KB 0001193125-26-094923 6-K Filing: Mar 6, 2026

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 2026

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 Securities Co., Ltd. for Fiscal Year 2025

On March 6, 2026, KB Financial Group Inc. disclosed audit reports of KB Securities Co., Ltd. (“KB Securities”), its wholly-owned subsidiary, for fiscal year 2025 based on the International Financial Reporting Standards as adopted by the Republic of Korea (including the consolidated and separate financial statements of KB Securities as of and for the years ended December 31, 2025 and 2024 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 Securities and remain subject to change.

KB Financial Group Inc. 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 Securities for FY 2025.

Exhibit 99.2: An English-language translation of the Separate Audit Report of KB Securities for FY 2025.

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 6, 2026		By: /s/ Sang Rok Na
		(Signature)
		Name: Sang Rok Na
		Title: Senior Managing Director and Chief Financial Officer

EX-99.1

Exhibit 99.1

KB SECURITIES CO., LTD.

and Subsidiaries

Consolidated Financial Statements

December 31, 2025 and 2024

(With Independent Auditor’s Report Thereon)

KB SECURITIES CO., LTD. and Subsidiaries

Index

December 31, 2025 and 2024

		Page(s)
Independent Auditor’s Report			1~3
Consolidated Financial Statements
Consolidated Statements of Financial Position			4
Consolidated Statements of Profit or Loss			5
Consolidated Statements of Comprehensive Income			6
Consolidated Statements of Changes in Equity			7~8
Consolidated Statements of Cash Flows			9
Notes to the Consolidated Financial Statements			10~151

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of KB Securities Co.,Ltd.

Opinion

We have audited the consolidated financial statements of KB Securities Co.,Ltd. and its subsidiaries (collectively referred to as the “Group”) which comprise the consolidated statements of financial position as at December 31, 2025 and 2024, and the consolidated statements of profit or loss, consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the year 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 KB Securities Co.,Ltd. and its subsidiaries as at December 31, 2025 and 2024, 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).

Basis for Opinion

We conducted our audits 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.

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, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
:---	:---
•	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<br>to 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.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 05, 2026

This report is effective as of March 05, 2026, 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 SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Financial Position

December 31, 2025 and 2024

(in Korean won)
Assets
Cash and deposits	5,36,37,38	4,106,569,157,278	3,322,504,801,129
Financial assets at fair value through profit or loss	6,36,37,38	42,787,453,810,773	37,098,018,781,130
Derivative financial assets	7,36,37,38,39	1,614,613,117,421	1,394,203,700,793
Financial assets at fair value through other comprehensive income	8,36,37,38	9,463,744,417,319	6,485,291,405,839
Investments in associates	9	524,795,447,807	417,779,179,720
Financial assets measured at amortised cost	10,36,37,38,39	10,648,276,534,803	10,605,842,882,283
Property and equipment	11,40	246,132,957,110	264,565,054,272
Investment properties	12	112,303,626,799	419,452,413,193
Intangible assets	13	247,707,431,208	270,013,083,580
Current tax assets		7,263,856,076	6,817,736,155
Deferred tax assets	35	1,028,672,514	101,231,125,789
Other financial assets	14,36,37,38,39	6,323,965,381,055	2,813,756,957,484
Other assets	15	391,035,926,032	191,058,232,236

Total assets		76,474,890,336,195	63,390,535,353,603

Liabilities
Deposit liabilities	16,36,37,38	12,110,773,883,179	7,725,858,827,353
Financial liabilities at fair value through profit or loss	6,36,37,38,39	10,907,226,138,761	10,568,567,281,885
Derivative financial liabilities	7,36,37,38,39	2,088,322,937,570	1,924,224,653,973
Borrowings	17,36,37,38,39	37,823,437,013,085	33,454,601,384,335
Current tax liabilities		3,511,145,613	2,088,698,400
Net defined benefit liabilities	18	78,075,613,277	68,664,255,596
Deferred tax liabilities	35	83,098,965,782	—
Provisions	19	110,112,536,856	137,559,873,490
Other financial liabilities	20,36,37,38,39,40	5,861,140,105,763	2,210,452,579,371
Other liabilities	21	512,456,754,770	410,188,122,844

Total liabilities		69,578,155,094,656	56,502,205,677,247

Equity
Share capital	22	1,493,102,120,000	1,493,102,120,000
Hybrid securities	23	756,092,772,000	756,092,772,000
Other paid-in capital	24	1,479,259,900,170	1,479,259,900,170
Retained earnings	25	2,776,090,156,504	2,709,817,622,121
Other components of equity	26	359,346,515,034	366,918,638,122

Equity attributable to shareholders of the Parent Company		6,863,891,463,708	6,805,191,052,413
Non-controlling interest		32,843,777,831	83,138,623,943

Total equity		6,896,735,241,539	6,888,329,676,356

Total liabilities and equity		76,474,890,336,195	63,390,535,353,603

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

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Profit or Loss

Years Ended December 31, 2025 and 2024

(in Korean won)
Operating income
Fee and commission income	27	1,218,585,193,850	996,126,674,623
Gain on valuation and disposal of financial instruments	28	9,688,036,628,162	6,736,722,555,374
Interest income	29	1,767,647,609,350	1,786,484,002,043
Interest income from financial instruments at FVTPL		818,417,272,992	845,561,099,273
Interest income in applying of effective interest rate		949,230,336,358	940,922,902,770
Gain on valuation and disposal of financial assets measured at amortised costs	30	7,914,883,182	93,211,647,521
Gain on foreign currency transactions	31	1,197,533,309,395	1,003,250,074,144
Other operating income	32	268,507,921,807	216,235,771,509

		14,148,225,545,746	10,832,030,725,214

Operating expenses
Fee and commission expense	27	277,509,273,615	224,247,029,796
Loss on valuation and disposal of financial instruments	28	9,426,444,322,313	6,596,582,730,529
Interest expense	29	1,132,588,335,404	1,179,191,194,744
Loss on valuation and disposal of financial assets measured at amortised costs	30	175,763,491,187	145,590,870,688
Loss on foreign currency transactions	31	1,101,757,751,711	855,259,385,623
Selling and administrative expenses	33	1,070,713,550,424	980,571,344,291
Other operating expenses	32	51,877,818,853	69,801,692,335

		13,236,654,543,507	10,051,244,248,006

Operating profit		911,571,002,239	780,786,477,208
Non-operating income	34	112,942,456,111	79,952,919,885
Non-operating expenses	34	117,621,747,035	112,106,383,967

Profit before income tax		906,891,711,315	748,633,013,126
Income tax expense	35	224,506,293,054	158,272,192,817

Profit for the year		682,385,418,261	590,360,820,309

Profit attributable to:
Shareholders of the Parent Company		679,735,666,551	591,153,189,731
Non-controlling interest		2,649,751,710	(792,369,422	)

The above consolidated statements of profit or loss should be read in conjunction with the accompanying notes.

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2025 and 2024

(in Korean won)
Profit for the year		682,385,418,261		590,360,820,309

Other comprehensive income(loss)
Items that will not be reclassified to profit or loss
Net gains on valuation of equity instruments at fair value through other comprehensive<br>income	8,26	67,227,217,044		8,839,011,424
Fair value changes on financial liabilities designated at fair value due to own credit<br>risk	6,26	(3,225,599,161	)	(5,514,924,589	)
Remeasurements of the net defined benefit liabilities	18,26	(6,236,623,659	)	(4,690,189,048	)
Revaluation of property and equipment	26	(867,736,179	)	—
Items that may be subsequently reclassified to profit or loss
Net gains(losses) on valuation of debt instrument at fair value through other comprehensive<br>income	8,26	(38,367,096,425	)	(1,984,821,331	)
Share of other comprehensive income(loss) of associates	9,26	(786,671,104	)	6,533,680,406
Gains(losses) on hedge of net investments in foreign operations	7,26	6,040,168,716		(21,669,806,592	)
Exchange difference on translation of foreign operations	26	(27,915,387,535	)	66,396,452,674

Other comprehensive income for the year, net of tax		(4,131,728,303	)	47,909,402,944

Total comprehensive income for the year		678,253,689,958		638,270,223,253

Total comprehensive income for the year attributable to:
Shareholders of the Parent Company		677,300,111,295		636,999,680,242
Non-controlling interest		953,578,663		1,270,543,011

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

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2025 and 2024

(in Korean won)	Attributable to the Shareholder of the Parent Company
	Share<br><br>Capital		Hybrid<br><br>Securities		Other Paid<br><br>In Capital		Retained Earnings			Other<br><br>Components<br><br>of<br>Equity			Total			Non-controlling<br><br>Interest			Total Equity
Balance at January 1, 2024		1,493,102,120,000		626,093,392,000		1,478,687,978,420		2,304,302,712,341			322,497,946,084			6,224,684,148,845			71,347,869,622			6,296,032,018,467
Issuance of hybrid securities		—		129,999,380,000		—		—			—			129,999,380,000			—			129,999,380,000
Dividends of hybrid securities		—		—		—		(37,064,078,424	)		—			(37,064,078,424	)		—			(37,064,078,424	)
Dividends		—		—		—		(150,000,000,000	)		—			(150,000,000,000	)		—			(150,000,000,000	)
Changes in scope of consolidation		—		—		571,921,750		—			—			571,921,750			10,520,211,310			11,092,133,060
Replacement due to disposal of equity investments at FVOCI		—		—		—		1,425,798,473			(1,425,798,473	)		—			—			—
Total comprehensive income
Profit for the year		—		—		—		591,153,189,731			—			591,153,189,731			(792,369,422	)		590,360,820,309
Gains on financial instruments at fair value through other comprehensive income		—		—		—		—			6,854,190,093			6,854,190,093			—			6,854,190,093
Fair value changes on financial liabilities designated at fair value due to own credit<br>risk		—		—		—		—			(5,514,924,589	)		(5,514,924,589	)		—			(5,514,924,589	)
Share of other comprehensive income of associates		—		—		—		—			6,533,680,406			6,533,680,406			—			6,533,680,406
Revaluation of property and equipment		—		—				—			—			—			—			—
Remeasurements of net defined benefit liabilities		—		—		—		—			(4,690,189,048	)		(4,690,189,048	)		—			(4,690,189,048	)
Gains on hedge of net investments in foreign operations		—		—		—		—			(21,669,806,592	)		(21,669,806,592	)		—			(21,669,806,592	)
Exchange difference on translation of foreign operations		—		—		—		—			64,333,540,241			64,333,540,241			2,062,912,433			66,396,452,674

Balance at December 31, 2024		1,493,102,120,000		756,092,772,000		1,479,259,900,170		2,709,817,622,121			366,918,638,122			6,805,191,052,413			83,138,623,943			6,888,329,676,356

Balance at January 1, 2025		1,493,102,120,000		756,092,772,000		1,479,259,900,170		2,709,817,622,121			366,918,638,122			6,805,191,052,413			83,138,623,943			6,888,329,676,356
Dividends of hybrid securities		—		—		—		(38,599,700,000	)		—			(38,599,700,000	)		—			(38,599,700,000	)
Dividends		—		—		—		(580,000,000,000	)		—			(580,000,000,000	)		(1,176,318,032	)		(581,176,318,032	)
Changes in scope of consolidation		—		—		—		—			—			—			(50,072,106,743	)		(50,072,106,743	)
Replacement due to disposal of equity investments at FVOCI		—		—		—		1,051,211,175			(1,051,211,175	)		—			—			—
Replacement of Revaluation Surplus due to disposal of property and equipment		—		—		—		4,085,356,657			(4,085,356,657	)		—			—			—
Total comprehensive income
Profit for the year		—		—		—		679,735,666,551			—			679,735,666,551			2,649,751,710			682,385,418,261
Gains on financial instruments at fair value through other comprehensive income		—		—		—		—			29,108,189,243			29,108,189,243			(248,068,624	)		28,860,120,619

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2025 and 2024

Fair value changes on financial liabilities designated at fair value due to own credit<br>risk	—	—	—	—	(3,225,599,161	)	(3,225,599,161	)	—		(3,225,599,161	)
Share of other comprehensive income of associates	—	—	—	—	(786,671,104	)	(786,671,104	)	—		(786,671,104	)
Revaluation of property and equipment	—	—		—	(867,736,179	)	(867,736,179	)	—		(867,736,179	)
Remeasurements of net defined benefit liabilities	—	—	—	—	(6,236,623,659	)	(6,236,623,659	)	—		(6,236,623,659	)
Gains on hedge of net investments in foreign operations	—	—	—	—	6,040,168,716		6,040,168,716		—		6,040,168,716
Exchange difference on translation of foreign operations	—	—	—	—	(26,467,283,112	)	(26,467,283,112	)	(1,448,104,423	)	(27,915,387,535	)

Balance at December 31, 2025	1,493,102,120,000	756,092,772,000	1,479,259,900,170	2,776,090,156,504	359,346,515,034		6,863,891,463,708		32,843,777,831		6,896,735,241,539

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

KB SECURITIES CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2025 and 2024

(in Korean won)	Notes
Cash flows from operating activities
Cash generated from operating activities
Profit for the year		682,385,418,261		590,360,820,309
Adjustment for non-cash items	43	(927,921,963,551	)	(235,405,440,147	)
Changes in operating assets and liabilities	43	(511,465,876,887	)	(1,481,806,807,935	)

		(757,002,422,177	)	(1,126,851,427,773	)
Interest received		1,730,075,332,554		1,723,472,495,685
Interest paid		(1,129,884,884,732	)	(1,162,048,104,085	)
Dividends received		102,789,420,208		87,216,895,805
Income taxes paid		(248,855,506,454	)	(265,384,713,273	)

Net cash used in operating activities		(302,878,060,601	)	(743,594,853,641	)

Cash flows from investing activities
Decrease(increase) in long-term deposit		(65,618,550,000	)	4,904,563,265
Acquisition of financial assets at fair value through other comprehensive income		(11,735,348,404,508	)	(5,810,505,707,282	)
Disposal of financial assets at fair value through other comprehensive income		8,826,609,065,903		4,537,478,148,513
Acquisition of investments of associates	9	(216,945,692,143	)	(189,694,468,319	)
Disposal of investment of associates	9	67,631,618,701		39,028,047,799
Net cash flows from the acquisition of subsidiaries		(9,505,746,848	)	—
Net cash flows from the disposal of subsidiaries		(55,401,797,923	)	4,899,392,910
Acquisition of property and equipment	11	(25,320,731,420	)	(29,580,876,276	)
Disposal of property and equipment	11	30,108,643,761		868,027,735
Acquisition of intangible assets	13	(57,380,348,151	)	(64,199,531,738	)
Disposal of intangible assets	13	1,531,416,125		11,587,324,372
Disposal of investment properties	12	1,459,865,433		—
Others		(33,327,025	)	(91,281,928	)

Net cash provided by investing activities		(3,238,213,988,095	)	(1,495,306,360,949	)

Cash flows from financing activities
Increase in borrowings	43	2,861,360,138,473		1,685,010,912,522
Issuance of debentures	43	2,000,000,000,000		1,658,655,508,229
Repayment of debentures	43	(831,900,000,000	)	(810,000,000,000	)
Increase(decrease) in guarantee deposit liabilities	43	492,762,533		(565,525,605	)
Dividends paid	25	(580,000,000,000	)	(150,000,000,000	)
Decrease of lease liabilities	43	(38,314,233,831	)	(46,492,571,462	)
Issuance of hybrid securities	23	—		129,999,380,000
Dividends of hybrid securities	25	(38,599,700,000	)	(42,652,275,000	)
Increase(decrease) in other liabilities	43	16,665,222,370		(32,697,142,966	)

Net cash provided by financing activities		3,389,704,189,545		2,391,258,285,718

Effect of exchange rate changes on cash and cash equivalents		1,156,578,093		15,979,335,695

Net increase in cash and cash equivalents		(150,231,281,058	)	168,336,406,823
Cash and cash equivalents at the beginning of the year	5	783,086,833,987		614,750,427,164

Cash and cash equivalents in consolidated statement of financial position as at the end of the<br>year	5	632,855,552,929		783,086,833,987

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

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

1. General Information

General information of KB Securities Co., Ltd. (the “Parent Company” or “KB Securities”) which is a controlling company in accordance with Korean IFRS No.1110 Consolidated Financial Statements, and 69 subsidiaries including KBFG Securities America Inc. is as follows:

The Parent Company was established on June 1, 1962, under the name of Kookil Securities Co., Ltd. On June 5, 1986, the Parent Company changed its name to “Hyundai Securities Co., Ltd.”. After several capital increases, the share capital of the Parent Company amounts to ~~W~~1,493,102 million as at December 31, 2025.

The Parent Company became a wholly owned subsidiary of KB Financial Group Inc. on October 19, 2016, through a comprehensive exchange of shares. At the end of the reporting period, KB Financial Group Inc. owns 100% of ordinary shares of the Parent Company.

Meanwhile, the Parent Company merged with KB Investment & Securities Co., Ltd. (the “KB Investment & Securities”) on December 30, 2016 as a surviving company and changed its name to KB Securities Co., Ltd. As at December 31, 2025, the Parent Company has 74 branch offices in Korea and two overseas branch offices.

Details of the consolidated subsidiaries as at December 31, 2025 and 2024, are as follows:

	2025
Investor	Investee	Industry	Percentage of<br>ownership (%)	Location	Date of<br>financial<br>statements
The Parent Company	KBFG Securities America Inc.	Investment, advisory	100.00	USA	December
	KB Securities Hong Kong Ltd.	Investment, advisory	100.00	Hong Kong	December
	KB Securities Vietnam Joint Stock Company	Investment, advisory	99.81	Vietnam	December
	KB FINA COMPANY LIMITED(formely, KB FINA Joint Stock Company)	IT(Fintech)	100.00	Vietnam	December
	PT. KB Valbury Sekuritas	Investment, advisory	65.00	Indonesia	December
	KB Digital Innovation&growth New Technology<br>Business Investment Fund 1	Other financial	20.00	Korea	December
	KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1 1	Other financial	42.86	Korea	December
	KB Global Contents Private Investment Fund 1	Other financial	27.27	Korea	December
	KB Securities ESG Value Enhancement Fund	Other financial	93.75	Korea	December
	LB Ireland Private Real Estate Investment Trust 8	Funds	96.64	Korea	December
	Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15	Funds	98.51	Korea	December
	JB Dry Street Private Fund 1	Funds	100.00	Korea	December
	JB Australia108 Private Fund 1	Funds	100.00	Korea	December
	JB Forge Private Fund 1	Funds	100.00	Korea	December
	JB Hall Street Private Fund 1	Funds	100.00	Korea	December
	JB Margaret Street Private Fund 1	Funds	100.00	Korea	December
	GVA Europe Pre-IPO Private Investment Trust No.1	Funds	100.00	Korea	December
	LIFE Global Reits Pre-IPO General Private<br>Investment Trust 1	Funds	99.89	Korea	December
	Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11	Funds	99.78	Korea	December
	Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)	Funds	99.99	Korea	December
	PineStreet AIOFIII Infrastructure General Private Trust No.2	Funds	99.92	Korea	December
	Samsung Vista Credit BDC Private Investment No.2()	Funds	99.93	Korea	December
	Mangrove Feeder Fund	Funds	71.63	Cayman Islands	December
	GH Real Estate I LP	Investment	81.00	Guernsey	December

