of reinsurance premiums by reinsurer group as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Credit ratings
		Above AA-				A+ ~ A-				BBB+ Below				Others*				Total
Reinsurance premiums		~~W~~	18,497			~~W~~	—			~~W~~	—			~~W~~	—			~~W~~	18,497
Ratio			100.0				—				—				—				100.0
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Credit ratings
		Above AA-				A+ ~ A-				BBB+ Below				Others*				Total
Reinsurance premiums		~~W~~	17,455			~~W~~	—			~~W~~	—			~~W~~	—			~~W~~	17,455
Ratio			100.0				—				—				—				100.0
*	Others include unrated and non-qualified reinsurers, and are summarized<br>separately based on the reinsurers, insurance types, reasons for cession, and the scale of reinsurance premiums.
:---	:---

38.12.5 Liquidity risk of insurance contracts

Liquidity risk in insurance contracts arises from the increase in maturity refunds due to the concentration of insurance contract maturities at a certain point in time, the excessive increase in surrender refunds due to unexpected mass surrenders, and the increase in insurance payments due to large-scale accidents. Additionally, the Group manages the payment of maturity refunds through the analysis of the maturity of insurance contracts. The maturity structure of insurance liabilities based on net cash flow as of December 31, 204 and 2023, are as follows.

(In millions of Korean won)		December 31, 2024
		1 year			1 year ~<br>2 years			2 years ~<br>3 years			3 years ~<br>4 years				4 years ~<br>5 years				5 years ~<br>10 years				10 years ~<br>20 years			Over 20 years
Insurance contract		~~W~~	(53,417	)	~~W~~	(69,388	)	~~W~~	305,581		~~W~~	603,797			~~W~~	1,255,863			~~W~~	4,958,494			~~W~~	11,992,714		~~W~~	35,343,913
Asset portfolio			—			—			—			—				—				—				—			—
Liability portfolio			(53,417	)		(69,388	)		305,581			603,797				1,255,863				4,958,494				11,992,714			35,343,913
Reinsurance contract			9,278			1,462			676			1,678				1,705				8,170				16,996			52,162
Asset portfolio			1,445			(121	)		(555	)		42				108				224				(163	)		(351	)
Liability portfolio			7,833			1,583			1,231			1,636				1,597				7,946				17,159			52,513
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		1 year			1 year ~<br>2years			2years ~<br>3years			3years ~<br>4years				4years ~<br>5years				5years ~<br>10years				10years ~<br>20years				Over 20years
Insurance contract		~~W~~	(364,422	)	~~W~~	(243,265	)	~~W~~	(41,810	)	~~W~~	279,853			~~W~~	631,806			~~W~~	4,849,035			~~W~~	12,457,375			~~W~~	38,335,547
Asset portfolio			—			—			—			—				—				—				—				—
Liability portfolio			(364,422	)		(243,265	)		(41,810	)		279,853				631,806				4,849,035				12,457,375				38,335,547
Reinsurance contract			(5,667	)		3,095			3,378			2,705				2,413				9,629				17,416				60,794
Asset portfolio			(2,571	)		691			908			465				387				744				35				131
Liability portfolio			(3,096	)		2,404			2,470			2,240				2,026				8,885				17,381				60,663

284

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.6 The amount payable upon demand

The Group’s amount payable upon demand for insurance contrasc as of Decembeer 31, 2024 and 2023, are as follows:

	December 31, 2024				December 31, 2023
	Amount payable<br>upon demand		Book value		Amount payable<br>upon demand		Book value
Insurance contracts	~~W~~	28,595,855	~~W~~	29,100,070	~~W~~	26,949,499	~~W~~	25,968,619
Death		14,296,802		14,593,909		13,007,313		12,105,279
Health		766,471		566,979		699,541		437,536
Pension		7,255,197		7,281,490		7,008,436		6,840,937
Asset-linked		40,436		40,232		43,654		42,761
Variable death		2,439,175		2,945,814		2,382,968		2,885,573
Variable pension		3,797,775		3,671,647		3,807,587		3,656,532

38.12.7 Assumption sensitivity

The result of sensitivity analysis for the years ended December 31, 2024 and 2023, are as follows:

38.12.7.1 Insurance sensitivity

Before reinsurance mitigation:

(In millions of Korean won)

			Sensitivity ^1^	December 31, 2024
				Baseline amount				Change amount						Impact on profit and<br>equity (before tax)
				Fulfillment		Insurance		Fulfillment			Insurance			Profit or<br>loss ^2^			OCI
				Cash flows		CSM		Cash flow ^3^			CSM
Loss rate		Morality rate	Increase by 3.27%		23,706,824		5,143,498		106,984			(97,865	)		(589	)		(8,530	)
		Disability/illness<br><br>(fixed<br>benefit)	Increase by 3.40%						102,301			(105,373	)		(1,108	)		4,180
		Disability/illness (indemnity benefit)	Increase by 2.62%						531			(529	)		(3	)		1
		Long-term property/other risks	Increase by 4.19%
Lapse rate		Lapse rate<br><br>(increase)	Increase by 9.16%						362,584			(268,566	)		(20,353	)		(73,665	)
		Lapse rate<br><br>(decrease)	Decrease by 9.16%						(412,005	)		314,825			17,415			79,765
Expense ratio		Expense ratio<br><br>(level)	Increase by 2.62%						92,193			(92,815	)		(4,889	)		5,511
		Expense ratio (inflation)	0.26%p
^1^	The sensitivity analysis is on liability for remaining coverage of insurance, and the shock levels of actuarial<br>assumptions are based on supervisory criteria for calculating the risk adjustment (confidence level of 75%).
:---	:---
^2^	The impact on profit or loss represents the increase in the best estimate liability that exceeds the carrying<br>amount of the contractual service margin due to changes in assumptions.
:---	:---
^3^	No shocks were applied to the risk adjustment within the fulfillment cash flows.
:---	:---

285

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.7.1 Insurance sensitivity (cont’d)

After reinsurance mitigation:

(In millions of Korean won)

				December 31, 2024
				Baseline amount				Change amount					Impact on profit and<br>equity (before tax)
				Fulfillment		Insurance		Fulfillment		Insurance			Profit or<br>loss ^2^			OCI
			Sensitivity ^1^	Cash flows		CSM		Cash flow ^3^		CSM
Loss rate		Morality rate	Increase by 3.27%		23,747,465		5,139,655		105,168		(95,875	)		(545	)		(8,748	)
		Disability/illness<br><br>(fixed<br>benefit)	Increase by 3.40%						101,554		(104,644)			(1,038)			4,128
		Disability/illness (indemnity benefit)	Increase by 2.62%						511		(508)			(3)			—
		Long-term property/other risks	Increase by 4.19%
Lapse rate		Lapse rate<br><br>(increase)	Increase by 9.16%						360,412		(266,198	)		(20,196	)		(74,018	)
		Lapse rate<br><br>(decrease)	Decrease by 9.16%					(409,644)		312,241			17,266			80,137
Expense ratio		Expense ratio<br><br>(level)	Increase by 2.62%
		Expense ratio<br>(inflation)	0.26%p					92,186		(92,864)			(4,832)			5,510
^1^	The sensitivity analysis is on liability for remaining coverage of insurance, and the shock levels of actuarial<br>assumptions are based on supervisory criteria for calculating the risk adjustment (confidence level of 75%).
:---	:---
^2^	The impact on profit or loss represents the increase in the best estimate liability that exceeds the carrying<br>amount of the contractual service margin due to changes in assumptions.
:---	:---
^3^	No shocks were applied to the risk adjustment within the fulfillment cash flows.
:---	:---

286

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.7.1 Insurance sensitivity (cont’d)

Before reinsurance mitigation:

(In millions of Korean won)

			December 31, 2023
		Sensitivity	Baseline amount				Change amount						Impact on profit and<br>equity (before tax)
			Fulfillment		Insurance		Fulfillment			Insurance			Profit or<br>loss			OCI
			Cash flows		CSM		Cash flow			CSM
Loss rate	Morality rate	Increase by 3.27%		20,356,903		5,340,503		99,036			(96,093	)		(281	)		(2,662	)
	Disability/illness<br><br>(fixed<br>benefit)	Increase by 3.40%						103,927			(115,007	)		(1,690	)		12,770
	Disability/illness (indemnity benefit)	Increase by 2.62%						1,276			(335	)		(997	)		56
	Long-term property/other risks	Increase by 4.19%
Lapse rate	Lapse rate<br><br>(increase)	Increase by 9.16%						312,455			(182,674	)		(16,334	)		(113,447	)
	Lapse rate<br><br>(decrease)	Decrease by 9.16%						(345,011	)		207,879			17,988			119,144
Expense ratio	Expense ratio<br><br>(level)	Increase by 2.62%						90,356			(99,128	)		(5,948	)		14,720
	Expense ratio (inflation)	0.26%p

After reinsurance mitigation:

(In millions of Korean won)

			Sensitivity	December 31, 2023
				Baseline amount				Change amount						Impact on profit and<br>equity (before tax)
				Fulfillment		Insurance		Fulfillment			Insurance			Profit or<br>loss			OCI
				Cash flows		CSM		Cash flow			CSM
Loss rate		Morality rate	Increase by 3.27%		20,397,935		5,328,280		97,345			(93,887	)		(253	)		(3,205	)
		Disability/illness<br><br>(fixed<br>benefit)	Increase by 3.40%						103,041			(114,075	)		(1,541	)		12,575
		Disability/illness (indemnity benefit)	Increase by 2.62%						1,221			(297	)		(943	)		19
		Long-term property/other risks	Increase by 4.19%
Lapse rate		Lapse rate<br><br>(increase)	Increase by 9.16%						310,223			(179,825	)		(16,182	)		(114,216	)
		Lapse rate<br><br>(decrease)	Decrease by 9.16%						(342,600	)		204,850			17,836			119,914
Expense ratio		Expense ratio<br><br>(level)	Increase by 2.62%						90,343			(99,239	)		(5,788	)		14,684
		Expense ratio (inflation)	0.26%p
^1^	The sensitivity analysis is on liability for remaining coverage of insurance, and the shock levels of actuarial<br>assumptions are based on supervisory criteria for calculating the risk adjustment (confidence level of 75%).
:---	:---
^2^	The impact on profit or loss represents the increase in the best estimate liability that exceeds the carrying<br>amount of the contractual service margin due to changes in assumptions.
:---	:---
^3^	No shocks were applied to the risk adjustment within the fulfillment cash flows.
:---	:---

287

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.7.2 Interest rate risk

(In millions of Korean won)
December 31, 2024
			Profit or loss<br>(before tax)			OCI<br>(before tax)
100bp increase		Insurance contracts *	~~W~~	220,772		~~W~~	3,062,364
		Reinsurance contracts *		(149	)		6,480
100bp decrease		Insurance contracts *		(575,881	)		(4,227,958	)
		Reinsurance contracts *		254			(8,498	)
(In millions of Korean won)
December 31, 2023
			Profit or loss<br>(before tax)			OCI<br>(before tax)
100bp increase		Insurance contracts *	~~W~~	61,481		~~W~~	2,564,359
		Reinsurance contracts *		(110	)		6,246
100bp decrease		Insurance contracts *		(181,638	)		(3,561,242	)
		Reinsurance contracts *		212			(8,328	)
^1^	For insurance contracts (original insurance and accepted reinsurance) and reinsurance contracts, the impacts<br>are on liability for remaining coverage.
:---	:---
^2^	No shocks were applied to the risk adjustment within the fulfillment cash flows.
:---	:---

38.12.7.3 Foreign exchange rate risk

(In millions of Korean won)
December 31, 2024
			Profit or loss<br>(before tax)			OCI<br>(before tax)
100bp increase		Insurance contracts *	~~W~~	(61,733	)	~~W~~	14,977
		Reinsurance contracts *		(35	)		7
100bp decrease		Insurance contracts *		61,733			(14,977	)
		Reinsurance contracts *		35			(7	)
(In millions of Korean won)
December 31, 2023
			Profit or loss<br>(before tax)			OCI<br>(before tax)
100bp increase		Insurance contracts *	~~W~~	(63,895	)	~~W~~	15,268
		Reinsurance contracts *		(73	)		16
100bp decrease		Insurance contracts *		63,895			(15,268	)
		Reinsurance contracts *		73			(16	)
^1^	For insurance contracts (original insurance and accepted reinsurance) and reinsurance contracts, the impacts<br>are on liability for remaining coverage.
:---	:---
^2^	No shocks were applied to the risk adjustment within the fulfillment cash flows.
:---	:---

288

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.7.4 Stock price risk

(In millions of Korean won)
December 31, 2024
			Profit or loss<br>(before tax)			OCI<br>(before tax)
100bp increase		Insurance contracts *	~~W~~	(157,555	)	~~W~~	—
		Reinsurance contracts *		88			—
100bp decrease		Insurance contracts *		155,996			—
		Reinsurance contracts *		(89	)		—
(In millions of Korean won)
December 31, 2023
			Profit or loss<br>(before tax)			OCI<br>(before tax)
100bp increase		Insurance contracts *	~~W~~	(185,135	)	~~W~~	—
		Reinsurance contracts *		78			—
100bp decrease		Insurance contracts *		183,555			—
		Reinsurance contracts *		(75	)		—
^1^	For insurance contracts (original insurance and accepted reinsurance) and reinsurance contracts, the impacts<br>are on liability for remaining coverage.
:---	:---
^2^	No shocks were applied to the risk adjustment within the fulfillment cash flows.
:---	:---

289

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

38.12.8 Claims development tables

Claims development tables of the Group as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Accident year
		2020			2021			2022			2023			2024			Total
Development year
Estimated final loss undiscounted		~~W~~	179,051		~~W~~	203,001		~~W~~	210,219		~~W~~	213,227		~~W~~	229,657		~~W~~	—
Claims paid
Current year			(139,994	)		(161,496	)		(168,229	)		(165,924	)		(185,249	)		—
After 1 year			(27,947	)		(29,568	)		(30,338	)		(35,275	)		—			—
After 2 years			(4,061	)		(5,152	)		(4,877	)		—			—			—
After 3 years			(2,158	)		(2,375	)		—			—			—			—
After 4 years			(1,796	)		—			—			—			—			—

Total gross cumulative claim payments		~~W~~	(175,956	)	~~W~~	(198,591	)	~~W~~	(203,444	)	~~W~~	(201,199	)	~~W~~	(185,249	)	~~W~~	—
Difference between estimated final loss and claim payments.			3,095			4,410			6,775			12,028			44,408			70,716
Discount rate effect			—			—			—			—			—			(3,471	)
Future claims expense			—			—			—			—			—			843
Incurred claims settled but not yet paid			—			—			—			—			—			164,482
Risk adjustment			—			—			—			—			—			10,088
Reinsurance effects *			—			—			—			—			—			(9,879	)

Total Liability for incurred claims		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	232,779

(In millions of Korean won)		December 31, 2023
		Accident year
		2020			2021			2022			2023			2024			Total
Development year
Estimated final loss undiscounted		~~W~~	188,067		~~W~~	180,238		~~W~~	203,710		~~W~~	209,891		~~W~~	212,680		~~W~~	—
Claims paid
Current year			(153,837	)		(147,254	)		(167,874	)		(173,926	)		(175,467	)		—
After 1 year			(26,840	)		(26,346	)		(28,097	)		(28,181	)		—			—
After 2 years			(4,024	)		(3,291	)		(4,152	)		—			—			—
After 3 years			(1,316	)		(1,439	)		—			—			—			—
After 4 years			(613	)		—			—			—			—			—

Total gross cumulative claim payments		~~W~~	(186,630	)	~~W~~	(178,330	)	~~W~~	(200,123	)	~~W~~	(202,107	)	~~W~~	(175,467	)	~~W~~	—
Difference between estimated final loss and claim payments.			1,437			1,908			3,587			7,784			37,213			51,929
Discount rate effect			—			—			—			—			—			(2,970	)
Future claims expense			—			—			—			—			—			90
Incurred claims settled but not yet paid			—			—			—			—			—			163,949
Risk adjustment			—			—			—			—			—			10,988
Reinsurance effects *			—			—			—			—			—			(8,833	)

Total Liability for incurred claims		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	—		~~W~~	215,153

*	The reinsurance effect is presented as a total amount.
:---	:---

290

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

39. Statement of Cash Flows

39.1 Details of cash and cash equivalents as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024			December 31,<br>2023
Cash		~~W~~	1,954,624		~~W~~	2,114,596
Checks issued by other banks			124,366			142,437
Due from the Bank of Korea			14,372,352			15,362,056
Due from other financial institutions			13,417,769			12,217,222

			29,869,111			29,836,311

Due from financial institutions measured at fair value through profit or loss			59,838			79,810

			29,928,949			29,916,121

Deduction:
Restricted due from financial institutions *			(4,338,818	)		(3,273,428	)
Due from financial institutions with original maturities over three months			(981,264	)		(816,105	)

			(5,320,082	)		(4,089,533	)

		~~W~~	24,608,867		~~W~~	25,826,588

*	Items meeting the definition of cash are excluded.
:---	:---

Items meeting the definition of cash among due from financial institutions with restriction to use as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Financial institutions	December 31,<br>2024		December 31,<br>2023
Due from financial institutions in Korean won	Due from the Bank of Korea	The Bank of Korea	~~W~~	11,635,481	~~W~~	13,731,708
	Due from others	Korea Development Bank and others		25,928		27,556
Due from financial institutions in foreign currencies	Due from banks in foreign currencies	Bank Indonesia and others		2,540,681		944,917

			~~W~~	14,202,090	~~W~~	14,704,181

291

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

39.2 Significant non-cash transactions for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Write-offs of loans	~~W~~	1,984,218	~~W~~	1,757,920
Changes in accumulated other comprehensive income from valuation of financial instruments at fair<br>value through other comprehensive income		1,216,436		3,346,010
Changes in accumulated other comprehensive income from valuation of investments in<br>associates		165		24

39.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024		2023
Income tax paid	Operating	~~W~~	1,158,212	~~W~~	2,189,111
Interest received	Operating		30,279,240		28,550,486
Interest paid	Operating		15,354,968		13,119,057
Dividends received	Operating		482,012		330,350
Dividends paid	Financing		1,686,777		1,336,816

292

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

39.4 Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2023, are as follows:

		2024
								Non-cash changes
(In millions of Korean won)		Beginning			Net cash flows			Acquisition<br>(disposal)		Exchange<br>differences			Changes in<br>fair value			Subsidiaries			Others			Ending
Derivatives held for hedging *		~~W~~	(93,003	)	~~W~~	(216,883	)	~~W~~	—	~~W~~	(238,486	)	~~W~~	(128,072	)	~~W~~	—		~~W~~	314,589		~~W~~	(361,855	)
Borrowings and debentures			138,760,229			825,087			—		4,045,394			39,945			(22,909	)		600,523			144,248,269
Due to trust accounts			8,142,102			89,900			—		—			—			—			—			8,232,002
Others			1,149,587			(339,514	)		630,785		—			—			—			107,777			1,548,635

		~~W~~	147,958,915		~~W~~	358,590		~~W~~	630,785	~~W~~	3,806,908		~~W~~	(88,127	)	~~W~~	(22,909	)	~~W~~	1,022,889		~~W~~	153,667,051

		2023
								Non-cash changes
(In millions of Korean won)		Beginning			Net cash flows			Acquisition<br>(disposal)		Exchange<br>differences			Changes in<br>fair value			Subsidiaries			Others			Ending
Derivatives held for hedging *		~~W~~	(4,822	)	~~W~~	(73,335	)	~~W~~	—	~~W~~	(84,429	)	~~W~~	(36,123	)	~~W~~	—		~~W~~	105,706		~~W~~	(93,003	)
Borrowings and debentures			140,415,569			(2,128,851	)		—		616,459			121,577			114,904			(379,429	)		138,760,229
Due to trust accounts			5,808,446			2,333,656			—		—			—			—			—			8,142,102
Others			1,695,821			(781,632	)		152,344		—			—			—			83,054			1,149,587

		~~W~~	147,915,014		~~W~~	(650,162	)	~~W~~	152,344	~~W~~	532,030		~~W~~	85,454		~~W~~	114,904		~~W~~	(190,669	)	~~W~~	147,958,915

*	Derivatives held for hedging purposes are the net amount after offsetting liabilities and assets.
:---	:---

39.5 The net cash flow associated with the changes in the subsidiaries for the years ended December 31, 2024 and 2023 are ~~W~~ 88,528 million of cash inflow and ~~W~~ 1,297,001 million of cash inflow, respectively.

293

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40. Contingent Liabilities and Commitments

40.1 Details of acceptances and guarantees as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Confirmed acceptances and guarantees
Confirmed acceptances and guarantees in Korean won:
Acceptances and guarantees for KB purchasing loan	~~W~~	152,129	~~W~~	148,786
Others		900,237		945,027

		1,052,366		1,093,813

Confirmed acceptances and guarantees in foreign currencies:
Acceptances of letter of credit		331,423		277,370
Letter of guarantees		45,274		47,665
Bid bond		12,782		12,549
Performance bond		1,927,572		1,111,589
Refund guarantees		4,644,429		3,561,227
Others		4,594,667		3,572,149

		11,556,147		8,582,549

Financial guarantee contracts:
Acceptances and guarantees for mortgage		20,790		94,027
Overseas debt guarantees		588,019		470,579
International financing guarantees in foreign currencies		842,838		616,554

		1,451,647		1,181,160

		14,060,160		10,857,522

Unconfirmed acceptances and guarantees
Guarantees of letter of credit		2,268,081		2,785,484
Refund guarantees		1,373,649		1,301,376

		3,641,730		4,086,860

	~~W~~	17,701,890	~~W~~	14,944,382

294

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40.2 Credit qualities of acceptances and guarantees as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
		12-month<br>expected<br>credit losses				Lifetime expected credit losses								Total
(In millions of Korean won)						Non-impaired				Impaired
Confirmed acceptances and guarantees
Grade 1		~~W~~	12,022,664			~~W~~	—			~~W~~	—			~~W~~	12,022,664
Grade 2			1,870,438				23,840				—				1,894,278
Grade 3			98,224				16,147				—				114,371
Grade 4			8,291				2,975				457				11,723
Grade 5			—				230				16,894				17,124

			13,999,617				43,192				17,351				14,060,160

Unconfirmed acceptances and guarantees
Grade 1			2,281,647				2,441				—				2,284,088
Grade 2			1,306,932				15,349				—				1,322,281
Grade 3			13,982				14,781				—				28,763
Grade 4			1,171				2,652				21				3,844
Grade 5			—				175				2,579				2,754

			3,603,732				35,398				2,600				3,641,730

		~~W~~	17,603,349			~~W~~	78,590			~~W~~	19,951			~~W~~	17,701,890

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		12-month<br>expected<br>credit losses				Lifetime expected credit losses								Total
(In millions of Korean won)						Non-impaired				Impaired
Confirmed acceptances and guarantees
Grade 1		~~W~~	8,485,824			~~W~~	170,322			~~W~~	—			~~W~~	8,656,146
Grade 2			1,763,259				22,065				—				1,785,324
Grade 3			40,595				7,368				—				47,963
Grade 4			67,729				294,635				457				362,821
Grade 5			—				1,182				4,086				5,268

			10,357,407				495,572				4,543				10,857,522

Unconfirmed acceptances and guarantees
Grade 1			3,071,076				—				—				3,071,076
Grade 2			734,886				19,210				—				754,096
Grade 3			8,600				10,692				—				19,292
Grade 4			1,828				237,200				—				239,028
Grade 5			—				—				3,368				3,368

			3,816,390				267,102				3,368				4,086,860

		~~W~~	14,173,797			~~W~~	762,674			~~W~~	7,911			~~W~~	14,944,382

295

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40.3 Classifications of acceptances and guarantees by counterparty as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Confirmed<br>guarantees				Unconfirmed<br>guarantees				Total				Proportion<br>(%)
Large companies		~~W~~	13,215,006			~~W~~	2,972,146			~~W~~	16,187,152				91.45
Small and medium-sized companies			747,170				423,299				1,170,469				6.61
Public sector and others			97,984				246,285				344,269				1.94

		~~W~~	14,060,160			~~W~~	3,641,730			~~W~~	17,701,890				100.00

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Confirmed<br>guarantees				Unconfirmed<br>guarantees				Total				Proportion<br>(%)
Large companies		~~W~~	9,988,889			~~W~~	3,397,689			~~W~~	13,386,578				89.58
Small and medium-sized companies			736,810				454,574				1,191,384				7.97
Public sector and others			131,823				234,597				366,420				2.45

		~~W~~	10,857,522			~~W~~	4,086,860			~~W~~	14,944,382				100.00

40.4 Classifications of acceptances and guarantees by industry as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Confirmed<br>guarantees				Unconfirmed<br>guarantees				Total				Proportion<br>(%)
Financial institutions		~~W~~	1,810,426			~~W~~	1,244			~~W~~	1,811,670				10.24
Manufacturing			8,139,583				2,709,623				10,849,206				61.29
Service			926,446				48,709				975,155				5.51
Wholesale and retail			2,410,725				594,407				3,005,132				16.98
Construction			334,561				73,389				407,950				2.30
Public sector			24,929				101,456				126,385				0.71
Others			413,490				112,902				526,392				2.97

		~~W~~	14,060,160			~~W~~	3,641,730			~~W~~	17,701,890				100.00

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Confirmed<br>guarantees				Unconfirmed<br>guarantees				Total				Proportion<br>(%)
Financial institutions		~~W~~	1,263,253			~~W~~	591			~~W~~	1,263,844				8.46
Manufacturing			5,527,285				3,109,100				8,636,385				57.79
Service			788,908				102,028				890,936				5.96
Wholesale and retail			2,297,162				614,053				2,911,215				19.48
Construction			363,517				116,950				480,467				3.22
Public sector			31,732				62,440				94,172				0.63
Others			585,665				81,698				667,363				4.46

		~~W~~	10,857,522			~~W~~	4,086,860			~~W~~	14,944,382				100.00

296

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40.5 Details of commitments as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Commitments
Corporate loan commitments	~~W~~	57,510,280	~~W~~	55,688,438
Retail loan commitments		59,100,288		56,142,850
Credit line of credit cards		87,204,864		83,325,862
Purchase of other securities		8,880,563		8,749,029

		212,695,995		203,906,179

Financial guarantee contracts
Credit line		4,747,946		5,901,644
Purchase of securities		475,147		745,401

		5,223,093		6,647,045

	~~W~~	217,919,088	~~W~~	210,553,224

40.6 Other Matters (including litigation)

a) The Group has 94 pending lawsuits as a plaintiff (excluding simple lawsuits related to the collection or management of loans), with aggregate claims amount of ~~W~~ 1,848,019 million, and 320 pending lawsuits as a defendant (excluding simple lawsuits related to the collection or management of loans) with aggregate claims amount of ~~W~~ 1,305,713 million. It is not possible to predict additional losses based on the outcomes of future trials. Details of major pending lawsuits in which the Group is a defendant are as follows:

(In number of cases, in millions of Korean won)

Company		Lawsuits		No. of<br>cases		Amount		Description of the lawsuits		Status of the lawsuits
Kookmin Bank		Request for a return of redemption amount		1		~~W~~61,755		Kookmin Bank invested the assets entrusted by OO Invest Trust Management in the Fairfield Sentry Limited and Fairfield Sentry Limited<br>reinvested the assets in Bernard L. Madoff Investment Securities LLC managed by Bernard Madoff. (Bernard L. Madoff Investment Securities LLC is in the liquidation process due to Ponzi scheme fraud-related losses.)<br><br>Bankruptcy trustee of Bernard L. Madoff Investment Securities LLC filed a lawsuit<br>against Kookmin Bank seeking to return the amount of redemptions received by Kookmin Bank through Fairfield Sentry Limited.		Application for dismissal by the defendant has been denied, and further proceedings are scheduled. [Related litigation is pending at the New<br>York Southern District Federal Bankruptcy Court (10-3777)]<br><br>The financial impact on Kookmin Bank is not significant<br>because the likelihood of winning the lawsuit is high

297

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40.6 Other Matters (including litigation) (cont’d)

(In number of cases, in millions of Korean won)

Company	Lawsuits	No. of<br>cases	Amount	Description of the lawsuits	Status of the lawsuits

Kookmin Bank	Expropriation of long-term leasehold rights	1	367,500	Kookmin Bank invested assets entrusted by OO Asset Management Co., Ltd. in loans that are directly or indirectly collateralized by long-term<br>leasehold rights of the building and the land (hereinafter referred to as “the real estate in this case”) of Union Station in Washington, D.C., the United States.<br><br>The Plaintiff, who is the operator of the railway facility, filed this lawsuit against those concerned with the real estate in this case, including Kookmin<br>Bank, to expropriate the real estate in this case and determine indemnity.	Following the court’s approval of the plaintiff’s urgent application for transfer of possession, the subject property has been<br>delivered to the plaintiff, and the main proceedings are ongoing.<br><br>The lawsuit is<br>related to a fund that Kookmin Bank is managing, so the financial impact on Kookmin Bank’s proprietary assets is not significant.
	Return of unjust enrichment	1	160,589	As MTS Bank, which was trading with Kookmin Bank through a foreign exchange account, was listed on the SDN (Specifically Designated<br>Nationals) list of the Office of Foreign Assets Control (OFAC) under the U.S. Treasury Department, Kookmin Bank froze the foreign currency account in the name of MTS Bank.<br><br>Accordingly, MTS Bank filed a lawsuit seeking the return of the account balance to the Moscow City Commercial Court in Russia	Responding to local court trial schedule.<br><br>Due to compliance with U.S. OFAC regulations, it is determined that Kookmin Bank’s likelihood of winning the lawsuit being processed in the Russian courts<br>is not high. However, the lawsuit amount can be covered by the balance in the plaintiff’s account, and a financial impact equivalent to the delayed interest is anticipated for Kookmin Bank.
	Claim for damages	1	102,411	PT Bank KB Bukopin Tbk requested an auction of TMJ’s shares in order to collect the loan to TMJ (a distressed company); NKLI won the<br>auction and then received a loan from the bank for the purpose of purchasing TMJ shares. NKLI’s intention was to take control over TMJ and launch mining business; however, NKLI was unable to take control and launch the business due to legal<br>disputes with the bankruptcy trustee of TMJ and court-appointed mine management company, and also lost a lawsuit against the mine management company.<br><br>As a result, NKLI filed a legal suit to PT Bank KB Bukopin Tbk stating that the bank’s recommendation to purchase TMJ’s shares was inappropriate<br>since the bank did not intentionally share the legal issues and associated risks thereof.	The second trial is underway and will work with the legal representative to actively respond<br><br>Considering the winning results of the first trial and the legal review opinion of external law firms, PT Bank KB Bukopin Tbk is unlikely to lose, and its<br>impact on Kookmin Bank is expected to be limited

298

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40.6 Other Matters (including litigation) (cont’d)

(In number of cases, in millions of Korean won)

Company		Lawsuits		No. of<br>cases		Amount			Description of the lawsuits		Status of the lawsuits

KB Securities Co., Ltd.		Request for the return of unjust enrichment and transaction amount (Australian fund)		3			55,654		As an investment broker for a private fund that lends money to a corporation (borrower) investing in Australian disability apartment rental business, KB Securities Co., Ltd. brokered investments of<br>~~W~~ 326,500 million in trust products and funds to individual and institutional investors. However, due to the local Australian borrower’s breach of contract, the fund management was suspended, and related to this, a<br>lawsuit was filed against KB Securities Co., Ltd. for the return of unjust enrichment and transaction amount.		No.1 case: The third trial is in progress (The first trial: On February 7, 2023, a ruling was made to pay the principal investment of<br>~~W~~ 29,800 million and the delayed interest on it. The second trial: On January 29, 2024, the conclusion was different; a ruling was made to pay the principal investment of ~~W~~ 12,000 million<br>and the delayed interest on it.)<br><br>No. 2 case: The second trial is in progress<br>(The first trial: On February 14, 2024, a ruling was made to pay the principal investment of ~~W~~ 12,200 million and the delayed interest on it.)<br><br>No. 3 case: The second trial is in progress (The first trial: On October 26, 2023, a ruling was made to pay the remaining principal and interest of<br>~~W~~ 8,460 million and the delayed interest on the principal of ~~W~~ 8,290 million)

Meanwhile, the Group has recognized a provision for litigation amounting to ~~W~~ 156,214 million in the financial statements in relation to the pending lawsuit in which it is a defendant as of December 31, 2024 (Note 24.5).

b) As of December 31, 2024, there are a total of 12 pending lawsuits related to the wage peak system, amounting to ~~W~~ 42,857 million. This includes 8 cases for Kookmin Bank with a total claim amount of ~~W~~ 39,144 million, 1 case for KB Securities Co., Ltd. with a claim amount of ~~W~~ 2,646 million, 1 case for KB Life Insurance Co., Ltd. with a claim amount of ~~W~~ 61 million, 1 case for KB Capital Co., Ltd. with a claim amount of ~~W~~ 388 million, and 1 case for KB Data System Co., Ltd. with a claim amount of ~~W~~ 618 million. The amount and timing of potential outflows of resources are currently unpredictable.