All values are in US Dollars.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2025
Investor	Investee	Industry	Percentage of<br>ownership (%)	Location	Date of<br>financial<br>statements
	Able Gwonseon 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 1st Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	Able Sewoon Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	KB MyeongJi 1st Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	KB Mapo 2nd Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Zitaress 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 4th Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Powerplay 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Maseok 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Wave 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Next 1st Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	YSMC 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Stoke 2nd Corp ^1^	Asset-backed securitization	—	Korea	December
	Newstar Seongnam 1st Co.,Ltd ^1^	Asset-backed securitization	—	Korea	December
	KPS Sihwa 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able alpha Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 7th Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	able hi position 1st ^1^	Asset-backed securitization	—	Korea	December
	Able Yongin Wonsam 2nd Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	TRUE HOUSE FIRST CO., LTD. ^1^	Asset-backed securitization	—	Korea	December
	Able Gongpyeong 3rd Co.,Ltd ^1^	Asset-backed securitization	—	Korea	December
	NEW STAR L CARD 1ST CO.,LTD. ^1^	Asset-backed securitization	—	Korea	December
	Olivia 1st Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	New Star Sinar Third Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	New Star YJ Second Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	HJ GALAXY No.4 Co.,ltd ^1^	Asset-backed securitization	—	Korea	December
	Hyosung Vina Second Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	newstarwoncle 1st. Co.ltd ^1^	Asset-backed securitization	—	Korea	December
	NetFabric Suncheon First Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	KB Infra 4th Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Songam 1st Co.,ltd. ^1^	Asset-backed securitization	—	Korea	December
	New Star SJ First Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	New Star REITs First Co., Ltd ^1^	Asset-backed securitization	—	Korea	December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2025
Investor		Investee		Industry		Percentage of<br>ownership (%)		Location		Date of<br>financial<br>statements
		Newstar Cine 1st Co.,ltd. ^1^		Asset-backed securitization		—		Korea		December
		MS Cheongna No.2 Co., Ltd. ^1^		Asset-backed securitization		—		Korea		December
		Next Yeongjong First Co., Ltd. ^1^		Asset-backed securitization		—		Korea		December
		New Star KM First Co., Ltd ^1^		Asset-backed securitization		—		Korea		December
		Newstar Next 1st Co.,ltd. ^1^		Asset-backed securitization		—		Korea		December
		Newstar Next 2nd Co.,ltd. ^1^		Asset-backed securitization		—		Korea		December
		Newstar Doan first Co., Ltd ^1^		Asset-backed securitization		—		Korea		December
		PAV Co., Ltd ^1^		Asset-backed securitization		—		Korea		December
		Still No.1 2nd Co., Ltd ^1^		Asset-backed securitization		—		Korea		December
		Newstar L Chemi 1st ^1^		Asset-backed securitization		—		Korea		December
Mangrove Feeder Fund		Mangrove Master Fund		Funds		100.00		Cayman Islands		December
KB Securities Hong Kong Ltd.		Global Investment Opportunity Limited		Financial & real-estate		100.00		Malaysia		December
^1^	The Group has a substantive power over the special purpose entities (“SPEs”) or investment trusts<br>and is exposed to variable returns. Accordingly, these SPEs and investment trusts are included in subsidiaries although the Group’s ownership is less than 50%.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---
Investor		Investee		Industry		Percentage of<br>ownership (%)		Location		Date of<br>financial<br>statements
The Parent Company		KBFG Securities America Inc.		Investment, advisory		100.00		USA		December
		KB Securities Hong Kong Ltd.		Investment, advisory		100.00		Hong Kong		December
		KB Securities Vietnam Joint Stock Company		Investment, advisory		99.81		Vietnam		December
		KB FINA Joint Stock Company		IT(Fintech)		100.00		Vietnam		December
		PT. KB Valbury Sekuritas		Investment, advisory		65.00		Indonesia		December
		KB Digital Innovation&growth New Technology Business Investment Fund ^1^		Other financial		20.00		Korea		December
		KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund ^1^		Other financial		42.86		Korea		December
		JB New Jersey Private Real Estate Fund 1		Funds		98.15		Korea		December
		LB Ireland Private Real Estate Investment Trust 8		Funds		96.64		Korea		December
		Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		Funds		98.51		Korea		December
		JB Dry Street Private Fund 1		Funds		100.00		Korea		December
		JB Australia108 Private Fund 1		Funds		100.00		Korea		December
		JB Forge Private Fund 1		Funds		100.00		Korea		December
		JB Hall Street Private Fund 1		Funds		100.00		Korea		December
		JB Margaret Street Private Fund 1		Funds		100.00		Korea		December
		GH Real Estate I LP		Investment		81.00		Guernsey		December
		GVA Europe Pre-IPO Private Investment Trust No.1		Funds		100.00		Korea		December
		LIFE Global Reits Pre-IPO General Private Investment Trust 1		Funds		99.89		Korea		December
		Able Gwonseon 1st Co., Ltd. ^1^		Asset-backed securitization		—		Korea		December
		Newstar Gimpo 1st Co., Ltd ^1^		Asset-backed securitization		—		Korea		December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2024
Investor	Investee	Industry	Percentage of<br>ownership (%)	Location	Date of<br>financial<br>statements
	Able Sewoon Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	KB MyeongJi 1st Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Dangjin 1st Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	KB Mapo 2nd Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Wonchang 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Zitaress 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Beomeo-one Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 4th Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Powerplay 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Dosan 1st Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	Able Maseok 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	TW Seocho 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	TW Seocho 2nd Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Wave 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able Next 1st Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	YSMC 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Gyeongsan Logis 1st Co., Ltd ^1^	Asset-backed securitization	—	Korea	December
	Stoke 2nd Corp ^1^	Asset-backed securitization	—	Korea	December
	KB Global Contents Private Investment Fund ^1^	Other financial	27.27	Korea	December
	Newstar Seongnam 1st Co.,Ltd ^1^	Asset-backed securitization	—	Korea	December
	KPS Sihwa 1st Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar NRB First Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Able alpha Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11	Funds	99.78	Korea	December
	KB Securities ESG Value Enhancement Fund	Other financial	93.75	Korea	December
	Able Eunhwasam 2nd Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Sina 2nd Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
	Newstar Gimpo 7th Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	NewStar Yui the 1st ^1^	Asset-backed securitization	—	Korea	December
	able hi position 1st ^1^	Asset-backed securitization	—	Korea	December
	Graha 2nd Co., Ltd.^1^	Asset-backed securitization	—	Korea	December
	Able Yongin Wonsam 2nd Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
	ABLE GUNPO 1ST CO.,LTD. ^1^	Asset-backed securitization	—	Korea	December
	TRUE HOUSE FIRST CO., LTD. ^1^	Asset-backed securitization	—	Korea	December

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
Investor		Investee	Industry	Percentage of<br>ownership (%)	Location	Date of<br>financial<br>statements
		Breeze Air Primary Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
		Able Gongpyeong 3rd Co.,Ltd ^1^	Asset-backed securitization	—	Korea	December
		NEW STAR L CARD 1ST CO.,LTD. ^1^	Asset-backed securitization	—	Korea	December
		Olivia 1st Co.,Ltd. ^1^	Asset-backed securitization	—	Korea	December
		THE APOGEE THE FIRST CO.,LTD. ^1^	Asset-backed securitization	—	Korea	December
		EULJI NAIN 1ST CO.,LTD. ^1^	Asset-backed securitization	—	Korea	December
		E&F Blacksapphire Private Equity Fund	Other financial	98.76	Korea	December
		Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H)	Funds	99.99	Korea	December
		Able Civic 4th Co., Ltd. ^1^	Asset-backed securitization	—	Korea	December
		NEWSTAR EXPER 1ST CO.,LTD. ^1^	Asset-backed securitization	—	Korea	December
		Mangrove Feeder Fund	Funds	74.90	Cayman Islands	December
Mangrove Feeder Fund		Mangrove Master Fund	Funds	100.00	Cayman Islands	December
KB Securities Hong Kong Ltd.		Global Investment Opportunity Limited	Financial & real-estate	100.00	Malaysia	December
E&F Blacksapphire Private Equity Fund		Black Sapphire Holdings Co.,Ltd.	Other financial	100.00	Korea	December
The Parent Company. YSMC 1st Co., Ltd.		K-1 23th Yeoksam Real Estate Investment Trust Company	Real-estate Investment	51.11	Korea	December
^1^	The Group has a substantive power over the special purpose entities (“SPEs”) or investment trusts<br>and is exposed to variable returns. Accordingly, these SPEs and investment trusts are included in subsidiaries although the Group’s ownership is less than 50%.
:---	:---

Summarized financial information of major subsidiaries as at and for the years ended December 31, 2025 and 2024, is as follows:

(in thousands of Korean won)	December 31, 2025				2025
Name of subsidiary	Assets		Liabilities		Operating<br>profit		Profit (loss)<br>for the year			Total<br><br>comprehensive<br>income(loss)
KBFG Securities America Inc.		40,232,659		3,407,150		24,127,770		11,800,416			11,296,043
KB Securities Hong Kong Ltd.		329,258,232		27,059,189		32,834,058		15,138,328			7,694,138
KB Securities Vietnam Joint Stock Company		692,931,158		444,411,064		61,871,812		11,349,528			(2,228,063	)
KB FINA COMPANY LIMITED(formely, KB FINA Joint Stock Company)		2,327,616		4,931		6,563		(170,558	)		(311,786	)
PT. KB Valbury Sekuritas		242,695,761		150,190,089		34,158,077		7,516,684			2,736,180
LB Ireland Private Real Estate Investment Trust 8		57,101		4,383,978		1,245		(239,679	)		(239,679	)
Mangrove Feeder Fund		12,637,369		14,402		—		(612,121	)		(2,150,623	)
Mangrove Master Fund		26,427,117		8,904,190		2,554,967		1,487,459			(438,035	)
GH Real Estate I LP		29,116,238		1,708,208		—		(2,368,340	)		300,148
Global Investment Opportunity Limited		195,235		—		1,105		(17,544	)		(22,910	)
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		2,906,682		241,827		4,395,493		4,211,581			4,211,581

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	December 31, 2025				2025
Name of subsidiary	Assets		Liabilities		Operating<br>profit		Profit (loss)<br>for the year			Total<br><br>comprehensive<br>income(loss)
KB Digital Innovation&growth New Technology Business Investment Fund		9,713,414		144,100		3,084,181		1,832,131			1,832,131
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund 1		18,240,494		341,266		13,303,583		10,555,334			10,555,334
JB Dry Street Private Fund 1		112,070		9,230		5,312		(89,614	)		(89,614	)
JB Australia108 Private Fund 1		68,241		3,554		4,978		(62,665	)		(62,665	)
JB Forge Private Fund 1		48,977		2,882		2,498		(44,857	)		(44,857	)
JB Hall Street Private Fund 1		116,235		3,224		5,173		(82,282	)		(82,282	)
JB Margaret Street Private Fund 1		31,606		668		1,438		(23,385	)		(23,385	)
KB Global Contents Private Investment Fund		14,356,793		6,405		2,496		(1,331,692	)		(1,331,692	)
GVA Europe Pre-IPO Private Investment Trust No.1		26,154,749		16,975		18,669		1,225,242			1,225,242
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,395,925		35,392		3,991		4,086,257			4,086,257
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No. 11		98,066,853		102,685,801		4,574,599		(35,702,583	)		(35,702,583	)
KB Securities ESG Value Enhancement Fund		2,972,631		1,430		485		(91,095	)		(91,095	)
Global One Professional Investment Type Private U.S. Real Estate Investment Trust<br>No. 2(H)		1,247,218		25		132		(192,020	)		(228,979	)
PineStreet AIOFIII Infrastructure General Private Trust No.2		4,741,478		51,688		53,300		(41,989	)		(41,989	)
Samsung Vista Credit BDC Private Investment No.2 ()		21,538,294		6,058		459		(5,741	)		(508,448	)
Able Gwonseon 1st Co., Ltd.		15,441,859		15,355,797		838,634		17,223			17,223
Newstar Gimpo 1st Co., Ltd		22,426,428		22,341,941		2,074,982		347,266			347,266
Able Sewoon Co., Ltd.		4,010,520		3,110,931		2,248,542		1,742,216			1,742,216
KB MyeongJi 1st Co., Ltd.		10,565,777		10,970,839		1,094,510		(761,897	)		(761,897	)
KB Mapo 2nd Co., Ltd.		9,686,143		10,104,501		643,193		(79,844	)		(79,844	)
Zitaress 1st Co., Ltd.		13,920,792		13,221,711		891,670		340,876			340,876
Newstar Gimpo 4th Co., Ltd.		628,295		7,262,873		490,563		60,267			60,267
Powerplay 1st Co., Ltd.		9,410,968		15,161,151		738,673		(5,377,587	)		(5,377,587	)
Able Maseok 1st Co., Ltd.		3,985,918		4,081,361		1,341,776		364,322			364,322
Newstar Wave 1st Co., Ltd.		78,945,209		78,242,955		3,752,677		317,131			317,131
Able Next 1st Co., Ltd		20,404,750		21,157,794		704,547		(106,810	)		(106,810	)
YSMC 1st Co., Ltd.		47,749,856		46,800,000		14		1,169,670			1,169,670
Stoke 2nd Corp		46,255,750		81,745,000		5,476,268		(28,700,316	)		(28,700,316	)
Newstar Seongnam 1st Co., Ltd		3,264,977		3,101,481		681,427		77,947			77,947
KPS Sihwa 1st Co., Ltd.		189,180,028		266,594,862		13,472,756		(35,120,641	)		(35,120,641	)
Able alpha Co., Ltd.		28,279,824		28,815,682		1,764,593		864,588			864,588
Newstar Gimpo 7th Co., Ltd.		54,646,168		96,506,587		7,492,358		2,632,027			2,632,027
able hi position 1st		96,040,137		96,692,839		6,429,202		114,323			114,323
Able Yongin Wonsam 2nd Co., Ltd.		50,448,809		50,989,039		3,754,458		(301,178	)		(301,178	)
TRUE HOUSE FIRST CO., LTD.		15,806,571		15,391,084		1,559,107		214,921			214,921
Able Gongpyeong 3rd Co., Ltd		44,232,571		44,096,594		2,989,943		65,949			65,949
NEW STAR L CARD 1ST CO., LTD.		118,174,139		117,066,951		7,318,224		1,500,051			1,500,051
Olivia 1st Co., Ltd.		16,122,259		15,545,777		3,128,232		440,315			440,315
New Star Sinar Third Co., Ltd		29,963,490		29,819,053		3,817,336		144,437			144,437
New Star YJ Second Co., Ltd		101,571,593		101,814,025		5,111,186		(242,433	)		(242,433	)
HJ GALAXY No.4 Co., ltd		77,308,346		79,100,000		857,226		(1,791,656	)		(1,791,656	)
Hyosung Vina Second Co., Ltd		80,442,497		79,635,668		3,204,145		806,828			806,828
newstarwoncle 1st. Co. ltd		30,050,556		29,819,691		1,746,917		230,855			230,855
NetFabric Suncheon First Co., Ltd.		69,900,222		70,786,426		1,863,942		(886,214	)		(886,214	)

All values are in US Dollars.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		December 31, 2025						2025
Name of subsidiary		Assets			Liabilities			Operating<br>profit			Profit (loss)<br>for the year			Total<br><br>comprehensive<br>income(loss)
KB Infra 4th Co., Ltd.			20,019,960			20,513,907			973,980			(493,948	)		(493,948	)
Newstar Songam 1st Co., ltd.			30,391,950			30,231,083			628,624			160,858			160,858
New Star SJ First Co., Ltd			30,176,874			30,268,673			237,622			(91,800	)		(91,800	)
New Star REITs First Co., Ltd			85,694,079			85,586,849			717,283			107,219			107,219
Newstar Cine 1st Co., ltd.			170,902,334			173,085,365			1,037,552			(2,183,041	)		(2,183,041	)
MS Cheongna No.2 Co., Ltd.			100,586,714			100,606,755			1,040,158			(20,042	)		(20,042	)
Next Yeongjong First Co., Ltd.			109,743,337			116,041,616			1,402,033			(6,298,289	)		(6,298,289	)
New Star KM First Co., Ltd			40,259,681			40,376,169			131,082			(116,490	)		(116,490	)
Newstar Next 1st Co., ltd.			54,851,677			55,947,995			671,298			(1,096,328	)		(1,096,328	)
Newstar Next 2nd Co., ltd.			24,885,748			25,657,260			589,787			(771,522	)		(771,522	)
Newstar Doan first Co., Ltd			110,686,759			110,953,639			161,992			(266,881	)		(266,881	)
PAV Co., Ltd			30,416,264			30,300,115			206,138			116,140			116,140
Still No.1 2nd Co., Ltd			50,776,001			50,841,723			877,105			(65,725	)		(65,725	)
Newstar L Chemi 1st			316,865,568			316,865,568			2,104,083			(1	)		(1	)
JB New Jersey Private Real Estate Fund 1<br>^1^			—			—			15			(60	)		(60	)
K-1 23th Yeoksam Real Estate Investment Trust Company ^1^			—			—			5,673,979			(2,343,177	)		(2,343,177	)
E&F Blacksapphire Private Equity Fund<br>^1^			—			—			—			(722,520	)		(722,520	)
Able Dangjin 1st Co.,Ltd. ^1^			—			—			1,282,298			(132,710	)		(132,710	)
Able Wonchang 1st Co., Ltd. ^1^			—			—			62			267,240			267,240
Able Beomeo-one Co., Ltd. ^1^			—			—			2,037,821			1,817,541			1,817,541
Able Dosan 1st Co., Ltd ^1^			—			—			223,013			(139,123	)		(139,123	)
TW Seocho 1st Co., Ltd. ^1^			—			—			10,062,742			(35,976,631	)		(35,976,631	)
TW Seocho 2nd Co., Ltd. ^1^			—			—			1,827,203			(29,031,254	)		(29,031,254	)
Gyeongsan Logis 1st Co., Ltd ^1^			—			—			916,997			(4,070,233	)		(4,070,233	)
Newstar NRB First Co., Ltd. ^1^			—			—			1,147,001			820,512			820,512
Newstar Sina 2nd Co., Ltd. ^1^			—			—			9,237,352			970,985			970,985
ABLE GUNPO 1ST CO., LTD. ^1^			—			—			577,447			(145,534	)		(145,534	)
Breeze Air Primary Co.,Ltd. ^1^			—			—			2,754,784			(33,394	)		(33,394	)
THE APOGEE THE FIRST CO., LTD. ^1^			—			—			1,645,191			811,498			811,498
Able Civic 4th Co., Ltd. ^1^			—			—			1,332,125			(407,806	)		(407,806	)
NEWSTAR EXPER 1ST CO., LTD. ^1^			—			—			13,050,226			2,736,298			2,736,298
New Star kumkang 1st Co., Ltd. ^1^			—			—			10,674,909			75,080			75,080
Buu 1st Co., Ltd. ^1^			—			—			109,073			(234,021	)		(234,021	)
Prime Twin Co., Ltd ^1^			—			—			297,034			(483,610	)		(483,610	)
New Star Smile First Co., Ltd ^1^			—			—			2,412,202			(285,066	)		(285,066	)
Newstar Solution 2nd Co., Ltd ^1^			—			—			655,668			(202,082	)		(202,082	)
Sepia 1st Co., Ltd. ^1^			—			—			54,918			(382,907	)		(382,907	)
ZeroWind pungmu First Co., Ltd. ^1^			—			—			13,229			(303,238	)		(303,238	)
newstarseongsu 1st. Co. ltd ^1^			—			—			156,000			(177,921	)		(177,921	)
^1^	These companies are excluded from subsidiaries as at December 31, 2025.
:---	:---
(in thousands of Korean won)		December 31, 2024						2024
---	---	:---:	---	---	---	---	---	:---:	---	---	---	---	---	---	---	---
Name of subsidiary		Assets			Liabilities			Operating<br>profit			Profit (loss)<br>for the year			Total<br><br>comprehensive<br>income(loss)
KBFG Securities America Inc.			29,454,978			3,925,511			15,942,384			5,349,316			8,193,302
KB Securities Hong Kong Ltd.			322,077,995			27,573,090			34,975,931			5,010,632			42,442,728
KB Securities Vietnam Joint Stock Company			498,369,887			247,711,661			62,760,647			12,931,044			32,194,535
KB FINA Joint Stock Company			2,825,649			191,178			135,030			(7,100,031	)		(6,620,633	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating<br>profit		Profit (loss)<br>for the year			Total<br><br>comprehensive<br>income(loss)
PT. KB Valbury Sekuritas		132,899,592		43,130,100		24,673,008		4,592,286			11,181,484
JB New Jersey Private Real Estate Fund 1		56,720		403		3,026		(15,900,215	)		(15,900,215	)
LB Ireland Private Real Estate Investment Trust 8		56,280		4,143,478		1,782		(257,351	)		(257,351	)
Mangrove Feeder Fund		18,580,918		18,487		—		(872,877	)		1,055,937
Mangrove Master Fund		32,238,326		10,114,638		2,408,779		607,124			556,423
GH Real Estate I LP		28,473,558		1,365,676		—		(2,012,020	)		(134,743	)
Global Investment Opportunity Limited		218,145		—		1,615		(19,901	)		7,988
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		6,401,893		1,496,961		2,279,870		(2,135,681	)		(2,135,681	)
KB Digital Innovation&growth New Technology Business Investment Fund		7,890,172		152,990		564,375		(93,036	)		(93,036	)
KB Pre-IPO 2nd (TCB) New Technology Business Investment Fund		25,661,250		432,356		6,794,487		811,785			811,785
Able Gwonseon 1st Co., Ltd.		13,676,445		13,607,606		1,068,184		83,897			83,897
JB Dry Street Private Fund 1		201,692		9,239		6,895		(17,362	)		(17,362	)
JB Australia108 Private Fund 1		130,906		3,555		5,488		(12,143	)		(12,143	)
JB Forge Private Fund 1		93,835		2,882		5,468		(8,700	)		(8,700	)
JB Hall Street Private Fund 1		198,516		3,223		6,743		(15,914	)		(15,914	)
JB Margaret Street Private Fund 1		54,995		672		1,871		(4,526	)		(4,526	)
Newstar Gimpo 1st Co., Ltd		39,827,673		40,090,452		11,720,670		9,688,247			9,688,247
Able Sewoon Co., Ltd.		24,430,465		25,273,091		1,310,863		(990,005	)		(990,005	)
KB MyeongJi 1st Co.,Ltd.		15,625,181		15,268,346		1,232,649		6,165			6,165
Able Dangjin 1st Co.,Ltd.		26,845,170		25,784,933		2,641,956		737,641			737,641
KB Mapo 2nd Co.,Ltd.		9,955,880		10,294,395		699,865		473,045			473,045
Able Wonchang 1st Co., Ltd.		9,349,684		10,560,000		763,969		137,169			137,169
Zitaress 1st Co., Ltd.		20,526,071		20,167,866		1,117,426		211,688			211,688
Able Beomeo-one Co., Ltd.		31,459,239		31,074,021		1,741,681		663,544			663,544
Newstar Gimpo 4th Co.,Ltd.		597,458		7,292,304		499,363		(12,916	)		(12,916	)
Powerplay 1st Co., Ltd.		13,150,423		13,523,019		404,946		(574,832	)		(574,832	)
Able Dosan 1st Co., Ltd		4,352,179		2,573,638		855,394		862,146			862,146
Able Maseok 1st Co., Ltd.		16,815,745		17,275,510		5,068,705		1,414,227			1,414,227
TW Seocho 1st Co., Ltd.		200,494,321		198,447,658		16,667,785		5,844,657			5,844,657
TW Seocho 2nd Co., Ltd.		32,208,486		31,281,734		4,182,068		1,676,119			1,676,119
Newstar Wave 1st Co., Ltd.		83,721,465		83,336,342		7,057,512		3,466,095			3,466,095
Able Next 1st Co., Ltd		20,417,274		21,063,508		1,402,326		(598,237	)		(598,237	)
YSMC 1st Co., Ltd.		47,680,186		47,900,000		13		731,524			731,524
Gyeongsan Logis 1st Co., Ltd		18,585,684		18,599,662		230,795		(183,069	)		(183,069	)
Stoke 2nd Corp		69,530,565		76,319,500		5,535,046		(7,568,667	)		(7,568,667	)
KB Global Contents Private Investment Fund		15,682,080		—		4,268		(265,948	)		(265,948	)
Newstar Seongnam 1st Co.,Ltd		1,944,770		1,859,222		2,947,194		1,007,564			1,007,564
KPS Sihwa 1st Co., Ltd.		218,185,315		260,479,507		17,178,878		(40,335,228	)		(40,335,228	)
Newstar NRB First Co., Ltd.		17,984,328		19,331,133		2,594,001		347,089			347,089
GVA Europe Pre-IPO Private Investment Trust No.1		29,638,647		20,032		3,688		2,182,228			2,182,228
LIFE Global Reits Pre-IPO General Private Investment Trust 1		59,383,526		24,950		12,061		4,401,787			4,401,787
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		129,639,678		98,556,042		5,535,662		(7,152,201	)		(7,152,201	)
Able alpha Co., Ltd.		24,312,869		25,713,315		1,757,302		(1,056,473	)		(1,056,473	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	December 31, 2024				2024
Name of subsidiary	Assets		Liabilities		Operating<br>profit		Profit (loss)<br>for the year			Total<br><br>comprehensive<br>income(loss)
K-1 23th Yeoksam Real Estate Investment Trust Company		301,209,424		168,924,135		10,188,322		434,502			434,502
KB Securities ESG Value Enhancement Fund		1,996,726		1,430		538		(92,297	)		(92,297	)
Able Eunhwasam 2nd Co., Ltd.		42,955,135		44,324,704		8,439,125		1,678,170			1,678,170
Newstar Sina 2nd Co., Ltd.		74,387,881		73,529,437		15,460,085		1,852,670			1,852,670
Newstar Gimpo 7th Co.,Ltd.		52,004,996		96,497,442		6,340,484		(44,492,457	)		(44,492,457	)
NewStar Yui the 1st		100,316,599		101,385,834		7,263,486		(1,069,246	)		(1,069,246	)
able hi position 1st		86,563,317		87,330,342		4,450,126		(767,026	)		(767,026	)
Graha 2nd Co., Ltd.		20,473,692		20,461,687		759,786		12,004			12,004
Able Yongin Wonsam 2nd Co.,Ltd.		50,297,134		50,536,186		1,997,382		(239,052	)		(239,052	)
ABLE GUNPO 1ST CO.,LTD.		18,381,451		18,874,773		820,265		(493,322	)		(493,322	)
TRUE HOUSE FIRST CO., LTD.		29,957,465		29,756,900		1,108,310		200,555			200,555
Breeze Air Primary Co.,Ltd.		100,684,566		100,832,748		2,200,356		(148,192	)		(148,192	)
Able Gongpyeong 3rd Co.,Ltd		58,382,203		58,312,176		1,723,871		70,018			70,018
NEW STAR L CARD 1ST CO.,LTD.		147,837,864		148,230,726		2,076,295		(392,863	)		(392,863	)
Olivia 1st Co.,Ltd.		73,445,399		73,309,232		1,238,200		136,157			136,157
THE APOGEE THE FIRST CO., LTD.		39,308,171		39,276,887		318,491		31,274			31,274
EULJI NAIN 1ST CO., LTD.		38,589,392		39,236,893		585,154		(647,503	)		(647,503	)
E&F Blacksapphire Private Equity Fund		39,900,138		3,789		138		(603,651	)		(603,651	)
Black Sapphire Holdings Co., Ltd.		175,847,940		140,837,315		56,835		(3,989,375	)		(3,989,375	)
Global One Professional Investment Type Private U.S. Real Estate Investment Trust<br>No. 2(H)		1,476,198		26		36		(15,122	)		60,913
Able Civic 4th Co., Ltd.		54,734,596		54,990,678		264,115		(256,092	)		(256,092	)
NEWSTAR EXPER 1ST CO., LTD.		583,210,024		583,987,264		953,080		(777,240	)		(777,240	)
Newstar JH Center Co., Ltd. ^1^		—		—		2,549,414		981,219			981,219
Newstar Sina Co., Ltd. ^1^		—		—		1,979,995		25,050			25,050
Lalaroro 1st Co., Ltd. ^1^		—		—		554,229		34,054			34,054
French Shine 1st Co., Ltd. ^1^		—		—		1,574,900		142,774			142,774
KB Infra 2nd Co., Ltd. ^1^		—		—		3,766,827		2,916,891			2,916,891
ABR Joongang2 1st Co.,Ltd ^1^		—		—		1,148,655		43,405			43,405
Able MK 1st co.ltd ^1^		—		—		2,308,411		14			14
Able Civic Third Co., Ltd. ^1^		—		—		378,748		211			211
Newstar Believe Co., Ltd. ^1^		—		—		793,424		582,759			582,759
Able NJ DSM Investment REIT ^1^		—		—		73,467		(20,373,868	)		(24,011,561	)
Able PT 1st Co., Ltd ^1^		—		—		335,359		39,151			39,151
KB Gold 1st Co.,Ltd. ^1^		—		—		742,077		(124,010	)		(124,010	)
Able Gongpyeong 1st Co.,Ltd ^1^		—		—		465,322		59,589			59,589
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38 ^1^		—		—		422,989		343,694			343,694
Able Gasan 1st Co., Ltd. ^1^		—		—		367,506		59,815			59,815
Able Bonri 1st Co., Ltd. ^1^		—		—		7,308,998		(740,605	)		(740,605	)
Newstar Enerbil 1st Co., Ltd. ^1^		—		—		393,852		(52,307	)		(52,307	)
Newstar Plus 1st Co., Ltd. ^1^		—		—		269,260		(2,144	)		(2,144	)
Bighouse 7th Co., Ltd. ^1^		—		—		3,113,874		1,519,228			1,519,228
HD Value 1st Co., Ltd. ^1^		—		—		1,322,380		(479,809	)		(479,809	)
ABLE NJ DSM LLC ^1^		—		—		1,647,158		180,171			(1,612,552	)
Keppel Private Real Estate Investment Trust No.13<br>^1^		—		—		924,910		(147,569	)		(147,569	)
Lamdamine 1st Co.,Ltd ^1^		—		—		—		—			—
KB SmartSchool 1st Co., Ltd. ^1^		—		—		—		—			—
Able Chowall 2nd Co., Ltd. ^1^		—		—		—		—			—
Able TY 2nd Co., Ltd. ^1^		—		—		—		—			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		December 31, 2024				2024
Name of subsidiary		Assets		Liabilities		Operating<br>profit		Profit (loss)<br>for the year		Total<br><br>comprehensive<br>income(loss)
Able Dongtan 1st Co., Ltd. ^1^			—		—		—		—		—
PT. Valbury Capital Management ^1^			—		—		—		—		—
GDIC 2nd co.ltd ^1^			—		—		—		—		—
Able Yongdap 2nd Co., Ltd. ^1^			—		—		—		—		—
KB Samyoung Co., Ltd. ^1^			—		—		—		—		—
Able Banpo 1st Co., Ltd. ^1^			—		—		—		—		—
Able Banpo 2nd Co., Ltd. ^1^			—		—		—		—		—
Newstar Gimpo 5th Co.,Ltd. ^1^			—		—		—		—		—
KB Osansegyo 2nd Co.,Ltd. ^1^			—		—		—		—		—
Newstar one-firm 2023-1 1st. Co., Ltd.<br>^1^			—		—		—		—		—
Newstar one-firm 2023-1 3rd. Co., Ltd.<br>^1^			—		—		—		—		—
Newstar one-firm 2023-1 4th. Co., Ltd.<br>^1^			—		—		—		—		—
Newstar one-firm 2023-1 5th. Co., Ltd.<br>^1^			—		—		—		—		—
Newstar IP Co., Ltd. ^1^			—		—		—		—		—
Newstar Yangju Station 1st Co., Ltd.<br>^1^			—		—		—		—		—
KB Tongyoung 1st Co., Ltd ^1^			—		—		—		—		—
^1^	These companies are excluded from subsidiaries as at December 31, 2024.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of changes in scope for consolidation for the year ended December 31, 2025, are as follows:

(a)	Subsidiaries newly included in the consolidation
Name of entity	Reason
---	:---:
New Star kumkang 1st Co., Ltd.	Holding power over the relevant activities in the event of default and being a<br>provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
Buu 1st Co., Ltd.
New Star Sinar Third Co., Ltd
Prime Twin Co., Ltd
New Star YJ Second Co., Ltd
New Star Smile First Co., Ltd
HJ GALAXY No.4 Co.,ltd
Newstar Solution 2nd Co., Ltd
Sepia 1st Co., Ltd.
ZeroWind pungmu First Co., Ltd.
Hyosung Vina Second Co., Ltd
newstarwoncle 1st. Co.ltd
NetFabric Suncheon First Co., Ltd.
KB Infra 4th Co.,Ltd.
newstarseongsu 1st. Co.ltd
Newstar Songam 1st Co.,ltd.
PineStreet AIOFIII Infrastructure General Private Trust No.2	Holding power or being exposed to significant variable gains from the relevant activities of<br>subsidiaries
MS Cheongna No.2 Co., Ltd.	Holding power over the relevant activities in the event of default and being a<br>provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
New Star SJ First Co., Ltd
New Star REITs First Co., Ltd
Newstar Cine 1st Co.,ltd.
Samsung Vista Credit BDC Private Investment No.2	Holding power or being exposed to significant variable gains from the relevant activities of<br>subsidiaries
Next Yeongjong First Co., Ltd.	Holding power over the relevant activities in the event of default and being a<br>provider of credit facilities or purchase commitments, or being exposed to significant variable gains from the acquisition of subordinated bonds.
New Star KM First Co., Ltd
Newstar Next 1st Co.,ltd.
Newstar Next 2nd Co.,ltd.
Newstar Doan first Co., Ltd
PAV Co., Ltd
Still No.1 2nd Co., Ltd
Newstar L Chemi 1st
(b)	Subsidiaries excluded from the consolidation
:---	:---
Name of entity	Reason
---	:---:
Able Eunhwasam 2nd Co., Ltd.	End of payment guarantee contract
EULJI NAIN 1ST CO.,LTD.	End of payment guarantee contract
NewStar Yui the 1st	End of payment guarantee contract
Graha 2nd Co., Ltd.	End of payment guarantee contract
Black Sapphire Holdings Co.,Ltd.	Disposal
E&F Blacksapphire Private Equity Fund	Disposal
Buu 1st Co., Ltd.	End of payment guarantee contract
Prime Twin Co., Ltd	End of payment guarantee contract
Able Civic 4th Co., Ltd.	End of payment guarantee contract
ABLE GUNPO 1ST CO.,LTD.	End of payment guarantee contract
Gyeongsan Logis 1st Co., Ltd	Repayment of loan
JB New Jersey Private Real Estate Fund 1	Liquidation
Sepia 1st Co., Ltd.	End of payment guarantee contract

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Able Dosan 1st Co., Ltd		End of payment guarantee contract
New Star Smile First Co., Ltd		End of payment guarantee contract
K-1 23th Yeoksam Real Estate Investment Trust Company		Disposal
Breeze Air Primary Co., Ltd.		End of payment guarantee contract
Newstar NRB First Co., Ltd.		End of payment guarantee contract
Newstar Solution 2nd Co., Ltd		End of payment guarantee contract
ZeroWind pungmu First Co., Ltd.		End of payment guarantee contract
New Star kumkang 1st Co., Ltd.		Disposal
NEWSTAR EXPER 1ST CO., LTD.		End of payment guarantee contract
newstarseongsu 1st. Co. ltd		Disposal
Newstar Sina 2nd Co., Ltd.		End of payment guarantee contract
TW Seocho 1st Co., Ltd.		Disposal
TW Seocho 2nd Co., Ltd.		Disposal
Able Dangjin 1st Co., Ltd.		Disposal
Able Beomeo-one Co., Ltd.		Repayment of loan
THE APOGEE THE FIRST CO., LTD.		End of payment guarantee contract
Able Wonchang 1st Co., Ltd.		Repayment of loan

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2. Material Accounting Policies

The material 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.

2.1 Basis of Preparation

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

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Group’s financial position, financial performance or cash flows, is not presented in the accompanying consolidated financial statements.

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

The consolidated financial statements have been prepared on the historical cost basis except for the following items:

•	Certain financial assets and liabilities (including derivatives instruments), certain classes of property,<br>plant and equipment and investment properties measured at fair value
•	Assets held for sale measured at fair value less costs to sell, and
:---	:---
•	Defined benefit obligation and plan assets measured at fair value
:---	:---

The preparation of the consolidated financial statements requires the use of certain significant accounting estimates. Management also needs to exercise judgement in applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.

2.2 Changes in Accounting Policy and Disclosures

2.2.1 New and amended standards adopted by the Group

The Group has applied the following amended standards for the first time for its annual reporting period commencing January 1, 2025.

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

The amendments require the Group to estimate the exchangeability of the currency, and to disclose information related to the currency not exchangeable into the other currency with estimation of foreign exchange rates. These amendments do not have a significant impact on the consolidated financial statements.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

•	Amendment of Korean IFRS No. 1117 “Insurance contracts”

If the estimation methods of input variables used to measure an insurance contract differ from the principled estimation methods required by insurance-related regulations, and if the differences and their impact on the financial statements are judged to be relevant and material to users of the financial statements, they are disclosed.

2.2.2 The following amended standards have been published that are not mandatory for December 31, 2025 reporting periods and have not been early adopted by the Group.

•	Amendments to Korean IFRS No. 1109 Financial Instruments and Korean IFRS No. 1107 Financial<br>Instruments—Disclosure

The amendments of Korean IFRS 1109, Financial Instruments, and Korean IFRS 1107, Financial Instruments: Disclosure have been made for the purpose of addressing questions raised in practice and reflecting new requirements. The amendments should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The main amendments are as follows: The Group is in the process of reviewing the impact of these amendments on the consolidated financial statements.

•	Allowing financial liabilities to be considered settled (derecognized) through electronic payment systems before<br>the settlement date, if certain criteria are met.
•	Clarifying and adding additional guidance for assessing whether a financial asset meets the criteria for payments<br>of principal and interest only.
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•	Disclosing the impact on the company and the extent to which the company is exposed, of contractual terms that<br>change the timing or amount of cash flows under the contract, for each type of financial instrument.
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•	Additional disclosures for equity instruments at designated FVOCI.
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•	Annual Improvement of Korean IFRS Volume 11
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Annual Improvements to Korean IFRS Volume 11 should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the consolidated financial statements.

•	Korean IFRS No. 1101, First-Time Adoption of Korean IFRS : Application of Hedge Accounting upon<br>First-Time Adoption of K-IFRS
•	Korean IFRS No. 1107, Financial Instruments: Disclosure: Derecognition of Profit and Loss, Guidance on<br>Practice
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•	Korean IFRS No. 1109, Financial Instruments: Derecognition of Lease Liabilities and Definition of<br>Transaction Price
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•	Korean IFRS No. 1110, Consolidated Financial Statements: Determination of De facto Agent
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•	Korean IFRS No. 1007, Cash Flow Statement: Cost Method
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KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

•	Amendments to Korean Accounting Standards No. 1109, “Financial Instruments,” and<br>Korean Accounting Standards No. 1107, “Financial Instruments: Disclosures”—Contracts Related to Power Reliant on Nature

The amendments define contracts related to power dependent on nature as contracts that expose companies to the volatility of the underlying electricity supply because the source of electricity generation depends on uncontrollable natural conditions (e.g., weather). The amendments also clarify that “contracts to purchase or sell power dependent on nature” are subject to the self-use exception. Furthermore, The amendments change hedge accounting requirements, including allowing the designation of “variable notional quantities” of “expected power transactions dependent on nature” as “hedged items,” and add related disclosures. These amendments are effective for the year beginning on or after January 1, 2026, with early adoption permitted. These amendments do not have a significant impact on the financial statements.

•	Enactment of Corporate Accounting Standards No. 1118, “Presentation and Disclosure of Financial<br>Statements”

Korean IFRS 1118, “Presentation and Disclosure of Financial Statements,” replaces Korean IFRS 1001, “Presentation of Financial Statements.” The new presentation requirements introduced by Korean IFRS 1118, particularly regarding the definition of operating profit or loss, will enhance the comparability of financial performance across comparable companies. Furthermore, the disclosure requirement for “performance measures defined by management” will enhance transparency. The standard will be effective for the year beginning on or after January 1, 2027, with early adoption permitted. In accordance with the standard’s retrospective requirement, comparative information for the year ended December 31, 2026, will be restated in accordance with Korean IFRS 1118.

The Group has not yet adopted Korean IFRS 1118 and is currently assessing the impact of its adoption. The Group is developing a transition plan and is preparing, as scheduled, its first interim financial statements under No. 1118 for the period ended March 31, 2027, and its annual financial statements for the year ended December 31, 2027.

2.3 Consolidation

The Group has prepared the consolidated financial statements in accordance with Korean IFRS No. 1110 Consolidated Financial Statements.

(a)	Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. All other non-controlling interests are measured at fair values, unless otherwise required by other standards. Acquisition-related costs are expensed as incurred.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Meanwhile, 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 values on the consolidated financial statements of the ultimate parent entity. In addition, the difference between the sum of consolidated book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

The excess of consideration transferred, amount of any non-controlling interest in the acquired entity and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase.

Intergroup transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

(b)	Associates

Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method of accounting, after initially being recognized at cost. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. If the Group’s share of losses of an associate equals or exceeds its interest in the associate (including long-term interests that, in substance, form part of the Group’s net investment in the associate), 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 associate.

If there is objective evidence of impairment on the investment in the associate, the Group recognizes the difference between the recoverable amount of the associate and its book amount as impairment loss.

If an associate uses accounting policies other than those of the Group for the identical transactions and events in similar circumstances, if necessary, adjustments shall be made to make the associate’s accounting policies conform to those of the Group when the associate’s financial statements are used by the Group in applying the equity method.

(c)	Joint Arrangements

A joint arrangement, wherein two or more parties have joint control, is classified as either a joint operation or a joint venture. A joint operator has rights to the assets, and obligations for the liabilities, relating to the joint operation and recognizes the assets, liabilities, revenues and expenses relating to its interest in a joint operation. A joint-venturer has rights to the net assets relating to the joint venture and accounts for that investment using the equity method.

2.4 Foreign Currency Translation

(a)	Functional and presentation currency

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

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b)	Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. They are deferred in other comprehensive income if they relate to qualifying cash flow hedges and qualifying effective portion of hedge of net investments in foreign operations, or are attributable to monetary part of the net investment in a foreign operation.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities held at fair value through other comprehensive income are recognized in other comprehensive income.

2.5 Recognition and Measurement of Financial Instruments

2.5.1 Classification

The Group classifies financial assets as follows.

•	Those to be measured at fair value (through profit or loss or other comprehensive income)
•	Those to be measured at amortised cost
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The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Group reclassifies debt investments when, and only when its business model for managing those assets changes.

For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of non-designated equity investment are recognized in profit or loss.

2.5.2 Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.5.2.1 Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments into one of the following three measurement categories:

(a)	Amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in ‘interest income’ using the effective interest rate method.

(b)	Fair value through other comprehensive income

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in ‘interest income’ using the effective interest rate method. Foreign exchange gains and losses are presented in ‘gain or loss on foreign currency transaction’ and impairment losses are presented in ‘loss on valuation and disposal of financial instrument’.

(c)	Fair value through profit or loss

Assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented net in the statement of profit or loss within ‘gain or loss on valuation and disposal of financial instrument’ in the year in which it arises.

2.5.2.2 Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continues to be recognized in profit or loss when the right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognized in ‘gain or loss on valuation and disposal of financial instrument’ in the statement of profit or loss. Impairment loss (reversal of impairment loss) on equity investments measured at fair value through other comprehensive income are not reported separately from other changes in fair value.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.5.3 Impairment

The Group assesses on a forward-looking basis expected credit losses associated with its debt instruments carried at amortised cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over the expected life of the financial instrument. The Group measures expected credit losses by reflecting reasonable and supportable information that is reasonably available at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future economic conditions.

The Group uses the following three measurement techniques in accordance with Korean IFRS:

•	General approach: for financial assets and off-balance-sheet unused credit line that below two approaches are<br>not applied
•	Simplified approach: for receivables, contract assets and lease receivables
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•	Credit-impaired approach: for purchased or originated credit-impaired financial assets
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Different measurement approaches are applied depending on significant increase in credit risk. 12 month expected credit losses is recognized when credit risk has not significantly increased since initial recognition. A loss allowance at an amount equal to lifetime expected credit losses is recognized when credit risk has significantly increased since initial recognition. Lifetime is presumed to be a period to the contractual maturity date of a financial asset (the expected life of the financial asset).

The Group determines whether the credit risk has increased significantly since initial recognition using the following information. One or more of the following circumstances is deemed significant increase in credit risk.

•	More than 30 days past due;
•	Decline in credit rating at period end by more than certain notches as compared to that at initial<br>recognition;
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•	Decline in ratings below certain level in the early warning system;
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Under simplified approach, the Group shall always measure the loss allowance at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Group shall only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

The Group generally deems credit-impaired in case of one or more of the following circumstances:

•	90 days or more past due;
•	Legal proceedings related to collection;
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•	Refinancing;
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•	Corporate borrowers that are rated C or D;
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•	Debt restructuring.
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2.5.3.1 Forward-looking information

The Group uses forward-looking information, when it determines whether the credit risk has increased significantly since initial recognition and measures expected credit losses.

The Group assumes the risk component has a certain correlation with the business cycle, and calculates the expected credit loss by reflecting the forward-looking information with macroeconomic variables on the measurement inputs.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Forward-looking information used in calculation of expected credit loss is derived after comprehensive consideration of a variety of factors including scenario in management planning, risk situation scenario for stress test, third party forecast, and others.

2.5.3.2 Measuring expected credit losses on financial assets at amortised cost

The amount of the loss on financial assets at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The Group estimates expected future cash flows for financial assets that are individually significant (individual assessment of impairment).

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

•	Individual assessment of impairment

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

•	Collective assessment of impairment

Collective assessment of loss allowance involves historical loss experience along with incorporation of forward-looking information. Such process incorporates factors such as type of collateral, product and borrowers, credit rating, size of portfolio and recovery period and applies ‘probability of default’ (PD) on a company of assets and ‘loss given default’ (LGD) by type of recovery method. Also, the expected credit loss model involves certain assumption to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce gap between loss estimate and actual loss experience.

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

Measuring method of expected credit losses on financial assets at fair value through other comprehensive income is equal to the method of financial assets at amortised cost, except for loss allowances that are recognized as other comprehensive income. Amounts recognized in other comprehensive income for sale or repayment of financial assets at fair value through other comprehensive income are reclassified to profit or loss.

2.5.4 Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Group classified the financial liability as “borrowings” in the statement of financial position.

The Group writes off the carrying amount and allowance of financial assets in its entirety or to a portion thereof when the principal and interest are determined to be no longer recoverable. In general, the Group considers write-off when it is determined that the debtor does not have sufficient resources or income to cover the principal and interest, and this write-off decision is made in accordance with internal regulations.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.5.5 Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

2.6 Financial Liabilities

2.6.1 Classification and Measurement

The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortised cost and present as ‘deposits liabilities’, ‘borrowings’, and ‘other financial liabilities’ in the statement of financial position.

2.6.2 Derecognition

Financial liabilities are removed from the statement of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or canceled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

The Group’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. Financial liabilities designated the financial liabilities at fair value through profit or loss is the structured financial liabilities containing embedded derivatives issued by the Group.

The changes in fair value of financial liabilities at fair value through profit or loss due to the change of credit risk is recognized as other comprehensive income(instead of profit and loss) and this other comprehensive income can not be transferred to profit and loss in subsequent events.

2.7 Derivative Financial Instruments

The Group enters into numerous derivative financial instrument contracts such as stock options, stock swaps, interest rate swaps and others for trading purposes or sale and issue of derivative combined securities. These derivative financial instruments are presented as derivative financial instruments within the financial statements irrespective of transaction purpose and subsequent measurement requirement.

Derivatives are initially recognized at fair value on the date a derivative contract enters into and are subsequently re-measured at their fair value. The changes of the fair value of derivatives financial instruments held for trading are recognized in profit or loss as ‘gain or loss on valuation and disposal of financial instrument’.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Fair value of derivative instrument traded in active market is a quoted price. In case of fair value of relatively simple derivative instruments such as options, interest rate or currency swaps and others is calculated using one or more valuation techniques like cash flow discount model, option pricing model which is based on observable data and appropriate considering the nature of objects.

Also, fair value of more complex derivative instrument is calculated using valuation techniques based on unobservable data in the market. The accuracy of the valuation techniques is approved by periodical review.

2.7.1 Day 1 Profit and Loss

Accordance with Korean IFRS, if there is no available price from active market and if the Group uses a valuation technique that uses unobservable valuation parameters from market for the fair value at initial recognition of financial instruments, 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 amortised by using the straight line method over the life of the financial instruments.

2.7.2 Credit risk adjustments

In case of exchange-traded derivative instrument, credit risk is not reflected on the fair value because exchange-traded derivative instrument is traded in public exchange, and it is not available to identify certain counterparties. Fair value of OTC derivative instrument only reflects credit risk.

2.7.3 Hedge accounting

The accounting treatment of changes of fair value for the derivatives varies as the character of hedging items and the purpose of hedging. The Group holds derivative contracts for the purpose of hedging the risk and the Group designates certain derivatives as hedging instruments to hedge the risk as follows.

(a)	Fair value hedge : a hedge of the exposure to changes in fair value of a recognised asset or liability or an<br>unrecognised firm commitment
(b)	Cash flow hedge : a hedge of the exposure to variability in cash flows that is attributable to a particular<br>risk associated with all, or a component of, the recognised asset or liability or a highly probable forecast transaction
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(c)	Hedge of net investments in foreign operations
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On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

The fair value of derivatives for hedge is disclosed in note 37.

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognized in profit or loss. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss

If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item is fully amortised to profit or loss by the maturity of the financial instrument using the effective interest method.

The accounting treatments of hedge of net investments in foreign operations are similar to those of cash flow hedge.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

If hedging instruments qualify for a hedge of net investments in foreign operations, the effective portion of changes in fair value of hedging instrument is recognized in other comprehensive income or loss and the ineffective portion is recognized in profit or loss. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income will be reclassified from other comprehensive income or loss to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation.

2.8 Property and Equipment

All property and equipment except for land are recognized 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.

Land is measured at fair value on the basis of the valuation performed by an independent valuer. Revaluations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

If an asset’s carrying amount is increased as a result of a revaluation, the increase is recognized in other comprehensive income and the amount is accumulated in equity under the heading of revaluation surplus after netting deferred tax. However, the increase is recognized in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognized in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognized in profit or loss. However, the decrease is recognized in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognized in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. The revaluation surplus included in equity in respect of an item of property and equipment is transferred directly to retained earnings when the asset is derecognized.

Depreciation of all property and equipment, except for land, is calculated using the following method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives as follows:

Property and equipment	Estimated useful lives	Depreciation method
Buildings	40 years	Straight-line method
Vehicles	4 years	Straight-line method
Furniture and equipment	4 years	Straight-line method
Other	4 years	Straight-line method
Right-of-use assets	1~10 years<br><br>(initial date of the contract<br>entered into ~ maturity date)	Straight-line method

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

2.9 Investment Property

Property held to earn rentals or for capital appreciation or both is classified as investment property. Investment property is measured initially at its cost. After recognition as an asset, investment property is carried at cost less accumulated depreciation and impairment losses. Investment property, except for land, is depreciated using the straight-line method over their useful lives of 40 years.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.10 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, comprise software and membership rights, and are amortised using the straight-line method with no residual value over following estimated useful economic life since the asset is available for use. However, goodwill and membership rights are not amortised by considering their useful life as indefinite, because there is no expectable limit to period for use.

Intangible assets		Estimated useful lives		Amortization method
Development costs		4 years		Straight-line method
Software		4 years		Straight-line method

The amortization period and the amortization method for intangible assets with a finite useful life are reviewed at the end of each financial year. The management reviews the useful life of intangible assets that is not being amortised each period to determine whether events and circumstances continue to support an indefinite useful life. If management judges that previous estimates should be adjusted, the change is accounted for as a change in an accounting estimate.

2.11 Impairment of Non-financial Assets

Goodwill or intangible assets with indefinite useful lives are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Non-financial assets, other than goodwill, that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.12 Lease

Lease income from operating leases where the Group is a lessor is recognized 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.

The Group should assess whether a contract is, or contains a lease at the date the contract entered into and the initial application date under Korean IFRS No.1116. But the Group may elect not to reassess whether a contract is, or contains a lease for the contract entered into before the transition date by applying practical expedient permitted by Korean IFRS No.1116. The Group has gone through all the contract to assess whether the contract is, or contains, a lease at the date the contract entered into after the date of initial application.

A lessee is required to recognize a right-of-use asset (lease asset) 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 on a present value basis.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

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

•	Fixed payments (including in-substance fixed payments), less any lease incentives receivable
•	Variable lease payment that are based on an index or a rate
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•	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
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•	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 can not be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms and conditions.

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

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

However, short-term lease (lease that, at the commencement date, has a lease term of 12 months or less) and lease of low-value assets (For example, underlying leased asset under $ 5,000) are permitted to elect exceptional conditions.

The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term.

Related to sale and leaseback, the Group (seller-lessee) is required to apply the 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. However, the Group shall not reassess sale and leaseback transactions entered into before the date of initial application.

Large number of lease contracts held by the Group have extension option and termination option. These conditions are generally used for maximizing the flexibility of lease operation in a view of managing the contracts. Extension option or termination option included in the lease contracts are generally owned by the Group, not lessor. The Group re-evaluated the lease term of the lease contracts by taking into account the contract type, operation plan for branch offices, and costs related to lease termination . As a result, no significant change in the existing lease term has occurred.

2.13 Provisions

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation and the increase in the provision due to passage of time is recognized as interest expense.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.14 Financial Guarantee Contracts

Financial guarantees contracts provided by the Group are initially measured at fair value on the date the guarantee was given. Subsequent to initial recognition, the Group’s liabilities under such guarantees are measured at the higher of the amounts below and recognized as ‘other financial liabilities’:

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

2.15 Revenue Recognition

The Group recognizes revenues in accordance with the following five-step revenue recognition standard (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.
:---	:---

2.16 Employee Benefits

2.16.1 Retirement benefit liabilities: Defined benefit plans and Defined contribution plans

The Group has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The contributions are recognized as employee benefit expenses when an employee has rendered service. A defined benefit plan is a pension plan that is not a defined contribution plan.

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that have terms to maturity approximating to the terms of the related pension obligation. The remeasurements of the net defined benefit liability are recognized in other comprehensive income.

If any plan amendments, curtailments, or settlements occur, past service costs or any gains or losses on settlement are recognized as profit or loss for the year.

2.16.2 Short-term employee benefits

Short-term employee benefits, which are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the service, are recognized in profit or loss at the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

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

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.16.3 Share-based payment

The Group is under share-based payment arrangements that grant shares to the executives of the Group. When the arrangements are exercised, the Group provides share or cash equal to the monetary value of the share.

The Group measures the services acquired and the liability incurred at fair value, and the fair value is recognized as expense and accrued expenses over the vesting period. 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.

2.17 Income Tax Expenses

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

2.17.1 Current income tax

Current income tax is the amount of income taxes 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 expenses that is not deductible in determining taxable profit (tax loss). Current income tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) 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 to settle on a net basis.

2.17.2 Deferred income tax

Deferred income tax is recognized, using the asset-liability method, on temporary differences arising between the tax bases 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 is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss.

Deferred income tax is recognized on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group 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.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

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.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Current income tax and deferred income tax are included in the calculation of income tax expense. Income taxes related to prior period are included in current income tax.

Deferred income taxes, recognized directly in equity or arisen from business combination, are directly deducted from equity or goodwill.

2.17.3 Tax Uncertainties

Due to the complexity of transactions and differences in tax law interpretation, tax policies adopted by the Group may present tax uncertainties. These tax uncertainties arise in tax correction claims, refund lawsuits for tax surcharges by the tax authorities, tax audits and so on. The Group accounts for such tax uncertainties in accordance with Korean IFRS No. 1012 and Korean IFRS No. 2123.

In other words, if the Group has paid an amount due to an additional tax assessment by the tax authorities but the likelihood of a future refund is high, it recognizes the amount as a corporate tax asset. Conversely, amounts expected to be paid as a result of a tax audit or similar investigation are recognized as a corporate tax liability. However, penalties and interest on refunds are regarded, based on their economic substance, as interest or fines, and are accounted for in accordance with Korean IFRS 1037.

2.18 Operating Segment Reporting

Operating segments are components of the Group, about which separate internal reporting information is evaluated regularly by the chief operating decision makers including Board of Directors in deciding how to allocate resources and to assess performance. Each segment is a strategic business unit that offers different products and services, and is managed separately because each business has different risks and opportunities, different technology required and marketing strategies.

Segment information includes the items which are directly attributable and reasonably allocated to the segment.

2.19 Other Receivables and Payables Related to Brokerage Transactions

Regarding customer brokerage transactions, the Group recognizes the receivable from and payable to the Korea Exchange (Clearing and settlement organization) and customers in total amounts, which the Group recognizes as other financial assets and other financial liabilities. The Group offsets the receivable and payable that arise between Korea Exchange and the Group within the same day.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

2.20 Business Combinations

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 values on the consolidated financial statements of the ultimate parent entity. In addition, the difference between the sum of book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

2.21 Approval of Issuance of the Financial Statements

The issuance of the December 31, 2025 consolidated financial statements of the Group was approved by the Board of Directors on February 4, 2026, which is subject to change with approval at the annual shareholder’s meeting.

3. Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Group to make estimates and assumptions concerning the future. Management also needs to exercise judgement in applying the Group’s accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Additional information of significant judgment and assumptions of certain items are included in relevant notes.

3.1 Income taxes

The Group recorded, based on its best estimate, current taxes and deferred taxes that the Group will be liable in the future for the operating results at the end of the reporting period. However, the final tax outcome in the future may be different from the amounts that were initially recorded. Such differences will impact the current and deferred income tax assets and liabilities in the period in which the final tax outcome is determined.

If certain portion of the taxable income is not used for investments or increase in wages in accordance with the Special Taxation for Facilitation of Investment and Mutually-Beneficial Cooperation, the Group is liable to pay additional income tax calculated based on the tax law. Accordingly, the measurement of current and deferred income tax is affected by the tax effects from such tax law. As the Group’s income tax is dependent on the investments and increase in wages, there exists uncertainty with regard to measuring the final tax effects.

3.2 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 and assumptions in price determination and other risks.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

As described in Note 2.5, ‘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.

3.3 Impairment of financial assets

In accordance of Korean IFRS No.1109, the provision for impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and selecting the inputs to the impairment calculation based on the Group’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period (Note 2.5).

3.4 Measurement of defined benefit obligation

The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the defined benefit liability. The Group determines the appropriate discount rate at the end of the reporting period. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit liability. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the pension benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Other key assumptions for defined benefit liability are based in part on current market conditions.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

4. Segment Information

4.1 Types of services from which each reportable segment derives its revenues

Management of the Group decides operating segment based on the information, which is to be reported to the Group’s chief executive officer, in order to allocate resources to the segment and evaluate performance of the segment. The Group’s operating segments consist of brokerage and wealth management, investment banking, trading and other business.

In accordance with Korean IFRS No.1108, reporting segments of the Group by type of services categories are as follows:

Reporting segment		Main business activities
Brokerage and wealth management		Sales and services relating to wealth management and brokerage provided to individuals, corporations and institutional investors
Investment banking		Underwriting and advisory services related to bond issuance, structured finance, initial public offering, and mergers and acquisition
Trading		Trading of securities and derivatives, and proprietary trading
Others		Other services and support services

4.2 Revenue and income of segment reporting

Financial information by operating segment for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025
		Operating<br><br>income			Operating<br><br>expense			Operating<br><br>profit			Non-operating<br><br>income(expense)			Profit(loss) before<br>income tax<br>expense(income)
Brokerage and wealth management			7,811,177,641			7,267,789,965			543,387,676			(16,795,662	)		526,592,014
Investment banking			1,204,956,919			1,088,728,368			116,228,551			4,719,939			120,948,490
Trading			4,366,108,310			4,323,640,622			42,467,688			(4,838,649	)		37,629,039
Others			765,982,676			556,495,589			209,487,087			12,235,081			221,722,168

			14,148,225,546			13,236,654,544			911,571,002			(4,679,291	)		906,891,711

(in thousands of Korean won)		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
		Operating<br><br>income			Operating<br><br>expense			Operating<br><br>profit			Non-operating<br><br>income(expense)			Profit(loss) before<br>income tax<br>expense(income)
Brokerage and wealth management			5,125,756,091			4,796,445,268			329,310,823			(58,644,234	)		270,666,589
Investment banking			1,170,072,565			983,069,680			187,002,885			36,383,312			223,386,197
Trading			3,929,884,607			3,893,895,155			35,989,452			3,518,269			39,507,721
Others			606,317,462			377,834,145			228,483,317			(13,410,811	)		215,072,506

			10,832,030,725			10,051,244,248			780,786,477			(32,153,464	)		748,633,013

The above reported operating income is generated from external customers and inter-segment transactions, and expense includes expenses that can be directly attributed or reasonably allocated to each segment including internal interests. Segment profit represents the profit earned by each segment, reported to the chief executive officer to determine the allocation of resources and to measure the respective segments’ performance.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

4.3 Assets and liabilities of segments

Total assets and liabilities by each segment as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Total assets			Total liabilities
Brokerage and wealth management			12,611,238,694			13,577,838,823
Investment banking			6,370,430,981			1,926,144,042
Trading			28,087,886,043			11,481,948,171
Others			29,405,334,618			42,592,224,059

			76,474,890,336			69,578,155,095

		2024
---	---	:---:	---	---	---	---
(in thousands of Korean won)		Total assets			Total liabilities
Brokerage and wealth management			7,564,847,592			8,311,185,348
Investment banking			6,750,342,725			2,777,070,185
Trading			26,389,900,152			11,811,775,837
Others			22,685,444,884			33,602,174,307

			63,390,535,353			56,502,205,677

4.4 Information on principal customers

No single customer contributed 10% or more to the Group’s revenue for the years ended December 31, 2025 and 2024.

5. Cash and Deposits

The details of cash and deposits as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Cash and cash equivalents
Cash on hand	298		256
Cash in foreign currency	2,472		3,006
Demand deposits	165,866,019		466,097,989
Checking deposit	16,244,316		12,908,712
Foreign currency deposits	184,852,869		192,459,262
Certificates of deposit	17,218,800		16,170,000
MMDA	248,670,778		88,351,061
Accommodation notes	—		7,096,548

	632,855,552		783,086,834

Deposits
Deposits for securities subscription	21,538,625		1,083,733
Reserve for claims of customers’ deposits	1,506,899,724		802,442,695
Guarantee deposits for securities lending and borrowing	389,805,311		46,752,791
Deposits for exchange-traded derivatives	472,541,683		584,738,144
Guarantee deposits for KSFC trading	1,294,281		—
Long-term deposits	155,081,447		109,213,322
Restricted due from financial institutes	42,000		39,000
Others	927,570,303		995,886,495
Allowances for credit losses of deposits	(1,059,769	)	(738,213	)

	3,473,713,605		2,539,417,967

	4,106,569,157		3,322,504,801

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Restricted deposits as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Deposits for securities subscription<br>^1^		21,538,625	1,083,733
Reserve for claims of customers’ deposits^2^		1,506,899,724	802,442,695
Guarantee deposits for securities lending and borrowing ^3^		389,805,311	46,752,791
Deposits for exchange-traded derivatives<br>^4^		472,541,683	584,738,144
Guarantee deposits for KSFC trading^5^		1,294,281	—
Long-term deposits ^6^		69,000,000	82,361,293
Restricted due from financial institutes^7^		42,000	39,000
Others ^8^		927,570,303	995,886,495

		3,388,691,927	2,513,304,151

^1^	Subscription deposits are subscription margin of investors and the Group that are separately deposited at Korea<br>Securities Finance Corporation(KSFC) or other relevant financial institutions until due date for payment for the subscription of the newly issued or sold securities in accordance with the provisions of Article 4-44 of the Regulation on Financial<br>Investment Business.
:---	:---
^2^	The reserve for claims of customers’ deposits is deposited separately in a form of trust in KSFC to meet<br>the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.
:---	:---
^3^	Deposited in Korea Securities Depository to guarantee for securities lending and borrowing.
:---	:---
^4^	The deposits for exchange-traded derivatives that the investors and the Group pay for foreign futures option<br>trading to KEB Hana Bank and Forex Dealer Member.
:---	:---
^5^	In the case of an investor’s loan transaction, a certain portion of the price of securities sold is<br>deposited at KSFC as margin.
:---	:---
^6^	Pledged deposits provided for securities lending and borrowing, repurchase agreements between institutions and<br>retail payment through investment & securities companies are included.
:---	:---
^7^	Guarantee deposits for checking accounts
:---	:---
^8^	Deposits in foreign currency and others consist of the margin accounts for trading financial instruments in<br>foreign markets and deposits to court.
:---	:---

Changes in allowances for credit losses of deposits for the years ended December 31, 2025 and 2024, are as follows:

	2025
	12-month<br>expected<br>credit losses			Lifetime expected credit losses
(in thousands of Korean won)				Non-impaired		Impaired
Beginning		738,213			—		—
Provision		321,556			—		—

		1,059,769			—		—

	2024
	12-month<br>expected<br>credit losses			Lifetime expected credit losses
(in thousands of Korean won)				Non-impaired		Impaired
Beginning		290,229			—		—
Provision		448,028			—		—
Other changes (foreign exchange rate, etc.)		(44	)		—		—

		738,213			—		—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

6. Financial Instruments at FVTPL

The details of financial instruments at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	Financial Assets at FVTPL				Financial Liabilities at FVTPL
	2025		2024		2025		2024
Financial assets required to be mandatorily measured at FVTPL		42,787,453,811		37,098,018,781		2,910,712,724		2,558,520,223
Financial assets designated at FVTPL		—		—		7,996,513,415		8,010,047,059