299

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

40.6 Other Matters (including litigation) (cont’d)

c) KB Real Estate Trust Co., Ltd. is carrying out the completion guarantee management-type land trust project (31 cases, including Gonghang-dong Airport City, excluding construction project), that bears responsibility for the completion guarantee when the construction company fails to fulfill responsibility for the completion guarantee and bears responsibility for compensating for damages to lending financial institutions as of December 31, 2024. The total credit line of PF loan related to the completion guarantee management-type land trust project is ~~W~~ 2,696,500 million, and the used credit line is ~~W~~ 2,049,200 million as of December 31, 2024. As of December 31, 2024, KB Real Estate Trust Co., Ltd. is a defendant in two lawsuits (with a total claim amount of ~~W~~ 25,892 million) due to the failure to fulfill the responsibility for construction completion, and three additional lawsuits (with a total claim amount of ~~W~~ 53,600 million) were filed after the reporting period but before the final approval of the Financial statements. The amount of compensation for damages charged to KB Real Estate Trust Co., Ltd. is measured after determining whether the damage occurred due to the company’s failure to fulfill the completion guarantee. Since the amount of loss cannot be measured reliably, this impact is not reflected in the Financial statements as of and for the year ended December 31, 2024.

d) As of December 31, 2024, the Financial Supervisory Service conducted a regular inspection of the operations of the holding company and its subsidiaries, Kookmin Bank and KB Life Insurance Co., Ltd. The results of the inspection and any required actions will be notified in the future.

e) Kookmin Bank is currently under investigation by the Fair Trade Commission regarding the possibility of unfair joint actions by commercial banks. It is impossible to predict the outcome of the investigation.

f) As of December 31, 2024, KB Life Insurance Co., Ltd. is undergoing a tax audit for the 2020 ~ 2022 fiscal year corporate tax. The audit is expected to conclude in January 2025, and the company is awaiting the tax assessment results. Additionally, its subsidiaries, KB Asset Management Co., Ltd. and KB Data Systems Co., Ltd., received advance notice of tax audits in January 2025. Currently, the impact on the Group cannot be predicted.

g) As of December 31, 2024, KB PRASAC BANK is undergoing a tax audit by the tax authorities for the fiscal years 2020 to 2021. Currently, the impact on KB PRASAC BANK cannot be predicted.

h) On April 7, 2023, Kookmin Bank entered into a new share subscription agreement with STIC Eugene Star Holdings Inc.(hereinafter referred to as STIC”), under which STIC will acquire 31,900,000,000 shares at a price of IDR 3.19 trillion, of which Kookmin Bank’s subsidiary, PT Bank KB Bukopin Tbk, will issue. As a result of the agreement, Kookmin Bank will hold a call option to purchase the shares held by the STIC, starting from 2 years and 6 months after the date of acquisition, for a period of 6 months. If Kookmin Bank does not exercise the call option during the designated period, STIC will have the right to sell the acquired shares back to Kookmin Bank, also known as holding a put option right, within 1 year after the expiration of the call option period.

i) As of December 31, 2024, KB Real Estate Trust Co., Ltd. may lend ~~W~~ 3,485,500 million to the trust accounts, which is part of the total project cost related to borrowing-type land trust contracts (including maintenance projects). Whether or not KB Real Estate Trust Co., Ltd. will lend to a trust account is not an unconditional payment obligation, and it is judged by considering all matters such as the fund balance plan of its own account and trust business.

300

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41. Subsidiaries

41.1 Details of major consolidated subsidiaries as of December 31, 2024, are as follows:

Investor	Investee			Location	Date of<br><br>financial<br>statements	Industry
KB Financial Group Inc.	Kookmin Bank	100.00		Korea	Dec. 31	Banking and foreign exchange transaction
	KB Kookmin Card Co., Ltd.	100.00		Korea	Dec. 31	Credit card and installment financing
	KB Asset Management Co., Ltd.	100.00		Korea	Dec. 31	Collective investment and advisory
	KB Capital Co., Ltd.	100.00		Korea	Dec. 31	Financial Leasing
	KB Savings Bank Co., Ltd.	100.00		Korea	Dec. 31	Savings banking
	KB Real Estate Trust Co., Ltd.	100.00		Korea	Dec. 31	Real estate trust management
	KB Investment Co., Ltd.	100.00		Korea	Dec. 31	Capital investment
	KB Data System Co., Ltd.	100.00		Korea	Dec. 31	Software advisory, development, and supply
	KB Securities Co., Ltd.	100.00		Korea	Dec. 31	Financial investment
	KB Insurance Co., Ltd.	100.00		Korea	Dec. 31	Non-life insurance
	KB Life Insurance Co., Ltd. ^1^	100.00		Korea	Dec. 31	Life insurance
Kookmin Bank	KB PRASAC Bank Plc. ^3^	100.00		Cambodia	Dec. 31	Banking and foreign exchange transaction
	Kookmin Bank (China) Ltd.	100.00		China	Dec. 31	Banking and foreign exchange transaction
	KB Microfinance Myanmar Co., Ltd.	100.00		Myanmar	Dec. 31	Microfinance services
	PT Bank Syariah Bukopin	95.92		Indonesia	Dec. 31	Banking
	PT Bukopin Finance	99.24		Indonesia	Dec. 31	Installment financing
	KB Bank Myanmar Co., Ltd.	100.00		Myanmar	Dec. 31	Banking and foreign exchange transaction
	KB FUND PARTNERS Co., Ltd.	100.00		Korea	Dec. 31	Other unclassified financial services
Kookmin Bank, KB<br><br>Kookmin Card Co., Ltd.,<br><br>KB Securities Co., Ltd.,<br><br>KB Insurance Co., Ltd.,<br><br>KB Capital Co., Ltd.	PT Bank KB Bukopin, Tbk.	67.57	^1^	Indonesia	Dec. 31	Banking and foreign exchange<br>transaction

301

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41.1 Details of major consolidated subsidiaries as of December 31, 2024, are as follows: (cont’d)

Investor	Investee		Location	Date of<br><br>financial<br>statements	Industry
KB Securities Co., Ltd.	KBFG Securities America Inc.	100.00	United<br><br>States	Dec. 31	Investment advisory and securities trading
	KB Securities Hong Kong Ltd.	100.00	China	Dec. 31	Investment advisory and securities trading
	KB Securities Vietnam Joint Stock Company	99.81	Vietnam	Dec. 31	Investment advisory and securities trading
	KB FINA Joint Stock Company	100.00	Vietnam	Dec. 31	Investment advisory and securities trading
	PT KB VALBURY SEKURITAS	65.00	Indonesia	Dec. 31	Investment advisory and securities trading
KB Insurance Co., Ltd.	Leading Insurance Services, Inc.	100.00	United<br><br>States	Dec. 31	Management service
	KBFG Insurance(China) Co., Ltd.	100.00	China	Dec. 31	Non-life insurance
	PT. KB Insurance Indonesia	70.00	Indonesia	Dec. 31	Non-life insurance
	KB Claims Survey & Adjusting	100.00	Korea	Dec. 31	Claim service
	KB Sonbo CNS	100.00	Korea	Dec. 31	Management service
	KB Healthcare Co., Ltd.	100.00	Korea	Dec. 31	Information and communication
KB Life Insurance Co., Ltd.	KB Life Partners Co., Ltd.	100.00	Korea	Dec. 31	Insurance agent
	KB Golden Life Care Co., Ltd.	100.00	Korea	Dec. 31	Service
KB Kookmin Card Co., Ltd.	KB Credit Information Co., Ltd.	100.00	Korea	Dec. 31	Collection of receivables or credit investigation
	KB Daehan Specialized Bank Plc. ^4^	97.50	Cambodia	Dec. 31	Auto Installment finance
	PT. KB Finansia Multi Finance	80.00	Indonesia	Dec. 31	Auto Installment finance
	KB J Capital Co., Ltd.	77.40	Thailand	Dec. 31	Service
KB Capital Co., Ltd.	PT Sunindo Kookmin Best Finance	85.00	Indonesia	Dec. 31	Auto Installment finance
	KBFintech Inc. ^5^	95.95	Korea	Dec. 31	E-commerce
KB Kookmin Card Co., Ltd. KB Capital Co., Ltd.	KB KOLAO Leasing Co., Ltd.	80.00	Laos	Dec. 31	Auto Installment finance

302

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41.1 Details of major consolidated subsidiaries as of December 31, 2024, are as follows: (cont’d)

Investor	Investee		Location	Date of<br><br>financial<br>statements	Industry
Kookmin Bank, KB Data System Co., Ltd.	PT KB Data Systems Indonesia	100.00	Indonesia	Dec. 31	Service
KB Asset Management Co., Ltd.	KBAM Shanghai Advisory Services Co., Ltd.	100.00	China	Dec. 31	General advisory
	PT KB Valbury Asset Management ^2^	70.00	Indonesia	Dec. 31	Collective investment
	KB Asset Management Singapore PTE. LTD.	100.00	Singapore	Dec. 31	Collective investment
^1^	Among the ownership in PT Bank KB Bukopin, Tbk., 0.05% (100,000,000 shares) is<br>no-voting shares with no-dividends.
:---	:---
^2^	In January 2024, PT Valbury Capital Management was changed from a subsidiary of KB Securities Co., Ltd. to a<br>subsidiary of KB Asset Management Co., Ltd., and its name was changed to PT KB Valbury Asset Management during the second quarter.
:---	:---
^3^	On September 1, 2023, PRASAC Microfinance Institution PLC.(merging entity), a subsidiary of Kookmin Bank<br>Co., Ltd., merged with Kookmin Bank Cambodia PLC.(merged entity). The official name of PRASAC Microfinance Institution PLC.(merging entity) has changed to KB PRASAC BANK PLC.
:---	:---
^4^	KB DAEHAN SPECIALIZED BANK PLC. (merging entity) merged with i-Finance<br>Leasing PLC.(merged entity) on December 19, 2024.
:---	:---
^5^	On October 14, 2024, Teamwink Co., Ltd. changed its name to KB Fintech Co., Ltd.
:---	:---

303

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41.2 Details of consolidated structured entities as of December 31, 2024, are as follows:

	Consolidated structured<br><br>entities	Reasons for consolidation
Trusts	Kookmin Bank (development trust) and 10 others	The Group controls the trust because it has power to determine management performance of the trust and is significantly exposed to variable returns that absorb losses through the guarantees of payment of principal, or payment of<br>principal and fixed rate of return.
Asset-backed securitization	Taejon Samho The First Co., Ltd. and 73 others	The Group controls these investees because it has power over relevant activities in the event of default, is significantly exposed to variable returns by providing lines of credit, ABCP purchase commitments or acquisition of<br>subordinated debt and has ability to affect those returns through its power.
Investment funds and others	KB Global Platform Fund No.2 and 217 others	Funds are consolidated if the Group, as a collective investor or operating manager (member), etc., can manage fund assets on behalf of other investors, or dismiss the collective investor and operating manager, and is substantially<br>exposed to significant variable returns or has such rights.

If the Group holds more than half of the ownership interests but does not have the power over relevant activities of structured entities in accordance with agreements with trust and other related parties, those structured entities are excluded from the consolidation.

304

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41.3 Condensed financial information of major subsidiaries as of and for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)

	December 31, 2024						2024
	Assets		Liabilities		Equity		Operating<br>revenue		Profit (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company			Total compre-<br>hensive<br>income (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company
Kookmin Bank ^1^	~~W~~	562,887,180	~~W~~	524,859,860	~~W~~	38,027,320	~~W~~	51,497,328	~~W~~	3,251,759		~~W~~	3,408,978
KB Securities Co., Ltd. ^1,2^		63,384,389		56,498,405		6,885,984		10,736,175		585,682			630,103
KB Insurance Co., Ltd. ^1,2^		40,776,375		34,982,351		5,794,024		12,818,501		839,494			(125,414	)
KB Kookmin Card Co., Ltd.^1^		30,541,628		25,236,827		5,304,801		4,428,688		402,715			437,030
KB Life Insurance Co., Ltd.^1,2^		34,047,554		30,984,400		3,063,154		2,821,601		164,272			(906,210	)
KB Asset Management Co., Ltd. ^1^		414,942		120,224		294,718		246,184		66,500			67,757
KB Capital Co., Ltd. ^1,2^		18,115,495		15,654,177		2,461,318		2,620,487		222,041			225,609
KB Real Estate Trust Co., Ltd. ^1^		1,113,466		627,898		485,568		139,656		(113,332	)		(113,652	)
KB Savings Bank Co., Ltd.		2,575,739		2,393,523		182,216		225,173		(11,366	)		(11,560	)
KB Investment Co., Ltd. ^1^		1,529,823		1,245,883		283,940		215,834		4,368			4,466
KB Data System Co., Ltd. ^1^		62,270		40,219		22,051		241,652		1,978			1,149

305

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41.3 Condensed financial information of major subsidiaries as of and for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

		December 31, 2023						2023
		Assets		Liabilities		Equity		Operating<br>revenue		Profit (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company			Total compre-<br>hensive<br>income (loss)<br>attributable to<br>shareholders<br>of the Parent<br>Company
Kookmin Bank ^1^		~~W~~	530,012,853	~~W~~	493,464,126	~~W~~	36,548,727	~~W~~	45,032,120	~~W~~	3,261,499		~~W~~	3,889,625
KB Securities Co., Ltd. ^1,2^			61,266,990		54,967,833		6,299,157		11,580,526		389,618			389,602
KB Insurance Co., Ltd. ^1,2^			37,716,952		31,470,770		6,246,182		11,861,602		713,281			878,499
KB Kookmin Card Co., Ltd.^1^			29,365,575		24,545,752		4,819,823		4,205,146		351,133			307,336
KB Life Insurance Co., Ltd.^1,2^			31,953,218		28,050,932		3,902,286		2,557,861		84,756			500,647
KB Asset Management Co., Ltd. ^1^			377,919		109,645		268,274		204,202		61,525			61,756
KB Capital Co., Ltd. ^1,2^			16,560,800		14,300,771		2,260,029		2,295,471		186,505			182,075
KB Real Estate Trust Co., Ltd. ^1^			859,408		573,348		286,060		148,763		(84,073	)		(84,476	)
KB Savings Bank Co., Ltd.			2,661,999		2,468,223		193,776		234,197		(90,568	)		(90,430	)
KB Investment Co., Ltd. ^1^			1,544,836		1,265,361		279,475		154,287		9,187			9,188
KB Data System Co., Ltd. ^1^			61,508		40,616		20,892		230,825		125			(1,594	)
^1^	Financial information is based on its consolidated financial statements.
:---	:---
^2^	Includes fair value adjustments arising from the acquisition.
:---	:---

306

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

41.4 The Characteristics of Risks Associated with Consolidated Structured Entities

The terms of contractual arrangements to provide financial support to consolidated structured entities are as follows:

41.4.1 The Group has provided payment guarantees of ~~W~~ 4,282,424 million to KBD TOWER 1ST LLC and other consolidated structured entities.

41.4.2 The Group has provided capital commitment to 68 consolidated structured entities including KB Sinansan Line Private Special Asset Fund (SOC). The unexecuted amount of the capital commitment is ~~W~~ 1,905,221 million. Based on the capital commitment, the Group is subject to increase its investment upon the request of the asset management company or the additional agreement among investors.

41.4.3 The Group has provided the guarantees of payment of principal, or principal and fixed rate of return in case the operating results of the trusts are less than the guaranteed principal, or principal and fixed rate of return.

41.5 Changes in Subsidiaries

41.5.1 Subsidiaries newly included in consolidation for the year ended December 31, 2024, are as follows:

Company	Reasons of obtaining control
KB FUND PARTNERS Co., Ltd. and 12 others	Holds more than half of the ownership interests
TLDC PTE.LTD. and 19 others	Holds the power in the event of default and is exposed to significant variable returns by providing lines of credit, ABCP purchase commitments or acquisition of subordinated debt
KB Global Private Real Estate Debt Fund No.31()(FoFs) and 33 others	Holds the power to determine the operation of the funds and is exposed to variable returns by holding significant amount of ownership interests
KB Secondary Plus Fund 2 and 1 other	Holds the power as a general partner and is exposed to variable returns by holding significant amount of ownership interests

All values are in US Dollars.

41.5.2 Subsidiaries excluded from consolidation for the year ended December 31, 2024, are as follows:

Company		Reasons of losing control
Beomuh Landmark the 2nd L.L.C. and 50 others		Termination of the commitments
i-Finance Leasing Plc. and 16 others		Liquidation
Orient Kwang-yang Co., Ltd. and 7 others		Disposal
KB Money Market Active ETF (Bond) and 16 others		Decrease in ownership interests to less than majority

307

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

42. Unconsolidated Structured Entities

42.1 Nature, purpose, and activities of the unconsolidated structured entities and how the structured entities are financed, are as follows:

Nature	Purpose	Activity	Method of financing
Structured financing	Granting PF loans to SOC and real estate<br><br>Granting loans to ships/aircrafts SPC	Construction of SOC and real estate<br><br>Building ships, construction and purchase of aircrafts	Loan commitments through credit line, providing credit line, and investment<br>agreements
Investment funds	Investment in beneficiary certificates<br><br>Investment in PEF and partnerships	Management of fund assets<br><br>Payment of fund fees and allocation of fund profits	Sales of beneficiary certificate instruments<br><br>Investment from general partners and limited partners
Trusts	Management of financial trusts;<br><br>• Development trust<br><br>• General unspecified money trust<br><br>• Trust whose principal is not<br>guaranteed<br><br>• Other<br>trusts	Management of trusted financial assets<br><br>Payment of trust fees and allocation of trust profits.	Sales of trusted financial assets
Asset-backed securitization	Early cash generation through transfer of securitized assets<br><br>Fees earned through services to SPC, such as providing lines of credit and ABCP purchase commitments	Fulfillment of asset-backed securitization plan<br><br>Purchase and collection of securitized assets<br><br>Issuance and repayment of ABS and ABCP	Issuance of ABS and ABCP based on securitized assets

308

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

42.2 Details of scale of unconsolidated structured entities and nature of the risks associated with the Group’s interests in unconsolidated structured entities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Structured<br>financing				Investment funds			Trusts		Asset-backed<br>securitization<br>and others		Total
Total assets of unconsolidated structured entities		~~W~~	157,770,828			~~W~~	1,934,544,704		~~W~~	6,013,014	~~W~~	160,056,159	~~W~~	2,258,384,705
Carrying amount in the financial statements
Assets:
Financial assets at fair value through profit or loss		~~W~~	61,079			~~W~~	17,801,830		~~W~~	152,629	~~W~~	4,432,933	~~W~~	22,448,471
Derivative financial assets			—				4,111			—		7,742		11,853
Loans measured at amortized cost			11,508,337				528,738			100,087		2,998,984		15,136,146
Financial investments			—				—			—		10,438,641		10,438,641
Investments in associates			—				489,021			—		—		489,021
Other assets			4,796				41,398			1,154,232		11,114		1,211,540

		~~W~~	11,574,212			~~W~~	18,865,098		~~W~~	1,406,948	~~W~~	17,889,414	~~W~~	49,735,672

Liabilities:
Deposits		~~W~~	2,512,650			~~W~~	117,624		~~W~~	—	~~W~~	355,442	~~W~~	2,985,716
Derivative financial liabilities			—				8,788			—		—		8,788
Other liabilities			5,302				764			—		1,465		7,531

		~~W~~	2,517,952			~~W~~	127,176		~~W~~	—	~~W~~	356,907	~~W~~	3,002,035

Maximum exposure *
Assets held		~~W~~	11,574,212			~~W~~	18,865,098		~~W~~	1,406,948	~~W~~	17,889,414	~~W~~	49,735,672
Purchase and investment commitments			36,332				6,300,397			27,130		1,046,568		7,410,427
Unused credit			1,554,565				30,568			573		3,788,715		5,374,421
Acceptances and guarantees and loan commitments			974,869				—			—		527,677		1,502,546

		~~W~~	14,139,978			~~W~~	25,196,063		~~W~~	1,434,651	~~W~~	23,252,374	~~W~~	64,023,066

Methods of determining the<br>maximum exposure		Loan commitments /<br>investment agreements /<br>purchase<br>commitments<br>and acceptances and<br>guarantees		Investments /loans and<br>Investment agreements		Trust paying dividends<br>by results: Total amount<br>of trust<br>exposure		Providing credit lines/ purchase commitments/<br>loan<br>commitments and acceptances and guarantees
---	---	:---:	---	:---:	---	:---:	---	:---:

309

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

(In millions of Korean won)		December 31, 2023
		Structured<br>financing				Investment funds			Trusts		Asset-backed<br>securitization<br>and others		Total
Total assets of unconsolidated structured entities		~~W~~	114,891,212			~~W~~	593,418,756		~~W~~	4,893,076	~~W~~	142,477,227	~~W~~	855,680,271
Carrying amount in the financial statements
Assets:
Financial assets at fair value through profit or loss		~~W~~	98,771			~~W~~	15,553,522		~~W~~	7,249	~~W~~	4,895,929	~~W~~	20,555,471
Loans measured at amortized cost			11,487,358				580,121			112,867		2,959,032		15,139,378
Financial investments			—				—			—		10,382,744		10,382,744
Investments in associates			—				418,484			—		—		418,484
Other assets			7,823				1,919			686,208		11,969		707,919

		~~W~~	11,593,952			~~W~~	16,554,046		~~W~~	806,324	~~W~~	18,249,674	~~W~~	47,203,996

Liabilities:
Deposits		~~W~~	2,202,888			~~W~~	52,921		~~W~~	—	~~W~~	359,418	~~W~~	2,615,227
Derivative financial liabilities			—				288			—		—		288
Other liabilities			4,442				43			57		2,082		6,624

		~~W~~	2,207,330			~~W~~	53,252		~~W~~	57	~~W~~	361,500	~~W~~	2,622,139

Maximum exposure *
Assets held		~~W~~	11,593,952			~~W~~	16,554,046		~~W~~	806,324	~~W~~	18,249,674	~~W~~	47,203,996
Purchase and investment commitments			471,052				6,138,638			10,250		1,183,800		7,803,740
Unused credit			1,406,447				—			36,672		5,006,963		6,450,082
Acceptances and guarantees and loan commitments			792,848				—			—		15,405		808,253

		~~W~~	14,264,299			~~W~~	22,692,684		~~W~~	853,246	~~W~~	24,455,842	~~W~~	62,266,071

Methods of determining the<br>maximum exposure		Loan commitments /<br>investment agreements /<br>purchase<br>commitments<br>and acceptances and<br>guarantees		Investments /loans and<br>Investment agreements		Trust paying dividends<br>by results: Total amount<br>of trust<br>exposure		Providing credit lines/ purchase commitments/<br>loan<br>commitments and acceptances and guarantees
---	---	:---:	---	:---:	---	:---:	---	:---:

*	Maximum exposure includes the asset amounts, after deducting loss (provisions for credit losses, impairment<br>losses, and others), recognized in the consolidated financial statements of the Group.
:---	:---

310

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43. Related Party Transactions

According to Korean IFRS No.1024, the Group includes investments in associates, key management personnel (including family members), and post-employment benefit plans of the Group and its related party companies in the scope of related parties. The Group discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the consolidated financial statements. Refer to Note 13 for details of investments in associates and joint ventures.

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024		2023
Associates and joint ventures
Balhae Infrastructure Company	Fee and commission income	~~W~~	5,337	~~W~~	5,101
Korea Credit Bureau Co., Ltd.	Interest expense		1		1
	Fee and commission income		727		776
	Fee and commission expense		10,203		8,444
	Insurance income		3		3
	Reversal of credit losses		2		—
	Provision for credit losses		—		1
	Other operating expenses		11		15
Incheon Bridge Co., Ltd.	Interest income		14,006		10,420
	Interest expense		986		979
	Fee and commission income		34		28
	Fee and commission expense		9		7
	Insurance income		222		219
	Gains on financial instruments at fair value through profit or loss		2,129		334
	Reversal of credit losses		9		—
	Provision for credit losses		—		54
Aju Good Technology Venture Fund	Interest expense		3		111
Taeyoungjungkong Co., Ltd.	Interest income		—		2
Star-Lord General Investors Private Real Estate Investment Company No.10	Insurance income		116		137
	Interest income		5,939		5,934
	Interest expense		260		543
	Fee and commission income		—		20
	Provision for credit losses		1		4
	General and administrative expenses		9,055		9,720
	Other income		363		—
KG Capital Co., Ltd.*	Interest income		—		293
	Fee and commission income		—		18
	Fee and commission expense		—		1
	Insurance income		—		13
	Other operating expenses		—		11
	Reversal of credit losses		—		55

311

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024		2023
Food Factory Co., Ltd.	Interest income	~~W~~	317	~~W~~	62
	Interest expense		1		1
	Insurance income		3		9
	Gains on financial instruments at fair value through profit or loss		—		43
	Losses on financial instruments at fair value through profit or loss		238		—
	Reversal of credit losses		—		2
Dongjo Co., Ltd.	Interest income		34		36
POSCO-KB Shipbuilding Fund	Fee and commission income		—		(99	)
Paycoms Co., Ltd.*	Interest income		—		154
Big Dipper Co., Ltd.	Fee and commission expense		243		266
	Provision for credit losses		4		—
KB-TS Technology Venture Private Equity Fund	Fee and commission income		175		324
KB-SJ Tourism Venture Fund	Fee and commission income		272		312
Banksalad Co., Ltd.	Losses on financial instruments at fair value through profit or loss		5,489		—
	Fee and commission income		36		37
	Fee and commission expense		4		11
Iwon Alloy Co., Ltd.	Insurance income		—		1
Bioprotect Ltd.	Gains on financial instruments at fair value through profit or loss		627		—
	Losses on financial instruments at fair value through profit or loss		473		—
RMGP Bio-Pharma Investment Fund, L.P.	Fee and commission income		59		40
	Gains on financial instruments at fair value through profit or loss		911		—
	Losses on financial instruments at fair value through profit or loss		872		—
RMGP Bio-Pharma Investment, L.P.	Gains on financial instruments at fair value through profit or loss		3		—
KB-MDI Centauri Fund LP	Fee and commission income		452		491
	Gains on financial instruments at fair value through profit or loss		2,602		—
	Losses on financial instruments at fair value through profit or loss		537		—
Hibiscus Fund LP	Fee and commission income		491		928
	Gains on financial instruments at fair value through profit or loss		2,302		—
	Losses on financial instruments at fair value through profit or loss		500		—
RMG-KB BP Management Ltd.	Gains on financial instruments at fair value through profit or loss		36		—
RMG-KB BioAccess Fund L.P.	Fee and commission income		344		326
	Gains on financial instruments at fair value through profit or loss		824		—
	Losses on financial instruments at fair value through profit or loss		1,333		—

312

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024		2023
S&E Bio Co., Ltd.	Interest income	~~W~~	44	~~W~~	—
	Interest expense		16		43
	Provision for credit losses		16		—
Contents First Inc.	Interest income		482		346
	Interest expense		36		73
	Fee and commission income		2		2
	Gains on financial instruments at fair value through profit or loss		5,936		—
	Provision for credit losses		5		8
	Reversal of credit losses		1		—
December & Company Inc. *	Insurance income		—		187
Pin Therapeutics Inc.	Interest expense		154		101
	Provision for credit losses		4		—
Wyatt Corp.	Interest income		378		—
	Gains on financial instruments at fair value through profit or loss		2,739		—
	Insurance income		138		102
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund*	Interest expense		4		4
	Fee and commission income		—		209
Spark Biopharma Inc.	Interest expense		293		468
	Provision for credit losses		13		—
	Gains on financial instruments at fair value through profit or loss		3,823		—
	Losses on financial instruments at fair value through profit or loss		1,639		—
Skydigital Inc.	Fee and commission income		2		3
SO-MYUNG Recycling Co., Ltd.	Insurance income		1		—
KB No.21 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		136		28
	Interest expense		75		68
KB No.22 Special Purpose Acquisition Company*	Gains on financial instruments at fair value through profit or loss		—		1,013
	Interest expense		1		2
KB No.23 Special Purpose Acquisition Company*	Losses on financial instruments at fair value through profit or loss		—		1,483
	Interest expense		—		46
KB No.24 Special Purpose Acquisition Company*	Interest expense		—		7
KB No.25 Special Purpose Acquisition Company	Interest expense		53		39
	Gains on financial instruments at fair value through profit or loss		—		1,130
	Losses on financial instruments at fair value through profit or loss		175		—

313

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024		2023
KB No.26 Special Purpose Acquisition Company	Interest expense	~~W~~	57	~~W~~	38
	Gains on financial instruments at fair value through profit or loss		—		1,209
	Losses on financial instruments at fair value through profit or loss		54		—
KB No.27 Special Purpose Acquisition Company	Interest expense		158		65
	Gains on financial instruments at fair value through profit or loss		—		3,059
	Losses on financial instruments at fair value through profit or loss		177		—
KB No.28 Special Purpose Acquisition Company	Interest expense		45		—
	Fee and commission income		175		—
	Gains on financial instruments at fair value through profit or loss		1,118		—
KB No.29 Special Purpose Acquisition Company	Fee and commission income		210		—
	Gains on financial instruments at fair value through profit or loss		1,525		—
	Interest expense		43		—
KB No.30 Special Purpose Acquisition Company	Interest expense		21		—
	Fee and commission income		175		—
	Gains on financial instruments at fair value through profit or loss		1,445		—
KB No.31 Special Purpose Acquisition Company	Gains on financial instruments at fair value through profit or loss		2,111		—
	Interest expense		13		—
KB SPROTT Renewable Private Equity Fund No.1	Fee and commission income		255		320
KB-Stonebridge Secondary Private Equity Fund	Fee and commission income		402		582
	Other operating income		—		113
COSES GT Co., Ltd. *	Gains on financial instruments at fair value through profit or loss		20		—
	Losses on financial instruments at fair value through profit or loss		—		4,910
	Interest income		—		30
	Reversal of credit losses		—		5
TeamSparta Inc.	Fee and commission income		54		11
	Provision for credit losses		—		2
	Reversal of credit losses		1		—
	Interest expense		165		212
Newavel Co., Ltd.	Losses on financial instruments at fair value through profit or loss		3,000		—
SuperNGine Co., Ltd.	Interest income		43		25
	Fee and commission income		—		1
	Provision for credit losses		33		6
Desilo Inc.	Interest income		14		13
	Provision for credit losses		—		3

314

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024		2023
Turing Co., Ltd.	Interest expense	~~W~~	29	~~W~~	7
	Interest income		61		24
	Provision for credit losses		—		14
	Reversal of credit losses		8		—
IGGYMOB Co., Ltd.	Losses on financial instruments at fair value through profit or loss		5,000		—
ZIPDOC Inc.	Losses on financial instruments at fair value through profit or loss		2,000		—
Grinergy Co., Ltd.*	Provision for credit losses		2		1
	Gains on financial instruments at fair value through profit or loss		1,288		—
	Losses on financial instruments at fair value through profit or loss		119		—
	Interest expense		—		1
Chabot Mobility Co., Ltd.	Fee and commission income		1		—
	Interest expense		1		—
	Fee and commission expense		2,364		2,154
	Gains on financial instruments at fair value through profit or loss		579		—
Wemade Connect Co., Ltd.	Insurance income		2		2
	Interest expense		270		316
	Fee and commission income		5		—
	Provision for credit losses		10		9
	Losses on financial instruments at fair value through profit or loss		4,827		—
TMAP Mobility Co., Ltd.	Interest expense		3,077		1,460
	Fee and commission income		5		2
	Fee and commission expense		1,292		998
	Provision for credit losses		3		—
	Reversal of credit losses		—		9
	Insurance income		1,200		209
Nextrade Co., Ltd.	Interest expense		2,481		2,911
WJ Private Equity Fund No.1	Fee and commission income		7		7
UPRISE, Inc.	Losses on financial instruments at fair value through profit or loss		3,893		—
Channel Corporation	Interest expense		10		67
	Losses on financial instruments at fair value through profit or loss		103		—
	Gains on financial instruments at fair value through profit or loss		4,837		—
CWhy Inc.	Insurance income		9		2
CellinCells Co., Ltd.	Provision for credit losses		2		—
KB Social Impact Investment Fund	Fee and commission income		250		284
KB-UTC Inno-Tech Venture Fund	Fee and commission income		230		431
	Other operating income		—		3
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	Fee and commission income		619		1,052

315

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024		2023
2020 KB Fintech Renaissance Fund	Fee and commission income	~~W~~	147	~~W~~	147
KB Material and Parts No.1 PEF*	Fee and commission income		175		705
	Other operating income		—		34
FineKB Private Equity Fund No.1	Fee and commission income		569		378
	Gains on financial instruments at fair value through profit or loss		32		16
Paramark KB Fund No.1	Fee and commission income		118		129
KB-Badgers Future Mobility ESG Fund No.1	Fee and commission income		1,300		1,300
	Gains on financial instruments at fair value through profit or loss		1		—
KB-KTB Technology Venture Fund	Fee and commission income		342		669
Bluepointpartners Inc.	Losses on financial instruments at fair value through profit or loss		237		—
KB-Solidus Global Healthcare Fund	Fee and commission income		17		284
	Gains on financial instruments at fair value through profit or loss		700		8,400
ASSEMBLE CORPORATION	Interest income		117		88
	Fee and commission income		2		1
	Insurance income		2		1
	Provision for credit losses		—		49
	Reversal of credit losses		20		—
KB Cape No.1 Private Equity Fund*	Fee and commission income		37		217
	Gains on financial instruments at fair value through profit or loss		82		—
	Losses on financial instruments at fair value through profit or loss		—		16
KB-GeneN Medical Venture Fund No.1	Fee and commission income		89		89
KB-BridgePole Venture Investment Fund*	Fee and commission income		101		135
	Other operating income		—		638
KB-BridgePole Venture Investment Fund No.2	Fee and commission income		105		20
KB-Kyobo New Mobility Power Fund*	Fee and commission income		76		79
KB Co-Investment Private Equity Fund No.1	Fee and commission income		1,434		904
KB-NP Green ESG New Technology Venture Capital<br>Fund	Fee and commission income		1,134		1,173
KB-FT Green Growth 1st Technology Investment<br>Association	Fee and commission income		136		135
	Interest expense		12		14
Spoon Radio Co., Ltd.	Losses on financial instruments at fair value through profit or loss		911		—
Gushcloud Talent Agency	Gains on financial instruments at fair value through profit or loss		228		—
KB-SUSUNG 1st Investment Fund	Fee and commission income		192		129
KB-SUSUNG 2st Investment Fund	Fee and commission income		78		—
Youngwon Corporation *	Insurance income		—		1
Seokwang T&I Co., Ltd	Insurance income		2		1

316

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024			2023
3D Interactive Co., Ltd.	Fee and commission income	~~W~~	1		~~W~~	7
	Interest expense		1			10
	Provision for credit losses		—			2
Bigwave Robotics Crop.	Fee and commission income		1			—
	Interest income		—			(1	)
	Interest expense		6			1
U-KB Credit No.1S Private Equity	Fee and commission income		970			228
KY Global Cell & Gene Private Equity Fund 2nd*	Interest expense		(38	)		42
KB-SOLIDUS Healthcare Investment Fund	Fee and commission income		768			—
AKK Robotech Valueup New Technology Investment Fund	Fee and commission income		101			—
New Daegu Busan Expressway Co., Ltd.	Interest income		2,458			—
	Reversal of credit losses		3			—
	Interest expense		3,680			—
	Insurance income		257			—
AIM FUTURE, Inc.	Interest income		44			—
	Interest expense		48			—
	Insurance income		1			—
	Provision for credit losses		3			—
ADP Holdings Co., Ltd.	Interest expense		61			—
ADPGREEN	Interest expense		26			—
	Provision for credit losses		11			—
	Insurance income		73			—
KB-CJ Venture Fund 1st	Fee and commission income		80			—
OKXE Inc.	Gains on financial instruments at fair value through profit or loss		1,922			—
Ascent Global Fund III	Gains on financial instruments at fair value through profit or loss		261			—
Elev8-Capital Fund I	Gains on financial instruments at fair value through profit or loss		1,143			—
	Losses on financial instruments at fair value through profit or loss		2,450			—
H Energy Co., Ltd*	Gains on financial instruments at fair value through profit or loss		3,106			—
XL8 INC.	Gains on financial instruments at fair value through profit or loss		721			—
SDT Inc.	Interest expense		13			—
	Gains on financial instruments at fair value through profit or loss		527			—
DYNE MEDICAL GROUP Inc.	Interest income		26			—
	Interest expense		118			—
	Fee and commission income		1			—
	Insurance income		4			—
	Provision for credit losses		22			—
Bitgoeul Cheomdan Green 1st Co., Ltd.	Interest expense		1			—
Logpresso Inc.	Interest expense		3			—

317

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)			2024			2023
Onheal Co., Ltd.		Interest expense		(20	)		—
		Fee and commission income		8			—
TriOar Inc.		Interest expense		235			—
Blinkers Inc.*		Losses on financial instruments at fair value through profit or loss		508			—
KB-VEP Contact Fund		Fee and commission income		44			—
SD Speed Co.,Ltd.		Insurance income		1			—
KB-Cyrus Tourism Venture Fund		Fee and commission income		64			—
Qoala		Gains on financial instruments at fair value through profit or loss		1,097			—
FineKB Private Equity Fund No.2		Fee and commission income		122			—
GCSM Holdings Limited		Gains on financial instruments at fair value through profit or loss		5,590			—
MitoImmune Therapeutics		Losses on financial instruments at fair value through profit or loss	~~W~~	5,426		~~W~~	—
Honest Fund, Inc.		Losses on financial instruments at fair value through profit or loss		3,556			—
KB Rejuvenation Fund		Fee and commission income		3			—
Allra Fintech Corp.		Provision for credit losses		2			—
		Interest expense		17			—
Yeoulhyulgangho		Interest expense		1			—
Others
Retirement pension		Fee and commission income		1,720			1,567
		Interest expense		47			27
*	Excluded from the Group’s related party as of December 31, 2024.
:---	:---

Meanwhile, the Group purchased installment financial assets, etc. from KG Capital Co., Ltd. amounting to ~~W~~ 373,044 million for the year ended December 31 2023.

318

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Associates and joint ventures
Balhae Infrastructure Company	Other assets	~~W~~	1,431	~~W~~	1,304
Korea Credit Bureau Co., Ltd.	Loans measured at amortized cost (gross amount)		36		37
	Deposits		40,570		17,003
	Provisions		—		2
	Insurance liabilities		1		1
Incheon Bridge Co., Ltd.	Financial assets at fair value through profit or loss		35,411		33,282
	Loans measured at amortized cost (gross amount)		70,012		80,512
	Allowances for credit losses		31		38
	Other assets		389		528
	Deposits		43,867		40,992
	Provisions		40		45
	Insurance liabilities		89		87
	Other liabilities		442		504
Jungdo Co., Ltd.	Deposits		4		4
Dae-A Leisure Co., Ltd.	Deposits		—		150
Aju Good Technology Venture Fund	Deposits		1,809		1,202
	Other liabilities		—		1
Star-Lord General Investors Private Real Estate Investment Company No.10	Loans measured at amortized cost (gross amount)		149,898		149,590
	Allowances for credit losses		5		5
	Property and equipment		4,356		8,934
	Other assets		8,860		8,689
	Insurance liabilities		35		44
	Other liabilities		5,107		11,741
WJ Private Equity Fund No.1	Other assets		2		2
	Deposits		46		103
KB Cape No.1 Private Equity Fund*	Financial assets at fair value through profit or loss		—		1,935
	Other assets		—		73
RAND Bio Science Co., Ltd.	Deposits		4		4
	Loans measured at amortized cost (gross amount)		—		1
Food Factory Co., Ltd.	Financial assets at fair value through profit or loss		—		738
	Loans measured at amortized cost (gross amount)		1,764		2,137
	Allowances for credit losses		1		2
	Other assets		4		5
	Deposits		907		629
	Insurance liabilities		8		2
	Other liabilities		1		1
POSCO-KB Shipbuilding Fund	Other assets		—		678
Big Dipper Co., Ltd.	Loans measured at amortized cost (gross amount)		43		14
	Allowances for credit losses		3		—
	Deposits		123		40
	Other liabilities		8		8

319

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund	Deposits	~~W~~	39	~~W~~	46
Iwon Alloy Co., Ltd.	Deposits		2		1
RMGP Bio-Pharma Investment Fund, L.P.	Financial assets at fair value through profit or loss		7,205		5,938
	Other liabilities		3		62
RMGP Bio-Pharma Investment, L.P.	Financial assets at fair value through profit or loss		25		20
Wyatt Corp.	Financial assets at fair value through profit or loss		3,000		6,000
	Deposits		1		1
	Insurance liabilities		78		73
Skydigital Inc.	Deposits		30		65
Banksalad Co., Ltd.	Financial assets at fair value through profit or loss		2,059		9,148
Spark Biopharma Inc.	Financial assets at fair value through profit or loss		4,634		7,450
	Loans measured at amortized cost (gross amount)		15		17
	Deposits		4,759		11,419
	Other liabilities		22		90
	Allowances for credit losses		7		—
	Provisions		6		—
UPRISE, Inc.	Financial assets at fair value through profit or loss		1,817		5,710
Stratio, Inc.	Financial assets at fair value through profit or loss		1,000		1,000
Honest Fund, Inc.	Financial assets at fair value through profit or loss		442		3,999
CellinCells Co., Ltd.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		1		3
	Deposits		13		37
	Provisions		1		—
Channel Corporation	Financial assets at fair value through profit or loss		20,141		16,906
	Deposits		6		2,030
	Other liabilities		—		11
KB No.21 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		3,122		2,987
	Deposits		2,247		2,261
	Other liabilities		36		38
KB No.22 Special Purpose Acquisition Company*	Financial assets at fair value through profit or loss		—		2,985
	Deposits		—		1,848
KB No.23 Special Purpose Acquisition Company*	Financial assets at fair value through profit or loss		—		1,489

320

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
KB No.25 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss	~~W~~	1,850	~~W~~	2,025
	Deposits		1,545		1,586
	Other liabilities		39		39
KB No.26 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		2,150		2,204
	Deposits		1,763		1,761
	Other liabilities		31		37
KB No.27 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		5,877		6,054
	Deposits		4,613		4,497
	Other liabilities		55		65
KB No.28 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		2,113		—
	Deposits		1,910		—
	Other liabilities		45		—
KB No.29 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		3,015		—
	Deposits		2,338		—
	Other liabilities		43		—
KB No.30 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		2,835		—
	Deposits		1,786		—
	Other liabilities		20		—
KB No.31 Special Purpose Acquisition Company	Financial assets at fair value through profit or loss		4,301		—
	Deposits		2,352		—
	Other liabilities		13		—
COSES GT Co., Ltd. *	Loans measured at amortized cost (gross amount)		—		1
	Deposits		—		1
MitoImmune Therapeutics	Financial assets at fair value through profit or loss		1,574		7,000
KB-Solidus Global Healthcare Fund	Other assets		—		284
Bioprotect Ltd.	Financial assets at fair value through profit or loss		4,628		4,474
ASSEMBLE CORPORATION	Financial assets at fair value through profit or loss		4,000		4,000
	Loans measured at amortized cost (gross amount)		2,021		2,155
	Allowances for credit losses		43		62
	Other assets		11		5
	Deposits		18		78
	Other liabilities		1		1
	Provisions		1		3
	Insurance liabilities		1		—
SO-MYUNG Recycling Co., Ltd.	Insurance liabilities		1		—
Go2joy Co., Ltd.	Financial assets at fair value through profit or loss		1,200		1,200

321

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
S&E Bio Co., Ltd.	Financial assets at fair value through profit or loss	~~W~~	4,000	~~W~~	4,000
	Loans measured at amortized cost (gross amount)		2,016		13
	Other assets		3		—
	Deposits		772		2,342
	Other liabilities		3		13
	Allowances for credit losses		15		—
	Provisions		2		—
Bluepointpartners Inc.	Financial assets at fair value through profit or loss		1,636		1,874
4N Inc.	Deposits		4		49
Xenohelix Co., Ltd.	Financial assets at fair value through profit or loss		3,100		3,100
	Loans measured at amortized cost (gross amount)		4		—
	Deposits		302		904
Contents First Inc.	Financial assets at fair value through profit or loss		13,213		7,277
	Loans measured at amortized cost (gross amount)		10,065		10,365
	Allowances for credit losses		12		7
	Other assets		3		4
	Deposits		729		1,072
	Provisions		—		1
	Other liabilities		4		6
KB-MDI Centauri Fund LP	Financial assets at fair value through profit or loss		21,058		18,993
	Other assets		—		221
2020 KB Fintech Renaissance Fund	Other assets		37		37
OKXE Inc.	Financial assets at fair value through profit or loss		2,722		800
Newavel Co., Ltd.	Loans measured at amortized cost (gross amount)		20		13
	Financial assets at fair value through profit or loss		—		3,000
	Deposits		—		46
Pin Therapeutics Inc.	Loans measured at amortized cost (gross amount)		29		11
	Financial assets at fair value through profit or loss		7,000		5,000
	Deposits		11,133		265
	Other liabilities		117		—
	Allowances for credit losses		3		—
IMBiologics Corp.	Loans measured at amortized cost (gross amount)		2		5
	Financial assets at fair value through profit or loss		7,000		7,000

322

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
SuperNGine Co., Ltd.	Loans measured at amortized cost (gross amount)	~~W~~	482	~~W~~	603
	Deposits		217		69
	Allowances for credit losses		39		6
	Other assets		1		1
	Financial assets at fair value through profit or loss		1,996		1,996
Desilo Inc.	Financial assets at fair value through profit or loss		3,168		3,168
	Loans measured at amortized cost (gross amount)		300		300
	Allowances for credit losses		5		5
	Deposits		3		3
Turing Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
	Loans measured at amortized cost (gross amount)		900		1,901
	Allowances for credit losses		6		14
	Other assets		2		11
	Deposits		819		1,726
	Other liabilities		0		6
IGGYMOB Co., Ltd.	Financial assets at fair value through profit or loss		0		5,000
	Loans measured at amortized cost (gross amount)		0		7
Kukka Co., Ltd.	Financial assets at fair value through profit or loss		2,490		2,490
	Insurance liabilities		1		—
ZIPDOC Inc.	Financial assets at fair value through profit or loss		—		2,000
	Deposits		1		181
TeamSparta Inc.	Loans measured at amortized cost (gross amount)		5		307
	Financial assets at fair value through profit or loss		4,001		4,001
	Provisions		1		1
	Deposits		18,635		7,672
	Other liabilities		34		62
	Allowances for credit losses		—		1
Chabot Mobility Co., Ltd.	Financial assets at fair value through profit or loss		2,580		2,000
	Deposits		631		164
Wemade Connect Co., Ltd.	Financial assets at fair value through profit or loss		7,466		12,293
	Loans measured at amortized cost (gross amount)		29		44
	Allowances for credit losses		9		6
	Provisions		14		8
	Deposits		5,465		8,843
	Insurance liabilities		4		1
	Other liabilities		38		53

323

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Nextrade Co., Ltd.	Deposits	~~W~~	15,281	~~W~~	56,203
	Other liabilities		1,579		3,174
TMAP Mobility Co., Ltd.	Loans measured at amortized cost (gross amount)		73		106
	Allowances for credit losses		1		1
	Deposits		100,010		80,016
	Insurance liabilities		235		—
	Other liabilities		548		763
	Provisions		5		2
FutureConnect Co., Ltd.	Financial assets at fair value through profit or loss		1,499		1,499
Gushcloud Talent Agency	Financial assets at fair value through profit or loss		—		3,688
Grinergy Co., Ltd.*	Loans measured at amortized cost (gross amount)		1		—
	Financial assets at fair value through profit or loss		—		6,486
	Provisions		2		1
NexThera Co., Ltd.	Financial assets at fair value through profit or loss		3,000		3,000
FineKB Private Equity Fund No.1	Other assets		144		13
Paramark KB Fund No.1	Other liabilities		45		34
KB Social Impact Investment Fund	Other assets		250		260
Checkmate Therapeutics Inc.	Financial assets at fair value through profit or loss		3,200		3,200
	Insurance liabilities		3		—
Hibiscus Fund LP	Financial assets at fair value through profit or loss		14,717		12,915
	Other assets		210		258
RMG-KB BioAccess Fund L.P.	Financial assets at fair value through profit or loss		9,379		5,036
RMG-KB BP Management Ltd.	Financial assets at fair value through profit or loss		344		174
KB Co-Investment Private Equity Fund No.1	Other assets		302		255
Spoon Radio Co., Ltd.	Financial assets at fair value through profit or loss		15,006		19,506
Neuroptika Inc.	Financial assets at fair value through profit or loss		5,879		5,879
Bitgoeul Cheomdan Green 1st Co., Ltd.	Deposits		1,239		833
KB-FT Green Growth 1st Technology Investment Association	Deposits		—		700
	Other liabilities		—		8
KY Global Cell & Gene Private Equity Fund 2nd*	Deposits		—		3,790
	Other liabilities		—		42
Bigwave Robotics Crop.	Loans measured at amortized cost (gross amount)		39		31
	Financial assets at fair value through profit or loss		2,750		2,750
	Deposits		501		4
	Other liabilities		6		—

324

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Blinkers Inc.*	Financial assets at fair value through profit or loss	~~W~~	—	~~W~~	999
3D Interactive Co., Ltd.	Loans measured at amortized cost (gross amount)		6		42
	Allowances for credit losses		—		2
	Provisions		2		—
	Financial assets at fair value through profit or loss		2,300		2,300
	Deposits		1,779		1,501
XL8 INC.	Financial assets at fair value through profit or loss		5,869		5,148
Elev8-Capital Fund I	Financial assets at fair value through profit or loss		16,250		6,656
New Daegu Busan Expressway Co., Ltd.	Loans measured at amortized cost (gross amount)		24,264		72,742
	Allowances for credit losses		4		4
	Other assets		22		57
	Deposits		150,007		146,169
	Other liabilities		1,928		1,891
	Insurance liabilities		22		—
AIM FUTURE, Inc.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		908		900
	Allowances for credit losses		5		2
	Other assets		1		1
	Deposits		760		3,393
	Other liabilities		—		48
Novorex Inc.	Financial assets at fair value through profit or loss		2,000		2,000
	Loans measured at amortized cost (gross amount)		8		—
	Deposits		6		7
Seokwang T&I Co., Ltd	Insurance liabilities		2		2
ADP Holdings Co., Ltd.	Deposits		2,058		—
	Other liabilities		7		—
ADPGREEN	Loans measured at amortized cost (gross amount)		25		—
	Deposits		1,802		—
	Other liabilities		8		—
	Allowances for credit losses		8		—
	Provisions		3		—
	Insurance liabilities		101		—
Logpresso Inc.	Financial assets at fair value through profit or loss		3,000		—
	Loans measured at amortized cost (gross amount)		31		—
	Deposits		457		—

325

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Onheal Co., Ltd.	Financial assets at fair value through profit or loss	~~W~~	10,000	~~W~~	—
	Deposits		5,001		—
Ascent Global Fund III	Financial assets at fair value through profit or loss		3,767		—
DYNE MEDICAL GROUP Inc.	Financial assets at fair value through profit or loss		3,001		—
	Loans measured at amortized cost (gross amount)		2,022		—
	Allowances for credit losses		16		—
	Provisions		6		—
	Other assets		1		—
	Deposits		3,813		—
	Other liabilities		23		—
	Insurance liabilities		1		—
TriOar Inc.	Financial assets at fair value through profit or loss		3,000		—
	Loans measured at amortized cost (gross amount)		16		—
	Deposits		6,054		—
	Other liabilities		73		—
Coxwave Co., Ltd.	Financial assets at fair value through profit or loss		3,000		—
SDT Inc.	Financial assets at fair value through profit or loss		3,105		—
Yeoulhyulgangho	Financial assets at fair value through profit or loss		500		—
	Deposits		456		—
KB-VEP Contact Fund	Other assets		15		—
Xpanner Inc	Financial assets at fair value through profit or loss		9,673		—
	Insurance liabilities		1		—
SD Speed Co.,Ltd.	Insurance liabilities		1		—
Allra Fintech Corp.	Deposits		1,671		—
	Other liabilities		1		—
	Provisions		2		—
GCSM Holdings Limited	Financial assets at fair value through profit or loss		9,506		—
KB Rejuvenation Fund	Other assets		3		—
Qoala	Financial assets at fair value through profit or loss		6,554		—
FineKB Private Equity Fund No.2	Other assets		35		—

326

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)				December 31,<br><br>2024		December 31,<br><br>2023
Key management personnel
Key management personnel		Loans measured at amortized cost (gross amount)	~~W~~	7,125	~~W~~	5,490
		Allowances for credit losses		3		5
		Other assets		8		7
		Deposits		15,365		15,902
		Provisions		1		2
		Insurance liabilities		2,308		2,293
		Other liabilities		555		429
Others
Retirement pension		Other assets		739		364
		Other liabilities		1,215		606
*	Excluded from the Group’s related party as of December 31, 2024, therefore, the remaining outstanding<br>balances with those entities are not disclosed.
:---	:---

327

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Beginning		Loan		Collection			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	~~W~~	37	~~W~~	36	~~W~~	(37)		~~W~~	36
Incheon Bridge Co., Ltd.		113,794		2,141		(10,512	)		105,423
Star-Lord General Investors Private Real Estate Investment Company No.10		149,590		308		—			149,898
KB Cape No.1 Private Equity Fund*		1,935		—		(1,935	)		—
RAND Bio Science Co., Ltd.		1		—		(1	)		—
Food Factory Co., Ltd.		2,875		9		(1,120	)		1,764
Big Dipper Co., Ltd.		14		43		(14	)		43
RMGP Bio-Pharma Investment Fund, L.P.		5,938		1,267		—			7,205
RMGP Bio-Pharma Investment, L.P.		20		5		—			25
Wyatt Corp.		6,000		—		(3,000	)		3,000
Banksalad Co., Ltd.		9,148		—		(7,089	)		2,059
UPRISE, Inc.		5,710		—		(3,893	)		1,817
Stratio, Inc.		1,000		—		—			1,000
Honest Fund, Inc.		3,999		—		(3,557	)		442
CellinCells Co., Ltd.		2,003		1		(3	)		2,001
KB No.21 Special Purpose Acquisition Company		2,987		135		—			3,122
KB No.22 Special Purpose Acquisition Company*		2,985		—		(2,985	)		—
KB No.25 Special Purpose Acquisition Company		2,025		—		(175	)		1,850
KB No.26 Special Purpose Acquisition Company		2,204		—		(54	)		2,150
KB No.27 Special Purpose Acquisition Company		6,054		—		(177	)		5,877
KB No.28 Special Purpose Acquisition Company		—		2,113		—			2,113
KB No.29 Special Purpose Acquisition Company		—		3,015		—			3,015
KB No.30 Special Purpose Acquisition Company		—		2,835		—			2,835
KB No.31 Special Purpose Acquisition Company		—		4,301		—			4,301
COSES GT Co., Ltd.*		1		—		(1	)		—
Channel Corporation		16,906		3,235		—			20,141
MitoImmune Therapeutics		7,000		—		(5,426	)		1,574
Bioprotect Ltd.		4,474		154		—			4,628
ASSEMBLE CORPORATION		6,155		21		(155	)		6,021
Go2joy Co., Ltd.		1,200		—		—			1,200
S&E Bio Co., Ltd.		4,013		2,016		(13	)		6,016
Bluepointpartners Inc.		1,874		—		(238	)		1,636
Xenohelix Co., Ltd.		3,100		4		—			3,104
Contents First Inc.		17,642		7,001		(1,365	)		23,278

328

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2024
	Beginning		Loan		Collection			Ending
KB-MDI Centauri Fund LP	~~W~~	18,993	~~W~~	2,065	~~W~~	—		~~W~~	21,058
OKXE Inc.		800		1,922		—			2,722
Checkmate Therapeutics Inc.		3,200		—		—			3,200
Newavel Co., Ltd.		3,013		20		(3,013	)		20
IMBiologics Corp.		7,005		2		(5	)		7,002
Spark Biopharma Inc.		7,467		15		(2,833	)		4,649
Pin Therapeutics Inc.		5,011		2,029		(11	)		7,029
Hibiscus Fund LP		12,915		1,802		—			14,717
SuperNGine Co., Ltd.		2,599		2		(123	)		2,478
Desilo Inc.		3,468		—		—			3,468
RMG-KB BioAccess Fund L.P.		5,036		4,343		—			9,379
RMG-KB BP Management Ltd.		174		170		—			344
IGGYMOB Co., Ltd.		5,007		—		(5,007	)		—
Turing Co., Ltd.		4,901		—		(1,001	)		3,900
Kukka Co., Ltd.		2,490		—		—			2,490
ZIPDOC Inc.		2,000		—		(2,000	)		—
Gushcloud Talent Agency		3,688		—		(3,688	)		—
Grinergy Co., Ltd.*		6,486		1		(6,486	)		1
NexThera Co., Ltd.		3,000		—		—			3,000
Chabot Mobility Co., Ltd.		2,000		580		—			2,580
TeamSparta Inc.		4,308		5		(307	)		4,006
FutureConnect Co., Ltd.		1,499		—		—			1,499
Wemade Connect Co., Ltd.		12,337		29		(4,871	)		7,495
TMAP Mobility Co., Ltd.		106		73		(106	)		73
Spoon Radio Co., Ltd.		19,506		—		(4,500	)		15,006
Neuroptika Inc.		5,879		—		—			5,879
Bigwave Robotics Crop.		2,781		39		(31	)		2,789
Blinkers Inc.*		999		—		(999	)		—
3D Interactive Co., Ltd.		2,342		6		(42	)		2,306
XL8 INC.		5,148		721		—			5,869
Elev8-Capital Fund I		6,656		9,594		—			16,250
AIM FUTURE, Inc.		2,900		8		—			2,908
New Daegu Busan Expressway Co., Ltd.		72,742		27		(48,505	)		24,264
Novorex Inc.		2,000		8		—			2,008
Logpresso Inc.		—		3,031		—			3,031
Onheal Co., Ltd.		—		10,000		—			10,000
Ascent Global Fund III		—		3,767		—			3,767
DYNE MEDICAL GROUP Inc.		—		5,023		—			5,023
TriOar Inc.		—		3,016		—			3,016
Coxwave Co., Ltd.		—		3,000		—			3,000
SDT Inc.		—		3,105		—			3,105
Yeoulhyulgangho		—		500		—			500
ADPGREEN		—		25		—			25

329

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024
	Beginning		Loan		Collection			Ending
Xpanner Inc	~~W~~	—	~~W~~	9,673	~~W~~	—		~~W~~	9,673
GCSM Holdings Limited		—		9,506		—			9,506
Qoala		—		6,554		—			6,554
Key management personnel
Key management personnel		5,490		7,245		(5,610	)		7,125

330

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Beginning		Loan		Collection			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	~~W~~	38	~~W~~	37	~~W~~	(38	)	~~W~~	37
Incheon Bridge Co., Ltd.		128,159		346		(14,711	)		113,794
Star-Lord General Investors Private Real Estate Investment Company No.10		149,294		296		—			149,590
KB Cape No.1 Private Equity Fund *		2,017		—		(82	)		1,935
RAND Bio Science Co., Ltd.		—		1		—			1
KG Capital Co., Ltd. *		40,040		—		(40,040	)		—
Food Factory Co., Ltd.		4,041		446		(1,612	)		2,875
Paycoms Co., Ltd. *		1,172		—		(1,172	)		—
Big Dipper Co., Ltd.		18		14		(18	)		14
RMGP Bio-Pharma Investment Fund, L.P.		6,384		—		(446	)		5,938
RMGP Bio-Pharma Investment, L.P.		17		3		—			20
Wyatt Corp.		6,000		—		—			6,000
Banksalad Co., Ltd.		10,470		—		(1,322	)		9,148
UPRISE, Inc.		5,248		462		—			5,710
Stratio, Inc.		1,000		—		—			1,000
Honest Fund, Inc.		3,999		—		—			3,999
CellinCells Co., Ltd.		2,007		3		(7	)		2,003
KB No.21 Special Purpose Acquisition Company		2,959		28		—			2,987
KB No.22 Special Purpose Acquisition Company *		1,972		1,013		—			2,985
KB No.23 Special Purpose Acquisition Company *		2,971		—		(2,971	)		—
KB No.24 Special Purpose Acquisition Company *		6,975		—		(6,975	)		—
KB No.25 Special Purpose Acquisition Company		—		2,025		—			2,025
KB No.26 Special Purpose Acquisition Company		—		2,204		—			2,204
KB No.27 Special Purpose Acquisition Company		—		6,054		—			6,054
COSES GT Co., Ltd. *		5,436		1		(5,436	)		1
Channel Corporation		18,099		—		(1,193	)		16,906
MitoImmune Therapeutics		7,000		—		—			7,000
Bioprotect Ltd.		3,802		672		—			4,474
ASSEMBLE CORPORATION		6,234		5		(84	)		6,155
Go2joy Co., Ltd.		1,200		—		—			1,200
ClavisTherapeutics, Inc.		2,000		—		(2,000	)		—
S&E Bio Co., Ltd.		4,010		13		(10	)		4,013
Bluepointpartners Inc.		2,133		—		(259	)		1,874
4N Inc.		200		—		(200	)		—

331

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.3 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2023
		Beginning		Loan		Collection			Ending
Xenohelix Co., Ltd.		~~W~~	2,100	~~W~~	1,000	~~W~~	—		~~W~~	3,100
Contents First Inc			17,294		365		(17	)		17,642
KB-MDI Centauri Fund LP			17,471		1,522		—			18,993
OKXE Inc.			800		—		—			800
Checkmate Therapeutics Inc.			3,200		—		—			3,200
Newavel Co., Ltd.			3,015		13		(15	)		3,013
IMBiologics Corp.			5,004		2,005		(4	)		7,005
Spark Biopharma Inc.			7,467		17		(17	)		7,467
G1 Playground Co., Ltd.			1,000		—		(1,000	)		—
Pin Therapeutics Inc.			5,013		11		(13	)		5,011
Hibiscus Fund LP			10,221		2,694		—			12,915
SuperNGine Co., Ltd.			2,002		603		(6	)		2,599
Desilo Inc. *			3,468		—		—			3,468
RMG-KB BioAccess Fund L.P.			2,753		2,283		—			5,036
RMG-KB BP Management Ltd.			77		97		—			174
IGGYMOB Co., Ltd.			5,015		7		(15	)		5,007
Turing Co., Ltd.			3,000		1,901		—			4,901
Kukka Co., Ltd.			2,490		—		—			2,490
ZIPDOC Inc.			2,000		—		—			2,000
Gushcloud Talent Agency			4,165		—		(477	)		3,688
Grinergy Co., Ltd. *			2,500		3,986		—			6,486
NexThera Co., Ltd.			2,000		1,000		—			3,000
Chabot Mobility Co., Ltd.			2,000		—		—			2,000
TeamSparta Inc.			4,001		307		—			4,308
FutureConnect Co., Ltd.			1,499		—		—			1,499
Wemade Connect Co., Ltd.			12,052		337		(52	)		12,337
TMAP Mobility Co., Ltd.			—		106		—			106
Taeyoungjungkong Co., Ltd.			—		46		(46	)		—
Spoon Radio Co., Ltd.			—		19,506		—			19,506
Neuroptika Inc.			—		5,879		—			5,879
Youngwon Corporation *			—		4,793		(4,793	)		—
Bigwave Robotics Crop.			—		2,781		—			2,781
Blinkers Inc. *			—		999		—			999
3D Interactive Co., Ltd.			—		2,342		—			2,342
XL8 INC.			—		5,148		—			5,148
Elev8-Capital Fund I			—		6,656		—			6,656
AIM FUTURE, Inc.			—		2,900		—			2,900
New Daegu Busan Expressway Co., Ltd.			—		72,742		—			72,742
Novorex Inc.			—		2,000		—			2,000
Key management personnel
Key management personnel			6,299		3,368		(4,177	)		5,490
*	Excluded from the Group’s related party as of December 31, 2024.
:---	:---

332

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024
	Beginning		Borrowing		Repayment			Others ^1^			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	~~W~~	17,003	~~W~~	—	~~W~~	—		~~W~~	23,567		~~W~~	40,570
Incheon Bridge Co., Ltd.		40,992		72,000		(74,300	)		5,175			43,867
Jungdo Co., Ltd.		4		—		—			—			4
Dae-A Leisure Co., Ltd.		150		—		—			(150	)		—
Iwon Alloy Co., Ltd.		1		—		—			1			2
Skydigital Inc.		65		—		—			(35	)		30
Aju Good Technology Venture Fund		1,202		—		—			607			1,809
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund		46		—		—			(7	)		39
WJ Private Equity Fund No.1		103		—		—			(57	)		46
KB No.21 Special Purpose Acquisition Company		2,261		2,115		(2,050	)		(79	)		2,247
KB No.22 Special Purpose Acquisition Company ^2^		1,848		—		—			(1,848	)		—
KB No.25 Special Purpose Acquisition Company		1,586		1,545		(1,500	)		(86	)		1,545
KB No.26 Special Purpose Acquisition Company		1,761		1,724		(1,670	)		(52	)		1,763
KB No.27 Special Purpose Acquisition Company		4,497		4,532		(4,390	)		(26	)		4,613
KB No.28 Special Purpose Acquisition Company		—		1,890		—			20			1,910
KB No.29 Special Purpose Acquisition Company		—		2,100		—			238			2,338
KB No.30 Special Purpose Acquisition Company		—		1,500		—			286			1,786
KB No.31 Special Purpose Acquisition Company		—		2,000		—			352			2,352
RAND Bio Science Co., Ltd.		4		—		—			—			4
Food Factory Co., Ltd.		629		—		—			278			907
Big Dipper Co., Ltd.		40		—		—			83			123
Wyatt Corp.		1		—		—			—			1
CellinCells Co., Ltd.		37		—		—			(24	)		13
COSES GT Co., Ltd. ^2^		1		—		—			(1	)		—
ASSEMBLE CORPORATION		78		—		—			(60	)		18
S&E Bio Co., Ltd.		2,342		990		(1,490	)		(1,070	)		772
4N Inc.		49		—		—			(45	)		4
Contents First Inc.		1,072		—		—			(343	)		729
Newavel Co., Ltd.		46		—		—			(46	)		—
Pin Therapeutics Inc.		265		14,000		(4,000	)		868			11,133
Spark Biopharma Inc.		11,419		32,649		(38,908	)		(401	)		4,759
SuperNGine Co., Ltd.		69		—		—			148			217
Desilo Inc.		3		—		—			—			3
Turing Co., Ltd.		1,726		1,000		(1,700	)		(207	)		819