		42,787,453,811		37,098,018,781		10,907,226,139		10,568,567,282

6.1 Financial assets required to be mandatorily measured at FVTPL

The details of financial assets required to be mandatorily measured at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Deposits
Reserve for claims of customers’ deposits (trust) ^1^		6,291,667,379	4,458,853,144
Equity instruments
Stocks		4,090,047,147	1,629,488,642
Debt instruments
Government and local government bonds		2,931,969,940	4,038,123,584
Special bonds		4,210,324,688	4,394,107,831
Corporate bonds		6,824,486,015	5,887,629,630
Corporate commercial papers		5,369,662,486	5,668,511,190
Asset-backed short-term bonds		1,124,792,053	1,731,958,269
Hybrid bond with security-like features		328,391,430	267,899,220
Investment in partnerships		717,130,999	621,369,479
Collective investment securities		6,587,303,623	4,889,259,964
Hybrid stock with bond-like features		137,557,530	191,300,842
Loans
Loan receivables		960,390,430	937,623,364
Derivative linked securities
Equity-linked securities		80,970,708	10,897,742
Other derivative linked securities		1,021,084,300	783,440,520
Other OTC derivative combined contract		143,046,855	102,732,731
Securities in foreign currency
Stocks in foreign currency		50,592,275	56,718,799
Bonds in foreign currency		1,243,360,934	841,110,016
Investment in partnerships in foreign currency		49,909,886	52,692,465
Collective investment securities in foreign currency		231,861,157	148,454,235
Collective fund for default loss		96,241,957	82,900,562
Hybrid bonds		293,249,242	271,689,060
Exchange traded notes		134,273	—
Other short-term securities held for sale		3,278,504	31,257,492

		42,787,453,811	37,098,018,781

^1^	The reserve for claims of customers’ deposits is restricted to use because this reserve is deposited<br>separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Details of securities sold which are classified as financial liabilities at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Equity Securities
Stocks	1,640,199,761	798,188,133
Debt Securities
Government and local government bonds	1,243,927,993	1,758,937,852
Collective investment securities	26,584,970	1,394,238

	2,910,712,724	2,558,520,223

The details of financial assets pledged as collateral as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		Description^1^	2025	2024	Security right holder
Financial assets at FVTPL		Guarantee deposits for lending and borrowing securities and bonds	11,148,996,178	9,908,290,516	Korea Securities<br><br>Depository, KSFC,<br>etc.
		Margin required and guarantee deposits for derivatives trading	1,741,587,209	1,591,262,017	Korea Stock Exchange, etc.
		Guarantee deposits for loan	105,943,750	—	Kookmin Bank
		Guarantee deposits for reverse repurchase agreements	4,148,851,974	4,232,134,843	Customer, Institution
Financial assets at FVOCI		Guarantee deposits for lending and borrowing securities and bonds	4,041,764,331	2,510,367,880	Korea Securities<br><br>Depository, KSFC,<br>etc.
		Guarantee deposits for derivatives trading	106,035,567	183,121,174	Korea Securities<br><br>Depository, etc.
		Guarantee deposits for reverse repurchase agreements	2,601,915,338	1,811,592,215	Customer, Institution

			23,895,094,347	20,236,768,645

^1^	As at December 31, 2025 and 2024, the accrued interests related to debt securities provided as collateral<br>of ~~W~~235,903 million and ~~W~~406,426 million, respectively, are excluded.
:---	:---

The Group provides ~~W~~10,485,363 million and ~~W~~8,027,229 million of its borrowing securities held as collateral to KSFC and others as at December 31, 2025 and 2024, respectively.

As at December 31, 2025 and 2024, the fair values of collaterals sold or repledged as collateral regardless of default are as follows:

(in thousands of Korean won)	Securities
	2025		2024
Fair value of collateral held		2,034,440,723		2,255,447,484
Fair value of collaterals sold or re-provided as collateral		—		—

		2,034,440,723		2,255,447,484

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

6.2 Financial liabilities designated at FVTPL

The details of financial liabilities designated at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)

Derivative linked securities
Equity-linked securities	3,959,492,400	4,437,103,116
Other derivative linked securities	2,440,972,492	2,062,512,677
Other OTC derivative combined contract	1,088,148,738	1,209,941,532
Exchange traded notes	507,899,785	300,489,734

	7,996,513,415	8,010,047,059

The differences between the contractual value to be paid at maturity and the carrying amount of financial liabilities at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)

Contractual value to be paid at maturity	7,909,016,857		7,947,235,520
Carrying amount	7,996,513,415		8,010,047,059

Differences	(87,496,558	)	(62,811,539	)

Accumulated changes in fair value of financial liabilities at FVTPL due to the change of credit risk as at December 31, 2025 and 2024, are as follows:

		Other comprehensive income recognized<br>from changes of fair value due to the change<br>of credit<br>risk (before tax) ^1^
(in thousands of Korean won)		2025		2024
Beginning of the year			23,501,476		16,008,372
Change of fair value			4,805,676		7,493,104

End of the year			28,307,152		23,501,476

^1^	The Group assessed OCI based on the probability of default corresponding to the Group’s credit rating and<br>loss given default. The amount is before tax.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

7. Derivatives and Hedge Accounting

Derivatives owned by the Group as at December 31, 2025 and 2024, are as follows:

	2025
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		458,350		—		1,340,185		2,711,107,584
Equity:
Futures		—		395,800		—		6,880,804		3,552,399,956
Purchase options		—		164,620,094		—		—		471,966,622
Written options		—		—		—		119,129,766		885,215,546
Currency:
Futures		—		727,819		—		19,982		667,149,581
Goods:
Futures		—		1,055,889		—		1,949,104		81,630,722

		—		167,257,952		—		129,319,841		8,369,470,011

OTC derivatives
Interest rate:
Forwards		—		831,678,574		—		789,179,537		24,953,579,400
Swaps		—		170,399,971		—		288,078,925		81,372,320,305
Options		—		9,462,701		—		12,711,975		450,000,000
Currency:
Forwards		—		102,929,263		2,911,200		187,684,256		10,916,998,422
Swaps		—		1,624,649		—		897,916		307,834,412
Options		—		2,739,390		—		—		143,490,000
Equity:
Swaps		—		237,065,442		—		379,735,597		6,120,873,935
Purchase options		—		41,840,388		—		—		444,767,350
Written options		—		—		—		42,262,638		450,988,980
Credit:
Swaps		—		35,971,365		—		26,470,050		5,122,155,324
Goods:
Swaps		—		10,571,788		—		10,185,126		568,777,593
Options		—		3,071,634		—		3,109,343		101,737,280
Others:
Swaps		—		—		—		215,776,534		729,940,931

		—		1,447,355,165		2,911,200		1,956,091,897		131,683,463,932

		—		1,614,613,117		2,911,200		2,085,411,738		140,052,933,943

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2024
	Assets				Liabilities
(in thousands of Korean won)	Hedging		Trading		Hedging		Trading		Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures		—		1,178,439		—		5,406,671		4,179,414,373
Equity:
Futures		—		3,260,046		—		7,962,965		2,140,518,324
Purchase options		—		9,946,986		—		—		264,716,897
Written options		—		—		—		165,495,252		1,305,007,298
Currency:
Futures		—		1,694,383		—		234,401		467,353,785
Goods:
Futures		—		1,191,265		—		1,012,175		42,764,421

				17,271,119		—		180,111,464		8,399,775,098

OTC derivatives
Interest rate:
Forwards		—		697,806,221		—		674,883,353		17,627,246,000
Swaps		—		118,669,376		—		312,957,040		122,722,303,442
Options		—		10,235,246		—		12,676,965		450,100,000
Currency:
Forwards		—		182,379,315		4,309,200		229,896,555		8,112,241,494
Swaps		—		28,173,803		—		28,835,713		682,131,009
Options		—		4,415,787		—		6,151		147,000,000
Equity:
Swaps		—		278,277,987		—		156,824,783		4,963,174,354
Purchase options		—		4,396,416		—		—		471,018,000
Written options		—		—		—		5,872,788		483,738,001
Credit:
Swaps		—		37,123,089		—		27,397,061		4,411,630,000
Goods:
Swaps		—		12,389,787		—		11,780,566		1,297,182,950
Options		—		3,018,458		—		3,130,137		292,290,390
Others:
Swaps		—		47,097		—		275,542,878		796,712,171

				1,376,932,582		4,309,200		1,739,803,990		162,456,767,811

				1,394,203,701		4,309,200		1,919,915,454		170,856,542,909

The Group entered into the derivative contracts for hedging foreign currency risk of foreign operations and applied hedge of net investments in foreign operations accounting.

Gain or loss on hedge of net investments in foreign operations for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain(loss) on the hedging instrument	6,780,762	(32,456,592	)
Effective portion of changes in fair value of hedging (other comprehensive income)	6,780,762	(32,456,592	)
Ineffective portion of changes in fair value of hedging (profit or loss)	—	—

The effective portion of changes in fair value of hedge of net investments in foreign operations recognized as other comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other comprehensive income	6,780,762		(32,456,592	)
Reclassification form other comprehensive income to net income	758,100		3,013,920
Tax effect	(1,498,693	)	7,772,865

Other comprehensive income-net of tax	6,040,169		(21,669,807	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The average price related to hedge of net investments in foreign operations as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	The nominal<br>amount of<br>the hedging<br>instrument		Average price(KRW/,Korean won)	Average price(KRW/,Korean won)	Average price(KRW/,Korean won)
1 year		242,498,100	1,173.81	—	—
2 year		—	—	—	—
3 year		—	—	—	—
Over 3 year		—	—	—	—

		242,498,100	1,173.81	—	—

(in thousands of Korean won)	2024
	The nominal<br>amount of<br>the hedging<br>instrument		Average price(KRW/,Korean won)	Average price(KRW/,Korean won)	Average price(KRW/,Korean won)
1 year		15,876,000	1,071.00	—	—
2 year		236,670,000	1,178.92	—	—
3 year		—	—	—	—
Over 3 year		—	—	—	—

		252,546,000	1,172.13	—	—

8. Financial Assets at FVOCI

The details of financial assets at FVOCI as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Equity instruments
Stocks ^1^		555,227,795	472,013,720
Investment in partnerships		1,200,000	1,200,000
Other		941,617,362	879,977,297
Debt instruments
Government and municipal government bonds		113,091,530	70,709,895
Special bonds		2,331,033,103	1,821,452,212
Corporate bonds		4,657,305,415	2,595,239,175
Securities in foreign currency
Debt instruments		860,204,442	641,121,645
Stocks		2,407,680	2,407,680
Investment in partnerships		1,657,090	1,169,782

		9,463,744,417	6,485,291,406

^1^	Equity investment on Korea Stock Exchange and other relative institutions
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in gains and losses on valuation of financial assets at FVOCI (before tax) for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025
		Beginning<br>balance				Valuation^1^				Disposal<br><br>/ Transfer				Ending<br><br>balance
Stocks			370,452,931				102,445,443				1,586,092				474,484,466
Government and local government bonds			(447,623	)			(8,018,955	)			447,623				(8,018,955	)
Special bonds			9,273,877				(14,240,022	)			(5,205,743	)			(10,171,888	)
Corporate bonds			13,629,179				(21,429,749	)			(7,634,040	)			(15,434,610	)
Securities in foreign currency			(2,120,577	)			3,583,955				420,107				1,883,485
Other securities in Korean won			10,515,554				(8,443,100	)			1,094,085				3,166,539

			401,303,341				53,897,572				(9,291,876	)			445,909,037

^1^	Provision for credit loss of debt instruments at FVOCI of ~~W~~1,746 million is excluded.
:---	:---
(in thousands of Korean won)		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		Beginning<br>balance				Valuation^1^				Disposal<br><br>/ Transfer				Ending<br><br>balance
Stocks			386,171,268				(15,718,337	)			—				370,452,931
Government and local government bonds			57,031				(447,623	)			(57,031	)			(447,623	)
Special bonds			3,686,348				7,970,335				(2,382,806	)			9,273,877
Corporate bonds			6,816,506				8,237,295				(1,424,622	)			13,629,179
Securities in foreign currency			(1,426,312	)			(832,697	)			138,432				(2,120,577	)
Other securities in Korean won			(1,588,431	)			14,095,998				(1,992,013	)			10,515,554

			393,716,410				13,304,971				(5,718,040	)			401,303,341

^1^	Provision for credit loss of debt instruments at FVOCI of ~~W~~215 million is excluded.
:---	:---

The derecognized equity investments at FVOCI for the year ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Marketable securities	20,817,460	—
Other quity investments at FVOCI	136,243,062	151,937,226

	157,060,522	151,937,226

The dividend income from equity investments at FVOCI for the years ended December 31, 2025 and 2024, are as follows;

(in thousands of Korean won)	2025				2024
	Derecognised		Held at the<br>end of<br>reporting<br>period		Derecognised		Held at the<br>end of<br>reporting<br>period
Equity investments at FVOCI
Marketable securities		1,610,875		2,107,287		—		—
Non marketable securities		—		13,569,397		—		14,628,399
Other equity investments		143,647		45,823,737		698,774		31,745,544

		1,754,522		61,500,421		698,774		46,373,943

The Group recognized provision for credit loss of debt instruments at FVOCI amount (before tax) to ~~W~~3,489 million and ~~W~~1,743 million, as at December 31, 2025 and 2024, respectively.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

9. Investments in Associates

Investments in associates as at December 31, 2025 and 2024, are as follows:

(in thousands of<br><br>Korean<br>won)					2025						2024
	Location	Industry	Closing<br>month		Acquisition<br>cost		Net asset<br>amount		Book<br>amount		Acquisition<br>cost		Net asset<br>amount		Book<br>amount
KB Special Purpose Acquisition Company No.21	Korea	SPAC	—	—		—		—		—		10,000		20,894		20,894
KB Special Purpose Acquisition Company No.25<br>^1^	Korea	SPAC	November	0.12		5,000		10,165		10,165		5,000		9,965		9,965
KB Special Purpose Acquisition Company No.26	Korea	SPAC	—	—		—		—		—		5,000		9,836		9,836
KB Special Purpose Acquisition Company No.27<br>^1^	Korea	SPAC	November	0.04		5,000		10,460		10,460		5,000		10,236		10,236
KB Special Purpose Acquisition Company No.28	Korea	SPAC	—	—		—		—		—		5,000		9,645		9,645
KB Special Purpose Acquisition Company No.29<br>^1^	Korea	SPAC	November	0.16		10,000		20,367		20,367		10,000		19,982		19,982
KB Special Purpose Acquisition Company No.30<br>^1^	Korea	SPAC	November	0.19		10,000		19,930		19,930		10,000		19,518		19,518
KB Special Purpose Acquisition Company No.31<br>^1^	Korea	SPAC	November	0.16		10,000		20,046		20,046		10,000		22,618		22,618
KB Special Purpose Acquisition Company No.32<br>^1^	Korea	SPAC	November	0.16		10,000		19,599		19,599		—		—		—
KB Special Purpose Acquisition Company No.33<br>^1^	Korea	SPAC	November	1.08		160,000		169,648		169,648		—		—		—
KB New Paradigm Agriculture Venture Fund	Korea	Investment	December	25.00		900,000		589,976		589,976		1,275,000		1,291,253		1,291,253
KB KONEX Market Vitalization Fund	Korea	Investment	—	—		—		—		—		540,000		1,928,317		1,928,317
KB-KDBC New Technology Business Investment Fund	Korea	Investment	—	—		—		—		—		1,500,000		2,601,286		2,601,286
KBTS Technology Venture Private Equity Fund<br>^1^	Korea	Investment	December	16.00		1,888,000		2,724,603		2,724,603		1,888,000		3,179,737		3,179,737
KB-SJ Tourism Venture Fund ^1^	Korea	Investment	December	18.52		380,000		1,518,202		1,518,201		570,000		1,780,925		1,780,925
KB Shinjasanaubo Fund ^1^	Korea	Investment	December	14.67		1,804,000		681,084		681,084		1,804,000		1,031,767		1,031,767
UNION Media Commerce Fund	Korea	Investment	December	28.99		1,000,000		940,711		940,711		1,000,000		945,674		945,674
KB SPROTT Renewable Private Equity Fund I	Korea	Investment	December	26.69		3,682,135		822,106		822,106		3,682,135		3,052,067		3,052,067

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB-Stonebridge Secondary Private Equity Fund ^1^	Korea	Investment	December	4.16	3,371,606	3,430,784	3,430,784	4,620,046	4,819,055	4,819,055
KB-SP Private Equity Fund IV	Korea	Investment	—	—	—	—	—	6,100,000	3,995,113	3,995,113
KB-UTC Inno-Tech Venture Fund ^1^	Korea	Investment	December	14.76	6,262,500	2,466,131	2,466,131	6,262,500	3,910,530	3,910,530
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund ^1^	Korea	Investment	December	6.60	5,478,329	9,969,640	9,969,640	5,379,144	8,021,543	8,021,543
KB-KTB Technology Venture Fund ^1^	Korea	Investment	December	18.18	10,000,000	8,780,181	8,780,181	10,000,000	9,088,456	9,088,456
KB Bio Global Expansion Private Equity Fund No.1	Korea	Investment	December	39.47	15,000,000	17,288,503	17,288,503	15,000,000	17,870,374	17,870,374
KB Digital Platform Fund ^1^	Korea	Investment	December	16.67	38,000,000	51,887,076	51,887,076	28,000,000	28,288,502	28,288,502
KB-SOLIDUS Healthcare Investment Fund ^1^	Korea	Investment	December	5.10	5,000,000	4,878,432	4,878,432	3,683,333	3,484,892	3,484,892
G Payment Joint Stock Company	Vietnam	Electrinic<br><br>payment &<br><br>settlement<br><br>agency	December	20.72	5,870,702	1,910,047	2,385,554	5,870,702	1,504,194	2,520,780
KB-GeneN Medical Venture Fund 1	Korea	Investment	December	22.52	2,000,000	1,838,386	1,838,386	2,000,000	1,880,230	1,880,230
DA-Friend Investment Fund II	Korea	Investment	December	27.06	987,633	901,665	901,665	987,633	906,175	906,175
Cornerstone Pentastone IV Fund	Korea	Investment	December	21.52	817,742	763,413	763,413	817,742	763,949	763,949
JS Private Equity Fund III	Korea	Investment	December	20.48	195,773	410,733	410,733	945,021	742,406	742,406
Mirae Asset Mobility Investment Fund I	Korea	Investment	December	22.99	2,000,000	1,885,407	1,885,407	2,000,000	1,917,647	1,917,647
KB-FT 1st Green Growth Investment Fund ^1^	Korea	Investment	December	10.34	2,000,000	1,847,275	1,847,275	2,000,000	1,888,925	1,888,925
THE CHAEUL FUND NO.1	Korea	Investment	—	—	—	—	—	1,000,000	953,961	953,961
POSITVE Sobujang Venture Fund #1	Korea	Investment	—	—	—	—	—	879,121	869,206	869,206
KB-NP Green ESG New Technology Venture Capital Fund ^1^	Korea	Investment	December	11.59	18,443,847	18,661,880	18,661,879	16,100,000	15,436,985	15,436,985
Hisstory 2022 Fintech Fund	Korea	Investment	—	—	—	—	—	2,000,000	1,896,203	1,896,203
KB Star REIT	Korea	Investment	December	26.13	130,776,646	61,508,907	61,508,907	134,304,646	98,600,791	98,600,791
KB Bio Private Equity Investment Fund IV	Korea	Investment	—	—	—	—	—	7,500,000	7,369,339	7,369,339
Nextrade Co., Ltd. ^1^	Korea	Other<br><br>financial	September	6.64	9,700,000	8,373,711	8,373,711	9,700,000	8,180,476	8,180,476
MW-Pyco NewWave New Technology Investment Fund 4th	Korea	Investment	December	51.28	2,000,000	—	—	2,000,000	1,921,768	1,921,768
KB-SUSUNG 1st Investment Fund ^1^	Korea	Investment	December	10.00	130,000	555,018	555,018	1,076,000	1,458,974	1,458,974
Bitgoeul Cheomdan Green 1st Co.,<br>Ltd.^1^	Korea	Investment	December	19.00	342,000	240,391	240,391	342,000	241,205	241,205
Shinhan-Eco Venture Fund 2nd	Korea	Investment	December	20.00	1,885,000	1,807,236	1,807,236	2,050,000	1,973,060	1,973,060