333

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2024
	Beginning		Borrowing		Repayment			Others ^1^			Ending
TMAP Mobility Co., Ltd.	~~W~~	80,016	~~W~~	360,000	~~W~~	(340,000	)	~~W~~	(6	)	~~W~~	100,010
KY Global Cell & Gene Private Equity Fund<br>2^nd 2^		3,790		2,910		(308	)		(6,392	)		—
Nextrade Co., Ltd.		56,203		6,000		(47,200	)		278			15,281
ZIPDOC Inc.		181		—		—			(180	)		1
TeamSparta Inc.		7,672		3,000		(6,000	)		13,963			18,635
Chabot Mobility Co., Ltd.		164		300		—			167			631
Wemade Connect Co., Ltd.		8,843		24,056		(27,556	)		122			5,465
Channel Corporation		2,030		—		(2,000	)		(24	)		6
Bitgoeul Cheomdan Green 1st Co., Ltd.		833		—		—			406			1,239
KB-FT Green Growth 1st Technology Investment<br>Association		700		—		(700	)		—			—
Bigwave Robotics Crop.		4		501		—			(4	)		501
3D Interactive Co., Ltd.		1,501		—		—			278			1,779
AIM FUTURE, Inc.		3,393		1,000		(4,000	)		367			760
New Daegu Busan Expressway Co., Ltd.		146,169		104,500		(93,932	)		(6,730	)		150,007
Novorex Inc.		7		—		—			(1	)		6
Xenohelix Co., Ltd.		904		—		—			(602	)		302
ADP Holdings Co., Ltd.		—		6,094		(4,037	)		1			2,058
ADPGREEN		—		10,551		(9,001	)		252			1,802
Logpresso Inc.		—		100		(200	)		557			457
DYNE MEDICAL GROUP Inc.		—		5,150		(7,800	)		6,463			3,813
Onheal Co., Ltd.		—		—		—			5,001			5,001
TriOar Inc.		—		10,500		(8,500	)		4,054			6,054
Yeoulhyulgangho		—		200		—			256			456
SDT Inc.		—		—		(1,000	)		1,000			—
Allra Fintech Corp.		—		12,500		(19,500	)		8,671			1,671
Key management personnel
Key management personnel		15,902		26,709		(22,264	)		(4,982	)		15,365

334

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)	2023
	Beginning		Borrowing		Repayment			Others ^1^			Ending
Associates and joint ventures
Korea Credit Bureau Co., Ltd.	~~W~~	27,889	~~W~~	—	~~W~~	—		~~W~~	(10,886	)	~~W~~	17,003
Incheon Bridge Co., Ltd.		48,639		67,100		(76,017	)		1,270			40,992
Jungdo Co., Ltd.		4		—		—			—			4
Dae-A Leisure Co., Ltd.		154		—		—			(4	)		150
Iwon Alloy Co., Ltd.		1		—		—			—			1
Computerlife Co., Ltd.		3		—		—			(3	)		—
Skydigital Inc.		10		—		—			55			65
Aju Good Technology Venture Fund		7,222		1,323		(7,900	)		557			1,202
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund		317		—		—			(271	)		46
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund ^2^		1,526		—		—			(1,526	)		—
WJ Private Equity Fund No.1		221		—		—			(118	)		103
KG Capital Co., Ltd. ^2^		10		—		—			(10	)		—
KB No.21 Special Purpose Acquisition Company		2,263		2,050		(2,000	)		(52	)		2,261
KB No.22 Special Purpose Acquisition Company ^2^		1,948		—		—			(100	)		1,848
KB No.23 Special Purpose Acquisition Company ^2^		2,205		2,089		(4,223	)		(71	)		—
KB No.24 Special Purpose Acquisition Company ^2^		9,983		—		—			(9,983	)		—
KB No.25 Special Purpose Acquisition Company		—		1,500		—			86			1,586
KB No.26 Special Purpose Acquisition Company		—		1,670		—			91			1,761
KB No.27 Special Purpose Acquisition Company		—		4,390		—			107			4,497
RAND Bio Science Co., Ltd.		3		—		—			1			4
Food Factory Co., Ltd.		664		—		—			(35	)		629
Paycoms Co., Ltd. ^2^		1		—		—			(1	)		—
Big Dipper Co., Ltd.		19		—		—			21			40
Wyatt Corp.		1		—		—			—			1
UPRISE, Inc.		27		—		—			(27	)		—
CellinCells Co., Ltd.		37		—		—			—			37
COSES GT Co., Ltd. ^2^		1,213		—		—			(1,212	)		1
ASSEMBLE CORPORATION		915		—		—			(837	)		78
S&E Bio Co., Ltd.		6,419		2,500		(2,000	)		(4,577	)		2,342
4N Inc.		5		—		—			44			49
Contents First Inc.		5,010		6,000		(10,000	)		62			1,072
December & Company Inc. ^2^		1		—		—			(1	)		—
Newavel Co., Ltd.		623		—		—			(577	)		46

335

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.4 Details of significant borrowing transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)		2023
		Beginning		Borrowing		Repayment			Others ^1^			Ending
Pin Therapeutics Inc.		~~W~~	6,033	~~W~~	7,217	~~W~~	(12,017	)	~~W~~	(968	)	~~W~~	265
Spark Biopharma Inc.			17,534		26,369		(30,779	)		(1,705	)		11,419
SuperNGine Co., Ltd.			17		—		—			52			69
Desilo Inc.			1		1		—			1			3
Turing Co., Ltd.			2,788		700		—			(1,762	)		1,726
IGGYMOB Co., Ltd.			254		—		—			(254	)		—
TMAP Mobility Co., Ltd.			30,000		170,000		(120,000	)		16			80,016
KY Global Cell & Gene Private Equity Fund 2nd ^2^			—		3,983		—			(193	)		3,790
Nextrade Co., Ltd.			56,202		—		—			1			56,203
ZIPDOC Inc.			915		—		—			(734	)		181
TeamSparta Inc.			12,502		7,000		(8,000	)		(3,830	)		7,672
Chabot Mobility Co., Ltd.			86		—		—			78			164
Wemade Connect Co., Ltd.			10,370		31,000		(30,217	)		(2,310	)		8,843
Channel Corporation			3,000		7,000		(8,000	)		30			2,030
Bitgoeul Cheomdan Green 1st Co., Ltd.			—		—		—			833			833
KB-FT Green Growth 1st Technology Investment<br>Association			—		700		—			—			700
Bigwave Robotics Crop.			—		—		—			4			4
3D Interactive Co., Ltd.			—		2,000		(2,000	)		1,501			1,501
AIM FUTURE, Inc.			—		3,000		—			393			3,393
New Daegu Busan Expressway Co., Ltd.			—		—		—			146,169			146,169
Novorex Inc.			—		—		—			7			7
Xenohelix Co., Ltd.			—		—		—			904			904
Key management personnel
Key management personnel			17,619		22,358		(20,389	)		(3,686	)		15,902
^1^	Transactions between related parties, such as settlements arising from operating activities and deposits, are<br>expressed in net amount.
:---	:---
^2^	Excluded from the Group’s related party as of December 31, 2024.
:---	:---

336

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

	2024				2023
(In millions of Korean won)	Equity<br>investment<br>and others		Withdrawal<br>and others		Equity<br>investment<br>and others		Withdrawal<br>and others
Balhae Infrastructure Company	~~W~~	—	~~W~~	6,350	~~W~~	—	~~W~~	10,661
KB-KDBC Pre-IPO<br>New Technology Business Investment Fund		—		600		—		—
KB-SJ Tourism Venture Fund		—		4,030		—		—
Korea Credit Bureau Co., Ltd.		—		90		—		90
KB-UTC Inno-Tech Venture Fund		—		338		—		2,250
KB-Solidus Global Healthcare Fund		—		700		—		16,440
KB-Stonebridge Secondary Private Equity Fund		—		1,004		—		7,191
KB SPROTT Renewable Private Equity Fund No.1		—		8,349		—		476
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		8,964		9,629		1,800		2,572
KB Material and Parts No.1 PEF *		—		3,400		—		—
KB-TS Technology Venture Private Equity Fund		125		2,464		—		672
KB-Brain KOSDAQ<br>Scale-up New Technology Business Investment Fund *		—		3,915		—		12,500
Aju Good Technology Venture Fund		—		2,120		—		11,377
G payment Joint Stock Company		—		6,445		—		—
KB-KTB Technology Venture Fund		5,600		1		5,600		—
KB-SOLIDUS Healthcare Investment Fund		23,270		65		21,861		—
Paramark KB Fund No.1		8,130		—		3,342		—
FineKB Private Equity Fund No.1		6,790		1,500		—		2,125
FineKB Private Equity Fund No.2		500		250		—		—
KB No.22 Special Purpose Acquisition Company *		—		10		—		—
KB-BridgePole Venture Investment Fund *		—		136		—		714
KB-Kyobo New Mobility Power Fund *		—		3,000		—		—
SKS-VLP New Technology Investment Fund No.2 *		—		—		—		1,156
JS Private Equity Fund No.3		—		755		—		—
Star-Lord General Investors Private Real Estate Investment Company No.10		—		358		—		—
KB Co-Investment Private Equity Fund No.1		9,131		3,173		2,208		—
POSITIVE Sobujang Venture Fund No.1		—		1,121		—		—
PEBBLES-MW M.C.E New Technology Investment Fund 1st<br>*		—		—		—		2,000
KB-NP Green ESG New Technology Venture Capital<br>Fund		19,800		—		9,075		—
KB-Badgers Future Mobility ESG Fund No.1		10,404		1,071		5,540		—
Lakewood-AVES Fund No.1 *		—		2,000		2,000		—
M~~W~~-Pyco NewWave New Technology Investment Fund 4th		—		—		2,000		—
KB No.23 Special Purpose Acquisition Company *		—		—		—		5
KB No.24 Special Purpose Acquisition Company *		—		—		25		25
KB No.25 Special Purpose Acquisition Company		—		—		5		—
KB No.26 Special Purpose Acquisition Company		—		—		5		—
Bitgoeul Cheomdan Green 1st Co., Ltd.		152		—		190		—
KB-SUSUNG 1st Investment Fund		—		1,386		2,000		—
KB-SUSUNG 2st Investment Fund		2,000		—		—		—

337

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.5 Details of significant investment and withdrawal transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

		2024				2023
(In millions of Korean won)		Equity<br>investment<br>and others		Withdrawal<br>and others		Equity<br>investment<br>and others		Withdrawal<br>and others
Friend 55 New Technology Business Investment Fund *		~~W~~	—	~~W~~	1,200	~~W~~	1,200	~~W~~	—
Hahn & Company No. 4-3 Private Equity Fund<br>*			—		—		7,183		32
KB No.27 Special Purpose Acquisition Company			—		—		5		—
DSIP-Pharos Bioenergy Fund *			—		4,000		4,000		—
Shinhan-Eco Venture Fund 2nd			225		—		1,825		—
Leading H2O Fund 1			—		—		1,500		—
2023 JB Newtech No.2 Fund			—		394		1,800		—
KY Global Cell & Gene Private Equity Fund 2nd *			—		—		27,034		—
U-KB Credit No.1S Private Equity			591		—		6,419		—
KB-BridgePole Venture Investment Fund No.2			—		—		1,500		—
KB No.28 Special Purpose Acquisition Company			5		—		—		—
Timefolio Athleisure Investment Fund			4,000		—		—		—
COMPA Global Scale-Up Fund No.3			1,000		—		—		—
AKK Robotech Valueup New Technology Investment Fund			1,000		—		—		—
YG MCE PROJECT NO.1 Fund			1,500		—		—		—
KB No.29 Special Purpose Acquisition Company			10		—		—		—
KB No.30 Special Purpose Acquisition Company			10		—		—		—
KB No.31 Special Purpose Acquisition Company			10		—		—		—
IMM global Secondary 1-1 Equity Private Fund			2,819		—		—		—
Elohim-Bilanx aerospace No.1 Fund			2,000		—		—		—
KB-CJ Venture Fund 1st			1,800		—		—		—
HI YG Win-win Fund No.2			2,000		—		—		—
KB-VEP Contact Fund			395		47		—		—
Reboot Private Equity Fund			7,000		—		—		—
LIB Material Investment Fund			4,098		—		—		—
NOVORSEC-SJG Consumer Secondary Fund			1,700		—		—		—
Allra Fintech Corp.			8,532		—		—		—
KB Global Commerce Private Equity Investment Fund *			—		7000		—		—
KB-SBI Global Strategic Capital Fund			11,298		—		—		—
KB-Cyrus Tourism Venture Fund			1,000		—		—		—
IBKS Design Fund			2,000		—		—		—
NICE DATA INTELLIGENCE VENTURE FUND			1,000		—		—		—
Pectus Hanhwa Fund 2			2,000		—		—		—
KB-IMM New Star Real Estate Private Fund I			31,672		—		—		—
KB Rejuvenation Fund			500		—		—		—
VIG Private Equity Fund V-3			1,636		—		—		—
KOENTEC Co. Ltd.			107,428		—		—		—
Sirius Silicon Valley I New Technology Fund			—		—		500		—
*	Excluded from the Group’s related party as of December 31, 2024.
:---	:---

338

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.6 Unused commitments provided to related parties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won or in a US Dollar or Malaysian ringgit or the Indonesian Rupiah)		December 31, 2024		December 31, 2023
Associates and joint ventures
Balhae Infrastructure Company	Purchase of securities	~~W~~	6,154	~~W~~	6,154
Korea Credit Bureau Co., Ltd.	Unused lines of credit for credit card		565		563
Incheon Bridge Co., Ltd.	Loan commitments in Korean won		20,000		20,000
	Unused lines of credit for credit card		88		88
TeamSparta Inc.	Loan commitments in Korean won		1,000		1,000
	Unused lines of credit for credit card		696		633
3D Interactive Co., Ltd.	Unused lines of credit for credit card		44		8
Food Factory Co., Ltd.	Unused lines of credit for credit card		50		55
CellinCells Co., Ltd.	Unused lines of credit for credit card		11		21
RAND Bio Science Co., Ltd.	Unused lines of credit for credit card		25		24
Big Dipper Co., Ltd.	Unused lines of credit for credit card		12		31
ASSEMBLE CORPORATION	Unused lines of credit for credit card		29		45
COSES GT Co., Ltd. *	Unused lines of credit for credit card		12		29
Spark Biopharma Inc.	Unused lines of credit for credit card		35		33
Newavel Co., Ltd.	Unused lines of credit for credit card		10		17
IMBiologics Corp.	Unused lines of credit for credit card		21		18
SuperNGine Co., Ltd.	Unused lines of credit for credit card		38		37
IGGYMOB Co., Ltd.	Unused lines of credit for credit card		50		43
Pin Therapeutics Inc.	Unused lines of credit for credit card		21		39
Grinergy Co., Ltd. *	Unused lines of credit for credit card		9		10
S&E Bio Co., Ltd.	Unused lines of credit for credit card		34		37
Wemade Connect Co., Ltd.	Unused lines of credit for credit card		121		156
TMAP Mobility Co., Ltd.	Unused lines of credit for credit card		744		710
Contents First Inc.	Unused lines of credit for credit card		35		135
Allra Fintech Corp.	Unused lines of credit for credit card		49		—

339

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.6 Unused commitments provided to related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won or in a US Dollar or Malaysian ringgit or the Indonesian Rupiah)		December 31, 2024		December 31, 2023
Bigwave Robotics Crop.	Unused lines of credit for credit card	~~W~~	61	~~W~~	69
New Daegu Busan Expressway Co., Ltd.	Unused lines of credit for credit card		4		—
AIM FUTURE, Inc.	Unused lines of credit for credit card		35		—
Novorex Inc.	Unused lines of credit for credit card		28		—
Xenohelix Co., Ltd.	Unused lines of credit for credit card		6		—
ADPGREEN	Unused lines of credit for credit card		25		—
Logpresso Inc.	Unused lines of credit for credit card		29		—
DYNE MEDICAL GROUP Inc.	Unused lines of credit for credit card		135		—
TriOar Inc.	Unused lines of credit for credit card		34		—
KB-CJ Venture Fund 1st	Purchase of securities		4,200		—
KB-TS Technology Venture Private Equity Fund	Purchase of securities		—		110
KB-Stonebridge Secondary Private Equity Fund	Purchase of securities		173		864
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	Purchase of securities		4,524		13,488
All Together Korea Fund No.2	Purchase of securities		990,000		990,000
KB-KTB Technology Venture Fund	Purchase of securities		—		5,600
KB-SOLIDUS Healthcare Investment Fund	Purchase of securities		23,569		46,884
KB Co-Investment Private Equity Fund No.1	Purchase of securities		4,393		13,524
KB-Badgers Future Mobility ESG Fund No.1	Purchase of securities		26,920		37,323
KB-NP Green ESG New Technology Venture Capital<br>Fund	Purchase of securities		9,750		29,550
FineKB Private Equity Fund No.1	Purchase of securities		2,335		9,125
FineKB Private Equity Fund No.2	Purchase of securities		—		500
KB-Solidus Global Healthcare Fund	Purchase of securities		—		2,120
	Commitments on loss absorption priority		4,500		4,500
Paramark KB Fund No.1	Purchase of securities		6,360		14,490
Smart Korea KB Future9-Sejong Venture Fund	Purchase of securities		2,000		2,000

340

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.6 Unused commitments provided to related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won or in a US Dollar or Malaysian ringgit or the Indonesian Rupiah)			December 31,<br>2024		December 31,<br>2023
Shinhan-Eco Venture Fund 2nd		Purchase of securities	~~W~~	450	~~W~~	675
U-KB Credit No.1S Private Equity		Purchase of securities		35,700		33,582
KB-Cyrus Tourism Venture Fund		Commitments on purchase of securities		4,000		—
KB-SBI Global Strategic Capital Fund		Commitments on purchase of securities		55,702		—
KB-IMM New Star Real Estate Private Fund I		Purchase of securities		42,442		—
VIG Private Equity Fund V-3		Purchase of securities		8,364		—
RMGP Bio-Pharma Investment Fund, L.P.		Purchase of securities	USD	2,693,142	USD	3,622,333
RMGP Bio-Pharma Investment, L.P.		Purchase of securities	USD	8,470	USD	10,027
RMG-KB BP Management Ltd.		Purchase of securities	USD	556,617	USD	630,679
RMG-KB BioAccess Fund L.P.		Purchase of securities	USD	21,113,820	USD	24,722,014
Elev8-Capital Fund I		Purchase of securities	IDR	1,787,096,277	IDR	2,445,497,800
Ascent Global Fund III		Purchase of securities	USD	32,437,479	USD	35,000,000
Key management personnel
Key management personnel		Loan commitments in Korean won		3,011		2,666
*	Excluded from the Group’s related party as of December 31, 2024.
:---	:---

341

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

43.7 Details of compensation to key management personnel for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Short-term<br>employee<br>benefits				Post-<br>employment<br>benefits				Share-based<br>payments				Total
Registered directors (executive)		~~W~~	7,196			~~W~~	915			~~W~~	14,726			~~W~~	22,837
Registered directors (non-executive)			1,081				—				—				1,081
Non-registered directors			18,451				480				29,236				48,167

		~~W~~	26,728			~~W~~	1,395			~~W~~	43,962			~~W~~	72,085

(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Short-term<br>employee<br>benefits				Post-<br>employment<br>benefits				Share-based<br>payments				Total
Registered directors (executive)		~~W~~	7,874			~~W~~	930			~~W~~	8,654			~~W~~	17,458
Registered directors (non-executive)			1,092				—				—				1,092
Non-registered directors			18,087				707				15,816				34,610

		~~W~~	27,053			~~W~~	1,637			~~W~~	24,470			~~W~~	53,160

43.8 Details of collateral provided by related parties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Assets held<br>as collateral			December 31,<br>2024				December 31,<br>2023
Key management personnel			Time deposits and others		~~W~~	1,437			~~W~~	638
			Real estate			8,092				6,326

As of December 31, 2024, Incheon Bridge Co., Ltd. a related party, provides fund management account, civil engineering works insurance, and management and operations rights as senior collateral amounting to ~~W~~ 611,000 million to the project financing group consisting of the Group and 5 other institutions, and as subordinated collateral amounting to ~~W~~ 384,800 million to subordinated debt holders consisting of the Group and 2 other institutions. Also, it provides certificate of credit guarantee amounting to ~~W~~ 400,000 million as collateral to the project financing group consisting of the Group and 5 other institutions.

342

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2024 and 2023

44. Events after the reporting period

The Group plans to acquire ~~W~~ 520,000 million of treasury shares by May 5, 2025, and retire the treasury shares, pursuant to board resolutions dated February 5, 2025.

45. Approval of Issuance of the Consolidated Financial Statements

The issuance of the Group’s consolidated financial statements as of and for the year ended December 31, 2024, was initially approved on February 5, 2025 and re-approved due to revision on March 4, 2025 by the Board of Directors.

343

Independent Auditor’s Report on

Internal Control over Financial Reporting for Consolidation Purposes

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Opinion on Internal Control over Financial Reporting for Consolidation Purposes

We have audited Internal Control over Financial Reporting (ICFR) of KB Financial Group Co., Ltd. and its subsidiaries (collectively referred to as the “Group”) for consolidation purposes as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

In our opinion, the Group maintained, in all material respects, effective ICFR for consolidation purposes as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

We also have audited, in accordance with Korean Standards on Auditing, the consolidated financial statements of the Group, which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flow for the year then ended, and notes to the consolidated financial statements including material accounting policy information, and our report dated March 5, 2025 expressed an unqualified opinion.

Basis for Opinion on Internal Control over Financial Reporting for Consolidation Purposes

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibility under these standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting for consolidation purposes section of our report. We are independent of the Group in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of ICFR for consolidation purposes and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management and Those Charged with Governance for Internal Control over Financial Reporting for Consolidation Purposes

Management is responsible for designing, implementing and maintaining effective ICFR for consolidation purposes, and for its assessment about the effectiveness of ICFR for consolidation purposes, included in the accompanying ‘Operating Status Report of Internal Control over Financial Reporting for Consolidation Purposes’.

Those charged with governance have the responsibilities for overseeing ICFR for consolidation purposes.

Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting for Consolidation Purposes

Our responsibility is to express an opinion on ICFR for consolidation purposes of the Group based on our audit. We conducted the audit in accordance with Korean Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective ICFR for consolidation purposes was maintained in all material respects.

344

An audit of ICFR for consolidation purposes involves performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of ICFR for consolidation purposes and testing and evaluating the design and operating effectiveness of ICFR for consolidation purposes based on the assessed risk.

Definition and Inherent Limitations of Internal Control over Financial Reporting for Consolidation Purposes

The Group’s ICFR for consolidation purposes is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. The Group’s ICFR for consolidation purposes includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the Group are being made only in accordance with authorizations of management and directors of the Group; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, ICFR for consolidation purposes may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Yeob Yu, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 5, 2025

This report is effective as at March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the Group’s ICFR for consolidation purposes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

345

Operating Status Report of

the Internal Control over Financial Reporting for Consolidation Purposes

To the Shareholder, Board of Directors and Audit Committee of KB Financial Group Inc..

We, as the Chief Executive Officer and the Internal Accounting Manager of KB Financial Group Inc.(“the Company”), assessed operating status of the Company’s Internal Control over Financial Reporting for Consolidation Purposes(“ICFR”) for the year ending December 31, 2024.

Design and operation of ICFR is the responsibility of the Company’s management, including the Chief Executive Officer and the Internal Accounting Manager(collectively, “We”, “Our” or “Us”).

We evaluated whether the Company effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in consolidated financial statements to ensure preparation and disclosure of reliable consolidated financial information.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea(the “ICFR Committee”) as the criteria for design and operation of the Company’s ICFR. And we conducted an evaluation of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment, we concluded that the Company’s ICFR is designed and operated effectively as of December 31, 2024, in all material respects, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

March 4, 2025

Jong Hee Yang,<br><br>Chief Executive Officer
Sang Rok Na,<br><br>Internal Accounting Manager

346

EX-99.2

Exhibit 99.2

KB Financial Group Inc.

Separate Financial Statements

December 31, 2024 and 2023

(With Independent Auditor’s Report Thereon)

KB Financial Group Inc.

		Page(s)
Independent Auditor’s Report			1-3
Separate Financial Statements
Separate Statements of Financial Position			4
Separate Statements of Comprehensive Income			5
Separate Statements of Changes in Equity			6
Separate Statements of Cash Flows			7
Notes to the Separate Interim Financial Statements			8-84
Independent Auditor’s Report on Internal Control over Financial Reporting			85-86
Operating Status Report of the Internal Control over Financial Reporting			87

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To Shareholders and the Board of Directors of

KB Financial Group Inc.

Opinion

We have audited the accompanying separate financial statements of KB Financial Group Inc. (the Company), which comprise the separate statement of financial position as at December 31, 2024 and 2023, and the separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the years then ended, and notes to the separate financial statements, including material accounting policy information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as at December 31, 2024 and 2023, and its separate financial performance and its separate cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).

We also have audited, in accordance with Korean Standards on Auditing, the Company’s Internal Control over Financial Reporting as of December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting, and our report dated March 5, 2025 expressed an unqualified opinion.

Basis for Opinion

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

There is no key audit matter identified to be described in this audit report.

Other Matters

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with Korean IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or<br>error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher<br>than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances.
:---	:---
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
:---	:---
•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on<br>the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we<br>are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date<br>of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
:---	:---

•	Evaluate the overall presentation, structure and content of the financial statements, including the<br>disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Yeob Yu, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers
Seoul, Korea
March 5, 2025
This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between<br>the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility<br>that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.
---

KB Financial Group Inc.

Separate Statements of Financial Position

December 31, 2024 and 2023

(In millions of Korean won)		December 31,<br>2024			December 31,<br>2023
Assets
Cash and due from financial institutions	4,5,6,29	~~W~~	398,391		~~W~~	256,337
Financial assets at fair value through profit or loss	4,5,7		1,243,471			1,376,423
Loans measured at amortized cost	4,5,8		359,054			608,286
Investments in subsidiaries	9		26,867,817			26,717,817
Property and equipment	10		2,800			3,080
Intangible assets	11		14,497			15,954
Net defined benefit assets	17		2,902			3,694
Deferred income tax assets	13		5,257			4,492
Other assets	4,5,14		912,634			542,815

Total assets		~~W~~	29,806,823		~~W~~	29,528,898

Liabilities
Borrowings	4,5,15		965,000			100,000
Debentures	4,5,16		2,962,032			3,871,820
Current income tax liabilities			502,705			104,299
Other liabilities	4,5,18		388,528			410,704

Total liabilities			4,818,265			4,486,823

Equity	19
Share capital			2,090,558			2,090,558
Hybrid securities			5,082,359			5,032,518
Capital surplus			14,754,475			14,754,747
Accumulated other comprehensive loss			(8,316	)		(6,809	)
Retained earnings			4,305,542			4,336,898
Treasury shares			(1,236,060	)		(1,165,837	)

Total equity			24,988,558			25,042,075

Total liabilities and equity		~~W~~	29,806,823		~~W~~	29,528,898

The above separate statements of financial position should be read in conjunction with the accompanying notes.

KB Financial Group Inc.

Separate Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023

(In millions of Korean won, except per share amounts)		2024			2023
Interest income		~~W~~	38,702		~~W~~	35,127
Interest income from financial instruments at amortized cost			35,860			31,932
Interest income from financial instruments at fair value through profit or loss			2,842			3,195
Interest expense			(101,073	)		(99,980	)

Net interest expense	21		(62,371	)		(64,853	)

Fee and commission income			2,213			2,585
Fee and commission expense			(9,460	)		(12,972	)

Net fee and commission expense	22		(7,247	)		(10,387	)

Net gains on financial instruments at fair value through profit or loss	23		91,892			108,399

Net other operating income	24		2,243,253			2,192,385

General and administrative expenses	25		(95,655	)		(92,603	)

Operating income before provision for credit losses			2,169,872			2,132,941
Provision (Reversal) for credit losses			773			(546	)

Net operating income			2,170,645			2,132,395
Net non-operating income	26		10			4,606

Profit before tax			2,170,655			2,137,001
Income tax expense	27		(58	)		(15,757	)

Profit for the year			2,170,597			2,121,244

Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities			(1,507	)		(962	)

Other comprehensive loss for the year, net of tax			(1,507	)		(962	)

Total comprehensive income for the year		~~W~~	2,169,090		~~W~~	2,120,282

Earnings per share	28
Basic earnings per share		~~W~~	5,203		~~W~~	5,042
Diluted earnings per share			5,142			4,929

The above separate statements of comprehensive income should be read in conjunction with the accompanying notes.

KB Financial Group Inc.

Separate Statements of Changes in Equity

Years Ended December 31, 2024 and 2023

(In millions of Korean won)	Share<br>capital		Hybrid<br>securities			Capital<br>surplus			Accumulated<br>other<br>comprehensive<br>income			Retained<br>earnings			Treasury<br>shares			Total<br>equity

Balance as of January 1, 2023	~~W~~	2,090,558	~~W~~	4,433,981		~~W~~	14,754,747		~~W~~	(5,847	)	~~W~~	3,794,565		~~W~~	(836,188	)	~~W~~	24,231,816

Comprehensive income for the year
Profit for the year		—		—			—			—			2,121,244			—			2,121,244
Remeasurements of net defined benefit liabilities		—		—			—			(962	)		—			—			(962	)

Total comprehensive income for the year		—		—			—			(962	)		2,121,244			—			2,120,282

Transactions with shareholders
Annual dividends		—		—			—			—			(564,970	)		—			(564,970	)
Quarterly dividends		—		—			—			—			(586,931	)		—			(586,931	)
Acquisition of treasury shares		—		—			—			—			—			(571,745	)		(571,745	)
Retirement of treasury shares		—		—			—			—			(242,096	)		242,096			—
Issuance of hybrid securities		—		598,537			—			—			—			—			598,537
Dividends on hybrid securities		—		—			—			—			(184,914	)		—			(184,914	)

Total transactions with shareholders		—		598,537			—			—			(1,578,911	)		(329,649	)		(1,310,023	)

Balance as of December 31, 2023	~~W~~	2,090,558	~~W~~	5,032,518		~~W~~	14,754,747		~~W~~	(6,809	)	~~W~~	4,336,898		~~W~~	(1,165,837	)	~~W~~	25,042,075

Balance as of January 1, 2024	~~W~~	2,090,558	~~W~~	5,032,518		~~W~~	14,754,747		~~W~~	(6,809	)	~~W~~	4,336,898		~~W~~	(1,165,837	)	~~W~~	25,042,075

Comprehensive income for the year
Profit for the year		—		—			—			—			2,170,597			—			2,170,597
Remeasurements of net defined benefit liabilities		—		—			—			(1,507	)		—			—			(1,507	)

Total comprehensive income for the year		—		—			—			(1,507	)		2,170,597			—			2,169,090

Transactions with shareholders
Annual dividends		—		—			—			—			(587,006	)		—			(587,006	)
Quarterly dividends		—		—			—			—			(899,972	)		—			(899,972	)
Acquisition of treasury shares		—		—			—			—			—			(820,000	)		(820,000	)
Disposal of treasury shares		—		—			3,975			—			—			234,600			238,575
Retirement of treasury shares		—		—			—			—			(515,177	)		515,177			—
Consideration for exchange right of exchangeable bonds		—		—			(11,933	)		—			—			—			(11,933	)
Issuance of hybrid securities		—		399,045			—			—			—			—			399,045
Redemption of hybrid securities		—		(349,204	)		—			—			—			—			(349,204	)
Dividends on hybrid securities		—		—			—			—			(199,798	)		—			(199,798	)
Others		—		—			7,686			—			—			—			7,686

Total transactions with shareholders		—		49,841			(272	)		—			(2,201,953	)		(70,223	)		(2,222,607	)

Balance as of December 31, 2024	~~W~~	2,090,558	~~W~~	5,082,359		~~W~~	14,754,475		~~W~~	(8,316	)	~~W~~	4,305,542		~~W~~	(1,236,060	)	~~W~~	24,988,558

The above separate statements of changes in equity should be read in conjunction with the accompanying notes.

KB Financial Group Inc.

Separate Statements of Cash Flows

Years Ended December 31, 2024 and 2023

(In millions of Korean won)
	Notes		2024			2023
Cash flows from operating activities
Profit for the year			~~W~~	2,170,597		~~W~~	2,121,244

Adjustment for non-cash items
Depreciation and amortization expense				6,051			5,630
Provision (Reversal) for credit losses				(773	)		546
Share-based payments				14,998			8,551
Net interest expense				22,898			4,187
Valuation gains on financial assets at fair value through profit or loss				(31,403	)		(52,472	)
Disposal gains of subsidiaries				—			(3,917	)
Net other expense				2,216			1,857

				13,987			(35,618	)

Changes in operating assets and liabilities
Due from financial institutions				60,000			(20,000	)
Deferred income tax assets				(413	)		15,757
Other assets				260,420			(13,379	)
Other liabilities				(297,859	)		(13,025	)

				22,148			(30,647	)

Net cash inflow from operating activities				2,206,732			2,054,979

Cash flows from investing activities
Acquisition of financial assets at fair value through profit or loss				(150,000	)		(100,000	)
Disposal of financial assets at fair value through profit of loss				316,080			300,000
Acquisition of subsidiaries				(150,000	)		—
Disposal of subsidiaries				—			27,539
Increase in loans measured at amortized cost				(105,000	)		(100,000	)
Decrease in loans measured at amortized cost				355,000			13,500
Acquisition of property and equipment				(1,627	)		(455	)
Acquisition of intangible assets				(1,481	)		(3,229	)
Disposal of intangible assets				173			1,277
Net increase in guarantee deposits paid				1,597			(7,747	)
Other investing activities				—			(52	)

Net cash inflow from investing activities				264,742			130,833

Cash flows from financing activities
Increase in borrowings				965,000			100,000
Decrease in borrowings				(100,000	)		—
Increase in debentures				398,945			—
Decrease in debentures				(1,075,000	)		(1,090,000	)
Dividends paid to shareholders				(1,486,978	)		(1,151,901	)
Redemption of principal of lease liabilities				(644	)		(617	)
Acquisition of treasury shares				(820,000	)		(571,745	)
Issuance of hybrid securities				399,045			598,537
Redemption of hybrid securities				(350,000	)		—
Dividends paid on hybrid securities				(199,798	)		(184,914	)
Other financing activities				10			109

Net cash outflow from financing activities				(2,269,420	)		(2,300,531	)

Net increase (decrease) in cash and cash equivalents				202,054			(114,719	)
Cash and cash equivalents at the beginning of the year		28		116,334			231,053

Cash and cash equivalents at the end of the year		28	~~W~~	318,388		~~W~~	116,334

The above separate statements of cash flows should be read in conjunction with the accompanying notes.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

1. The Company

KB Financial Group Inc. (the “Company”), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfers with the former shareholders of Kookmin Bank, KB Investment & Securities Co., Ltd., KB Asset Management Co., Ltd., KB Real Estate Trust Co., Ltd., KB Investment Co., Ltd., KB Futures Co., Ltd., KB Credit Information Co., Ltd., and KB Data Systems Co., Ltd., and the Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. The Company’s share capital as of December 31, 2023, is ~~W~~ 2,090,558 million. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd., and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Company established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Company acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Company included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Company included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

The Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized on its Articles of Incorporation is 1,000 million.

2. Basis of Preparation

2.1 Application of Korean IFRS

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying separate financial statements have been translated into English from the Korean language separate financial statements.

The separate financial statements of the Company have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of separate financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Company’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

The separate financial statements have been prepared in accordance with Korean IFRS No.1027 Separate Financial Statements.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.1.1 The Company has applied the following new and amended standards for the first time for its annual reporting period commencing January 1, 2024.

•	Amendment of Korean IFRS No.1001 “Presentation of Financial Statements”– Classification of<br>Liabilities into Current and Non-Current and Non-current Liabilities with Covenants

•	Amendment of Korean IFRS No.1007 “Statement of Cash Flows” and No.1107 “Financial Instruments:<br>Disclosures” – Disclosure of Supplier Finance Arrangements

The amendments require disclosure of the effects of supplier finance arrangements on the Company’s liabilities, cash flows and exposure to liquidity risk. These amendments do not have a significant impact on the financial statements.

•	Amendment of Korean IFRS No.1116 “Leases” – Lease Liability in a Sale and Leaseback

•	Amendment of Korean IFRS No.1001 “Presentation of Financial Statements” – Disclosure of Virtual<br>Asset

The amendments require additional disclosure for virtual assets held by the Company, virtual assets entrusted by customers to the Company, and the issuance and transfer of virtual assets. These amendments do not have a significant impact on the financial statements.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.1.2 The following are the accounting standards that have been established or announced but have not yet been implemented, which the Company has not applied.

•	Amendment of Korean IFRS No.1021 “The Effects of Changes in Foreign Exchange Rates” and Korean IFRS<br>No.1101 “First-time Adoption of International Financial Reporting Standards”—Lack of exchangeability

The amendments require the Company to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Company is exposed. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2025. These amendments do not have a significant impact on the financial statements.

•	Amendment of Korean IFRS No.1109 “Financial Instruments” and No.1107 “Financial Instruments:<br>Disclosures”

The amendments address practical concerns and introduce new requirements, such as permitting the deeming of financial liabilities as settled (derecognized) through an electronic payment system if certain criteria are met before the payment date. It also includes additional disclosures for equity instruments designated as financial assets measured at fair value through other comprehensive income. This amendment will be effective for annual reporting periods beginning on or after January 1, 2026. The company is currently reviewing the impact of these amendments on its financial statements.

•	Korean IFRS Accounting Standards Annual Improvements Volume 11

•	Korean IFRS No.1101 “First-time adoption of International Financial Reporting Standards”: Hedge<br>accounting by a first-time adopter
•	Korean IFRS No.1107 “Financial Instruments: Disclosures”: Gain or loss on derecognition, Application<br>guidance
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•	Korean IFRS No.1109 “Financial Instruments”: Derecognition of lease liabilities, Definition of<br>transaction price
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•	Korean IFRS No.1110 “Consolidated Financial Statements”: Determination of a ‘de facto agent’
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•	Korean IFRS Bo.1007 “Statement of Cash Flows”: Cost method
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2.2 Measurement Basis

The separate financial statements have been prepared under the historical cost convention unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the separate financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (“functional currency”). The separate financial statements are presented in Korean won, which is the Company’s functional and presentation currency.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

2.4 Critical Accounting Estimates

The Company applies accounting policies and uses judgements, accounting estimates, and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses) in preparing the separate financial statements. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks that may result in material adjustments to the separate financial statements are as follows:

2.4.1 Income taxes

As the income taxes on the Company’s taxable income is calculated by applying the tax laws of various countries and the decisions of tax authorities, there is uncertainty in calculating the final tax effect.

2.4.2 Fair value of financial instruments

As described in the significant accounting policies in Note 3.1 Recognition and Measurement of Financial Instruments, diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

2.4.3 Net defined benefit liability

The present value of the net defined benefit liability is affected by changes in the various factors determined by the actuarial method.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3. Material Accounting Policies

The principal accounting policies applied in the preparation of these separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

3.1 Recognition and Measurement of Financial Instruments

3.1.1 Initial recognition

The Company recognizes a financial asset or a financial liability in its statement of financial position when the Company becomes party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets (a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned) is recognized and derecognized using trade date accounting.

For financial reporting purpose, the Company classifies (a) financial assets as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, or financial assets at amortized cost and (b) financial liabilities as financial liabilities at fair value through profit or loss, or other financial liabilities. These classifications are based on the business model for managing financial instruments and the contractual cash flow characteristics of the financial instrument at initial recognition.

3.1.2 Subsequent measurement

After initial recognition, financial instruments are measured at amortized cost or fair value based on classification at initial recognition.

3.1.2.1 Amortized cost

3.1.2.2 Fair value

The Company uses quoted price in an active market which is based on listed market price or dealer price quotations of financial instruments traded in an active market as best estimate of fair value. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.1.2.2 Fair value (cont’d)

The Company uses valuation models that are commonly used by market participants and customized for the Company to determine fair values of common over-the-counter (OTC) derivatives such as options, interest rate swaps, and currency swaps which are based on the inputs observable in markets. However, for some complex financial instruments that require fair value measurement by valuation techniques based on certain assumptions because some or all inputs used in the model are not observable in the market, the Company uses internal valuation models developed from general valuation models or valuation results from independent external valuation institutions.

In addition, the fair value information recognized in the statement of financial position is classified into the following fair value hierarchy, reflecting the significance of the input variables used in the fair value measurement.

Level 1 :	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at<br>the measurement date
Level 2 :	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,<br>either directly or indirectly
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Level 3 :	Unobservable inputs for the asset or liability
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If a fair value measurement uses observable inputs that require significant adjustment using unobservable inputs, that measurement is a Level 3 measurement.

The Company uses valuation technique which maximizes the use of market inputs and minimizes the use of entity-specific inputs. It incorporates all factors that market participants would consider in pricing the asset or liability and is consistent with economic methodologies applied for pricing financial instruments. Periodically, the Company calibrates the valuation technique and tests its validity using prices of observable current market transactions of the same instrument or based on other relevant observable market data.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.1.3 Derecognition

Derecognition is the removal of a previously recognized financial asset or financial liability from the statement of financial position. The derecognition criteria for financial assets and financial liabilities are as follows:

3.1.3.1 Derecognition of financial assets

A financial asset is derecognized when the contractual rights to the cash flows from the financial assets expire or the Company transfers substantially all the risks and rewards of ownership of the financial asset, or the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and the Company has not retained control. Therefore, if the Company does not transfer substantially all the risks and rewards of ownership of the financial asset, the Company continues to recognize the financial asset to the extent of its continuing involvement in the financial asset.

If the Company transfers the contractual rights to receive the cash flows of the financial asset but retains substantially all the risks and rewards of ownership of the financial asset, the Company continues to recognize the transferred asset in its entirety and recognize a financial liability for the consideration received.

The Company writes off a financial asset when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. In general, the Company considers write-off when it is determined that the debtor does not have sufficient funds or income to cover the principal and interest. The write-off decision is made in accordance with internal regulations. After the write-off, the Company can collect the written-off loans continuously according to the internal policy. Recovered amounts from financial assets previously written-off are recognized in profit or loss.

3.1.3.2 Derecognition of financial liabilities

A financial liability is derecognized from the statement of financial position when it is extinguished (i.e., the obligation specified in the contract is discharged, canceled or expires).

3.1.4 Offsetting

A financial asset and a financial liability are offset, and the net amount is presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on a future event and must be legally enforceable in the normal course of business, the event of default, and the event of insolvency or bankruptcy of the Company and all of the counterparties.

3.2 Cash and Due from Financial Institutions

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2023 and 2022

3.3 Non-derivative Financial Assets

3.3.1 Financial assets at fair value through profit or loss

The Company may designate certain financial assets upon initial recognition as at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an ‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

3.3.2 Financial assets at fair value through other comprehensive income

The Company classifies below financial assets as financial assets at fair value through other comprehensive income:

•	Debt instruments that are held within a business model whose objective is achieved by both collecting contractual<br>cash flows and selling financial assets, and where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding and;
•	Equity instruments that are not held for short-term trading but held for strategic investment, and designated as<br>financial assets at fair value through other comprehensive income
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3.3.3 Financial assets at amortized cost

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.4 Expected Credit Losses of Financial Assets (Debt Instruments)

The Company recognizes loss allowances for expected credit losses at the end of the reporting period for financial assets at amortized cost and fair value through other comprehensive income except for financial assets at fair value through profit or loss.

Expected credit losses are estimated at present value of probability-weighted amount that is determined by evaluating a range of possible outcomes. The Company measures expected credit losses by reflecting all reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

The approaches of measuring expected credit losses in accordance with Korean IFRS are as follows:

•	General approach: for financial assets and unused loan commitments not subject to the below 2 approaches
•	Simplified approach: for trade receivables, contract assets, and lease receivables
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•	Credit-impaired approach: for financial assets that are credit-impaired at the time of acquisition
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Application of general approach is differentiated depending on whether credit risk has increased significantly after initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures loss allowances for that financial instrument at an amount equal to 12-month expected credit losses, whereas if the credit risk on a financial instrument has increased significantly since initial recognition, the Company measures loss allowances for a financial instrument at an amount equal to the lifetime expected credit losses. Lifetime is the period until the contractual maturity date of financial instruments and means the expected life.

The Company assesses whether the credit risk has increased significantly using the following criteria, and if one or more of the following criteria are met, it is deemed as significant increase in credit risk. If the contractual cash flows of a financial asset have been renegotiated or modified, the Company assesses whether the credit risk has increased significantly using the same following criteria.

•	More than 30 days past due
•	Decline in credit rating at the end of the reporting period by certain notches or more compared to the time of<br>initial recognition
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•	Debt restructuring (except for impaired financial assets) and
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•	Credit delinquency information of Korea Federation of Banks, etc.
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Under simplified approach, the Company always measures loss allowances at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Company only recognizes the cumulative changes in lifetime expected credit losses since initial recognition as loss allowances at the end of the reporting period.

The Company generally considers the loan to be credit-impaired if one or more of the following criteria are met:

•	90 days or more past due
•	Legal proceedings related to collection
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•	A borrower registered on the credit management list of Korea Federation of Banks
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•	A corporate borrower with the credit rating C and D
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•	Debt restructuring, etc.
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KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.4.1 Forward-looking information

The Company uses forward-looking information, when determining whether credit risk has increased significantly and measuring expected credit losses.

The Company assumes that the risk components have a constant correlation with the economic cycle and uses statistical methodologies to estimate the relation between key macroeconomic variables and risk components for the expected credit losses.

The correlation between the major macroeconomic variables and the credit risk are as follows:

Key macroeconomic variables		Correlation between the major macroeconomic<br><br>variables and the credit risk
Benchmark interest rate		(+)
AA- rated corporate bond<br>(3-year)		(+)
BBB- rated corporate bond<br>(3-year)		(+)
Composite stock index		(+)
Rate of increase in housing transaction price index (Whole Country)		(-)
Rate of increase in housing transaction price index (Metropolitan Area)		(-)
WTI crude oil price		(+)
Growth rate of private consumption		(-)
Rate of increase or decrease in unemployment rate		(-)

Forward-looking information used in the calculation of expected credit losses is based on the macroeconomic forecasts utilized by management of the Company for its business plan considering reliable external agency’s forecasts and others. The forward-looking information is generated by KB Research with a comprehensive approach to capture the possibility of various economic forecast scenarios that are derived from the internal and external viewpoints of the macroeconomic situation. The Company determines the macroeconomic variables to be used in forecasting future conditions of the economy, considering the direction of the forecast scenario based on GDP growth and the significant relationship between macroeconomic variables and time series data. Some macroeconomic variables used are different than those used in the previous year.

As of December 31, 2024, the Company measures expected credit losses by applying both the worse scenario and the crisis scenario, taking into consideration the potential credit risk resulting from the uncertain financial environment locally and globally and the rapid economic recession.

3.4.2 Measuring expected credit losses on financial assets at amortized cost

The expected credit losses of financial assets at amortized cost are measured as present value of the difference between the contractual cash flows to be received and the cash flows expected to be received. The Company estimates expected future cash flows for financial assets that are individually significant. The Company selects the individually significant financial assets by comprehensively considering quantitative and qualitative factors (such as debt restructuring or negative net assets, etc.) among financial assets with the credit risk has increased significantly or credit-impaired (individual assessment of impairment).

For financial assets that are not individually significant, the Company collectively estimates expected credit losses by grouping loans with a homogeneous credit risk profile (collective assessment of impairment).

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.4.2.1 Individual assessment of impairment

Individual assessment of impairment losses is performed using management’s best estimate on the present value of expected future cash flows. The Company uses all the available information including financial condition of the borrower such as operating cash flow and net realizable value of any collateral held.

3.4.2.2 Collective assessment of impairment

Collective assessment of impairment losses is performed by using a methodology based on historical loss experience and reflecting forward-looking information. Such a process incorporates factors such as type of collateral, type of product, type of borrower, credit rating, size of portfolio, and recovery period and applies Probability of Default (“PD”) on a group of assets and Loss Given Default (“LGD”) by type of recovery method. Also, the Company applies certain assumptions to model expected credit losses assessment and to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce the gap between loss estimate and actual loss experience.

3.4.3 Measuring expected credit losses on financial assets at fair value through other comprehensive income

The Company measures expected credit losses on financial assets at fair value through other comprehensive income in a manner that is consistent with the requirements that are applicable to financial assets at amortized cost. However, loss allowances are recognized in other comprehensive income. Upon disposal or repayment of financial assets at fair value through other comprehensive income, the amount of loss allowances is reclassified from other comprehensive income to profit or loss.

3.5 Revenue Recognition

The Company recognizes revenues in accordance with the following steps determined in accordance with Korean IFRS No.1115 Revenue from Contracts with Customers.

•	Step 1: Identify the contract with a customer.
•	Step 2: Identify the performance obligations in the contract.
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•	Step 3: Determine the transaction price.
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•	Step 4: Allocate the transaction price to the performance obligations in the contract.
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•	Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
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3.5.1 Interest income and expense

Interest income and expense on debt securities at fair value through profit or loss (excluding beneficiary certificates, equity investments, and other debt securities), loans, financial instruments at amortized cost, and debt securities at fair value through other comprehensive income are recognized in the statement of comprehensive income using the effective interest method in accordance with Korean IFRS No.1109 Financial Instruments. The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or interest expense over the relevant period.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.5.1 Interest income and expense (cont’d)

The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, where appropriate, a shorter period, to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Company estimates expected cash flows by considering all contractual terms of the financial instrument but does not consider expected credit losses. The calculation includes all fees and points paid (main components of effective interest rate only) or received between parties to the contract that are an integral part of the effective interest rate, transaction costs, and all other premiums or discounts. In those rare cases when it is not possible to reliably estimate the cash flows and the expected life of a financial instrument, the Company uses the contractual cash flows over the full contractual term of the financial instrument.

Interest income on impaired financial assets is recognized using the interest rate used to discount the expected cash flows for the purpose of measuring the impairment loss.

Interest income on debt securities at fair value through profit or loss is also classified as interest income in the statement of comprehensive income.

3.5.2 Fee and commission income

The Company recognizes financial service fees in accordance with the purpose of charging the fees and the accounting standards of the financial instrument related to the fees earned.

3.5.2.1 Fees that are an integral part of the effective interest of a financial instrument

3.5.2.2 Fees related to performance obligations satisfied over time

If the control of a good or service is transferred over time, the Company recognizes revenue related to performance obligations over the period of performance obligations. Fees charged in return for the services for a certain period of time, such as asset management fees, consignment business fees, etc. are recognized over the period of performance obligations.

3.5.2.3 Fees related to performance obligations satisfied at a point in time

Fees earned at a point in time are recognized as revenue when a customer obtains controls of a promised good or service and the Company satisfies a performance obligation.

3.5.3 Net gains/losses on financial instruments at fair value through profit or loss

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.5.3 Net gains/losses on financial instruments at fair value through profit or loss (cont’d)

•	Gains or losses relating to financial instruments at fair value through profit or loss (excluding interest income<br>using the effective interest rate method)
•	Gains or losses relating to derivative financial instruments for trading (including derivative financial<br>instruments for hedging purpose but do not qualify for hedge accounting)
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3.5.4 Dividend income

3.6 Investments in Subsidiaries and Associates

Investments in subsidiaries and associates are accounted at cost method in accordance with Korean IFRS No.1027. The Company determines at each reporting period whether there is any objective evidence that the investments in the subsidiaries and associates are impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the subsidiaries or associates and its carrying value.

3.7 Property and Equipment

3.7.1 Recognition and measurement

Property and equipment that qualify for recognition as an asset are measured at cost and subsequently carried at its cost less any accumulated depreciation and any accumulated impairment losses.

3.7.2 Depreciation

Land is not depreciated, whereas other property and equipment are depreciated using the method that reflects the pattern in which the asset’s future economic benefits are expected to be consumed by the Company. The depreciable amount of an asset is determined after deducting its residual value.

Each part of an item of property and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.7.2 Depreciation (cont’d)

The depreciation method and estimated useful life of property and equipment are as follows:

Property and equipment		Depreciation method		Estimated useful life
Leasehold improvements<br><br>Equipment and vehicles		Declining-balance<br><br>Declining-balance		4 years<br><br>4 years

3.8 Intangible Assets

Intangible assets are measured initially at cost and subsequently carried at their cost less any accumulated amortization and any accumulated impairment losses.

Intangible assets, except for membership rights, are amortized using the straight-line method with no residual value over their estimated useful life since the assets are available for use.

Intangible assets		Amortization method		Estimated useful life
Software		Straight-line		4 years
Others		Straight-line		4 ~ 19 years

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. Where an intangible asset is not being amortized because its useful life is indefinite, the Company carries out a review in each accounting period to confirm whether events and circumstances still support an indefinite useful life assessment. If they do not, the change in the useful life assessment from indefinite to finite is accounted for as a change in an accounting estimate.

3.9 Impairment of Non-financial Assets

The Company assesses at the end of each reporting period whether there is any indication that a non-financial asset, except for (a) deferred income tax assets, (b) assets arising from employee benefits and (c) non-current assets (or group of assets to be sold) classified as held for sale, may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset.

The recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of the cash-generating unit to which the asset belongs. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit that are discounted by a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.10 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Inevitable risks and uncertainties surrounding related events and circumstances are considered in measuring the best estimate of the provisions, and where the effect of the time value of money is material, the amount of provisions is the present value of the expenditures expected to be required to settle the obligation.

3.11 Equity Instrument Issued by the Company

An equity instrument is any contract or agreement that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

3.11.1 Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or the exercise of stock option are deducted from the equity, net of any tax effects.

3.11.2 Hybrid securities

The financial instruments can be classified as either financial liabilities or equity in accordance with the terms of the contract. The Company classifies hybrid securities as an equity if the Company has the unconditional right to avoid any contractual obligation to deliver cash or another financial asset in relation to the financial instruments.

3.11.3 Treasury shares

If the Company acquires its own equity instruments, these are accounted for as treasury shares and are deducted directly from equity. No gains or losses are recognized in profit or loss on the purchase, sale, issue or retirement of own equity instruments.

3.12 Employee Compensation and Benefits

3.12.1 Post-employment benefits

3.12.1.1 Defined contribution plans

When an employee has rendered service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as post-employment benefits for the period.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.12.1.2 Defined benefit plans

The present value of the defined benefit obligation is calculated annually by independent actuaries using the Projected Unit Credit method. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on high quality corporate bonds. The currency and term of the corporate bonds are consistent with the currency and estimated term of the post-employment benefit obligations. Actuarial gains and losses resulted from changes in actuarial assumptions and experience adjustments are recognized in other comprehensive income.

3.12.2 Short-term employee benefits

Short-term employee benefits are employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service as an expense for the period.

The expected cost of profit-sharing and bonus payments is recognized as liabilities when the Company has a present legal or constructive obligation to make payments as a result of past events, such as service rendered by employees, and a reliable estimate of the obligation can be made.

3.12.3 Share-based payment

The Company provides stock grants program to executives and employees of the Company and its subsidiaries. When stock grants are exercised, the Company can either select to distribute newly issued shares or treasury shares or compensate in cash based on the share price.

For a share-based payment transaction in which the terms of the arrangement provide the Company with the choice of whether to settle in cash or by issuing equity instruments, the Company accounts for the transaction in accordance with the requirements applying to cash-settled share-based payment transactions because the Company determines that it has a present obligation to settle in cash based on a past practice and a stated policy of settling in cash.

Therefore, the Company measures the liability incurred as consideration for the service received at fair value and recognizes related expense and accrued expense over the vesting periods. Until the liability is settled, the Company remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss as share-based payments.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.12.4 Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or an employee’s decision to accept an offer of benefits in exchange for the termination of employment. The Company recognizes a liability and expense for termination benefits at the earlier of the following dates; when the Company can no longer withdraw the offer of those benefits and when the Company recognizes costs for a restructuring that is within the scope of Korean IFRS No.1037 and involves the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, then the termination benefits are discounted to present value.

3.13 Income Tax Expense

3.13.1 Current income tax

The Company offsets current income tax assets and current income tax liabilities if, and only if, the Company (a) has a legally enforceable right to set off the recognized amounts and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

3.13.2 Deferred income tax

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period. The Company reduces the carrying amount of a deferred income tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.13.2 Deferred income tax (cont’d)

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Company offsets deferred income tax assets and deferred income tax liabilities if, and only if the Company has a legally enforceable right to set off current income tax assets against current income tax liabilities and the deferred income tax assets and the deferred income tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current income tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred income tax liabilities or assets are expected to be settled or recovered.

3.13.3 Uncertain tax positions

Uncertain tax positions arise from tax treatments applied by the Company which may be challenged by the tax authorities due to the complexity of the transaction or different interpretation of the tax laws, such as a claim for rectification, a claim for a refund related to additional tax or a tax investigation by the tax authorities. The Company recognizes its uncertain tax positions in the financial statements in accordance with Korean IFRS No.1012 and Interpretation of Korean IFRS No.2123. The income tax asset is recognized if a tax refund is probable for taxes levied by the tax authority, and the amount to be paid as a result of the tax investigation and others is recognized as the current tax payable. However, penalty tax and additional refund on tax are regarded as penalty or interest and are accounted for in accordance with Korean IFRS No.1037.

3.14 Earnings per Share

The Company calculates basic earnings per share amounts and diluted earnings per share amounts for profit or loss for the period and presents them in the statement of comprehensive income. Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by adjusting the profit or loss attributable to ordinary equity holders of the Parent Company and weighted average number of shares outstanding, taking into account all potential dilution effects, such as exchangeable bonds and share-based payments given to employees.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

3.15 Lease

The Company as a lessor recognizes lease payments from operating leases as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the statement of financial position based on their nature.

Lease liabilities include the net present value of the following lease payments:

•	Fixed payments (including in-substance fixed payments), less any lease<br>incentives receivable
•	Variable lease payments that depend on an index or a rate
:---	:---
•	Amounts expected to be payable by the lessee under residual value guarantees
:---	:---
•	The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
:---	:---
•	Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to<br>terminate the lease
:---	:---

Right-of-use assets are measured at cost comprising the following:

•	The amount of the initial measurement of the lease liability
•	Any lease payments made at or before the commencement date, less any lease incentives received
:---	:---
•	Any initial direct costs incurred by the lessee, and
:---	:---
•	An estimate of restoration costs
:---	:---

However, the Company can elect not to apply the requirements of Korean IFRS No.1116 to short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and leases for which the underlying asset is of low value (for example, underlying leased asset under $ 5,000).

The right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

For sale and leaseback transactions, the Company applies the requirements of Korean IFRS No.1115 Revenue from Contracts with Customers, to determine whether the transfer of an asset is accounted for as a sale of that asset.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4. Financial Risk Management

4.1 Summary

4.1.1 Overview of financial risk management policy

The financial risks that the Company is exposed to are credit risk, market risk, liquidity risk, operational risk and others.

This note regarding financial risk management provides information about the risks that the Company is exposed to and about its objectives, policies, risk assessment and management procedures, and capital management. Additional quantitative information is disclosed throughout the separate financial statements.

The Company’s risk management system focuses on efficiently supporting long-term strategy and management decisions of the Company by increasing risk transparency, preventing risk transfer between subsidiaries and preemptive response to rapidly changing financial environments. Credit risk, market risk, liquidity risk, operational risk, interest rate risk, insurance risk, credit concentration risk, strategy risk, reputation risk and foreign exchange settlement risk are recognized as significant risks.

4.1.2 Risk management organization

4.1.2.1 Risk Management Committee

4.1.2.2 Risk Management Council

The Risk Management Council is responsible for consulting on matters delegated by the Risk Management Committee and requests for review by the Group Management Executive Committee, consulting on details of each subsidiary’s risk management strategies and procedures, monitoring the Group’s risk management status, and establishing and implementing necessary measures.

4.1.2.3 Risk Management Department

The Risk Management Department performs the Company’s risk management detailed strategies, procedures, and business processes, and is responsible for calculating the Group’s risk-weighted assets, monitoring and managing internal capital limits.

4.2 Credit Risk

4.2.1 Overview of credit risk

Credit risk is the risk of loss from the portfolio of assets held due to the counterparty’s default, breach of contract, and deterioration of credit quality. For risk management purposes, the Company considers default risk of individual borrowers.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.2.2 Credit risk management

The Company measures the expected losses of assets subject to credit risk management and uses them as a management indicator.

4.2.3 Maximum exposure to credit risk

The Company’s maximum exposures to credit risk without consideration of collateral values in relation to financial instruments other than equity securities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Due from financial institutions		~~W~~	398,391	~~W~~	256,337
Loans measured at amortized cost *			359,054		608,286
Loans measured at fair value through profit or loss			53,952		48,981
Other financial assets *			48,614		57,562

		~~W~~	860,011	~~W~~	971,166

*	After netting of allowance
:---	:---

4.2.4 Credit risk of loans

The Company maintains allowances for loan losses associated with credit risk of loans to manage its credit risk.

The Company assesses expected credit losses and recognizes loss allowances of financial assets at amortized cost and financial asset at fair value through other comprehensive income. Financial assets at fair value through profit or loss are excluded. Expected credit losses are a probability-weighted estimate of possible credit losses occurring in a certain range by reflecting reasonable and supportable information that is reasonably available at the end of the reporting period without undue cost or effort, including information about past events, current conditions, and forecasts of future economic conditions. The Company measures the expected credit losses on loans classified as financial assets at amortized cost, by deducting allowances for credit losses. The expected credit losses of loans classified as financial assets at fair value through other comprehensive income are presented in other comprehensive income in the financial statements.

Credit qualities of loans measured at amortized cost as of December 31, 2024 and 2023, are classified as follows:

(In millions of Korean won)

	December 31, 2024
	12-month<br>expected<br>credit losses		Lifetime expected credit losses				Not applying<br>expected<br>credit losses		Total
			Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1	~~W~~	360,000	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	360,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

	~~W~~	360,000	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	360,000

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.2.4 Credit risk of loans (cont’d)

	December 31, 2023
(In millions of Korean won)	12-month<br>expected<br>credit losses		Lifetime expected credit losses				Not applying<br>expected<br>credit losses		Total
			Non-impaired		Impaired
Loans measured at amortized cost *
Corporate
Grade 1	~~W~~	610,000	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	610,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

	~~W~~	610,000	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	610,000

* Before netting of allowance

Credit qualities of loans graded according to the probability of default as December 31, 2024 and 2023, are as follows:

		Range of<br>probability<br>of default (%)
Grade 1			0.0 ~ 1.0
Grade 2			1.0 ~ 5.0
Grade 3			5.0 ~ 15.0
Grade 4			15.0 ~ 30.0
Grade 5			30.0 ~

4.2.5 Credit risk of due from financial institutions

Credit qualities of due from financial institutions as of December 31, 2024 and 2023, are as follows:

	December 31, 2024
(In millions of Korean won)	12-month<br>expected<br>credit losses		Lifetime expected credit losses				Not applying<br>expected<br>credit losses		Total
			Non-impaired		Impaired
Due from financial institutions measured at amortized cost
Grade 1	~~W~~	398,391	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	398,391
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

	~~W~~	398,391	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	398,391

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.2.5 Credit risk of due from financial institutions (cont’d)

	December 31, 2023
(In millions of Korean won)	12-month<br>expected<br>credit losses		Lifetime expected credit losses				Not applying<br>expected<br>credit losses		Total
			Non-impaired		Impaired
Due from financial institutions measured at amortized cost
Grade 1	~~W~~	256,337	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	256,337
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

	~~W~~	256,337	~~W~~	—	~~W~~	—	~~W~~	—	~~W~~	256,337

4.2.6 Credit risk concentration analysis

4.2.6.1 Classifications of loans by country as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31, 2024
		Corporate<br>loans *				%			Allowances				Carrying<br>amount
Korea		~~W~~	413,952				100.00		~~W~~	(946	)		~~W~~	413,006
(In millions of Korean won)		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
		Corporate<br>loans *				%			Allowances				Carrying<br>amount
Korea		~~W~~	867,025				100.00		~~W~~	(1,174	)		~~W~~	865,851
*	Amount includes loans measured at fair value through profit or loss and amortized cost.
:---	:---

4.2.6.2 Classifications of corporate loans by industry as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Corporate<br>loans *				%			Allowances				Carrying<br>amount
Financial institutions		~~W~~	413,952				100.00		~~W~~	(946	)		~~W~~	413,006
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Corporate<br>loans *				%			Allowances				Carrying<br>amount
Financial institutions		~~W~~	658,981				100.00		~~W~~	(1,714	)		~~W~~	657,267
*	Amount includes loans measured at fair value through profit or loss and amortized cost.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.2.6.3 Classifications of due from financial institutions by industry as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Amount				%			Allowances				Carrying<br>amount
Due from financial institutions measured at amortized cost
Financial institutions		~~W~~	398,391				100.00		~~W~~	—			~~W~~	398,391
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Amount				%			Allowances				Carrying<br>amount
Due from financial institutions measured at amortized cost
Financial institutions		~~W~~	256,337				100.00		~~W~~	—			~~W~~	256,337

4.2.6.4 Classifications of due from financial institutions by country as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Amount				%			Allowances				Carrying<br>amount
Due from financial institutions measured at amortized cost
Korea		~~W~~	398,391				100.00		~~W~~	—			~~W~~	398,391
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Amount				%			Allowances				Carrying<br>amount
Due from financial institutions measured at amortized cost
Korea		~~W~~	256,337				100.00		~~W~~	—			~~W~~	256,337

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.3 Liquidity Risk

4.3.1 Overview of liquidity risk

Liquidity risk is a risk that the Company becomes insolvent due to the mismatch between the inflow and outflow of funds, unexpected cash outflows, or a risk of loss due to financing funds at a high interest rate or disposing of securities at an unfavorable price due to lack of available funds. The Company manages its liquidity risk through analysis of the contractual maturity of all financial assets and liabilities and discloses in six categories such as on demand, less than one month, between one month to three months, between three months to one year, between one year to five years, and over five years.

4.3.2. Liquidity risk management

4.3.3. Analysis of remaining contractual maturity of financial liabilities

The cash flows disclosed in the maturity analysis are undiscounted contractual amounts including principal and future interest payments; as such, amounts in the table below do not match with those in the statements of financial position which are based on discounted cash flows. The future interest payments for floating-rate liabilities are calculated on the assumption that the current interest rate is the same until maturity.