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Leading H2O Fund 1	Korea	Investment	December	48.23	1,500,000	1,420,563	1,420,563	1,500,000	1,454,933	1,454,933
2023 JB Newtech No.2 Fund	Korea	Investment	—	—	—	—	—	1,405,557	1,705,208	1,705,208
U-KB Credit No.1 Private Equity	Korea	Investment	December	23.26	17,046,512	15,167,171	15,167,171	5,093,023	5,584,704	5,584,704
KB-BridgePole Venture Investment Fund #2<br>^1^	Korea	Investment	December	14.29	1,500,000	1,432,460	1,432,460	1,500,000	1,463,485	1,463,485
Sirius Silicon Valley I New Technology Fund	Korea	Investment	December	23.81	500,000	462,967	462,967	500,000	474,480	474,480
Timefolio Athleisure Investment Fund	Korea	Investment	December	48.19	4,000,000	3,750,139	3,750,139	4,000,000	3,922,757	3,922,757
COMPA Global Scale-Up Fund No.3	Korea	Investment	December	29.99	1,000,000	957,102	957,102	1,000,000	979,681	979,681
AKK Robotech Valueup New Technology Investment Fund	Korea	Investment	—	—	—	—	—	1,000,000	1,126,629	1,126,629
YG MCE PROJECT No.1 Fund	Korea	Investment	December	27.78	1,500,000	—	—	1,500,000	1,476,809	1,476,809
HI YG Win-win Fund No.2	Korea	Investment	December	20.62	2,000,000	2,153,903	2,153,903	2,000,000	1,972,792	1,972,792
KB-CJ Venture Fund 1st	Korea	Investment	December	40.00	1,800,000	1,869,323	1,869,323	1,800,000	1,732,747	1,732,747
Elohim-Bilanx aerospace No.1 Fund	Korea	Investment	December	20.94	2,000,000	1,936,905	1,936,905	2,000,000	1,978,245	1,978,245
KB-SUSUNG 2nd Investment Fund ^1^	Korea	Investment	December	12.66	2,000,000	1,958,918	1,958,918	2,000,000	1,980,873	1,980,873
IMM global Secondary 1-1 Equity Private Fund	Korea	Investment	December	41.65	3,412,973	4,975,463	4,975,463	2,819,038	3,753,976	3,753,976
LIB Material Investment Fund	Korea	Investment	December	27.26	4,098,144	829,346	829,346	4,098,144	1,474,980	1,474,980
NOVORSEC-SJG Consumer Secondary Fund	Korea	Investment	—	—	—	—	—	1,700,000	1,687,706	1,687,706
KBSBI Global High- tech Strategic Private Equity Investment Limited Partnership ^1^	Korea	Investment	December	16.3	15,274,098	14,646,750	14,646,750	5,059,098	4,828,296	4,828,296
KB-Cyrus Tourism Venture Fund ^1^	Korea	Investment	December	18.52	2,000,000	1,855,457	1,855,457	1,000,000	977,172	977,172
IBKS Design Fund	Korea	Investment	December	46.51	2,000,000	4,810,951	4,810,951	2,000,000	1,996,162	1,996,162
NICE DATA INTELLIGENCE VENTURE FUND	Korea	Investment	—	—	—	—	—	1,000,000	997,864	997,864
Pectus Hanwha Fund No.2	Korea	Investment	—	—	—	—	—	2,000,000	1,950,322	1,950,322
Korea Environment Technology Co., LTD	Korea	Waste disposal industry	—	—	—	—	—	107,427,843	43,155,859	107,427,843
KB-IMM Newstar Real Estate Private Fund 1	Korea	Investment	December	43.00	40,283,308	41,725,355	41,725,355	20,897,275	21,897,251	21,897,251
KBLB Middle Market Enterprises Innovation Private<br><br>Equity Fund ^1^	Korea	Investment	December	19.05	4,284,000	3,723,179	3,723,179	—	—	—
YG AI Industrial Automation Solutions FUND	Korea	Investment	December	28.17	2,000,000	1,992,299	1,992,299	—	—	—
KB-Novus Genesis Private Equity Fund ^1^	Korea	Investment	December	9.39	2,300,000	2,267,326	2,267,326	—	—	—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Semicolon Susong Commissioned Real Estate Investment Trust	Korea	Investment	December	39.39	77,000,000	76,142,790	76,142,790	—	—	—
ATP TP VC Fund No.1	Korea	Investment	December	39.60	2,000,000	1,976,013	1,976,013	—	—	—
AIM-KB-DOUBLE<br>Connected Future Investment Fund ^1^	Korea	Investment	December	8.33	1,000,000	983,756	983,756	—	—	—
KB-IMM Newstar Real Estate Private Fund 2	Korea	Investment	December	38.18	16,509,818	16,524,813	16,524,813	—	—	—
K-1 23th Yeoksam Real Estate Investment Trust<br>Company	Korea	Investment	December	41.30	16,050,000	62,424,217	62,424,217	—	—	—
IMM Korea Beauty Co-Invest Private Equity Fund	Korea	Investment	December	51.02	50,000,000	49,633,383	49,633,383	—	—	—
KB-GVA Premier Mezzanine Investment Fund ^1^	Korea	Investment	December	3.07	500,000	498,181	498,181	—	—	—
KB-ANDA Deep Tech Venture Fund	Korea	Investment	December	30.00	1,249,500	1,249,500	1,249,500	—	—	—

					544,934,266	524,319,943	524,795,448	456,237,001	352,490,610	417,779,180

^1^	Although the ownership of the Group is less than 20%, these are included as associates, since the Group has a<br>significant influence over investee’s policy and operations.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in investments in associates for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	Beginning<br>balance		Acquisition		Dividends		Disposal			Re-classification ^1^		Changes<br>in equity<br>of<br>associates			Profit<br>(loss) of<br>associates			Ending<br><br>balance
KB Special Purpose Acquisition Company No.21		20,894		—		—		(20,894	)		—		—			—			—
KB Special Purpose Acquisition Company No.25		9,965		—		—		—			—		(3	)		203			10,165
KB Special Purpose Acquisition Company No.26		9,836		—		—		(9,836	)		—		—			—			—
KB Special Purpose Acquisition Company No.27		10,236		—		—		—			—		(3	)		227			10,460
KB Special Purpose Acquisition Company No.28		9,645		—		—		(9,645	)		—		—			—			—
KB Special Purpose Acquisition Company No.29		19,982		—		—		—			—		(8	)		393			20,367
KB Special Purpose Acquisition Company No.30		19,518		—		—		—			—		(6	)		418			19,930
KB Special Purpose Acquisition Company No.31		22,618		—		—		—			—		(2,888	)		316			20,046
KB Special Purpose Acquisition Company No.32				10,000		—		—			—		10,622			(1,023	)		19,599
KB Special Purpose Acquisition Company No.33		—		160,000		—		—			—		10,232			(584	)		169,648
KB New Paradigm Agriculture Venture Fund		1,291,253		—		—		(375,000	)		—		—			(326,277	)		589,976
KB KONEX Market Vitalization Fund		1,928,317		—		—		(1,928,317	)		—		—			—			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB-KDBC New Technology Business Investment Fund	2,601,286	—	—		(2,601,286	)	—	—		—		—
KBTS Technology Venture Private Equity Fund	3,179,737	—	—		—		—	—		(455,134	)	2,724,603
KB-SJ Tourism Venture Fund	1,780,925	—	(334,000	)	(190,000	)	—	—		261,276		1,518,201
KB Shinjasanaubo Fund	1,031,767	—	—		—		—	—		(350,683	)	681,084
UNION Media Commerce Fund	945,674	—	—		—		—	—		(4,963	)	940,711
KB SPROTT Renewable Private Equity Fund I	3,052,067	—	—		—		—	—		(2,229,961	)	822,106
KB-Stonebridge Secondary Private Equity Fund	4,819,055	—	(61,961	)	(1,248,439	)	—	—		(77,871	)	3,430,784
KB-SP Private Equity Fund IV	3,995,113	—	—		(3,995,113	)	—	—		—		—
KB-UTC Inno-Tech Venture Fund	3,910,530	—	—		—		—	—		(1,444,399	)	2,466,131
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	8,021,543	1,800,000	—		(1,700,814	)	—	—		1,848,911		9,969,640
KB-KTB Technology Venture Fund	9,088,456	—	—		—		—	—		(308,275	)	8,780,181
KB Bio Global Expansion Private Equity Fund No.1	17,870,374	—	—		—		—	—		(581,871	)	17,288,503
KB Digital Platform Fund	28,288,502	10,000,000	—		—		—	—		13,598,574		51,887,076
KB-SOLIDUS Healthcare Investment Fund	3,484,892	1,316,667	—		—		—	—		76,873		4,878,432
G Payment Joint Stock Company	2,520,780	—	—		—		—	(135,432	)	206		2,385,554
KB-GeneN Medical Venture Fund 1	1,880,230	—	—		—		—	—		(41,844	)	1,838,386
DA-Friend Investment Fund II	906,175	—	—		—		—	—		(4,510	)	901,665
Cornerstone Pentastone IV Fund	763,949	—	—		—		—	—		(536	)	763,413
JS Private Equity Fund III	742,406	—	—		(749,248	)	—	—		417,575		410,733
Mirae Asset Mobility Investment Fund I	1,917,647	—	—		—		—	—		(32,240	)	1,885,407
KB-FT 1st Green Growth Investment Fund	1,888,925	—	—		—		—	—		(41,650	)	1,847,275

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

THE CHAEUL FUND NO.1	953,961	—	—		(953,961	)	—	—		—		—
POSITVE Sobujang Venture Fund #1	869,206	—	—		(869,206	)	—	—		—		—
KB-NP Green ESG New Technology Venture Capital<br>Fund	15,436,985	3,480,000	—		(1,136,153	)	—	—		881,047		18,661,879
Hisstory 2022 Fintech Fund	1,896,203	—	—		(1,896,203	)	—	—		—		—
KB Star REIT	98,600,791	—	(9,442,306	)	(3,528,000	)	—	(423,573	)	(23,698,005	)	61,508,907
KB Bio Private Equity Investment Fund IV	7,369,339	—	—		(7,369,339	)	—	—		—		—
Nextrade Co., Ltd.	8,180,476	—	—		—		—	—		193,235		8,373,711
MW-Pyco NewWave New Technology Investment Fund 4th	1,921,768	—	—		—		—	—		(1,921,768	)	—
KB-SUSUNG 1st Investment Fund	1,458,974	—	—		(946,000	)	—	—		42,044		555,018
Bitgoeul Cheomdan Green 1st Co., Ltd.	241,205	—	—		—		—	—		(814	)	240,391
Shinhan-Eco Venture Fund 2nd	1,973,060	25,000	—		(190,000	)	—	—		(824	)	1,807,236
Leading H2O Fund 1	1,454,933	—	—		—		—	—		(34,370	)	1,420,563
2023 JB Newtech No.2 Fund	1,705,208	—	—		(1,705,208	)	—	—		—		—
U-KB Credit No.1 Private Equity	5,584,704	11,953,488	—		—		—	—		(2,371,021	)	15,167,171
KB-BridgePole Venture Investment Fund #2	1,463,485	—	—		—		—	—		(31,025	)	1,432,460
Sirius Silicon Valley I New Technology Fund	474,480	—	—		—		—	—		(11,513	)	462,967
Timefolio Athleisure Investment Fund	3,922,757	—	—		—		—	—		(172,618	)	3,750,139
COMPA Global Scale-Up Fund No.3	979,681	—	—		—		—	—		(22,579	)	957,102
AKK Robotech Valueup New Technology Investment Fund	1,126,629	—	—		(1,126,629	)	—	—		—		—
YG MCE PROJECT No.1 Fund	1,476,809	—	—		—		—	—		(1,476,809	)	—
HI YG Win-win Fund No.2	1,972,792	—	—		—		—	—		181,111		2,153,903
KB-CJ Venture Fund 1st	1,732,747	—	—		—		—	—		136,576		1,869,323
Elohim-Bilanx aerospace No.1 Fund	1,978,245	—	—		—		—	—		(41,340	)	1,936,905

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB-SUSUNG 2nd Investment Fund	1,980,873	—	—		—		—	—	(21,955	)	1,958,918
IMM global Secondary 1-1 Equity Private Fund	3,753,976	756,186	(3,511	)	(162,251	)	—	—	631,063		4,975,463
LIB Material Investment Fund	1,474,980	—	—		—		—	—	(645,634	)	829,346
NOVORSEC-SJG Consumer Secondary Fund	1,687,706	—	—		(1,687,706	)	—	—	—		—
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	4,828,296	10,215,000	—		—		—	—	(396,546	)	14,646,750
KB-Cyrus Tourism Venture Fund	977,172	1,000,000	—		—		—	—	(121,715	)	1,855,457
IBKS Design Fund	1,996,162	—	—		—		—	—	2,814,789		4,810,951
NICE DATA INTELLIGENCE VENTURE FUND	997,864	—	—		(997,864	)	—	—	—		—
Pectus Hanwha Fund No.2	1,950,322	—	—		(1,950,322	)	—	—	—		—
Korea Environment Technology Co., LTD	107,427,843	—	—		(107,427,843	)	—	—	—		—
KB-IMM Newstar Real Estate Private Fund 1	21,897,251	19,386,033	(1,869,618	)	—		—	—	2,311,689		41,725,355
E&I Holdings Co., Ltd	—	27,300,000	—		(27,300,000	)	—	—	—		—
KBLB Middle Market Enterprises Innovation Private Equity Fund	—	4,284,000	—		—		—	—	(560,821	)	3,723,179
YG AI Industrial Automation Solutions FUND	—	2,000,000	—		—		—	—	(7,701	)	1,992,299
KB-Novus Genesis Private Equity Fund	—	2,300,000	—		—		—	—	(32,674	)	2,267,326
Semicolon Susong Commissioned Real Estate Investment Trust	—	77,000,000	(857,210	)	—		—	—	—		76,142,790
ATP TP VC Fund No.1	—	2,000,000	—		—		—	—	(23,987	)	1,976,013
AIM-KB-DOUBLE<br>Connected Future Investment Fund	—	1,000,000	—		—		—	—	(16,244	)	983,756
KB-IMM Newstar Real Estate Private Fund 2	—	16,509,818	(138,002	)	—		—	—	152,997		16,524,813
K-1 23th Yeoksam Real Estate Investment Trust Company ^1^	—	—	(2,334,156	)	—		61,901,346	—	2,857,027		62,424,217

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

IMM Korea Beauty Co-Invest Private Equity Fund			—			50,000,000			—			—			—			—			(366,617	)	49,633,383
KB-GVA Premier Mezzanine Investment Fund			—			500,000			—			—			—			—			(1,819	)	498,181
KB-ANDA Deep Tech Venture Fund			—			1,249,500			—			—			—			—			—		1,249,500

			417,779,180			244,245,692			(15,040,764	)		(172,075,277	)		61,901,346			(541,059	)		(11,473,670	)	524,795,448

^1^	These investments are reclassified from investments in subsidiaries to associates due to disposal in partially<br>for the year ended December 31, 2025.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance			Acquisition			Dividends			Disposal			Changes in<br>equity of<br>associates			Profit (loss)<br>of<br>associates			Ending<br><br>balance
KB Special Purpose Acquisition Company No.21			20,529			—			—			—			1			364			20,894
KB Special Purpose Acquisition Company No.22			20,125			—			—			(20,125	)		—			—			—
KB Special Purpose Acquisition Company No.25			9,771			—			—			—			—			194			9,965
KB Special Purpose Acquisition Company No.26			9,613			—			—			—			—			223			9,836
KB Special Purpose Acquisition Company No.27			9,959			—			—			—			—			277			10,236
KB Special Purpose Acquisition Company No.28			—			5,000			—			4,052			611			(18	)		9,645
KB Special Purpose Acquisition Company No.29			—			10,000			—			6,452			3,988			(458	)		19,982
KB Special Purpose Acquisition Company No.30			—			10,000			—			8,185			1,771			(438	)		19,518
KB Special Purpose Acquisition Company No.31			—			10,000			—			—			13,498			(880	)		22,618

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB New Paradigm Agriculture Venture Fund	2,615,088	—	—		(825,000	)	—	(498,835	)	1,291,253
KB KONEX Market Vitalization Fund	7,633,039	—	(3,084,375	)	(75,000	)	—	(2,545,347	)	1,928,317
KB-KDBC New Technology Business Investment Fund	3,031,227	—	—		(300,000	)	—	(129,941	)	2,601,286
KBTS Technology Venture Private Equity Fund	3,534,896	—	—		(704,000	)	—	348,841		3,179,737
KB-SJ Tourism Venture Fund	3,241,734	—	(1,517,461	)	(4,030,000	)	—	4,086,652		1,780,925
KB Shinjasanaubo Fund	1,765,941	—	—		—		—	(734,174	)	1,031,767
UNION Media Commerce Fund	952,209	—	—		—		—	(6,535	)	945,674
KB-Brain KOSDAQ<br>Scale-Up Fund	2,304,484	—	—		(2,304,484	)	—	—		—
KB SPROTT Renewable Private Equity Fund I	3,337,160	—	—		—		—	(285,093	)	3,052,067
KB-Stonebridge Secondary Private Equity Fund	5,395,679	—	(14,746	)	(190,539	)	—	(371,339	)	4,819,055
KB-SP Private Equity Fund IV	2,494,808	—	—		—		668,154	832,151		3,995,113
KB-UTC Inno-Tech Venture Fund	5,227,210	—	—		(112,500	)	—	(1,204,180	)	3,910,530
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	8,904,972	4,482,000	—		(3,889,195	)	—	(1,476,234	)	8,021,543
KB Material and Parts No. 1 PEF	3,299,669	—	—		(3,299,669	)	—	—		—
KB Global Commerce Private Equity Investment Fund	8,635,840	—	—		(8,635,840	)	—	—		—
KB-KTB Technology Venture Fund	7,639,550	2,000,000	—		—		—	(551,094	)	9,088,456
KB Bio Global Expansion Private Equity Fund No.1	15,895,111	—	—		—		—	1,975,263		17,870,374
KB Digital Platform Fund	17,123,835	10,000,000	—		—		—	1,164,667		28,288,502
KB-SOLIDUS Healthcare Investment Fund	2,249,721	1,300,000	—		—		—	(64,829	)	3,484,892
G Payment Joint Stock Company	8,966,066	—	—		(1,504,288	)	432,445	(5,373,443	)	2,520,780
KB-GeneN Medical Venture Fund 1	1,922,291	—	—		—		—	(42,061	)	1,880,230
KB-BridgePole Venture Investment Fund	863,129	—	—		(863,129	)	—	—		—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB-Kyobo New Mobility Power Fund	2,621,880	—	—		(2,621,880	)	—		—		—
DA-Friend Investment Fund II	927,462	—	—		—		—		(21,287	)	906,175
Cornerstone Pentastone IV Fund	774,734	—	—		—		—		(10,785	)	763,949
JS Private Equity Fund III	1,861,512	—	—		(754,979	)	—		(364,127	)	742,406
Mirae Asset Mobility Investment Fund I	1,948,750	—	—		—		—		(31,103	)	1,917,647
KB-FT 1st Green Growth Investment Fund	1,928,089	—	—		—		—		(39,164	)	1,888,925
THE CHAEUL FUND NO.1	972,191	—	—		—		—		(18,230	)	953,961
POSITVE Sobujang Venture Fund #1	1,965,090	—	(2,128,815	)	(1,120,879	)	—		2,153,810		869,206
KB-NP Green ESG New Technology Venture Capital<br>Fund	7,771,668	7,920,000	—		—		—		(254,683	)	15,436,985
Hisstory 2022 Fintech Fund	1,937,813	—	—		—		—		(41,610	)	1,896,203
KB Star REIT	120,231,339	—	(10,263,978	)	(468,136	)	8,222,578		(19,121,012	)	98,600,791
KB Bio Private Equity Investment Fund IV	6,770,765	—	—		—		—		598,574		7,369,339
Nextrade Co., Ltd.	9,225,312	—	—		—		—		(1,044,836	)	8,180,476
LAKEWOOD-AVES Fund No.1	1,976,715	—	—		(1,976,715	)	—		—		—
MW-Pyco NewWave New Technology Investment Fund 4th	1,965,019	—	—		—		—		(43,251	)	1,921,768
KB-SUSUNG 1st Investment Fund	1,968,977	—	—		(924,000	)	—		413,997		1,458,974
Friend 55 New Technology Business Investment Fund	1,182,473	—	—		(1,182,473	)	—		—		—
Bitgoeul Cheomdan Green 1st Co., Ltd.	165,451	152,000	—		—		(928	)	(75,318	)	241,205
DSIP-Pharos Bioenergy Fund	16,457,868	—	—		(16,457,868	)	—		—		—
Shinhan-Eco Venture Fund 2nd	1,800,072	225,000	—		—		—		(52,012	)	1,973,060
Leading H2O Fund 1	1,488,980	—	—		—		—		(34,047	)	1,454,933
2023 JB Newtech No.2 Fund	1,785,594	—	(149,904	)	(394,443	)	—		463,961		1,705,208
U-KB Credit No.1 Private Equity	4,779,307	279,070	—		—		—		526,327		5,584,704

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB-BridgePole Venture Investment Fund #2	1,494,373	—	—		—		—	(30,888	)	1,463,485
Sirius Silicon Valley I New Technology Fund	485,282	—	—		—		—	(10,802	)	474,480
Timefolio Athleisure Investment Fund	—	4,000,000	—		—		—	(77,243	)	3,922,757
COMPA Global Scale-Up Fund No.3	—	1,000,000	—		—		—	(20,319	)	979,681
AKK Robotech Valueup New Technology Investment Fund	—	1,000,000	—		—		—	126,629		1,126,629
YG MCE PROJECT No.1 Fund	—	1,500,000	—		—		—	(23,191	)	1,476,809
HI YG Win-win Fund No.2	—	2,000,000	—		—		—	(27,208	)	1,972,792
KB-CJ Venture Fund 1st	—	1,800,000	—		—		—	(67,253	)	1,732,747
Elohim-Bilanx aerospace No.1 Fund	—	2,000,000	—		—		—	(21,755	)	1,978,245
KB-SUSUNG 2nd Investment Fund	—	2,000,000	—		—		—	(19,127	)	1,980,873
IMM global Secondary 1-1 Equity Private Fund	—	2,819,038	—		—		—	934,938		3,753,976
LIB Material Investment Fund	—	4,098,144	—		—		—	(2,623,164	)	1,474,980
NOVORSEC-SJG Consumer Secondary Fund	—	1,700,000	—		—		—	(12,294	)	1,687,706
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	—	5,059,098	—		—		—	(230,802	)	4,828,296
KB-Cyrus Tourism Venture Fund	—	1,000,000	—		—		—	(22,828	)	977,172
IBKS Design Fund	—	2,000,000	—		—		—	(3,838	)	1,996,162
NICE DATA INTELLIGENCE VENTURE FUND	—	1,000,000	—		—		—	(2,136	)	997,864
Pectus Hanwha Fund No.2	—	2,000,000	—		—		—	(49,678	)	1,950,322
KB-IMM Newstar Real Estate Private Fund 1	—	20,897,275	—		—		—	999,976		21,897,251
Korea Environment Technology Co., LTD	—	107,427,843	—		—		—	—		107,427,843