Remaining contractual maturity of financial liabilities as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		On<br>Demand				Up to<br>1 month				1-3<br>months				3-12<br>months				1-5<br>years				Over 5<br>years				Total
Financial liabilities
Borrowings		~~W~~	—			~~W~~	—			~~W~~	365,000			~~W~~	600,000			~~W~~	—			~~W~~	—			~~W~~	965,000
Debentures			—				105,451				13,009				626,993				1,662,628				774,560				3,182,641
Lease liabilities			—				48				91				362				375				—				876
Other financial liabilities			—				2,088				462				—				—				—				2,550

		~~W~~	—			~~W~~	107,587			~~W~~	378,562			~~W~~	1,227,355			~~W~~	1,663,003			~~W~~	774,560			~~W~~	4,151,067

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		On<br>Demand				Up to<br>1 month				1-3<br>months				3-12<br>months				1-5<br>years				Over 5<br>years				Total
Financial liabilities
Borrowings		~~W~~	—			~~W~~	—			~~W~~	—			~~W~~	100,000			~~W~~	—			~~W~~	—			~~W~~	100,000
Debentures			—				3,074				388,246				757,507				1,880,375				1,115,241				4,144,443
Lease liabilities			—				50				62				256				245				—				613
Other financial liabilities			—				2,063				—				—				—				—				2,063

		~~W~~	—			~~W~~	5,187			~~W~~	388,308			~~W~~	857,763			~~W~~	1,880,620			~~W~~	1,115,241			~~W~~	4,247,119

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.4 Market Risk

4.4.1 Concept

Market risk refers to risks that can result in losses due to changes in market factors such as interest rate, stock price, and foreign exchange rate, etc. The Company manages the market risks by dividing them into those arising from the trading position and those arising from the non-trading position.

4.4.2 Trading position

In accordance with Financial Holding Companies Act, the Company’s main business is to control financial companies or companies closely related to the financial service. And the Company cannot perform any other business other than managing activities as a holding company, therefore there is no risk of trading position.

4.4.3 Non-trading position

Non-trading position refers to the part except trading position, and the main risk the Company is managing is interest rate risk.

4.4.3.1 Interest rate risk

(a) Definition of interest rate risk

Interest rate risk refers to the risk of changes in the value (fair value) of the items in the statement of financial position due to changes in interest rate and the risk of changes in cash flows related to interest income and interest expense arising from investment and financing activities.

(b) Observation method and management indicator on interest rate risk

The main objective of interest rate risk management is to protect the value changes from interest rate fluctuations. The Company applies the Interest Rate Risk in the Banking Book (“IRRBB”) standard methodology required for disclosure to measure interest rate risk.

ΔEVE means changes in equity and earnings due to the changes in value of interest-sensitive assets and liabilities, etc. when interest rate changes, and ΔNII means changes in net interest income. The Company calculates ΔEVE by applying following six interest rate shock and stress scenarios, and ΔNII by applying parallel shock up and parallel shock down scenarios. The interest rate risk for the interest rate shock and stress scenario is calculated only when the risk for each scenario is a loss.

•	Scenario 1 : Parallel shock up
•	Scenario 2 : Parallel shock down
:---	:---
•	Scenario 3 : Steepener shock (short rates down and long rates up)
:---	:---
•	Scenario 4 : Flattener shock (short rates up and long rates down)
:---	:---
•	Scenario 5 : Short rates shock up
:---	:---
•	Scenario 6 : Short rates shock down
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.4.3.1 Interest rate risk (cont’d)

(In millions of Korean won)		December 31, 2024				December 31, 2023
ΔEVE		~~W~~	558,552			~~W~~	728,072
ΔNII			24,727				3,820

4.5 Capital Management

The Company as a financial holding company under the Financial Holding Companies Act, complies with the consolidated capital adequacy standard established by the financial supervisory authority. This capital adequacy standard is based on Basel III revised by Basel Committee on Banking Supervision in Bank for International Settlements (“BIS”) in June 2011 and was implemented in Korea in December 2013. According to this standard, the Group is required to maintain a minimum capital adequacy ratio to risk-weighted assets (Common Equity Tier 1 Capital ratio of 9.0%, Tier 1 Capital ratio of 10.5%, and Total Capital ratio of 12.5%) as of December 31, 2024.

The Group’s capital is classified into three categories in accordance with the Detailed Regulations on Supervision of Financial Holding Companies as follows:

•	Common Equity Tier 1 Capital: Common equity Tier 1 Capital is the first to take losses of the Group and is the<br>last to be compensated in liquidation of the Group and not repaid except for liquidation. It includes capital, capital surplus, retained earnings, non-controlling interests of the consolidated subsidiaries,<br>accumulated other comprehensive income, and other capital surplus, etc.
•	Additional Tier 1 Capital: Additional Tier 1 Capital includes capital, capital surplus, etc. related to the<br>issuance of capital securities of a permanent nature that meets the conditional capital securities requirements.
:---	:---
•	Tier 2 Capital: Tier 2 Capital means capital that can compensate for losses of the Group upon liquidation,<br>including (a) the amount of subordinated bonds with maturity of not less than 5 years that meet the conditional capital securities requirements, and (b) the allowances for credit losses accumulated on the loans which are classified as<br>normal or precautionary in accordance with Regulations on Supervision of Financial Holding Companies, and others.
:---	:---

The Group evaluates and manages capital adequacy through separate internal policies. The evaluation of capital adequacy compares the size of available capital (the amount of capital actually available) to the size of internal capital (the amount of capital required to cover all the significant risks faced by the Group under its target credit rating), which monitors financial soundness and provides a risk-adjusted performance measurement basis.

Internal capital refers to the capital required to prevent the Group’s insolvency from future unexpected losses. The Group operates a system to measure, allocate and manage internal capital to major subsidiaries by risk type.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

4.5 Capital Management (cont’d)

The Risk Management Committee of the Company determines the risk appetite of the Group, allocates internal capital by risk type and major subsidiaries, and major subsidiaries operate capital efficiently within the range of the allocated internal capital. The Risk Management Department of the Group monitors internal capital limit management and reports it to management and the Risk Management Committee. If the limit of internal capital is expected to be exceeded due to new businesses or business expansion, the Group’s capital adequacy management is carried out through review and approval by the Risk Management Committee in advance.

Details of the Company’s capital adequacy ratio in accordance with Basel III requirements as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Total Capital:		~~W~~	56,849,484	~~W~~	53,743,658
Tier 1 Capital			52,477,447		49,390,274
Common Equity Tier 1 Capital			46,794,302		43,663,753
Additional Tier 1 Capital			5,683,146		5,726,521
Tier 2 Capital			4,372,037		4,353,384
Risk-Weighted Assets: ^1^			345,980,580		321,318,905
Total Capital ratio (%):			16.43		16.73
Tier 1 Capital ratio (%)			15.17		15.37
Common Equity Tier 1 Capital ratio (%)			13.53		13.59
^1^	The Company is currently reviewing detailed plans to reflect the completion guarantee management-type land<br>trust business agreement with KB Real Estate Trust Co., Ltd. in risk-weighted assets and provisions, and it has not been reflected in the financial statements as of December 31, 2024.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5. Financial Assets and Financial Liabilities

5.1 Classification and Fair Value of Financial Instruments

5.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2023, are as follows:

		December 31, 2024

(In millions of Korean won)		Carrying amount				Fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities		~~W~~	1,189,519			~~W~~	1,189,519
Loans			53,952				53,952
Financial assets at amortized cost
Due from financial institutions			398,391				398,391
Loans			359,054				359,054
Other financial assets			48,614				48,614

		~~W~~	2,049,530			~~W~~	2,049,530

Financial liabilities
Financial liabilities at amortized cost
Borrowings		~~W~~	965,000			~~W~~	965,000
Debentures			2,962,032				2,906,349
Other financial liabilities			11,402				11,402

		~~W~~	3,938,434			~~W~~	3,882,751

		December 31, 2023
---	---	:---:	---	---	---	---	---	---

(In millions of Korean won)		Carrying amount				Fair value
Financial assets
Financial assets at fair value through profit or loss
Hybrid securities		~~W~~	1,011,362			~~W~~	1,011,362
Beneficiary certificates			316,080				316,080
Loans			48,981				48,981
Financial assets at amortized cost
Due from financial institutions			256,337				256,337
Loans			608,286				608,286
Other financial assets			57,562				57,562

		~~W~~	2,298,608			~~W~~	2,298,608

Financial liabilities
Financial liabilities at amortized cost
Borrowings		~~W~~	100,000			~~W~~	100,000
Debentures			3,871,820				3,715,939
Other financial liabilities			10,381				10,381

		~~W~~	3,982,201			~~W~~	3,826,320

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company discloses the fair value of each class of assets and liabilities in a way that permits it to be compared with its carrying amount at the end of each reporting period. The best evidence of fair value of financial instruments is quoted price in an active market.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.1.1 Carrying amount and fair value of financial assets and liabilities by category as of December 31, 2024 and 2023, are as follows: (cont’d)

Methods of determining fair value of financial instruments are as follows:

Cash and due from<br><br>financial<br>institutions		Fair value of cash is same as carrying amount. Carrying amount of demand deposit and settlement deposit is a reasonable approximation of fair value because these financial instruments do not have a fixed maturity and are receivable<br>on demand. Fair value of general deposit is measured using Discounted Cash Flow (“DCF”) Model.
Securities		Fair value of financial instruments that are quoted in an active market is determined using the quoted prices. If there is no quoted price, fair value is determined using external professional valuation institutions. The<br>institutions use one or more valuation techniques that are deemed appropriate considering the characteristics of the financial instruments among DCF Model, Imputed Market Value Model, Free Cash Flow to Equity Model, Dividend Discount Model, Risk<br>Adjusted Discount Rate Method, and Net Asset Value Method.
Derivatives		Fair value of exchange traded derivatives is determined using quoted price in an active market, and fair value of OTC derivatives is determined using valuation techniques. The Company uses internally developed valuation models that<br>are widely used by market participants to determine fair value of plain vanilla OTC derivatives including options, interest rate swaps, and currency swaps, based on observable market parameters. However, some complex financial instruments are valued<br>using appropriate models developed from generally accepted market valuation models including the Finite Difference Method (“FDM”), and the MonteCarlo Simulation or valuation results from independent external professional valuation<br>institution.
Loans		Fair value of loans is determined using DCF model discounting the expected cash flows, which are contractual cash flows adjusted by the expected prepayment rate, at an appropriate discount rate.
Borrowings		DCF model is used to determine the fair value of borrowings, but in the case of short-term maturity, carrying amount is a reasonable approximation of fair value.
Debentures		Fair value is determined by using valuation results of external professional valuation institutions, which are calculated using market inputs.
Other financial assets<br><br>and<br>other financial<br><br>liabilities		Carrying amount is a reasonable approximation of fair value because other financial assets and other financial liabilities are temporary accounts used for other various transactions and their maturities are relatively short or not<br>defined.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.1.2 Fair value hierarchy

The Company believes that valuation techniques used for measuring the fair value of financial instruments are reasonable and that the fair value recognized in the statements of financial position is appropriate. However, the fair value of the financial instruments recognized in the statements of financial position may be different if other valuation techniques or assumptions are used. Additionally, as there are a variety of valuation techniques and assumptions used in measuring fair value, it may be difficult to reasonably compare the fair value with that of other financial institutions.

The Company classifies and discloses fair value of the financial instruments into the three fair value levels as follows:

Level 1 :		The fair values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 :		The fair values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 :		The fair values are based on unobservable inputs for the asset or liability.

5.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position

Fair value hierarchy of financial assets at fair value in the statements of financial position as of December 31, 2024 and 2023, are as follows:

		December 31, 2024

		Fair value hierarchy											Total
(In millions of Korean won)		Level 1				Level 2				Level 3
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities		~~W~~	—			~~W~~	—				1,189,519			1,189,519
Loans			—				53,952				—			53,952

		~~W~~	—			~~W~~	53,952				1,189,519			1,243,471

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---

		Fair value hierarchy												Total
(In millions of Korean won)		Level 1				Level 2				Level 3
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities		~~W~~	—			~~W~~	—			~~W~~	1,011,362			~~W~~	1,011,362
Beneficiary certificates			—				316,080				—				316,080
Loans			—				48,981				—				48,981

		~~W~~	—			~~W~~	365,061			~~W~~	1,011,362			~~W~~	1,376,423

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.1.2.1 Fair value hierarchy of financial assets and liabilities at fair value in the statements of financial position (cont’d)

Valuation techniques and inputs of financial assets and liabilities classified as Level 2 and measured at fair value in the statements of financial position as of December 31, 2024 and 2023, are as follows:

		December 31, 2024

(In millions of Korean won)		Fair value				Valuation<br><br>techniques		Inputs

Financial assets
Financial assets at fair value through profit or loss:
Loans		~~W~~	53,952			DCF model		Interest rate,<br><br>Discount rate, etc.

		~~W~~

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---

(In millions of Korean won)		Fair value				Valuation<br>techniques			Inputs

Financial assets
Financial assets at fair value through profit or loss:
Beneficiary certificates		~~W~~	316,080				DCF model			Interest rate,<br><br>Discount rate, etc.
Loans			48,981				DCF model			Interest rate,<br><br>Discount rate, etc.

		~~W~~	365,061

5.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed.

Fair value hierarchy of financial assets and liabilities whose fair value is disclosed as of December 31, 2024 and 2023, are as follows:

	December 31, 2024

	Fair value hierarchy
(In millions of Korean won)	Level 1		Level 2		Level 3		Total

Financial assets
Cash and due from financial institutions<br>^1^	~~W~~	—	~~W~~	398,391	~~W~~	—	~~W~~	398,391
Loans measured at amortized cost ^2^		—		—		359,054		359,054
Other financial assets ^3^		—		—		48,614		48,614

	~~W~~	—	~~W~~	398,391	~~W~~	407,668	~~W~~	806,059

Financial liabilities
Borrowings	~~W~~	—	~~W~~	965,000	~~W~~	—	~~W~~	965,000
Debentures		—		2,906,349		—		2,906,349
Other financial liabilities ^3^		—		—		11,402		11,402

	~~W~~	—	~~W~~	3,871,349	~~W~~	11,402	~~W~~	3,882,751

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.1.2.2 Fair value hierarchy of financial assets and liabilities whose fair value is disclosed (cont’d)

		December 31, 2023

		Fair value hierarchy
(In millions of Korean won)		Level 1		Level 2		Level 3		Total

Financial assets
Cash and due from financial institutions<br>^1^		~~W~~	—	~~W~~	256,337	~~W~~	—	~~W~~	256,337
Loans measured at amortized cost ^2^			—		—		608,286		608,286
Other financial assets ^3^			—		—		57,562		57,562

		~~W~~	—	~~W~~	256,337	~~W~~	665,848	~~W~~	922,185

Financial liabilities
Borrowings		~~W~~	—	~~W~~	100,000	~~W~~	—	~~W~~	100,000
Debentures			—		3,715,939		—		3,715,939
Other financial liabilities ^3^			—		—		10,381		10,381

		~~W~~	—	~~W~~	3,815,939	~~W~~	10,381	~~W~~	3,826,320

^1^	For cash and due from financial institutions classified as level 2, carrying amount is a reasonable<br>approximation of fair value.
:---	:---
^2^	Because loans measured at amortized cost classified as level 3 are loans with residual maturity of less than<br>one year, carrying amounts are reasonable approximations of fair values.
:---	:---
^3^	For other financial assets and other financial liabilities classified as level 3, carrying amounts are<br>reasonable approximations of fair values.
:---	:---
^4^	For borrowings classified as level 2, carrying amount is reasonable approximations of fair value.
:---	:---

Financial assets and liabilities whose carrying amount is a reasonable approximation of fair value, valuation techniques and inputs are not disclosed.

Valuation techniques and inputs of financial liabilities classified as Level 2, and whose fair value is disclosed as of December 31, 2024 and 2023, are as follows:

	Fair value
(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023		Valuation<br>techniques		Inputs
Financial liabilities
Debentures	~~W~~	2,906,349	~~W~~	3,715,939		DCF model		Discount rate

5.2 Disclosure of Fair Value Hierarchy Level 3

5.2.1 Valuation policy and process of Level 3 fair value

The Company uses external, independent and qualified valuation service to determine the fair value of financial instruments at the end of every reporting period.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.2.2 Changes in fair value (Level 3) measured using valuation technique based on unobservable inputs in the market

5.2.2.1 Changes in financial instruments classified as Level 3 of the fair value hierarchy for the years ended December 31, 2024 and 2023, are as follows:

	2024		2023

(In millions of Korean won)	Financial assets<br>at fair value<br>through profit or loss		Financial assets<br>at fair value<br>through profit or loss
Beginning	~~W~~	1,011,362	~~W~~	874,171
Total gains or losses:
- Profit or loss		28,157		37,191
- Other comprehensive income		—		—
Purchases		150,000		100,000
Sales		—		—
Issues		—		—
Settlements		—		—
Transfers into Level 3		—		—
Transfers out of Level 3		—		—

Ending	~~W~~	1,189,519	~~W~~	1,011,362

5.2.2.2 In relation to changes in financial instruments classified as Level 3 of the fair value hierarchy, total gains or losses recognized in profit or loss for the period, and total gains or losses recognized in profit or loss from financial instruments held at the end of the reporting period for the years ended December 31, 2024 and 2023, are as follows:


	2024						2023

(In millions of Korean won)	Losses on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss		Other<br>operating<br>income		Net<br>interest<br>income		Gains on<br>financial<br>instruments<br>at fair value<br>through<br>profit or loss		Other<br>operating<br>income		Net<br>interest<br>income
Total gains (losses) included in profit or loss for the period	~~W~~	28,157		—	~~W~~	—	~~W~~	37,191	~~W~~	—	~~W~~	—
Total gains (losses) for the period included in profit or loss for financial instruments held at<br>the end of the reporting period		28,157		—		—		37,191		—		—

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.2.3 Sensitivity analysis of changes in unobservable inputs

5.2.3.1 Information about fair value measurements using unobservable inputs as of December 31, 2024 and 2023, are as follows:

	December 31, 2024
(In millions of Korean won)	Fair<br>value			Valuation<br><br>techniques	Inputs	Unobservable inputs		Range of<br>unobservable<br>inputs (%)		Relationship of unobservable<br>inputs to fair<br>value
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities		~~W~~1,189,519		Hull and White Model,<br><br>MonteCarlo<br><br>Simulation	Matrix YTM,<br><br>Additional spread by grade,<br><br>Risk spread of company,<br><br>Valid credit rating,<br><br>Disclosed information of securities,<br><br>Estimated volatility of<br>Interest rate		Discount rate		3.41 ~ 8.45	The lower the discount rate,<br><br>the higher the<br>fair value
							Volatility of interest rate		0.56 ~ 0.73	The higher the volatility,<br><br>the higher the fair<br>value fluctuation
	December 31, 2023
---	:---:	---	---	---	---	---	---	---	---	---
(In millions of Korean won)	Fair<br>value			Valuation<br>techniques	Inputs	Unobservable inputs		Range of<br>unobservable<br>inputs (%)		Relationship of unobservable<br>inputs to fair<br>value
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities		~~W~~ 1,011,362		Hull and White Model,<br><br>MonteCarlo<br><br>Simulation	Matrix YTM,<br><br>Additional spread by grade,<br><br>Risk spread of company,<br><br>Valid credit rating,<br><br>Disclosed information of securities,<br><br>Estimated volatility of<br>Interest rate		Discount rate		5.05 ~ 6.30	The lower the discount rate,<br><br>the higher the<br>fair value
							Volatility of interest rate		0.61	The higher the volatility,<br><br>the higher the fair<br>value fluctuation

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

5.2.3.2 Sensitivity analysis of changes in unobservable inputs

Results of the sensitivity analysis of changes in unobservable inputs as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
		Profit or loss								Other comprehensive<br>income or loss
(In millions of Korean won)		Favorable<br>changes				Unfavorable<br>changes				Favorable<br>changes				Unfavorable<br>changes
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities *		~~W~~	7,351			~~W~~	(7,227	)		~~W~~	—			~~W~~	—
*	The changes in fair value are calculated by increasing or decreasing discount rates (3.41% ~ 8.45%) by 1%p,<br>which are principal unobservable input parameters.
:---	:---
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Profit or loss								Other comprehensive<br>income or loss
(In millions of Korean won)		Favorable<br>changes				Unfavorable<br>changes				Favorable<br>changes				Unfavorable<br>changes
Financial assets
Financial assets at fair value through profit or loss:
Hybrid securities *		~~W~~	6,866			~~W~~	(6,746	)		~~W~~	—			~~W~~	—
*	The changes in fair value are calculated by increasing or decreasing discount rates (5.05% ~ 6.30%) by 1%p,<br>which are principal unobservable input parameters.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

6. Due from Financial Institutions

6.1 Details of due from financial institutions as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Financial Institution		December 31,<br>2024		December 31,<br>2023
Due from financial institutions in Korean won	Due from banks	Kookmin Bank	0.00 ~ 1.20	~~W~~	316,781	~~W~~	114,336
		KB Savings Bank Co., Ltd.	2.40 ~ 2.50		80,000		140,000
		Standard Chartered Bank	2.65		1,610		2,001

				~~W~~	398,391	~~W~~	256,337

6.2 Details of a maturity analysis of due from financial institutions other than restricted due from financial institutions, as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
		Up to<br>3 months				3~6<br>months				6~12<br>months				1~3<br>years				Over<br>3 years				Total
Due from financial institutions in Korean won		~~W~~	318,388			~~W~~	30,000			~~W~~	50,000			~~W~~	—			~~W~~	—			~~W~~	398,388
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Up to<br>3 months				3~6<br>months				6~12<br>months				1~3<br>years				Over<br>3 years				Total
Due from financial institutions in Korean won		~~W~~	146,334			~~W~~	80,000			~~W~~	30,000			~~W~~	—			~~W~~	—			~~W~~	256,334

6.3 Details of restricted due from financial institution as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		Financial<br>Institution		December 31,<br>2024				December 31,<br>2023				Reasons of restriction
Due from financial institutions in Korean won		Kookmin Bank		~~W~~	3			~~W~~	3			Pledged as collateral for the overdraft account

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

7. Financial Assets at Fair Value through Profit or Loss

Details of financial assets at fair value through profit or loss as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Financial assets at fair value through profit or loss:
Hybrid securities	~~W~~	1,189,519	~~W~~	1,011,362
Beneficiary certificates		—		316,080
Loans		53,952		48,981

	~~W~~	1,243,471	~~W~~	1,376,423

8. Loans Measured at Amortized Cost

8.1 Details of loans measured at amortized cost as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Loans measured at amortized cost	~~W~~	360,000		~~W~~	610,000
Less: Allowances for loan losses		(946	)		(1,714	)

	~~W~~	359,054		~~W~~	608,286

8.2 Details of loan types and customer types of loans to customers other than banks, as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Retail				Corporate				Credit card				Total
Loans		~~W~~	—			~~W~~	360,000			~~W~~	—			~~W~~	360,000
Proportion (%)			—				100				—				100
Less: Allowances			—				(946	)			—				(946	)

		~~W~~	—			~~W~~	359,054			~~W~~	—			~~W~~	359,054

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Retail				Corporate				Credit card				Total
Loans		~~W~~	—			~~W~~	610,000			~~W~~	—			~~W~~	610,000
Proportion (%)			—				100				—				100
Less: Allowances			—				(1,714	)			—				(1,714	)

		~~W~~	—			~~W~~	608,286			~~W~~	—			~~W~~	608,286

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

9. Investments in Subsidiaries

9.1 Details of subsidiaries as of December 31, 2024, are as follows:

Name of subsidiaries	Industry	Location
Kookmin Bank	Banking and foreign exchange transaction	Korea
KB Securities Co., Ltd.	Financial investment	Korea
KB Insurance Co., Ltd.	Non-life insurance	Korea
KB Kookmin Card Co., Ltd.	Credit card and installment financial business	Korea
KB Life Insurance Co., Ltd.	Life insurance	Korea
KB Asset Management Co., Ltd.	Investment advisory and investment trust	Korea
KB Capital Co., Ltd.	Financial leasing	Korea
KB Real Estate Trust Co., Ltd.	Real estate trust management	Korea
KB Savings Bank Co., Ltd.	Savings banking	Korea
KB Investment Co., Ltd.	Capital investment	Korea
KB Data System Co., Ltd.	System software, development and supply	Korea

9.2 Details of investments in subsidiaries as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won, except for shares)<br><br>Name of<br>subsidiaries		As of December 31, 2024				Carrying amount
		Number of<br>issued shares		Ownership<br>(%)		December 31,<br>2024		December 31,<br>2023
Kookmin Bank			404,379,116		100	~~W~~	14,821,721	~~W~~	14,821,721
KB Securities Co., Ltd.			298,620,424		100		3,342,391		3,342,391
KB Insurance Co., Ltd.			66,500,000		100		2,375,430		2,375,430
KB Kookmin Card Co., Ltd.			92,000,000		100		1,953,175		1,953,175
KB Life Insurance Co., Ltd.			16,201,518		100		2,795,367		2,795,367
KB Asset Management Co., Ltd.			7,667,550		100		96,312		96,312
KB Capital Co., Ltd.			32,175,147		100		873,811		873,811
KB Real Estate Trust Co., Ltd. *			21,616,085		100		271,553		121,553
KB Savings Bank Co., Ltd.			8,001,912		100		176,813		176,813
KB Investment Co., Ltd.			22,525,328		100		154,910		154,910
KB Data System Co., Ltd.			800,000		100		6,334		6,334

						~~W~~	26,867,817	~~W~~	26,717,817

*	Investment in subsidiaries increased by ~~W~~ 150,000 million due to the issuance of shares<br>by KB Real Estate Trust Co., Ltd. during the twelve-month period ended December 31, 2024.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

9.3 Changes in accumulated impairment losses of investments in subsidiaries for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Beginning				Impairment				Reversal				Ending
Accumulated impairment losses of investments in subsidiaries		~~W~~	(51,742	)		~~W~~	—			~~W~~	—			~~W~~	(51,742	)
		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Beginning				Impairment				Reversal				Ending
Accumulated impairment losses of investments in subsidiaries		~~W~~	(51,742	)		~~W~~	—			~~W~~				~~W~~	(51,742	)

10. Property and Equipment

10.1 Details of property and equipment as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Acquisition<br>cost				Accumulated<br>depreciation				Accumulated<br>impairment<br>losses				Carrying<br>amount
Leasehold improvements		~~W~~	8,651			~~W~~	(7,781	)		~~W~~	—			~~W~~	870
Equipment and others			9,030				(7,865	)			—				1,165
Right-of-use<br>assets (buildings)			1,514				(1,240	)			—				274
Right-of-use<br>assets (vehicles)			1,777				(1,324	)			—				453
Right-of-use<br>assets (others)			102				(64	)			—				38

		~~W~~	21,074			~~W~~	(18,274	)		~~W~~	—			~~W~~	2,800

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Acquisition<br>cost				Accumulated<br>depreciation				Accumulated<br>impairment<br>losses				Carrying<br>amount
Leasehold improvements		~~W~~	7,838			~~W~~	(7,222	)		~~W~~	—			~~W~~	616
Equipment and others			8,215				(7,238	)			—				977
Right-of-use<br>assets (buildings)			3,613				(2,527	)			—				1,086
Right-of-use<br>assets (vehicles)			2,052				(1,697	)			—				355
Right-of-use<br>assets (others)			252				(206	)			—				46

		~~W~~	21,970			~~W~~	(18,890	)		~~W~~	—			~~W~~	3,080

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

10.2 Changes in property and equipment for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Beginning				Acquisition				Disposal			Depreciation			Ending
Leasehold improvements		~~W~~	616			~~W~~	813			~~W~~	—		~~W~~	(559	)	~~W~~	870
Equipment and others			977				815				—			(627	)		1,165
Right-of-use<br>assets (buildings)			1,086				1,482				(671	)		(1,623	)		274
Right-of-use<br>assets (vehicles)			355				899				(62	)		(739	)		453
Right-of-use<br>assets (others)			46				46				—			(54	)		38

		~~W~~	3,080			~~W~~	4,055			~~W~~	(733	)	~~W~~	(3,602	)	~~W~~	2,800

		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Beginning				Acquisition				Disposal			Depreciation			Ending
Leasehold improvements		~~W~~	1,344			~~W~~	70			~~W~~	—		~~W~~	(798	)	~~W~~	616
Equipment and others			1,346				384				—			(753	)		977
Right-of-use<br>assets (buildings)			361				1,641				—			(916	)		1,086
Right-of-use<br>assets (vehicles)			460				401				(49	)		(457	)		355
Right-of-use<br>assets (others)			41				55				—			(50	)		46

		~~W~~	3,552			~~W~~	2,551			~~W~~	(49	)	~~W~~	(2,974	)	~~W~~	3,080

11. Intangible Assets

11.1 Details of intangible assets as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Acquisition<br>cost				Accumulated<br>amortization				Accumulated<br>impairment<br>losses				Carrying<br>amount
Software		~~W~~	6,440			~~W~~	(5,874	)		~~W~~	—			~~W~~	566
Membership rights			11,582				—				(855	)			10,727
Other intangible assets			14,975				(11,771	)			—				3,204

		~~W~~	32,997			~~W~~	(17,645	)		~~W~~	(855	)		~~W~~	14,497

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Acquisition<br>cost				Accumulated<br>amortization				Accumulated<br>impairment<br>losses				Carrying<br>amount
Software		~~W~~	6,251			~~W~~	(5,558	)		~~W~~	—			~~W~~	693
Membership rights			11,697				—				(858	)			10,839
Other intangible assets			14,060				(9,638	)			—				4,422

		~~W~~	32,008			~~W~~	(15,196	)		~~W~~	(858	)		~~W~~	15,954

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

11.2 Changes in intangible assets for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Beginning				Acquisition				Disposal			Amortization			Reversal of<br>impairment *			Ending
Software		~~W~~	693			~~W~~	189			~~W~~	—		~~W~~	(316	)	~~W~~	—		~~W~~	566
Membership rights			10,839				61				(172	)		—			(1	)		10,727
Other intangible assets			4,422				915				—			(2,133	)		—			3,204

		~~W~~	15,954			~~W~~	1,165			~~W~~	(172	)	~~W~~	(2,449	)	~~W~~	(1	)	~~W~~	14,497


---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		2023
(In millions of Korean won)		Beginning				Acquisition				Disposal			Amortization			Reversal of<br>Impairment *			Ending
Software		~~W~~	775			~~W~~	432			~~W~~	—		~~W~~	(514	)	~~W~~	—		~~W~~	693
Membership rights			9,951				2,259				(1,277	)		—			(94	)		10,839
Other intangible assets			6,026				537				—			(2,141	)		—			4,422

		~~W~~	16,752			~~W~~	3,228			~~W~~	(1,277	)	~~W~~	(2,655	)	~~W~~	(94	)	~~W~~	15,954

*	Impairment losses for membership rights of other intangible assets with indefinite useful life are recognized<br>when its recoverable amount is lower than its carrying amount, and reversal of impairment losses are recognized when its recoverable amount is higher than its carrying amount.
:---	:---

11.3 Changes in accumulated impairment losses of intangible assets for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024
		Beginning			Impairment			Reversal of<br>impairment				Disposal<br>and others				Ending
Accumulated impairment losses of intangible assets		~~W~~	(858	)	~~W~~	(1	)	~~W~~	—			~~W~~	4			~~W~~	(855	)
(In millions of Korean won)		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning			Impairment			Reversal of<br>impairment				Disposal<br>and others				Ending
Accumulated impairment losses of intangible assets		~~W~~	(792	)	~~W~~	(94	)	~~W~~	—			~~W~~	28			~~W~~	(858	)

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

12. Lease

12.1 Amounts Recognized in the Statements of Financial Position

Amounts recognized in the statements of financial position related to lease as of December 31, 2024 and 2032, are as follows:

(In millions of Korean won)		December 31, 2024		December 31, 2023
Right-of-use<br>property and equipment: ^1^
Real estate		~~W~~	274	~~W~~	1,086
Vehicles			453		355
Others			38		46

		~~W~~	765	~~W~~	1,487

Lease liabilities ^2^		~~W~~	844	~~W~~	589
^1^	Included in property and equipment.
:---	:---
^2^	Included in other liabilities.
:---	:---

12.2 Amounts Recognized in the Statements of Comprehensive Income

Amounts recognized in the statements of comprehensive income related to lease for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Depreciation and amortization of<br>right-of-use assets:
Real estate	~~W~~	1,623	~~W~~	916
Vehicles		739		457
Others		54		50

	~~W~~	2,416	~~W~~	1,423

Interest expenses on the lease liabilities	~~W~~	43	~~W~~	24
Expense relating to short-term lease		30		23
Expense relating to lease of low-value assets that are not<br>short-term lease		—		1

12.3 Total cash outflows for lease for the years ended December 31, 2024 and 2023 are ~~W~~ 674 million and ~~W~~ 641 million, respectively.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

13. Deferred Income Tax Assets and Liabilities

13.1 Details of deferred income tax assets and liabilities as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Assets				Liabilities				Net amount
Share-based payments		~~W~~	6,682			~~W~~	—			~~W~~	6,682
Membership rights			226				—				226
Defined benefit obligation			2,855				—				2,855
Plan assets			—				(2,855	)			(2,855	)
Short-term employee benefits			363				—				363
Gains on valuation of financial assets at fair value through profit or loss			—				(2,513	)			(2,513	)
Others			1,203				(704	)			499

			11,329				(6,072	)			5,257

Offsetting of deferred tax assets and liabilities			(6,072	)			6,072				—

		~~W~~	5,257			~~W~~	—			~~W~~	5,257

		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Assets				Liabilities				Net amount
Share-based payments		~~W~~	4,704			~~W~~	—			~~W~~	4,704
Membership rights			227				—				227
Defined benefit obligation			2,369				—				2,369
Plan assets			—				(2,369	)			(2,369	)
Short-term employee benefits			403				—				403
Losses on valuation of financial assets at fair value through profit or loss			675				—				675
Others			2,159				(3,676	)			(1,517	)

			10,537				(6,045	)			4,492

Offsetting of deferred tax assets and liabilities			(6,045	)			6,045				—

		~~W~~	4,492			~~W~~	—			~~W~~	4,492

13.2 Unrecognized Deferred Income Tax Assets

No deferred income tax assets have been recognized for the deductible temporary differences of ~~W~~ 2,902,347 million and ~~W~~ 51,742 million associated with investments in subsidiaries and impairment losses on investments in subsidiaries, respectively, as of December 31, 2024, due to the uncertainty that these temporary differences will be realized in the future. And no deferred income tax assets have been recognized for the deductible temporary differences of ~~W~~ 13,572 million associated subordinated bond as of December 31, 2024, as they affect neither accounting profit nor taxable profit (tax loss) at the time of the transaction.