	311,590,372	189,694,468	(17,159,279	)	(52,636,453	)	9,342,118	(23,052,046	)	417,779,180

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Summarized financial information of the associates as at and for the years ended December 31, 2025 and 2024, are as follows:

	December 31, 2025						2025
(in thousands of Korean won)	Assets		Liabilities		Equity		Operating<br>Revenue		Profit (loss)<br>for the period			Total<br>comprehensive<br>Income(loss)
KB Special Purpose Acquisition Company No.25		10,167,796		1,415,397		8,752,399		252,938		175,268			175,268
KB Special Purpose Acquisition Company No.27		31,230,135		4,233,877		26,996,258		840,597		587,123			587,123
KB Special Purpose Acquisition Company No.29		14,864,541		2,196,029		12,668,512		364,908		244,571			244,571
KB Special Purpose Acquisition Company No.30		12,131,810		1,548,853		10,582,957		308,533		222,034			222,034
KB Special Purpose Acquisition Company No.31		14,691,378		2,242,622		12,448,756		384,774		196,407			196,407
KB Special Purpose Acquisition Company No.32		14,470,529		2,064,333		12,406,196		152,650		52,673			52,673
KB Special Purpose Acquisition Company No.33		17,926,147		2,433,554		15,492,593		81,133		16,671			16,671
KB New Paradigm Agriculture Venture Fund		2,525,909		166,005		2,359,904		589,031		(1,305,109	)		(1,305,109	)
KBTS Technology Venture Private Equity Fund		23,948,498		6,919,730		17,028,768		1,659		(2,844,590	)		(2,844,590	)
KB-SJ Tourism Venture Fund		8,353,525		155,185		8,198,340		6,008,966		1,410,893			1,410,893
KB Shinjasanaubo Fund		5,315,521		671,768		4,643,753		279,035		(2,391,019	)		(2,391,019	)
UNION Media Commerce Fund		3,318,493		73,036		3,245,457		—		(17,122	)		(17,122	)
KB SPROTT Renewable Private Equity Fund I		8,890,204		815,261		8,074,943		6		(704,214	)		(704,214	)
KB-Stonebridge Secondary Private Equity Fund		82,581,950		140,215		82,441,735		2,348,555		(1,530,924	)		(1,530,924	)
KB-UTC Inno-Tech Venture Fund		16,914,343		210,399		16,703,944		27,922		(9,783,391	)		(9,783,391	)
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		150,637,690		501,541		150,136,149		10,187,428		27,109,631			27,109,631
KB-KTB Technology Venture Fund		49,092,706		801,713		48,290,993		135,375		(1,695,513	)		(1,695,513	)
KB Bio Global Expansion Private Equity Fund No.1		43,904,321		106,781		43,797,540		1,017		(1,474,073	)		(1,474,073	)
KB Digital Platform Fund		312,090,297		767,839		311,322,458		100,990,179		81,591,445			81,591,445
KB-SOLIDUS Healthcare Investment Fund		99,858,971		2,750		99,856,221		2,984,662		1,522,111			1,522,111
G Payment Joint Stock Company		12,588,727		5,714,098		6,874,629		5,072,407		908			908
KB-GeneN Medical Venture Fund 1		8,516,638		354,204		8,162,434		22		(185,786	)		(185,786	)
DA-Friend Investment Fund II		3,500,297		168,011		3,332,286		—		(16,670	)		(16,670	)
Cornerstone Pentastone IV Fund		3,550,289		2,750		3,547,539		64		(2,489	)		(2,489	)
JS Private Equity Fund III		2,005,840		495		2,005,345		2,151,879		2,038,746			2,038,746
Mirae Asset Mobility Investment Fund I		8,275,534		74,013		8,201,521		7,765		(140,242	)		(140,242	)
KB-FT 1st Green Growth Investment Fund		17,867,770		—		17,867,770		326		(402,862	)		(402,862	)
KB-NP Green ESG New Technology Venture Capital<br>Fund		164,619,894		3,649,986		160,969,908		7,955,091		7,599,564			7,599,564
KB Star REIT		1,242,229,311		1,006,866,871		235,362,440		69,126,465		(94,618,921	)		(96,188,602	)
Nextrade Co., Ltd.		129,215,059		3,091,428		126,123,631		39,765,891		2,910,479			2,910,479
KB-SUSUNG 1st Investment Fund		5,550,179		—		5,550,179		1,651,762		420,435			420,435
Bitgoeul Cheomdan Green 1st Co., Ltd.		1,270,057		4,840		1,265,217		—		(4,284	)		(4,284	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Shinhan-Eco Venture Fund 2nd	9,042,530	6,351	9,036,179	257,434	(4,122	)	(4,122	)
Leading H2O Fund 1	2,946,621	1,320	2,945,301	1,852	(71,260	)	(71,260	)
U-KB Credit No.1 Private Equity	70,559,464	1,018,146	69,541,318	591,081	(5,872,907	)	(5,872,907	)
KB-BridgePole Venture Investment Fund #2	10,027,217	—	10,027,217	3,278	(217,178	)	(217,178	)
Sirius Silicon Valley I New Technology Fund	1,945,783	1,320	1,944,463	6,976	(48,354	)	(48,354	)
Timefolio Athleisure Investment Fund	7,781,539	—	7,781,539	81,272	(358,181	)	(358,181	)
COMPA Global Scale-Up Fund No.3	3,190,978	—	3,190,978	4,381	(75,279	)	(75,279	)
HI YG Win-win Fund No.2	10,446,432	—	10,446,432	5,636	878,392		878,392
KB-CJ Venture Fund 1st	4,731,516	58,210	4,673,306	726,024	341,440		341,440
Elohim-Bilanx aerospace No.1 Fund	9,248,721	—	9,248,721	3,297	(197,401	)	(197,401	)
KB-SUSUNG 2nd Investment Fund	15,475,453	—	15,475,453	458,405	(173,445	)	(173,445	)
IMM global Secondary 1-1 Equity Private Fund	12,152,002	205,915	11,946,087	1,555,417	1,515,184		1,515,184
LIB Material Investment Fund	3,041,835	—	3,041,835	—	(700,066	)	(700,066	)
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	90,336,944	454,723	89,882,221	98,844	(2,433,470	)	(2,433,470	)
KB-Cyrus Tourism Venture Fund	10,019,466	—	10,019,466	18,179	(657,261	)	(657,261	)
IBKS Design Fund	10,343,544	—	10,343,544	6,114,301	6,051,796		6,051,796
KB-IMM Newstar Real Estate Private Fund 1	101,364,284	4,334,346	97,029,938	8,460,196	5,306,836		5,306,836
KBLB Middle Market Enterprises Innovation Private Equity Fund	20,062,146	515,454	19,546,692	267	(2,944,308	)	(2,944,308	)
YG AI Industrial Automation Solutions FUND	7,072,662	—	7,072,662	74,761	(27,338	)	(27,338	)
KB-Novus Genesis Private Equity Fund	24,244,681	92,733	24,151,948	3,792	(348,052	)	(348,052	)
Semicolon Susong Commissioned Real Estate Investment Trust	597,990,723	408,960,702	189,030,021	13,973,599	(17,316	)	(17,316	)
ATP TP VC Fund No.1	4,994,380	3,960	4,990,420	626	(60,580	)	(60,580	)
AIM-KB-DOUBLE<br>Connected Future Investment Fund	11,868,321	63,255	11,805,066	572	(194,934	)	(194,934	)
KB-IMM Newstar Real Estate Private Fund 2	43,969,114	689,842	43,279,272	840,102	400,706		400,706
K-1 23th Yeoksam Real Estate Investment Trust<br>Company	294,284,255	169,061,696	125,222,559	3,914,958	3,857,324		3,857,324
IMM Korea Beauty Co-Invest Private Equity Fund	97,550,330	268,899	97,281,431	1,424	(718,569	)	(718,569	)
KB-GVA Premier Mezzanine Investment Fund	16,212,787	—	16,212,787	—	(59,213	)	(59,213	)
KB-ANDA Deep Tech Venture Fund	4,435,147	270,147	4,165,000	—	—		—

Summarized financial information of associates for which financial information is not available as at December 31, 2025 are excluded.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	December 31, 2024						2024
(in thousands of Korean won)	Assets		Liabilities		Equity		Operating<br>Revenue		Profit (loss)<br>for the period			Total<br>comprehensive<br>Income(loss)
KB Special Purpose Acquisition Company No.21		18,332,104		2,222,965		16,109,139		539,414		280,847			280,847
KB Special Purpose Acquisition Company No.25		9,960,644		1,380,515		8,580,129		297,025		167,600			167,600
KB Special Purpose Acquisition Company No.26		12,198,917		1,369,222		10,829,695		357,751		246,179			246,179
KB Special Purpose Acquisition Company No.27		30,491,081		4,071,785		26,419,296		993,859		715,088			715,088
KB Special Purpose Acquisition Company No.28		12,135,104		1,516,167		10,618,937		223,386		59,682			59,682
KB Special Purpose Acquisition Company No.29		14,557,704		2,129,143		12,428,561		219,019		98,029			98,029
KB Special Purpose Acquisition Company No.30		11,866,140		1,502,204		10,363,936		79,990		22,592			22,592
KB Special Purpose Acquisition Company No.31		2,588,400		2,113,426		474,974		8,356		(18,484	)		(18,484	)
KB New Paradigm Agriculture Venture Fund		5,519,607		354,593		5,165,014		2,051,864		(1,995,337	)		(1,995,337	)
KB KONEX Market Vitalization Fund		8,668,671		441,510		8,227,161		2,716,958		(10,860,148	)		(10,860,148	)
KB-KDBC New Technology Business Investment Fund		7,803,895		—		7,803,895		398,002		(389,823	)		(389,823	)
KBTS Technology Venture Private Equity Fund		26,460,488		6,587,130		19,873,358		1,832,117		2,180,255			2,180,255
KB-SJ Tourism Venture Fund		9,892,964		275,917		9,617,047		26,720,057		22,067,920			22,067,920
KB Shinjasanaubo Fund		7,547,286		512,514		7,034,772		489,073		(5,005,733	)		(5,005,733	)
UNION Media Commerce Fund		3,318,493		55,914		3,262,579		—		(22,543	)		(22,543	)
KB SPROTT Renewable Private Equity Fund I		24,548,257		251,342		24,296,915		573		(637,660	)		(637,660	)
KB-Stonebridge Secondary Private Equity Fund		115,992,985		193,139		115,799,846		6,646,286		(8,923,271	)		(8,923,271	)
KB-SP Private Equity Fund IV		22,631,499		560,136		22,071,363		8,362,610		8,143,386			8,143,386
KB-UTC Inno-Tech Venture Fund		26,935,093		447,758		26,487,335		967,517		(8,156,312	)		(8,156,312	)
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		123,434,421		407,903		123,026,518		24,533,608		(28,117,368	)		(28,117,368	)
KB-KTB Technology Venture Fund		50,673,348		686,842		49,986,506		692,694		(3,031,017	)		(3,031,017	)
KB Bio Global Expansion Private Equity Fund No.1		45,378,133		106,519		45,271,614		5,422,750		5,003,999			5,003,999
KB Digital Platform Fund		170,540,295		809,282		169,731,013		10,521,343		6,988,002			6,988,002
KB-SOLIDUS Healthcare Investment Fund		69,003,602		2,750		69,000,852		39,504		(1,283,621	)		(1,283,621	)
G Payment Joint Stock Company		10,253,233		2,993,608		7,259,625		1,410,529		(944,194	)		(944,194	)
KB-GeneN Medical Venture Fund 1		8,525,819		177,600		8,348,219		32		(186,754	)		(186,754	)
DA-Friend Investment Fund II		3,500,297		151,340		3,348,957		1		(78,670	)		(78,670	)
Cornerstone Pentastone IV Fund		3,552,778		2,750		3,550,028		37		(50,116	)		(50,116	)
JS Private Equity Fund III		3,625,184		495		3,624,689		308,810		(1,777,796	)		(1,777,796	)
Mirae Asset Mobility Investment Fund I		8,416,677		74,913		8,341,764		14,450		(135,298	)		(135,298	)
KB-FT 1st Green Growth Investment Fund		18,270,632		—		18,270,632		12,171		(378,806	)		(378,806	)
THE CHAEUL FUND NO.1		3,052,675		—		3,052,675		663		(58,337	)		(58,337	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

POSITVE Sobujang Venture Fund #1	2,003,047	25,603	1,977,444	5,741,836	4,899,917		4,899,917
KB-NP Green ESG New Technology Venture Capital<br>Fund	133,928,517	775,262	133,153,255	766,791	(2,196,796	)	(2,196,796	)
Hisstory 2022 Fintech Fund	5,506,581	54,998	5,451,583	769	(119,630	)	(119,630	)
KB Star REIT	1,141,992,556	774,895,403	367,097,153	68,824,273	(71,231,027	)	(40,599,665	)
KB Bio Private Equity Investment Fund IV	30,459,936	—	30,459,936	2,806,489	2,474,105		2,474,105
Nextrade Co., Ltd.	125,776,463	2,563,311	123,213,152	3,855,984	(15,737,169	)	(15,737,169	)
MW-Pyco NewWave New Technology Investment Fund 4th	3,747,448	—	3,747,448	1,483	(84,338	)	(84,338	)
KB-SUSUNG 1st Investment Fund	14,589,744	—	14,589,744	5,164,403	4,139,974		4,139,974
Bitgoeul Cheomdan Green 1st Co., Ltd.	1,274,434	4,933	1,269,501	1,216	(396,409	)	(396,409	)
Shinhan-Eco Venture Fund 2nd	9,868,245	2,943	9,865,302	191	(260,058	)	(260,058	)
Leading H2O Fund 1	3,017,881	1,320	3,016,561	2,622	(70,591	)	(70,591	)
2023 JB Newtech No.2 Fund	6,634,045	2,680	6,631,365	2,532,646	1,804,292		1,804,292
U-KB Credit No.1 Private Equity	24,988,198	973,973	24,014,225	4,487,180	2,263,206		2,263,206
KB-BridgePole Venture Investment Fund #2	10,244,395	—	10,244,395	4,453	(216,217	)	(216,217	)
Sirius Silicon Valley I New Technology Fund	1,994,137	1,320	1,992,817	10,018	(45,367	)	(45,367	)
Timefolio Athleisure Investment Fund	8,139,720	—	8,139,720	5,567	(160,280	)	(160,280	)
COMPA Global Scale-Up Fund No.3	3,266,256	—	3,266,256	8,701	(67,744	)	(67,744	)
AKK Robotech Valueup New Technology Investment Fund	22,650,742	5,500	22,645,242	2,975,886	2,545,242		2,545,242
YG MCE PROJECT No.1 Fund	5,316,511	—	5,316,511	2,202	(83,489	)	(83,489	)
HI YG Win-win Fund No.2	9,568,040	—	9,568,040	4,109	(131,960	)	(131,960	)
KB-CJ Venture Fund 1st	4,333,360	1,493	4,331,867	33,521	(168,133	)	(168,133	)
Elohim-Bilanx aerospace No.1 Fund	9,451,403	5,281	9,446,122	2,146	(103,878	)	(103,878	)
KB-SUSUNG 2nd Investment Fund	15,648,898	—	15,648,898	42,634	(151,102	)	(151,102	)
IMM global Secondary 1-1 Equity Private Fund	9,503,209	489,912	9,013,297	2,317,566	2,244,785		2,244,785
LIB Material Investment Fund	5,786,900	—	5,786,900	33	(19,095,757	)	(19,095,757	)
NOVORSEC-SJG Consumer Secondary Fund	6,949,377	—	6,949,377	7,076	(50,623	)	(50,623	)
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	30,205,065	575,425	29,629,640	1,868	(1,416,360	)	(1,416,360	)
KB-Cyrus Tourism Venture Fund	5,276,727	—	5,276,727	4,805	(123,273	)	(123,273	)
IBKS Design Fund	4,291,749	—	4,291,749	121	(8,251	)	(8,251	)
NICE DATA INTELLIGENCE VENTURE FUND	4,240,923	—	4,240,923	40	(9,077	)	(9,077	)
Pectus Hanwha Fund No.2	6,631,425	330	6,631,095	330	(168,905	)	(168,905	)
Korea Environment Technology Co., LTD	232,104,396	54,581,324	177,523,072	63,023,649	21,181,267		21,181,267
KB-IMM Newstar Real Estate Private Fund 1	53,735,524	109,604	53,625,920	2,680,690	2,448,920		2,448,920

Summarized financial information of associates for which financial information is not available as at December 31, 2024 are excluded.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The fair value of marketable Investments in associates as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025
		Market<br>value			Carrying<br>amount
KB Special Purpose Acquisition Company No.25			10,500			10,165
KB Special Purpose Acquisition Company No.27			10,325			10,460
KB Special Purpose Acquisition Company No.29			20,800			20,367
KB Special Purpose Acquisition Company No.30			20,450			19,930
KB Special Purpose Acquisition Company No.31			20,150			20,046
KB Special Purpose Acquisition Company No.32			20,050			19,599
KB Special Purpose Acquisition Company No.33			168,895			169,648
KB Star REIT			86,665,798			61,508,907

			86,936,968			61,779,122

(in thousands of Korean won)		2024
---	---	:---:	---	---	---	---
		Market<br><br>value			Carrying<br>amount
KB Special Purpose Acquisition Company No.21			20,800			20,894
KB Special Purpose Acquisition Company No.25			10,200			9,965
KB Special Purpose Acquisition Company No.26			10,675			9,836
KB Special Purpose Acquisition Company No.27			9,745			10,236
KB Special Purpose Acquisition Company No.28			10,475			9,645
KB Special Purpose Acquisition Company No.29			19,910			19,982
KB Special Purpose Acquisition Company No.30			20,050			19,518
KB Special Purpose Acquisition Company No.31			19,260			22,618
KB Star REIT			105,898,645			98,600,791
Korea Environment Technology Co., LTD			109,409,121			107,427,843

			215,428,881			206,151,328

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

10. Loans Measured at Amortised Cost

The details of loans measured at amortised cost as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Total amount				Allowances				Book amount
Retails
Broker’s loans			4,293,559,258				(6,163,088	)			4,287,396,170
Loans to employees			37,762,930				(810	)			37,762,120
Present value discount			—				—				—

			4,331,322,188				(6,163,898	)			4,325158,290

Corporates
Broker’s loans			283,252,086				—				283,252,086
Securities purchased under repurchase agreements			1,832,100,000				—				1,832,100,000
Loans receivable			4,427,308,949				(262,832,584	)			4,164,476,365
Purchased loans			28,248,225				(332,553	)			27,915,672
Advances for customers			6,842,141				(6,842,141	)			—
Privately placed bonds			39,450,000				(33,303,180	)			6,146,820
Financial lease receivables			16,555,000				—				16,555,000
Net deferred origination fees and costs			(6,715,327	)			—				(6,715,327	)
Present value discount			(612,371	)			—				(612,371	)

			6,626,428,703				(303,310,458	)			6,323,118,245

			10,957,750,891				(309,474,356	)			10,648,276,535

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Total amount				Allowances				Book amount
Retails
Broker’s loans			2,917,855,002				(6,513,007	)			2,911,341,995
Loans to employees			23,854,419				—				23,854,419
Present value discount			—				—				—

			2,941,709,421				(6,513,007	)			2,935,196,414

Corporates
Broker’s loans			223,118,048				—				223,118,048
Securities purchased under repurchase agreements			2,091,017,404				—				2,091,017,404
Loans receivable			5,449,079,686				(185,654,487	)			5,263,425,199
Purchased loans			56,718,382				(388,518	)			56,329,864
Advances for customers			7,465,522				(7,465,522	)			—
Privately placed bonds			52,762,000				(32,598,148	)			20,163,852
Financial lease receivables			23,129,979				—				23,129,979
Net deferred origination fees and costs			(5,130,850	)			—				(5,130,850	)
Present value discount			(1,407,028	)			—				(1,407,028	)

			7,896,753,143				(226,106,675	)			7,670,646,468

			10,838,462,564				(232,619,682	)			10,605,842,882

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in book amount of loans measured at amortised cost for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	Retails									Corporates
	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial<br>instruments<br>applying lifetime<br>expected<br>credit losses					The<br>financial<br>instruments<br>applying<br>credit loss<br>model		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
			Non-impaired		Impaired								Non-impaired			Impaired
Beginning		2,935,196,415		—		6,513,006			—		7,050,884,447			768,517,308			77,351,388			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—			—		—			—			—			—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—		—		—			—		(82,075,000	)		82,075,000			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—			—		(1,975,000	)		(73,000,000	)		74,975,000			—
Write-off		—		—		—			—		—			—			(623,381	)		—
Sales		—		—		—			—		(150,241,156	)		—			—			—
Other changes (execution, recover, etc.)		1,389,962,686		—		(349,919	)		—		(750,644,480	)		(361,137,968	)		(7,677,455	)		—