13.3 Unrecognized Deferred Income Tax Liabilities

No deferred income tax liabilities have been recognized for the taxable temporary differences of ~~W~~ 2,434,172 million associated with investments in subsidiaries as of December 31, 2024, due to the following reasons:

•	The Company is able to control the timing of the reversal of the temporary differences.
•	It is probable that these temporary differences will not reverse in the foreseeable future.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

13.4 Changes in cumulative temporary differences for the years ended December 31, 2024 and 2023, are as follows:

	2024
(In millions of Korean won)	Beginning			Decrease			Increase			Ending
Deductible temporary differences
Share-based payments	~~W~~	17,816		~~W~~	7,504		~~W~~	14,997		~~W~~	25,309
Membership rights		860			6			1			855
Investments in subsidiaries		2,896,164			(6,183	)		—			2,902,347
Defined benefit obligation		8,973			2,842			4,685			10,816
Short-term employee benefits		1,527			1,527			1,376			1,376
Impairment losses of investments in subsidiaries		51,742			—			—			51,742
Losses on valuation of financial assets at fair value through profit or loss		2,557			2,557			—			—
Others		23,476			4,753			(594	)		18,129

		3,003,115			13,006			20,465			3,010,574

Unrecognized deferred income tax assets:
Investments in subsidiaries		2,896,164									2,902,347
Impairment losses of investments in subsidiaries		51,742									51,742
Others		15,296									13,572

		39,913									42,913

Tax rate (%)		26.4									26.4

Total deferred income tax assets	~~W~~	10,537								~~W~~	11,329

Taxable temporary differences
Investments in subsidiaries	~~W~~	(2,415,073	)	~~W~~	19,099		~~W~~	—		~~W~~	(2,434,172	)
Plan assets		(8,973	)		(2,841	)		(4,684	)		(10,816	)
Gains on valuation of financial assets at fair value through profit or loss		—			—			(9,518	)		(9,518	)
Others		(13,924	)		(7,923	)		3,336			(2,665	)

		(2,437,970	)		8,335			(10,866	)		(2,457,171	)

Unrecognized deferred income tax liabilities:
Investments in subsidiaries		(2,415,073	)								(2,434,172	)

		(22,897	)								(22,999	)

Tax rate (%)		26.4									26.4

Total deferred income tax liabilities	~~W~~	(6,045	)							~~W~~	(6,072	)

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

		2023
(In millions of Korean won)		Beginning			Decrease			Increase			Ending
Deductible temporary differences
Share-based payments		~~W~~	16,990		~~W~~	7,725		~~W~~	8,551		~~W~~	17,816
Membership rights			792			—			68			860
Investments in subsidiaries			2,896,164			—			—			2,896,164
Defined benefit obligation			12,173			7,418			4,218			8,973
Short-term employee benefits			2,455			2,454			1,526			1,527
Impairment losses of investments in subsidiaries			51,742			—			—			51,742
Losses on valuation of financial assets at fair value through profit or loss			55,829			—			(53,272	)		2,557
Others			29,132			2,503			(3,153	)		23,476

			3,065,277			20,100			(42,062	)		3,003,115

Unrecognized deferred income tax assets:
Investments in subsidiaries			2,896,164									2,896,164
Impairment losses of investments in subsidiaries			51,742									51,742
Others			16,934									15,296

			100,437									39,913

Tax rate (%)*			26.5									26.4

Total deferred income tax assets		~~W~~	26,616								~~W~~	10,537

Taxable temporary differences
Investments in subsidiaries		~~W~~	(2,415,073	)	~~W~~	—		~~W~~	—		~~W~~	(2,415,073	)
Plan assets			(12,804	)		(7,418	)		(3,587	)		(8,973	)
Others			(12,525	)		(7,421	)		(8,820	)		(13,924	)

			(2,440,402	)		(14,839	)		(12,407	)		(2,437,970	)

Unrecognized deferred income tax liabilities:
Investments in subsidiaries			(2,415,073	)								(2,415,073	)

			(25,329	)								(22,897	)

Tax rate (%)*			26.5									26.4

Total deferred income tax liabilities		~~W~~	(6,712	)							~~W~~	(6,045	)

*	The rate of 26.4% has been applied for the deferred tax assets and liabilities expected to be utilized in<br>periods after December 31, 2024.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

14. Other Assets

14.1 Details of other assets as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Other financial assets
Accrued income	~~W~~	9,033		~~W~~	17,352
Guarantee deposits		39,593			40,227
Less: Allowances for credit losses		(12	)		(17	)

		48,614			57,562

Other non-financial assets
Receivables		850,429			482,009
Prepaid expenses		13,172			3,140
Advanced payments		419			104

		864,020			485,253

	~~W~~	912,634		~~W~~	542,815

14.2 Changes in allowances for credit losses of other assets for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Other<br>financial<br>assets				Other<br>non-financial<br>assets			Total
Beginning		~~W~~	17				—			17
Provision			(5	)			—			(5	)

Ending		~~W~~	12				—			12

		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Other<br>financial<br>assets				Other<br>non-financial<br>assets				Total
Beginning		~~W~~	12			~~W~~	—			~~W~~	12
Provision			5				—				5

Ending		~~W~~	17			~~W~~	—			~~W~~	17

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

15. Borrowings

15.1 Details of borrowings as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024				December 31,<br>2023
Borrowings		~~W~~	965,000			~~W~~	100,000

15.2 Details of borrowings as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)						December 31,<br>2024		December 31,<br>2023
Borrowings in Korean won	Other<br>borrowings	IM SECURITIES<br>CO., LTD.	Jul. 21, 2023	Jul. 19, 2024	—	~~W~~	—	~~W~~	100,000
	Other<br>borrowings	KIWOOM<br>SECURITIES<br>Co., Ltd.	Feb. 20, 2024	Feb. 18, 2025	3.81		200,000		—
	Other<br>borrowings	Hanyang<br>SECURITIES<br>Co., Ltd.	Feb. 21, 2024	Feb. 19, 2025	3.81		65,000		—
	Other<br>borrowings	SK SECURITIES<br>Co., Ltd.	Mar. 21, 2024	Mar. 20, 2025	3.80		100,000		—
	Other<br>borrowings	KIWOOM<br>SECURITIES<br>Co., Ltd.	Apr. 25, 2024	Apr. 24, 2025	3.66		100,000		—
	Other<br>borrowings	KIWOOM<br>SECURITIES<br>Co., Ltd.	May 29, 2024	May 28, 2025	3.70		100,000		—
	Other<br>borrowings	SK SECURITIES<br>Co., Ltd.	Jun. 26, 2024	Jun. 25, 2025	3.66		200,000		—
	Other<br>borrowings	KIWOOM<br><br>SECURITIES<br>Co., Ltd.	Jul. 29, 2024	Jul. 28, 2025	3.45		200,000		—

						~~W~~	965,000	~~W~~	100,000

15.3 Maturities of borrowings as of December 31, 2024 and 2023, are as follows::

		December 31, 2024
(In millions of Korean won)		Up to<br>3 months				3~6<br>months				6~12<br>months				1~3<br>years				Over<br>3 years				Total
Borrowings in Korean won		~~W~~	365,000			~~W~~	400,000			~~W~~	200,000			~~W~~	—			~~W~~	—			~~W~~	965,000
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Up to<br>3 months				3~6<br>months				6~12<br>months				1~3<br>years				Over<br>3 years				Total
Borrowings in Korean won		~~W~~	—			~~W~~	—			~~W~~	100,000			~~W~~	—			~~W~~	—			~~W~~	100,000

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

16. Debentures

16.1 Details of debentures as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	Issuance date	Maturity date	Interest rate<br>(%) as of<br>December 31,<br>2024	December 31,<br>2024		December 31,<br>2023
Unguaranteed debentures No.15-3	May 12, 2016	May 12, 2026	2.01	~~W~~	200,000	~~W~~	200,000
Unguaranteed debentures No.18-3	Jul. 25, 2016	Jul. 25, 2026	1.69		80,000		80,000
Unguaranteed debentures No.19-3	Aug. 25, 2016	Aug. 25, 2026	1.69		120,000		120,000
Unguaranteed debentures No.25-4	May 24, 2017	May 24, 2027	2.62		80,000		80,000
Unguaranteed debentures No.26-2	Jun. 27, 2017	Jun. 27, 2024	2.34		—		200,000
Unguaranteed debentures No.27	Jul. 19, 2017	Jul. 19, 2024	2.41		—		100,000
Unguaranteed debentures No.28-2	Aug. 30, 2017	Aug. 30, 2024	2.43		—		30,000
Unguaranteed debentures No.28-3	Aug. 30, 2017	Aug. 30, 2027	2.60		60,000		60,000
Unguaranteed debentures No.29-2	Sep. 19, 2017	Sep. 19, 2024	2.44		—		110,000
Unguaranteed debentures No.31-3	Feb. 28, 2018	Feb. 28, 2028	3.02		60,000		60,000
Unguaranteed debentures No.32-3	Apr. 6, 2018	Apr. 6, 2028	2.86		20,000		20,000
Unguaranteed debentures No.33-2	Jun. 12, 2018	Jun. 12, 2028	2.92		30,000		30,000
Unguaranteed debentures No.34-3	Jul. 25, 2018	Jul. 25, 2025	2.71		20,000		20,000
Unguaranteed debentures No.34-4	Jul. 25, 2018	Jul. 25, 2028	2.76		20,000		20,000
Unguaranteed debentures No.36-2	Feb. 22, 2019	Feb. 22, 2024	2.11		—		230,000
Unguaranteed debentures No.36-3	Feb. 22, 2019	Feb. 22, 2029	2.22		60,000		60,000
Unguaranteed debentures No.37-1	Mar. 15, 2019	Mar. 15, 2024	2.06		—		140,000
Unguaranteed debentures No.37-2	Mar. 15, 2019	Mar. 15, 2029	2.16		70,000		70,000
Unguaranteed debentures No.38-1	Jun. 19, 2019	Jun. 19, 2026	1.73		80,000		80,000
Unguaranteed debentures No.38-2	Jun. 19, 2019	Jun. 19, 2029	1.77		120,000		120,000
Unguaranteed debentures No.39-1	Oct. 15, 2019	Oct. 15, 2024	1.60		—		80,000
Unguaranteed debentures No.39-2	Oct. 15, 2019	Oct. 15, 2029	1.67		40,000		40,000
Unguaranteed debentures No.40-1	Dec. 4, 2019	Dec. 4, 2024	1.76		—		70,000
Unguaranteed debentures No.40-2	Dec. 4, 2019	Dec. 4, 2029	1.87		30,000		30,000
Unguaranteed debentures No.41-2	Jan. 16, 2020	Jan. 16, 2025	1.74		100,000		100,000
Unguaranteed debentures No.41-3	Jan. 16, 2020	Jan. 16, 2030	1.88		40,000		40,000
Subordinated debentures No.1-1	Feb. 18, 2020	Feb. 18, 2030	2.21		370,000		370,000
Subordinated debentures No.1-2	Feb. 18, 2020	Feb. 18, 2035	2.26		30,000		30,000
Unguaranteed debentures No.42-1	May 13, 2020	May 13, 2025	1.59		130,000		130,000
Unguaranteed debentures No.42-2	May 13, 2020	May 13, 2030	1.78		70,000		70,000
Unguaranteed debentures No.43-2	Jun. 16, 2020	Jun. 16, 2025	1.44		110,000		110,000
Unguaranteed debentures No.43-3	Jun. 16, 2020	Jun. 16, 2030	1.63		50,000		50,000
Exchangeable bonds No.1 *	Jun. 30, 2020	Jun. 30, 2025	—		—		240,000

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

16.1 Details of debentures as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)					December 31,<br>2024			December 31,<br>2023
Unguaranteed debentures No.44-3		Aug. 11, 2020	Aug. 9, 2024	1.18	~~W~~	—		~~W~~	30,000
Unguaranteed debentures No.44-4		Aug. 11, 2020	Aug. 11, 2027	1.39		20,000			20,000
Unguaranteed debentures No.46-2		Jan. 14, 2021	Jan. 14, 2026	1.43		30,000			30,000
Unguaranteed debentures No.46-3		Jan. 14, 2021	Jan. 14, 2028	1.62		10,000			10,000
Unguaranteed debentures No.46-4		Jan. 14, 2021	Jan. 14, 2031	1.84		100,000			100,000
Unguaranteed debentures No.48-1		Jun. 16, 2022	Jun. 16, 2024	4.15		—			85,000
Unguaranteed debentures No.48-2		Jun. 16, 2022	Jun. 16, 2025	4.27		240,000			240,000
Unguaranteed debentures No.48-3		Jun. 16, 2022	Jun. 16, 2027	4.34		80,000			80,000
Unguaranteed debentures No.48-4		Jun. 16, 2022	Jun. 16, 2032	4.40		95,000			95,000
Unguaranteed debentures No.49-1		Oct. 31, 2024	Oct. 31, 2025	3.31		80,000			—
Unguaranteed debentures No.49-2		Oct. 31, 2024	Oct. 31, 2026	3.30		220,000			—
Unguaranteed debentures No.49-3		Oct. 31, 2024	Oct. 31, 2027	3.28		100,000			—

						2,965,000			3,880,000
Less: Bond Discounts						(2,968	)		(3,076	)
Less: adjustment on exchange right						—			(5,104	)

					~~W~~	2,962,032		~~W~~	3,871,820

*	Fair value of the liability component of exchangeable bonds is calculated by using market interest rate of<br>bonds under the same conditions without the exchange right. The residual amount, after deducting liability component from the issuance amount, represents the value of exchange right and is recorded in equity. Shares to be exchanged are<br>5 million treasury shares of KB Financial Group Inc. with the exchange price of ~~W~~ 48,000. Exchange rights were fully exercised on February 14, 2024.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

16.2 Maturities of debentures as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Up to<br>3 months				3~6<br>months			6~12<br>months			1~3<br>years			Over<br>3 years			Total
Debentures in Korean won		~~W~~	100,000				480,000			100,000			1,070,000			1,215,000			2,965,000
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Up to<br>3 months				3~6<br>months				6~12<br>months				1~3<br>years				Over<br>3 years				Total
Debentures in Korean won		~~W~~	370,000			~~W~~	285,000			~~W~~	420,000			~~W~~	1,350,000			~~W~~	1,455,000			~~W~~	3,880,000

16.3 Changes in debentures based on par value for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Beginning				Issue				Repayment				Ending
Debentures in Korean won *		~~W~~	3,880,000			~~W~~	400,000			~~W~~	(1,315,000	)		~~W~~	2,965,000
		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Beginning				Issue				Repayment				Ending
Debentures in Korean won		~~W~~	4,970,000			~~W~~	—			~~W~~	(1,090,000	)		~~W~~	3,880,000
*	Exchangeable bonds amounting to 240,000 million were redeemed on February 14, 2024, due to the<br>exercise of exchange right.
:---	:---

17. Net Defined Benefit Liabilities (Assets)

17.1 Defined Benefit Plan

The Company operates defined benefit plans which have the following characteristics:

•	The Company has the obligation to pay the agreed benefits to all its current and former employees.
•	The Company assumes actuarial risk (that benefits will cost more than expected) and investment risk.
:---	:---

The net defined benefit liabilities recognized in the statements of financial position are calculated in accordance with actuarial valuation method using assumptions based on market data and historical data such as discount rate, future salary increase rate, and mortality. Actuarial assumptions may differ from actual results, due to changes in the market conditions, economic trends, and mortality trends.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

17.2 Changes in net defined benefit liabilities for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Present value of<br>defined benefit<br>obligation				Fair value of<br>plan assets				Net defined<br>benefit liabilities<br>(assets)
Beginning		~~W~~	19,639			~~W~~	(23,333	)		~~W~~	(3,694	)
Current service cost			1,786				—				1,786
Interest expense (income)			840				(998	)			(158	)
Remeasurements:
Actuarial gains and losses by changes in demographic assumptions			(15	)			—				(15	)
Actuarial gains and losses by changes in financial assumptions			1,743				—				1,743
Actuarial gains and losses by experience adjustments			330				—				330
Return on plan assets (excluding amounts included in interest income)			—				(10	)			(10	)
Contributions by the Company			—				(2,894	)			(2,894	)
Payments from plans (benefit payments)			(2,842	)			2,842				—
Payments from the Company			(7	)			—				(7	)
Transfer in (out)		~~W~~	123			~~W~~	(106	)		~~W~~	17

Ending		~~W~~	21,597			~~W~~	(24,499	)		~~W~~	(2,902	)

		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Present value of<br>defined benefit<br>obligation				Fair value of<br>plan assets				Net defined<br>benefit liabilities<br>(assets)
Beginning		~~W~~	17,973			~~W~~	(22,261	)		~~W~~	(4,288	)
Current service cost			2,041				—				2,041
Interest expense (income)			929				(1,152	)			(223	)
Remeasurements:
Actuarial gains and losses by changes in demographic assumptions			—				—				—
Actuarial gains and losses by changes in financial assumptions			1,218				—				1,218
Actuarial gains and losses by experience adjustments			31				—				31
Return on plan assets (excluding amounts included in interest income)			—				58				58
Contributions by the Company			—				(2,292	)			(2,292	)
Payments from plans (benefit payments)			(3,296	)			3,296				—
Payments from the Company			(262	)			—				(262	)
Transfer in (out)		~~W~~	1,005			~~W~~	(982	)		~~W~~	23

Ending		~~W~~	19,639			~~W~~	(23,333	)		~~W~~	(3,694	)

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

17.3 Details of the net defined benefit liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Present value of defined benefit obligation	~~W~~	21,597		~~W~~	19,639
Fair value of plan assets		(24,499	)		(23,333	)

Net defined benefit liabilities (assets)	~~W~~	(2,902	)	~~W~~	(3,694	)

17.4 Details of post-employment benefits recognized in profit or loss for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		2024			2023
Current service cost		~~W~~	1,786		~~W~~	2,041
Net interest expense (income) on net defined benefit liabilities			(158	)		(223	)

Post-employment benefits		~~W~~	1,628		~~W~~	1,818

(*)	The gains or losses related to the defined benefit pension plan is fully included in general administrative<br>expenses.
:---	:---

17.5 Details of remeasurements of net defined benefit liabilities recognized in other comprehensive income for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Remeasurements:
Return on plan assets (excluding amounts included in interest income)	~~W~~	10		~~W~~	(58	)
Actuarial gains or losses		(2,058	)		(1,249	)
Income tax effect		541			345

Remeasurements after income tax expense	~~W~~	(1,507	)	~~W~~	(962	)

17.6 Details of fair value of plan assets as of December 31, 2024 and 2023, are as follows:

		December 31, 2024
(In millions of Korean won)		Assets quoted<br>in an active market				Assets not quoted<br>in an active market				Total
Cash and due from financial institutions		~~W~~	—			~~W~~	24,499			~~W~~	24,499
		December 31, 2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Assets quoted<br>in an active market				Assets not quoted<br>in an active market				Total
Cash and due from financial institutions		~~W~~	—			~~W~~	23,333			~~W~~	23,333

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

17.7 Details of significant actuarial assumptions used as of December 31, 2024 and 2023, are as follows:


Discount rate (%)	3.60	4.30
Future salary increase rate (%)	4.20	4.00
Turnover rate (%)	1.00	1.00

Mortality assumptions are based on the experience-based mortality table issued by Korea Insurance Development Institute in 2019.

17.8 Results of sensitivity analysis of significant actuarial assumptions as of December 31, 2024, are as follows:

			Effect on defined benefit obligation
	Changes in<br>assumptions		Increase in<br>assumptions		Decrease in<br>assumptions
Discount rate (%)		0.5%p		4.59% decrease		4.89% increase
Salary increase rate (%)		0.5%p		4.84% increase		4.59% decrease
Turnover rate (%)		0.5%p		0.07% decrease		0.07% increase

17.9 Expected maturity analysis of undiscounted pension benefit payments (including expected future benefits) as of December 31, 2024, are as follows:

(In millions of Korean won)		Up to 1 year				1 ~ 2 years				2 ~ 5 years				5 ~ 10 years				Over 10 years				Total
Pension benefits		~~W~~	230			~~W~~	737			~~W~~	3,124			~~W~~	13,818			~~W~~	39,275			~~W~~	57,184

The weighted average duration of the defined benefit obligation is 9.80 years**.**

17.10 Reasonable estimation of expected contribution to plan assets for the next annual reporting period after December 31, 2024 is ~~W~~ 1,900 million.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

18. Other Liabilities

Details of other liabilities as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Other financial liabilities
Payables	~~W~~	974	~~W~~	1,082
Accrued expenses		9,585		8,710
Lease liabilities		844		589

		11,403		10,381

Other non-financial liabilities
Payables		77,460		192,936
Accrued expenses		299,142		205,991
Withholding taxes		523		1,396

		377,125		400,323

		~~W~~388,528	~~W~~	410,704

19. Equity

19.1 Share Capital

19.1.1 Details of share capital as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024		December 31,<br>2023
Type of share			Ordinary share		Ordinary share
Number of authorized shares			1,000,000,000		1,000,000,000
Par value per share (In Korean won)		~~W~~	5,000	~~W~~	5,000
Number of issued shares			393,528,423		403,511,072
Share capital *		~~W~~	2,090,558	~~W~~	2,090,558
*	Due to the retirement of shares deducted through retained earnings, it is different from the total par value of<br>the shares issued.
:---	:---

19.1.2 Changes in shares for the years ended December 31, 2024 and 2023, are as follows:

(In number of shares)
Beginning	378,663,825		389,634,335
Increase	5,000,000		—
Decrease	(10,063,106	)	(10,970,510	)

Ending	373,600,719		378,663,825

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

19.2 Hybrid Securities

Details of hybrid securities classified as equity as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)

Hybrid<br><br>securities				December 31,<br>2024		December 31,<br>2023
Series 1-1	May 2, 2019	Perpetual bond	—	~~W~~	—	~~W~~	349,204
Series 1-2	May 2, 2019	Perpetual bond	3.44		49,881		49,881
Series 2-1	May 8, 2020	Perpetual bond	3.30		324,099		324,099
Series 2-2	May 8, 2020	Perpetual bond	3.43		74,812		74,812
Series 3-1	Jul. 14, 2020	Perpetual bond	3.17		369,099		369,099
Series 3-2	Jul. 14, 2020	Perpetual bond	3.38		29,922		29,922
Series 4-1	Oct. 20, 2020	Perpetual bond	3.00		433,918		433,918
Series 4-2	Oct. 20, 2020	Perpetual bond	3.28		64,843		64,843
Series 5-1	Feb. 19, 2021	Perpetual bond	2.67		419,056		419,056
Series 5-2	Feb. 19, 2021	Perpetual bond	2.87		59,862		59,862
Series 5-3	Feb. 19, 2021	Perpetual bond	3.28		119,727		119,727
Series 6-1	May 28, 2021	Perpetual bond	3.20		165,563		165,563
Series 6-2	May 28, 2021	Perpetual bond	3.60		109,708		109,708
Series 7-1	Oct. 8, 2021	Perpetual bond	3.57		208,453		208,453
Series 7-2	Oct. 8, 2021	Perpetual bond	3.80		59,834		59,834
Series 8-1	Feb. 16, 2022	Perpetual bond	4.00		442,955		442,955
Series 8-2	Feb. 16, 2022	Perpetual bond	4.30		155,626		155,626
Series 9-1	May 12, 2022	Perpetual bond	4.68		478,814		478,814
Series 9-2	May 12, 2022	Perpetual bond	4.97		19,906		19,906
Series 10-1	Aug. 26, 2022	Perpetual bond	4.90		407,936		407,936
Series 10-2	Aug. 26, 2022	Perpetual bond	5.15		70,819		70,819
Series 10-3	Aug. 26, 2022	Perpetual bond	5.30		19,944		19,944
Series 11-1	Feb. 03, 2023	Perpetual bond	4.90		548,666		548,666
Series 11-2	Feb. 03, 2023	Perpetual bond	5.03		49,871		49,871
Series 12	Feb. 28, 2024	Perpetual bond	4.39		399,045		—
				~~W~~	5,082,359	~~W~~	5,032,518

The above hybrid securities are early redeemable by the Company after 5 or 7 or 10 years from the issuance date.

19.3 Capital Surplus

Details of capital surplus as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Paid-in capital in excess of par value	~~W~~	13,190,275	~~W~~	13,190,275
Other capital surplus		1,473,579		1,465,893
Gains on sales of treasury shares		90,621		86,646
Consideration for exchange right of exchangeable bonds		—		11,933

	~~W~~	14,754,475	~~W~~	14,754,747

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

19.4 Accumulated Other Comprehensive Income (Loss)

19.4.1 Details of accumulated other comprehensive income (loss) as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)		December 31,<br>2024				December 31,<br>2023
Remeasurements of net defined benefit liabilities		~~W~~	(8,316	)		~~W~~	(6,809	)

19.4.2 Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Beginning				Changes				Tax<br>effect				Ending
Remeasurements of net defined benefit liabilities		~~W~~	(6,809	)		~~W~~	(2,048	)		~~W~~	541			~~W~~	(8,316	)
		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Beginning				Changes				Tax<br>effect				Ending
Remeasurements of net defined benefit liabilities		~~W~~	(5,847	)		~~W~~	(1,307	)		~~W~~	345			~~W~~	(6,809	)

19.5 Retained Earnings

19.5.1 Details of retained earnings as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024		December 31,<br>2023
Legal reserves	~~W~~	1,219,810	~~W~~	1,007,686
Voluntary reserves		982,000		982,000
Regulatory reserve for credit losses		4,061		9,340
Unappropriated retained earnings		2,099,671		2,337,872

	~~W~~	4,305,542	~~W~~	4,336,898

With respect to the allocation of net profit earned in a fiscal term, the Company must set aside in its legal reserve an amount equal to at least 10% of its profit after tax as reported in the financial statements, each time it pays dividends on its net profits earned until its legal reserve reaches the aggregate amount of its paid-in capital in accordance with Article 53 of the Financial Holding Company Act. The reserve is not available for the payment of cash dividends, but may be transferred to share capital, or used to reduce accumulated deficit.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

19.5.2 Statement of appropriation of retained earnings

(Expected date of appropriation for 2024: March 26, 2025)

(Date of appropriation for 2023: March 22, 2024)

(In millions of Korean won)	2024			2023
Unappropriated retained earnings
Unappropriated retained earnings carried over from prior years	~~W~~	1,544,021		~~W~~	1,230,569
Profit for the year		2,170,597			2,121,244
Quarterly dividends		(899,972	)		(586,931	)
Dividends on hybrid securities		(199,798	)		(184,914	)
Retirement of shares		(515,177	)		(242,096	)

		2,099,671			2,337,872

Transfer from voluntary reserves and others
Regulatory reserve for credit losses		—			5,279

		—			5,279

Appropriation of retained earnings
Legal reserves		217,060			212,124
Regulatory reserve for credit losses		1,350			—
Cash dividends:		298,285			587,006
(Dividends (rate) per share: ~~W~~804 (16.1%) in 2024)<br><br>(Dividends (rate) per share: ~~W~~ 1,530 (30.6%) in 2023)

		516,695			799,130

Unappropriated retained earnings to be carried forward	~~W~~	1,582,976		~~W~~	1,544,021

19.5.3 Regulatory reserve for credit losses

Measurement and disclosure of regulatory reserve for credit losses are required in accordance with Articles 26 through 28 of the Regulations on Supervision of Financial Holding Companies.

19.5.3.1 Details of regulatory reserve for credit losses as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31, 2024		December 31, 2023
Amounts before appropriation	~~W~~	4,061	~~W~~	9,340
Amounts estimated to be appropriated (reversed)		1,350		(5,279	)

	~~W~~	5,411	~~W~~	4,061

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

19.5.3.2 Regulatory reserve for credit losses estimated to be appropriated (reversed) and adjusted profit after provision (reversal) of regulatory reserve for credit losses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won, except for per share amounts)		2024		2023
Regulatory reserve for credit losses estimated to be appropriated (reversed)		~~W~~	1,350	~~W~~	(5,279	)
Adjusted profit after provision (reversal) of regulatory reserve for credit losses ^1,2^			1,969,449		1,941,608
Adjusted basic earnings per share after provision (reversal) of regulatory reserve for credit<br>losses ^1^			5,200		5,056
Adjusted diluted earnings per share after provision (reversal) of regulatory reserve for credit<br>losses ^1^			5,138		4,943
^1^	Adjusted profit after provision (reversal) of regulatory reserve for credit losses is not based on Korean IFRS.<br>It is calculated by reflecting provision (reversal) of regulatory reserve for credit losses before tax to the net profit for the period.
:---	:---
^2^	After deducting dividends on hybrid securities
:---	:---

19.6 Treasury Shares

Changes in treasury shares for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won and in number of shares)		Beginning				Acquisition				Disposal				Retirement			Retirement
Number of treasury shares			24,847,247				10,063,106				(5,000,000	)			(9,982,649	)		19,927,704

Carrying amount		~~W~~	1,165,837			~~W~~	820,000			~~W~~	(234,600	)		~~W~~	(515,177	)	~~W~~	1,236,060

		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won and in number of shares)		Beginning				Acquisition				Retirement				Retirement
Number of treasury shares			19,262,733				10,970,510				(5,385,996	)			24,847,247

Carrying amount		~~W~~	836,188			~~W~~	571,745			~~W~~	(242,096	)		~~W~~	1,165,837

*	5 million treasury shares deposited at the Korea Securities Depository for the exchange of exchangeable<br>bonds were disposed on February 14, 2024, due to the exercise of exchange right.
:---	:---

The Company retired 5,584,514 shares (~~W~~ 300,000 million) and 4,398,135 shares (~~W~~ 320,000 million) of the treasury shares on August 14, 2024, each acquired in accordance with the resolution of the Board of Directors on July 25, 2023, and February 7, 2024, respectively.

Additionally, in accordance with the resolution of the Board of Directors on July 23, 2024, the Company plans to acquire shares worth ~~W~~ 400,000 million of treasury shares through a trust contract by March 4, 2025, and plans to retire the shares after the termination of the trust contract.

And, in accordance with the resolution of the Board of Directors on October 24, 2024, the Company plans to acquire shares worth ~~W~~ 100,000 million of treasury shares through a trust contract by April 30, 2025, and plans to retire the shares after the termination of the trust contract.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

20. Dividends

The annual dividends to the shareholders of the Company for the year ended December 31, 2023, amounting to ~~W~~ 587,006million (~~W~~ 1,530 per share) were declared at the annual general shareholders’ meeting on March 22, 2024 and paid in April 11, 2024.

According to the resolution of the board of directors on April 25, 2024, the quarterly dividend amounting to ~~W~~ 300,087 million (~~W~~ 784 per share) with dividend record date of March 31, 2024 were paid on May 9, 2024; according to the resolution of the board of directors on July 23, 2023, the quarterly dividend amounting to ~~W~~ 299,999 million (~~W~~ 791 per share) with dividend record date of June 30, 2024 were paid on August 8, 2024; and according to the resolution of the board of directors on October 24, 2024, the quarterly dividend amounting to ~~W~~ 299,886 million (~~W~~ 795 per share) with dividend record date of September 30, 2024 were paid on November 7, 2024.

Meanwhile, the annual dividends to the shareholders of the Company for the year ended December 31, 2024, amounting to ~~W~~ 298,285 million (~~W~~ 804 per share) is to be proposed at the general shareholders’ meeting scheduled for March 26, 2025. The Company’s financial statements as of and for the year ended December 31, 2024, do not reflect this dividend payable.

21. Net Interest Expense

Details of interest income, interest expense, and net interest expense for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Interest income
Due from financial institutions	~~W~~	16,169		~~W~~	16,380
Loans measured at amortized cost		17,347			14,736
Loans measured at fair value through profit or loss		2,841			3,195
Others		2,345			816

		38,702			35,127

Interest expense
Borrowings		25,356			1,853
Debentures		75,674			98,102
Others		43			25

		101,073			99,980

Net interest expense	~~W~~	(62,371	)	~~W~~	(64,853	)

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

22. Net Fee and Commission Expense

Details of fee and commission income, fee and commission expense, and net fee and commission expense for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Fee and commission income
Fees earned in Korean won	~~W~~	2,213		~~W~~	2,585

Fee and commission expense
Fees paid in Korean won		9,030			12,602
Fees paid in Foreign currency		430			370

		9,460			12,972

Net fee and commission expense	~~W~~	(7,247	)	~~W~~	(10,387	)

23. Net Gains or Losses on Financial Instruments at Fair value through Profit or Loss

Net gains or losses on financial instruments at fair value through profit or loss include dividend income, gains or losses arising from changes in fair value, and gains or losses arising from sales and redemptions. Details of net gains or losses on financial assets at fair value through profit or loss for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Gains on financial instruments at fair value through profit or loss
Dividend income from financial assets at fair value through profit or loss	~~W~~	60,341	~~W~~	52,546
Gains on valuation of financial assets at fair value through profit or loss		31,403		52,472
Gains on disposal of financial assets at fair value through profit or loss		148		3,381

		91,892		108,399

Losses on financial instruments at fair value through profit or loss
Losses on valuation of financial assets at fair value through profit or loss		—		—

		—		—

Net gains (losses) on financial instruments at fair value through profit or loss	~~W~~	91,892	~~W~~	108,399

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

24. Net Other Operating Income and Expenses

Details of other operating income and expenses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Other operating income
Dividend income from subsidiaries	~~W~~	2,243,250	~~W~~	2,192,380
Others		3		5

Net other operating income	~~W~~	2,243,253	~~W~~	2,192,385

25. General and Administrative Expenses

25.1 Details of general and administrative expenses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Expenses related to employee
Employee benefits - salaries	~~W~~	31,646	~~W~~	32,965
Employee benefits - others		5,524		6,062
Post-employment benefits - defined benefit plans		1,628		1,818
Post-employment benefits - defined contribution plans		382		596
Share-based payments		14,998		8,551

		54,178		49,992

Depreciation and amortization		6,051		5,630

Other general and administrative expenses
Travel		1,003		1,446
Communications		1,033		1,138
Tax and dues		505		522
Publication		353		412
Rental expense		2,380		2,295
Vehicle		147		164
Service fees		17,362		18,080
Advertising		1,106		1,091
Training		1,356		1,360
Others		10,181		10,473

		35,426		36,981

	~~W~~	95,655	~~W~~	92,603

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

25.2 Share-based Payments

Share-based payments plan for executives and employees of the Company and its subsidiaries as of December 31, 2024, are as follows:

25.2.1 Stock grants linked to long-term performance

(In number of shares)			Vesting conditions ^2^
KB Financial Group Inc.
Series 34	Feb. 1, 2022	644	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 36	Jan. 1, 2023	26,071	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 37	Apr. 1, 2023	1,830	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 38	Nov. 21, 2023	55,547	Services fulfillment, market performance ^3^ 35%, and non-market performance ^5^<br>65%
Series 39	Jan. 1, 2024	69,628	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 40	Feb. 1, 2024	511	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 41	Apr. 6, 2024	6,270	Services fulfillment, market performance ^3^ 30%, and non-market performance ^4^<br>70%
Series 42	Apr. 26, 2024	616	Services fulfillment, market performance ^3^ 0%, and non-market performance ^4^<br>100%
Deferred grant in 2015		2,123	Satisfied
Deferred grant in 2020		284	Satisfied
Deferred grant in 2021		9,060	Satisfied
Deferred grant in 2022		26,240	Satisfied
Deferred grant in 2023		71,682	Satisfied

		270,506
Kookmin Bank
Series 85	Jan. 1, 2022	6,740	Services fulfillment, market performance ^3^ 0~30%, and<br>non-market performance ^4^ 70~100%<br><br>Services fulfillment, market<br>performance ^3^ 30%, and non-market performance ^6^ 70%
Series 86	Feb. 1, 2022	1,525	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 90	Jul. 18, 2022	3,716	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 91	Aug. 24, 2022	7,277	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 92	Jan. 1, 2023	160,673	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 94	Apr. 1, 2023	5,849	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 96	Jan. 1, 2024	291,303	Services fulfillment, market performance ^3^ 0~30%, and<br>non-market performance ^4^ 70~100%<br><br>Services fulfillment, market<br>performance 3 30%, and EPS, Asset Quality 6 70%
Series 97	Feb. 1, 2024	2,045	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 98	Apr. 22, 2024	2,959	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

25.2.1 Stock grants linked to long-term performance (cont’d)

(In number of shares)				Vesting conditions ^2^
Series 99		Jul. 5, 2024	4,926	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 100		Jul. 18, 2024	549	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Series 101		Aug, 24, 2024	4,453	Services fulfillment, market performance ^3^ 0~30%, and non-market performance ^4^<br>70~100%
Deferred grant in 2021			52,347	Satisfied
Deferred grant in 2022			58,485	Satisfied
Deferred grant in 2023			137,828	Satisfied
Deferred grant in 2024			6,993	Satisfied


			747,668

Other subsidiaries
Stock granted in 2012			160	Services fulfillment, market performance ^3^ 0~50%, and non-market performance ^4^<br>50~100%
Stock granted in 2013			219
Stock granted in 2014			1,028
Stock granted in 2015			1,287
Stock granted in 2016			234
Stock granted in 2017			5,834
Stock granted in 2018			13,883
Stock granted in 2019			18,106
Stock granted in 2020			53,629
Stock granted in 2021			52,505
Stock granted in 2022			146,378
Stock granted in 2023			385,023
Stock granted in 2024			307,922

			986,208

			2,004,382

^1^	Granted shares represent the total number of shares initially granted to executives and employees who have<br>residual shares as of December 31, 2024 (Deferred grants are residual shares vested as of December 31, 2024).
:---	:---
^2^	Executives and employees were given the right of choice about the timing of the deferred payment (after the<br>date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.
:---	:---
^3^	Relative TSR (Total Shareholder Return): [(Fair value at the end of the contract - Fair value at the beginning<br>of the contract) + (Total amount of dividend per share paid during the contract period)] / Fair value at the beginning of the contract
:---	:---
^4^	Performance results of company and employee
:---	:---
^5^	EPS (Earnings Per Share), Asset Quality, HCROI (Human Capital Return On Investment), Non-bank segment profit
:---	:---
^6^	EPS, Asset Quality
:---	:---

The stock grant linked to long-term performance is an incentive plan that sets, on grant date, the maximum number of shares that can be awarded. Actual shares to be granted is determined in accordance with achievement of pre-set performance targets over the vesting period.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

25.2.2 Stock grants linked to short-term performance

(In number of shares)			Vesting<br><br>conditions
KB Financial Group Inc.
Stock granted in 2015		1,078	Satisfied
Stock granted in 2016		2,076	Satisfied
Stock granted in 2020		156	Satisfied
Stock granted in 2021		11,857	Satisfied
Stock granted in 2022		29,285	Satisfied
Stock granted in 2023		40,280	Satisfied
Stock granted in 2024		23,659	Proportional to service period
Kookmin Bank
Stock granted in 2016		706	Satisfied
Stock granted in 2021		42,816	Satisfied
Stock granted in 2022		107,840	Satisfied
Stock granted in 2023		178,808	Satisfied
Stock granted in 2024		86,113	Proportional to service period
Other subsidiaries
Stock granted in 2015		2,672	Satisfied
Stock granted in 2016		12,312	Satisfied
Stock granted in 2017		26,375	Satisfied
Stock granted in 2018		64,040	Satisfied
Stock granted in 2019		56,724	Satisfied
Stock granted in 2020		75,969	Satisfied
Stock granted in 2021		234,222	Satisfied
Stock granted in 2022		349,858	Satisfied
Stock granted in 2023		575,294	Satisfied
Stock granted in 2024		154,299	Proportional to service period

		2,076,439

*	Executives and employees were given the right of choice about the timing of the deferred payment (after the<br>date of retirement), payment ratio, and payment period. Accordingly, a certain percentage of the granted shares is deferred for up to five years after the date of retirement after the deferred grant has been confirmed.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

25.2.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2024, are as follows:

(In Korean won)
Linked to long-term performance
(KB Financial Group Inc.)
Series 34	2.69	63,498~76,618	72,231~87,156
Series 36	2.69	72,231~87,156	52,755~87,156
Series 37	2.69	72,231~87,156	72,231~87,156
Series 38	2.69	64,306~73,900	66,306~76,198
Series 39	2.69	68,992~87,156	68,992~87,156
Series 40	2.69	65,949~75,790	65,949~75,790
Series 41	2.69	65,949~75,790	65,949~75,790
Series 42	2.69	72,231~87,156	72,231~87,156
Deferred grant in 2015	2.69	—	79,280~87,156
Deferred grant in 2020	2.69	—	79,280~87,156
Deferred grant in 2021	2.69	—	87,156
Deferred grant in 2022	2.69	—	75,790~87,156
Deferred grant in 2023	2.69	—	72,231~87,156
(Kookmin Bank)
Series 85	2.69	65,860~79,468	72,231~87,156
Series 86	2.69	63,498~76,618	72,231~87,156
Series 90	2.69	72,231~87,156	72,231~87,156
Series 91	2.69	72,231~87,156	72,231~87,156
Series 92	2.69	72,231~87,156	72,231~87,156
Series 94	2.69	72,231~87,156	72,231~87,156
Series 96	2.69	68,992~87,156	68,992~87,156
Series 97	2.69	65,949~75,790	65,949~75,790
Series 98	2.69	65,949~75,790	65,949~75,790
Series 99	2.69	65,949~75,790	65,949~75,790
Series 100	2.69	72,231~87,156	72,231~87,156
Series 101	2.69	65,949~75,790	65,949~75,790
Grant deferred in 2021	2.69	—	0~87,156
Grant deferred in 2022	2.69	—	75,790~87,156
Grant deferred in 2023	2.69	—	68,298~87,156
Grant deferred in 2024	2.69	—	70,431~87,156
(Other subsidiaries)
Stock granted in 2012	2.69	—	79,280
Stock granted in 2013	2.69	—	79,280
Stock granted in 2014	2.69	—	52,755~79,280
Stock granted in 2015	2.69	—	47,631~87,156
Stock granted in 2016	2.69	—	87,156
Stock granted in 2017	2.69	—	45,096~87,156
Stock granted in 2018	2.69	—	45,096~87,156
Stock granted in 2019	2.69	—	45,096~87,156
Stock granted in 2020	2.69	—	45,096~87,156
Stock granted in 2021	2.69	—	56,379~87,156
Stock granted in 2022	2.69	64,263~87,156	52,755~87,156
Stock granted in 2023	2.69	68,992~87,156	52,755~87,156
Stock granted in 2024	2.69	65,949~87,156	65,949~87,156

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

25.2.3 Stock grants are measured at fair value using the MonteCarlo simulation model and assumptions used in measuring the fair value as of December 31, 2024, are as follows: (cont’d)

(In Korean won)
Linked to short-term performance
(KB Financial Group Inc.)
Stock granted in 2015	2.69	—	79,280~87,156
Stock granted in 2016	2.69	—	72,231~87,156
Stock granted in 2020	2.69	—	79,280~87,156
Stock granted in 2021	2.69	—	87,156
Stock granted in 2022	2.69	—	79,280~87,156
Stock granted in 2023	2.69	—	75,790~87,156
Stock granted in 2024	2.69	—	68,992~79,280
(Kookmin Bank)
Stock granted in 2016	2.69	—	87,156
Stock granted in 2021	2.69	—	87,156
Stock granted in 2022	2.69	—	72,231~87,156
Stock granted in 2023	2.69	—	75,790~87,156
Stock granted in 2024	2.69	—	68,992~82,229
(Other subsidiaries)
Stock granted in 2015	2.69	—	75,790~87,156
Stock granted in 2016	2.69	—	47,631~87,156
Stock granted in 2017	2.69	—	45,096~87,156
Stock granted in 2018	2.69	—	45,096~87,156
Stock granted in 2019	2.69	—	45,096~87,156
Stock granted in 2020	2.69	—	50,973~87,156
Stock granted in 2021	2.69	—	52,755~87,156
Stock granted in 2022	2.69	—	52,755~87,156
Stock granted in 2023	2.69	—	68,992~87,156
Stock granted in 2024	2.69	—	68,992~82,774

The Company use the volatility of the stock price over the previous year as the expected volatility, and uses the arithmetic mean of the price-dividend ratio of one year before, two years before, and three years before the base year as the dividend yield and uses one-year risk-free rate of Korea Treasury Bond in order to measure the fair value.

Share-based payments arrangement for subsidiaries was transferred to the Company in 2010, and the related compensation cost paid to the executives and employees of subsidiaries is reimbursed by subsidiaries. The accrued expenses for share-based payments as of December 31, 2024 and 2023, are ~~W~~ 295,867 million and ~~W~~ 202,249 million, respectively, and the receivables to be reimbursed by subsidiaries for the compensation costs as of December 31, 2024 and 2023, are ~~W~~ 270,558 million and ~~W~~ 184,433 million, respectively. And compensation costs from share-based payments amounting to ~~W~~ 14,998 million and ~~W~~ 8,551 million were recognized for the years ended December 31, 2024 and 2023, respectively.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

26. Net Other Non-Operating Income and Expenses

Details of other non-operating income and expenses for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Other non-operating income
Reversal of impairment losses of intangible assets	~~W~~	—	~~W~~	—
Others		1,833		5,841

		1,833		5,841
Other non-operating expenses
Impairment losses of intangible assets		1		94
Donation		1,150		1,140
Others		672		1

		1,823		1,235

Net other non-operating income	~~W~~	10	~~W~~	4,606

27. Income Tax Benefit (Expense)

27.1 Details of income tax benefit (expense) for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024			2023
Income tax payable	~~W~~	—		~~W~~	—
Changes in deferred tax assets and liabilities		765			(15,412	)
Origination and reversal of temporary differences		765			(15,412	)
Income tax recognized directly in equity		(352	)		(345	)
Remeasurements of net defined benefit liabilities		(540	)		(345	)
Consideration for exchange right of exchangeable bonds		188			—
Others		(471	)		—

Income tax benefit (Expense)	~~W~~	(58	)	~~W~~	(15,757	)

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

27.2 Analysis of the relationship between net profit before income tax expense and income tax benefit (expense) for the years ended December 31, 2024 and 2023, are as follows:

		2024						2023
(In millions of Korean won)		Tax rate (%)			Amount			Tax rate (%)			Amount
Profit before income tax expense					~~W~~	2,170,655					~~W~~	2,137,001
Income tax at the applicable tax rate *			(25.92	)		(562,691	)		(25.92	)		(553,806	)
Non-taxable income			26.12			566,872			25.86			552,531
Non-deductible expenses			(0.10	)		(2,206	)		(0.06	)		(1,364	)
Consolidated tax return effect			(0.07	)		(1,493	)		(0.60	)		(12,772	)
Others			(0.02	)		(540	)		(0.02	)		(346	)

Average effective tax rate and income tax benefit (expense)			(0.00	)	~~W~~	(58	)		(0.74	)	~~W~~	(15,757	)

*
:---	:---
*	For the year ended December 31 2024 and 2023, applicable income tax rate for ~~W~~<br>200 million and below is 9.9%, for over ~~W~~ 200 million to ~~W~~ 20,000 million is 20.9%, for over ~~W~~ 20,000 to ~~W~~ 300,000 million is 23.1%, for over ~~W~~<br>300,000 is 26.4%.
:---	:---

27.3 The impact of the global minimum tax

The Group is required to pay an additional tax amount on the difference between the GloBE effective tax rate of each subsidiary’s jurisdiction and the minimum tax rate of 15%, in accordance with the Pillar 2 legislation. As a result, the Pillar 2 income tax expense recognized during the year ended December 31, 2024 is ~~W~~ 471 million, and exceptions have been applied regarding the recognition and disclosure of related deferred tax assets and liabilities.

28. Earnings per Share

28.1 Basic Earnings per Share

Basic earnings per share is calculated from the earnings attributable to ordinary shares.

28.1.1 Weighted average number of ordinary shares outstanding

		2024						2023
(In number of shares)		Number of<br>shares			Accumulated<br>number of shares			Number of<br>shares			Accumulated<br>number of shares
Number of issued ordinary shares			393,528,423			146,287,481,492			403,511,072			147,787,824,904
Number of treasury shares *			(19,927,704	)		(7,659,481,944	)		(24,847,247	)		(7,617,096,867	)

Average number of ordinary shares outstanding			373,600,719			138,627,999,548			378,663,825			140,170,728,037

Number of days						366						365
Weighted average number of ordinary shares outstanding						378,765,026						384,029,392
*	Treasury stock retired during the year ended December 31, 2024 and 2023 were deducted from August 14, 2024 and<br>April 4, 2023, respectively.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

28.1.2 Basic earnings per share

(In Korean won and in number of shares)	2024			2023
Profit for the period	~~W~~	2,170,597,148,094		~~W~~	2,121,243,990,198
Deduction: Dividends on hybrid securities		(199,798,800,000	)		(184,915,050,000	)

Profit attributable to ordinary equity holders (A)		1,970,798,348,094			1,936,328,940,198
Weighted average number of ordinary shares outstanding (B)		378,765,026			384,029,392

Basic earnings per share (A/B)	~~W~~	5,203		~~W~~	5,042

28.2 Diluted Earnings per Share

Diluted earnings per share is calculated through increasing the weighted average number of ordinary shares outstanding by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Company has dilutive potential ordinary shares such as stock grants and ordinary share exchange right of exchangeable bonds.

28.2.1 Adjusted profit for diluted earnings per share

(In Korean won)		2024		2023
Profit attributable to the ordinary equity holders*		~~W~~	1,970,798,348,094	~~W~~	1,936,328,940,198
Adjustment:
Interest expense on exchangeable bonds			306,631,690		2,451,851,049

Adjusted profit for diluted earnings per share		~~W~~	1,971,104,979,784	~~W~~	1,938,780,791,247

*	The amount is after deducting dividends on hybrid securities.
:---	:---

28.2.2 Weighted average number of ordinary shares outstanding for diluted earnings per share

(In number of shares)
Weighted average number of ordinary shares outstanding	378,765,026	384,029,392
Adjustment:
Stock grants	4,001,803	4,300,774
Exchangeable bonds	601,093	5,000,000

Adjusted weighted average number of ordinary shares outstanding for diluted earnings per<br>share	383,367,922	393,330,166

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

28.2.3 Diluted earnings per share

(In Korean won and in number of shares)	2024		2023
Adjusted profit for diluted earnings per share	~~W~~	1,971,104,979,784	~~W~~	1,938,780,791,247
Adjusted weighted average number of ordinary shares outstanding for diluted earnings per<br>share		383,367,922		393,330,166

Diluted earnings per share	~~W~~	5,142	~~W~~	4,929

29. Statement of Cash Flows

29.1 Details of cash and cash equivalents as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	December 31,<br>2024			December 31,<br>2023
Due from financial institutions	~~W~~	398,391		~~W~~	256,337
Deduction:		398,391			256,337
Restricted due from financial institutions		(3	)		(3	)
Due from financial institutions with original maturities over three months		(80,000	)		(140,000	)

		(80,003	)		(140,003	)

	~~W~~	318,388		~~W~~	116,334

29.2 Significant non-cash transactions for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Changes in receivables and payables from consolidated tax return	~~W~~	579,105	~~W~~	297,486
Changes in receivables and payables related to stock grants		86,125		14,516
Exchange of treasury shares through the exercise of exchange rights of exchangeable bonds		240,000		—

29.3 Cash inflows and outflows from income tax, interest, and dividends for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)	2024		2023
Income tax paid	~~W~~	6,385	~~W~~	5,242
Interest received		37,706		30,837
Interest paid		109,209		100,634
Dividends received		2,308,845		2,240,975
Dividends paid		1,686,777		1,336,816

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

29.4 Changes in liabilities arising from financing activities for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Beginning				Net cash flows				Non-cash changes				Ending
Borrowings		~~W~~	100,000			~~W~~	865,000			~~W~~	—			~~W~~	965,000
Debentures			3,871,820				(676,055	)			(233,733	)			2,962,032

		~~W~~	3,971,820			~~W~~	188,945			~~W~~	(233,733	)		~~W~~	3,927,032

		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Beginning				Net cash flows				Non-cash changes				Ending
Borrowings		~~W~~	—			~~W~~	100,000			~~W~~	—			~~W~~	100,000
Debentures			4,956,949				(1,089,891	)			4,762				3,871,820

		~~W~~	4,956,949			~~W~~	(989,891	)		~~W~~	4,762			~~W~~	3,971,820

30. Contingent Liabilities and Commitments

30.1 Commitments made with financial institutions as of December 31, 2024 and 2023, are as follows:

		December 31, 2024				December 31, 2023
(In millions of Korean won)		Amount of<br>commitments		Amount<br>borrowed		Amount of<br>commitments		Amount<br>borrowed
General loan	Hana Bank	~~W~~	200,000	~~W~~	—	~~W~~	200,000	~~W~~	—
General loan	Shinhan Bank		200,000		—		200,000		—
General loan	NongHyup Bank		300,000		—		300,000		—

30.2 Other Matters (including litigation)

The Company has no ongoing lawsuits in which it is a defendant as of December 31, 2024.

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

31. Related Party Transactions

According to Korean IFRS No. 1024, the Company includes subsidiaries and key management personnel (including family members) in the scope of related parties. The Company discloses balances (receivables and payables) and other amounts arising from transactions with related parties in the notes to the financial statements. Refer to Note 9 for details of subsidiaries. Key management personnel include the executives of the Company, their close family members, and the companies where the executives and/or their close family members have control or joint control.

31.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
Subsidiaries	Profit or loss	2024			2023
Kookmin Bank	Interest income	~~W~~	11,863		~~W~~	12,010
	Fee and commission income		1,327			1,259
	Net other operating income ^1^		1,467,900			1,346,588
	General and administrative expenses		12,857			12,601
KB Securities Co., Ltd.	Interest expense		15			—
	Fee and commission income		99			88
	Net gains (losses) on financial assets at fair value through profit or loss		44,071			46,168
	Net other operating income ^1^		150,000			100,000
	General and administrative expenses		749			296
KB Insurance Co., Ltd.	Fee and commission income		105			138
	General and administrative expenses		1,735			1,502
	Net other operating income ^1^		249,974			349,990
KB Kookmin Card Co., Ltd.	Fee and commission income		26			33
	Net other operating income ^1^		185,380			200,008
	General and administrative expenses		350			414
	Net non-operating income ^2^		4			3,922
KB Life Insurance Co., Ltd.	Fee and commission income		36			45
	Net other operating income ^1^		150,000			100,000
	General and administrative expenses		817			958
KB Asset Management Co., Ltd.	Net other operating income ^1^		40,000			60,000
	General and administrative expenses		77			2
KB Capital Co., Ltd	Interest income		4,426			4,830
	Fee and commission income		15			16
	Net gains on financial assets at fair value through profit or loss		35,193			43,570
	General and administrative expenses		107			—
	Provision (reversal) for credit losses		(523	)		289
KB Real Estate Trust. Co., Ltd.	Interest income		3,148			943
	Net gains on financial assets at fair value through profit or loss		9,232			—
	Net other operating income ^1^		—			35,000
	General and administrative expenses		53			—
	Provision (reversal) for credit losses		(133	)		133

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

31.1 Details of significant profit or loss arising from transactions with related parties for the years ended December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)
Subsidiaries		Profit or loss	2024			2023
KB Savings Bank Co., Ltd.		Interest income	~~W~~	4,756		~~W~~	4,777
		Fee and commission income		1			2
		Net gains (losses) on financial assets at fair value through profit or loss		3,248			3,818
KB Investment Co., Ltd.		Interest income		9,629			8,697
		Provision for credit losses		(117	)		140
KB Data Systems Co., Ltd.		General and administrative expenses		3,854			2,914
		Net other operating income ^1^		—			600
Other related parties		Profit or loss	2024			2023
KB Credit Information Co., Ltd ^3^		Interest income	~~W~~	—		~~W~~	227
		Net other operating income ^1^		—			200
		Reversal (Provision) for credit losses		—			16
^1^	Net other operating income includes dividend income from subsidiaries.
:---	:---
^2^	Includes ~~W~~ 3,917 million of gains on disposal of investments in KB Credit Information<br>Co., Ltd. for the years ended December 31, 2023.
:---	:---
^3^	The Company sold the 100% shares of KB Credit Information Co., Ltd. to Kookmin Card Co., Ltd. on June 30,<br>2023.
:---	:---

31.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)
Subsidiaries	Assets or liabilities	December 31,<br>2024		December 31,<br>2023
Kookmin Bank	Cash and due from financial institutions	~~W~~	316,781	~~W~~	114,336
	Other assets		468,023		308,475
	Other liabilities		20		45
	Property and equipment		237		1,055
KB Securities Co., Ltd.	Financial assets at fair value through profit or loss		540,683		523,188
	Other assets		100,494		92,212
	Other liabilities		—		1
KB Insurance Co., Ltd.	Other assets		143,520		21,170
	Other liabilities		46		42,956
KB Kookmin Card Co., Ltd.	Other assets		78,634		56,852
	Other liabilities		895		730
KB Life Insurance Co., Ltd.	Other assets		14,235		9,552
	Other liabilities		69,132		132,548
KB Asset Management Co., Ltd.	Other assets		25,549		11,508
KB Capital Co., Ltd.	Financial assets at fair value through profit or loss		495,454		488,175
	Loans measured at amortized cost (gross amount)		—		200,000
	Allowances for credit losses		—		522
	Other assets		48,285		19,364
	Other liabilities		11		—

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

31.2 Details of significant outstanding balances of receivables and payables arising from transactions with related parties as of December 31, 2024 and 2023, are as follows: (cont’d)

(In millions of Korean won)
Subsidiaries		Assets or liabilities	December 31,<br>2024		December 31,<br>2023
KB Real Estate Trust Co., Ltd.		Financial assets at fair value through profit or loss	~~W~~	153,382	~~W~~	—
		Loans measured at amortized cost (gross amount)		—		50,000
		Allowances for credit losses		—		131
		Other assets		4,431		3,949
		Other liabilities		—		8,910
KB Savings Bank Co., Ltd.		Cash and due from financial institutions		80,000		140,000
		Financial assets at fair value through profit or loss		53,951		48,980
		Other assets		3,960		4,729
		Other liabilities		808		2,599
KB Investment Co., Ltd.		Loans measured at amortized cost (gross amount)		360,000		360,000
		Allowances for credit losses		946		1,061
		Other assets		6,794		8,579
		Other liabilities		1,244		—
KB Data Systems Co., Ltd.		Property and equipment		76		—
		Intangible assets		427		331
		Other assets		4,274		1,972
		Other liabilities		250		1,118
Other related parties		Assets or liabilities	December 31,<br>2024		December 31,<br>2023
KB Credit Information Co., Ltd.^*^		Other assets		—		996
		Other liabilities		—		94
*	The Company sold the 100% shares of KB Credit Information Co., Ltd. to Kookmin Card Co., Ltd. on June 30,<br>2023.
:---	:---

31.3 Right-of-use assets and lease liabilities with related parties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)						December 31,<br>2024				December 31,<br>2023
Subsidiary		Kookmin Bank		Right-of-use assets		~~W~~	237			~~W~~	1,055

31.4 Credit card commitments provided from related parties as of December 31, 2024 and 2023, are as follows:

(In millions of Korean won)						December 31,<br>2024				December 31,<br>2023
Subsidiary		KB Kookmin Card Co., Ltd.		Lines of credit for credit card		~~W~~	3,000			~~W~~	3,000

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

31.5 Share transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

(In millions of Korean won)				2024		2023
Subsidiary		KB Securities Co., Ltd.	Acquisition of hybrid securities	~~W~~	—	~~W~~	100,000
		KB Real Estate Trust Co., Ltd.	Acquisition of hybrid securities		150,000		—
		KB Real Estate Trust Co., Ltd.	Issuance of ordinary share		150,000		—
Other related party		KB Credit Information Co., Ltd. ^1^	Disposal of shares		—		23,620
^1^	The Company sold the 100% shares of KB Credit Information Co., Ltd. to Kookmin Card Co., Ltd. on June 30,<br>2023.
:---	:---

31.6 Details of significant lending transactions with related parties for the years ended December 31, 2024 and 2023, are as follows:

				2024
(In millions of Korean won)				Beginning				Loan				Collection				Ending
Subsidiary		KB Investment Co., Ltd.		~~W~~	360,000			~~W~~	—			~~W~~	—			~~W~~	360,000
		KB Capital Co., Ltd.			200,000				—				(200,000	)			—
		KB Savings Bank Co., Ltd. ^1^			70,000				—				—				70,000
		KB Real Estate Trust Co., Ltd.			50,000				105,000				(155,000	)			—
				2023
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(In millions of Korean won)				Beginning				Loan				Collection				Ending
Subsidiary		KB Investment Co., Ltd.		~~W~~	310,000			~~W~~	50,000			~~W~~	—			~~W~~	360,000
		KB Capital Co., Ltd.			200,000				—				—				200,000
		KB Savings Bank Co., Ltd. ^1^			70,000				—				—				70,000
		KB Real Estate Trust Co., Ltd.			—				50,000				—				50,000
Other related party		KB Credit Information Co., Ltd. ^2^			13,500				—				(13,500	)			—
^1^	Par value of subordinated bond issued by KB Savings Bank Co., Ltd. The difference between par value and fair<br>value at the acquisition date was accounted for as investments in subsidiaries.
:---	:---
^2^	The Company sold the 100% shares of KB Credit Information Co., Ltd. to Kookmin Card Co., Ltd. on June 30,<br>2023.
:---	:---

KB Financial Group Inc.

Notes to the Separate Financial Statements

December 31, 2024 and 2023

31.7 Details of compensation to key management personnel for the years ended December 31, 2024 and 2023, are as follows:

		2024
(In millions of Korean won)		Short-term<br>employee<br>benefits				Post-<br>employment<br>benefits				Share-based<br>payments				Total
Registered directors (executive)		~~W~~	921			~~W~~	—			~~W~~	3,360			~~W~~	4,281
Registered directors (non-executive)			678				—				—				678
Non-registered directors			5,461				54				11,638				17,153

		~~W~~	7,060			~~W~~	54			~~W~~	14,998			~~W~~	22,112

		2023
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(In millions of Korean won)		Short-term<br>employee<br>benefits				Post-<br>employment<br>benefits				Share-based<br>payments				Total
Registered directors (executive)		~~W~~	1,286			~~W~~	65			~~W~~	1,850			~~W~~	3,201
Registered directors (non-executive)			676				—				—				676
Non-registered directors			6,768				263				6,701				13,732

		~~W~~	8,730			~~W~~	328			~~W~~	8,551			~~W~~	17,609

31.8 The Company paid ~~W~~ 30 million and ~~W~~ 15 million to KB Securities Co., Ltd., a subsidiary, for the underwriting and arrangement of debentures and hybrid securities for the years ended December 31, 2024 and 2023, respectively.

32. Events after the reporting period

The Company plans to acquire treasury shares amounting to ~~W~~ 520,000 million on the Stock Exchange and retire those shares by May 5, 2025 pursuant to board resolutions dated February 5, 2025.

33. Approval of Issuance of the Financial Statements

The issuance of the Company’s separate financial statements as of and for the year ended December 31, 2024, was initially approved on February 5, 2025 and re-approved due to revision on March 4, 2025 by the Board of Directors.

Independent Auditor’s Report on

Internal Control over Financial Reporting

(English Translation of a Report Originally Issued in Korean)

To Shareholders and the Board of Directors of KB Financial Group Inc.

Opinion on Internal Control over Financial Reporting

We have audited KB Financial Group Inc.’s (the Company) Internal Control over Financial Reporting as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as at December 31, 2024, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

We also have audited, in accordance with Korean Standards on Auditing, the separate financial statements of the Company, which comprise the separate statement of financial position as at December 31, 2024, and the separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flow for the year then ended, and notes to the separate financial statements including material accounting policy information, and our report dated March 5, 2025 expressed an unqualified opinion.

Basis for Opinion on Internal Control over Financial Reporting

We conducted our audit in accordance with Korean Standards on Auditing. Our responsibility under these standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting section of our report. We are independent of the Company in accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of internal control over financial reporting and we have fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management and Those Charged with Governance for Internal Control over Financial Reporting

Management is responsible for designing, implementing and maintaining effective internal control over financial reporting, and for its assessment about the effectiveness of internal control over financial reporting, included in the accompanying ‘Operating Status Report of Internal Control over Financial Reporting’.

Those charged with governance have the responsibilities for overseeing internal control over financial reporting.

Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We conducted the audit in accordance with Korean Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

An audit of internal control over financial reporting involves performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of internal control over financial reporting and testing and evaluating the design and operating effectiveness of internal control over financial reporting based on the assessed risk.

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. An entity’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the entity are being made only in accordance with authorizations of management and those charged with governance; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Yeob Yu, Certified Public Accountant.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 5, 2025

This report is effective as at March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the Company’s internal control over financial reporting thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

Operating Status Report of

the Internal Control over Financial Reporting

To the Shareholder, Board of Directors and Audit Committee of KB Financial Group Inc..

We, as the Chief Executive Officer and the Internal Accounting Manager of KB Financial Group Inc.(“the Company”), assessed operating status of the Company’s Internal Control over Financial Reporting(“ICFR”) for the year ending December 31, 2024.

We evaluated whether the Company effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

March 4, 2025

Jong Hee Yang,<br><br>Chief Executive Officer
Sang Rok Na,<br><br>Internal Accounting Manager

KB 6-K