Ending		4,325,159,101		—		6,163,087			—		6,065,948,811			416,454,340			144,025,552			—

(in thousands of Korean won)	2024
---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Retails									Corporates
	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial<br>instruments<br>applying lifetime<br>expected<br>credit losses				The<br>financial<br>instruments<br>applying<br>credit loss<br>model		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
				Non-impaired		Impaired							Non-impaired			Impaired
Beginning		3,391,164,084			—		6,005,059		—		6,881,077,809			256,133,543			59,627,383			—
Transfer between stages
Transfer to 12-month expected credit Losses		—			—		—		—		46,000,000			(46,000,000	)		—			—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—			—		—		—		(633,108,115	)		633,108,115			—			—
Transfer to lifetime expected credit Losses (impaired)		—			—		—		—		(22,825,440	)		(10,000,000	)		32,825,440			—
Write-off		—			—		—		—		—			—			(2,069,426	)		—
Sales		—			—		—		—		(577,401,682	)		—			—			—
Other changes (execution, recover, etc.)		(455,967,669	)		—		507,947		—		1,357,141,875			(64,724,350	)		(13,032,009	)		—

Ending		2,935,196,415			—		6,513,006		—		7,050,884,447			768,517,308			77,351,388			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in allowances for loan losses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	Retails									Corporates
	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit<br>losses		The financial<br>instruments<br>applying lifetime<br>expected<br>credit losses					The<br>financial<br>instruments<br>applying<br>credit loss<br>model		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit<br>losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
			Non-impaired		Impaired								Non-impaired			Impaired
Beginning		—		—		6,513,007			—		82,243,114			77,737,715			66,125,846			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—			—		—			—			—			—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—		—		—			—		—			—			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—			—		(143,110	)		(8,126,981	)		8,270,091			—
Write-off		—		—		—			—		—			—			(623,381	)		—
Recovery of write-off loans		—		—		—			—		—			—			(290,634	)		—
Sale		—		—		—			—		(360,673	)		—			—			—
Provision (Reversal)		810		—		—			—		8,303,081			41,858,670			32,383,088			—
Other transfer (changes in for FX rate, etc.)		—		—		(349,919	)		—		(3,447,630	)		(909,372	)		290,634			—

Ending		810		—		6,163,088			—		86,594,782			110,560,032			106,155,644			—

(in thousands of Korean won)	2024
---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Retails								Corporates
	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit<br>losses		The financial<br>instruments<br>applying lifetime<br>expected<br>credit losses				The<br>financial<br>instruments<br>applying<br>credit loss<br>model		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		—		—		6,005,060		—		60,396,218			84,100,465			24,560,199			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—		—		3,154,307			(3,154,307	)		—			—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—		—		—		—		(16,884,362	)		16,884,362			—			—
Transfer to lifetime expected credit Losses<br>(impaired)		—		—		—		—		(72,220	)		(1,539,108	)		1,611,328			—
Write-off		—		—		—		—		—			—			(2,069,426	)		—
Sale		—		—		—		—		(1,738,460	)		—			—			—
Provision (Reversal)		—		—		—		—		47,203,871			(25,219,828	)		33,788,956			—
Execution of the contract		—		—		—		—		—			6,666,529			8,234,789			—
Other transfer (changes in for FX rate, etc.)		—		—		507,947		—		(9,816,240	)		(398	)		—			—

Ending		—		—		6,513,007		—		82,243,114			77,737,715			66,125,846			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Among the loans which have been written-off, the Group manages loans for which the claims against borrowers have not been lost due to reasons such as incomplete extinctive prescription pursuant to relevant laws and uncollected receivables after writing-off, as the written-off loans. As at December 31, 2025 and 2024, the balances of the written-off loans are ~~W~~ 31,293,471 thousand and ~~W~~ 23,256,163 thousand, respectively.

Broker’s loan

The Group provides loans for stock purchases with credit period of 180 days (can be extended for six times) for investors using margin transaction. As at December 31, 2025, interest rate of the loan is differentiated from 5.2% to 9.3% based on maturities, and overdue interest rate is 9.9%.

Also, as the Group operates loans secured by securities. At the initial transaction, in case of superior shares and common shares, the Group requires trading securities or cash as collateral, corresponding to 167% and 250% of the loan, respectively. Over 140% collateral of the loan is required. As at December 31, 2025, the interest rate of loans secured by securities is differentiated from Annual Percentage Rate (APR) 6.9% to 9.3% based on maturities, from APR 7.3% to 8.8% based on credit rating, and the loan with past due date is 9.9%.

For margin loans to customers, trading securities or cash is required to be pledged corresponding to 140% of the loan. Because of this condition, the Group pledged securities as collateral which are purchased with the margin loans. If the value of the pledged securities do not reach to 140% of the loan, the Group requires additional cash or trading securities as collateral.

Advances for Customers

Advances for customers consist of advanced payments on loss compensation and advanced payments for others.

Advanced payments on loss compensation are the monetary amount of claim for reimbursement, paid by the Group, if any losses from embezzlement and arbitrary trading are occurred.

Advanced payments for others consist of two types. The first type is the amount of recourse from paid Investor Protection Fund based on the previous Securities Exchange Act Article 69 Clause 2 or Clause 4. This recourse is driven by preferred payments to the securities company with reasonable reason for taking the preferred payments. The second type is the amount of recourse from Joint Compensation Fund based on Law relating to the Financial Investment Services and Capital Markets Act Article 323 Clause 14 and related Enforcement Decree Article 318 Clause 8. This recourse is driven by preferred payments to the securities company that occurred reasonable reasons for taking the preferred payments.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

11.	Property and Equipment

The details of property and equipment as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Acquisition<br><br>cost			Accumulated<br>depreciation				Accumulated<br>revaluation			Book amount
Land			24,694,778			—				77,441,935			102,136,713
Buildings			47,823,084			(24,563,685	)			—			23,259,399
Vehicles			972,676			(393,718	)			—			578,958
Furniture and equipment			215,122,367			(182,713,110	)			—			32,409,257
Others			70,248,449			(52,979,843	)			—			17,268,606
Right-of-use<br>assets			212,984,799			(142,504,775	)			—			70,480,024

			571,846,153			(403,155,131	)			77,441,935			246,132,957

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Acquisition<br><br>cost			Accumulated<br>depreciation				Accumulated<br>revaluation			Book amount
Land			24,968,018			—				83,580,757			108,548,775
Buildings			43,177,253			(21,066,922	)			—			22,110,331
Vehicles			1,111,482			(422,830	)			—			688,652
Furniture and equipment			204,408,789			(168,536,319	)			—			35,872,470
Others			64,523,074			(48,750,085	)			—			15,772,989
Right-of-use<br>assets			205,617,817			(124,045,980	)			—			81,571,837

			543,806,433			(362,822,136	)			83,580,757			264,565,054

The details of right-of-use assets as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Acquisition cost		Accumulated<br>depreciation			Book<br>amount
Buildings		202,537,391		(137,413,448	)		65,123,943
Vehicles		4,432,343		(2,633,596	)		1,798,747
Others		6,015,065		(2,457,731	)		3,557,334

		212,984,799		(142,504,775	)		70,480,024

	2024
(in thousands of Korean won)	Acquisition cost		Accumulated<br>depreciation			Book<br>amount
Buildings		197,166,055		(118,804,496	)		78,361,559
Vehicles		4,085,292		(2,526,905	)		1,558,387
Others		4,366,469		(2,714,578	)		1,651,891

		205,617,816		(124,045,979	)		81,571,837

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in property and equipment for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance			Acquisition			Disposal			Depreciation			Others ^1^			Ending<br>balance
Land			108,548,775			2,005,290			(10,983,844	)		—			2,566,492			102,136,713
Buildings			22,110,331			1,379,167			—			(2,637,275	)		2,407,176			23,259,399
Vehicles			688,652			—			(68,118	)		(92,865	)		51,289			578,958
Furniture and equipment			35,872,470			13,570,526			(317,999	)		(16,397,838	)		(317,902	)		32,409,257
Others			15,772,989			8,365,748			(4,214	)		(7,021,469	)		155,552			17,268,606
Right-of-use<br>assets			81,571,837			17,921,689			(763,155	)		(29,995,859	)		1,745,512			70,480,024

			264,565,054			43,242,420			(12,137,330	)		(56,145,306	)		6,608,119			246,132,957

^1^	Others consist of reclassification to investment properties, foreign exchange differences and others.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance			Acquisition			Disposal			Depreciation			Others ^1^			Ending<br>balance
Land			111,950,474			—			—			—			(3,401,699	)		108,548,775
Buildings			25,600,365			1,884,571			—			(2,577,888	)		(2,796,717	)		22,110,331
Vehicles			737,884			—			(115,430	)		(82,494	)		148,692			688,652
Furniture and equipment			34,251,838			17,295,888			(895,755	)		(15,194,265	)		414,764			35,872,470
Others			11,838,618			10,400,418			(99,865	)		(6,371,046	)		4,864			15,772,989
Right-of-use<br>assets			70,761,650			39,307,962			(1,174,990	)		(28,253,667	)		930,882			81,571,837

			255,140,829			68,888,839			(2,286,040	)		(52,479,360	)		(4,699,214	)		264,565,054

^1^	Others consist of reclassification to investment properties, foreign exchange differences and others.
:---	:---

The changes in right-of-use assets for the year ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance		Acquisition		Disposal			Depreciation			Others ^1^		Ending<br>balance
Buildings			78,361,559		13,037,484		(373,581	)		(27,491,861	)		1,590,342		65,123,943
Vehicles			1,558,386		1,974,288		(389,574	)		(1,390,454	)		46,101		1,798,747
Others			1,651,892		3,003,446		—			(1,113,544	)		15,540		3,557,334

			81,571,837		18,015,218		(763,155	)		(29,995,859	)		1,651,983		70,480,024

^1^	Others consist of foreign exchange differences and others.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Beginning<br>balance		Acquisition		Disposal			Depreciation			Others ^1^			Ending<br>balance
Buildings			66,674,422		47,126,387		(799,115	)		(25,889,842	)		(8,750,293	)		78,361,559
Vehicles			1,690,835		1,657,667		(416,583	)		(1,326,898	)		(46,634	)		1,558,387
Others			2,396,393		308,090		—			(1,036,927	)		(15,665	)		1,651,891

			70,761,650		49,092,144		(1,215,698	)		(28,253,667	)		(8,812,592	)		81,571,837

^1^	Others consist of foreign exchange differences and others.
:---	:---

The Group applies the revaluation model in relation to the measurement after the initial recognition of the land and the date of revaluation of the land was August 5, 2022. The Group used the assessed price provided by a qualified appraiser for the revaluation of the land.

The land was measured using sales value of similar land, and the access condition, environment condition and other specific factors are considered when the value is adjusted. There is no change in the valuation technique for the year ended December 31, 2025.

Classification of land that is measured at fair value by fair value hierarchy levels as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		102,136,713		102,136,713
	,2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		108,548,775		108,548,775

Changes in land which is classified to Level 3 for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	108,548,775		111,950,474
Reclassification from investment properties to property and equipment	2,566,492		—
Reclassification from property and equipment to investment properties	—		(3,401,699	)
Acquisition	2,005,290		—
Disposal	(10,983,844	)	—

Ending balance	102,136,713		108,548,775

Book amounts of land under cost model as at December 31, 2025 and 2024, are as follows:

		2025						2024
(in thousands of Korean won)		Under<br><br>revaluation model			Under<br><br>cost model			Under<br><br>revaluation model			Under<br><br>cost model
Land			102,136,713			24,694,778			108,548,775			24,968,018

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in other comprehensive income related to the revaluation for the year ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br><br>balance				Reclassification				Decrease due to<br>disposal, etc.			Ending<br><br>balance
Land			84,032,663				(848,457	)			(5,290,365	)		77,893,841
Income tax effects			(22,282,377	)			—				763,817			(21,518,560	)

			61,750,286				(848,457	)			(4,526,548	)		56,375,281

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br><br>balance				Other<br>Change			Ending<br><br>balance
Land			84,032,665				—			84,032,665
Income tax effects			(22,282,379	)			—			(22,282,379	)

			61,750,286				—			61,750,286

12. Investment Properties

The details of investment properties as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Acquisition<br>cost			Accumulated<br>depreciation			Accumulated<br>impairment			Accumulated<br>revaluation			Book amount
Land			45,793,361			—			(6,865,414	)		255,815			39,183,762
Buildings			109,305,810			(21,632,858	)		(14,553,087	)		—			73,119,865

			155,099,171			(21,632,858	)		(21,418,501	)		255,815			112,303,627

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Acquisition<br>cost			Accumulated<br>depreciation			Accumulated<br>impairment			Accumulated<br>revaluation			Book amount
Land			283,406,057			—			(332,250	)		—			283,073,807
Buildings			160,308,605			(23,929,999	)		—			—			136,378,606

			443,714,662			(23,929,999	)		(332,250	)		—			419,452,413

The changes in investment properties for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance		Acquisition		Disposal ^1^			Depreciation			Impairment			Others ^2^			Ending<br>balance
Land			283,073,807		—		(234,458,139	)		—			(6,865,414	)		(2,566,492	)		39,183,762
Buildings			136,378,606		—		(42,281,239	)		(3,467,850	)		(14,553,087	)		(2,956,565	)		73,119,865

			419,452,413		—		(276,739,378	)		(3,467,850	)		(21,418,501	)		(5,523,057	)		112,303,627

^1^	It includes investment properties amount to ~~W~~ 276,297,454 thousand held by subsidiaries<br>excluded from the consolidation during the year ended December 31, 2025.
:---	:---
^2^	Others consist of foreign exchange differences and transfer from/to property and equipment.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Beginning<br>balance		Acquisition		Disposal ^1^			Depreciation			Impairment		Others ^2^		Ending<br>balance
Land			431,082,024		—		(151,833,802	)		—			—		3,825,585		283,073,807
Buildings			185,840,323		—		(53,226,932	)		(4,406,269	)		—		8,171,484		136,378,606

			616,922,347		—		(205,060,734	)		(4,406,269	)		—		11,997,069		419,452,413

^1^	It included investment properties amount to 167,353,980 thousand held by subsidiaries excluded from the<br>consolidation during the year ended December 31, 2024.
:---	:---
^2^	Others consist of foreign exchange differences and transfer from/to property and equipment.
:---	:---

Details of income and expenditure on investment properties for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Rental income	12,173,919		18,893,181
Expenditure on operating investment properties	(9,013,054	)	(14,431,151	)
Expenditure on non-operating investment<br>properties	(59	)	—

	3,160,806		4,462,030

Details of fair value of investment properties as at December 31, 2025 and 2024, are as follows:

	2025				2024
(in thousands of Korean won)	Book amount		Fair value		Book amount		Fair value
Land		39,183,762		78,407,423		283,073,807		321,994,864
Buildings		73,119,865		101,248,181		136,378,606		150,845,041

		112,303,627		179,655,604		419,452,413		472,839,905

The fair values of investment properties as at December 31, 2025 was evaluated by an independent appraiser. The independent appraiser has appropriate qualification and experience in evaluating real estate in the location of investment properties.

The fair value of investment property was measured by using benchmark price of similar properties and discounted cash flow (DCF) method. The fair value of investment property measured by DCF method is assessed by discounting net cash flow from investment property with risk adjusted discount rate, reflecting expected growth rate of rent market, period of empty, proportion of rent, period without rent charge and other cost related to promotion for rent. The factors which are significant but non-observable inputs for fair valuation are expected growth rate of rent market, period of empty, proportion of rent, period without rent charge and risk adjusted discount rate.

The fair value of investment property measured by using sales value of similar land is calculated by analyzing and comparing the sale prices of similar land, and also the access condition, environment condition and other specific factors for the purpose of estimation for fair value are considered.

The fair values of investment properties are classified as Level 3 based upon the inputs, which are used in valuation method.

There is no significant change in the valuation technique for the year ended December 31, 2025.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Details of investment properties provided as collaterals as at December 31, 2025 and 2024 is as follows:

		2025
(in thousands of Korean won)		Secured amount			Secured party		Details
Land and buildings			25,022,287		Kookmin Bank

			18,285,517		Shinhan Bank

			14,435,935		Hana Bank			Collateralized borrowing

			2,887,187		Bukok branch of Uiwang<br>Nonghyup

			1,924,791		Dodram Pig Farmers<br>Cooperative

			962,396		Jeju Pig Farm Livestock<br>Cooperative

			1,924,791		Suncheon Nonghyup

			1,924,791		Singimpo Nonghyup

		2024
---	---	:---:	---	---	---	---	---	---
(in thousands of Korean won)		Secured amount			Secured party		Details
Land and buildings			95,628,080		Hanhwa Life Insurance

			38,251,232		Tongyang Life Insurance

			36,338,670		Lotte Capital

			23,907,020		Kyobo Life Insurance

			22,992,136		Kookmin Bank

			16,801,945		Shinhan Bank

			13,264,694		Hana Bank			Collateralized borrowing

			2,652,939		Bukok branch of<br>Uiwang Nonghyup

			1,768,626		Dodram Pig Farmers<br>Cooperative

			884,313		Jeju Pig Farm Livestock<br>Cooperative

			1,768,626		Suncheon Nonghyup

			1,768,626		Singimpo Nonghyup

			2,400,000		Singimpo Nonghyup

Investment properties are provided as collaterals for rental deposits and lease hold right, which amounts to ~~W~~ 610,000 thousand and ~~W~~ 610,000 thousand as at December 31, 2025 and 2024, respectively.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

13. Intangible Assets

The details of intangible assets as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment			Book amount
Goodwill		84,406,666		—			—			84,406,666
Development costs		345,985,097		(257,483,826	)		—			88,501,271
Software		140,489,023		(125,352,899	)		—			15,136,124
Memberships		43,384,790		(283,546	)		(6,732,591	)		36,368,653
Others		23,294,717		—			—			23,294,717

		637,560,293		(383,120,271	)		(6,732,591	)		247,707,431

	2024
(in thousands of Korean won)	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment			Book amount
Goodwill		85,940,206		—			—			85,940,206
Development costs		312,698,214		(209,465,882	)		—			103,232,332
Software		136,334,647		(115,218,996	)		(1,036,376	)		20,079,275
Memberships		44,946,885		(277,321	)		(7,203,010	)		37,466,554
Others		23,294,717		—			—			23,294,717

		603,214,669		(324,962,199	)		(8,239,386	)		270,013,084

The changes in intangible assets for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean<br>won)		Beginning<br>balance		Acquisition ^1^		Disposal			Amortization			Impairment ^2^			Reversal of<br>Impairment ^3^		Others ^4^			Ending<br>balance
Goodwill			85,940,206		—		—			—			—			—		(1,533,540	)		84,406,666
Development costs			103,232,332		33,286,883		—			(48,017,944	)		—			—		—			88,501,271
Software			20,079,275		5,565,827		(3,250	)		(10,449,618	)		—			—		(56,110	)		15,136,124
Memberships			37,466,554		—		(1,214,941	)		(9,584	)		(265,526	)		393,000		(850	)		36,368,653
Others			23,294,717		—		—			—			—			—		—			23,294,717

			270,013,084		38,852,710		(1,218,191	)		(58,477,146	)		(265,526	)		393,000		(1,590,500	)		247,707,431

^1^	Advance payments and others transferred from other accounts are included.
:---	:---
^2^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Group recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2025.
:---	:---
^3^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Group recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2025.
:---	:---
^4^	Others consist of foreign exchange differences and others.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Beginning<br>balance		Acquisition ^1^		Disposal			Amortization			Impairment ^2^			Reversal of<br>Impairment ^3^		Others ^4^		Ending<br>balance
Goodwill			83,778,170		—		—			—			—			—		2,162,036		85,940,206
Development costs			104,399,311		40,991,592		—			(42,158,571	)		—			—		—		103,232,332
Software			26,148,342		7,357,584		(24,996	)		(12,513,083	)		(1,036,376	)		—		147,804		20,079,275
Memberships			34,675,737		2,887,619		(970,900	)		(20,606	)		(128,738	)		1,019,296		4,146		37,466,554
Others			23,294,717		—		—			—			—			—		—		23,294,717

			272,296,277		51,236,795		(995,896	)		(54,692,260	)		(1,165,114	)		1,019,296		2,313,986		270,013,084

^1^	Advance payments and others transferred from other accounts are included.
:---	:---
^2^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Group recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2024.
:---	:---
^3^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Group recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2024.
:---	:---
^4^	Others consist of foreign exchange differences and others.
:---	:---

14. Other Financial Assets

The details of other financial assets as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other receivables	5,646,643,059		2,061,323,408
Accrued income	382,898,196		308,011,193
Accrued interest on bonds	172,967,452		295,740,833
Guarantee deposits	63,371,824		62,846,557
Other	110,787,473		137,520,223
Provision for other financial assets	(52,702,623	)	(51,685,257	)

	6,323,965,381		2,813,756,957

15. Other Assets

The details of other assets as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other receivables	195,150,962	—
Advance payments	57,923,580	41,944,463
Prepaid expenses	111,176,532	135,338,953
Prepaid value-added taxes	338,057	368,207
Others	26,446,795	13,406,609

	391,035,926	191,058,232

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

16. Deposit Liabilities

The details of deposit liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Customers’ deposits
Customers’ deposits for brokerage	8,542,825,436	5,773,748,168
Customers’ deposits for exchange-traded derivatives trading	637,491,603	438,187,733
Customers’ deposits for subscription	—	—
Customers’ deposits for savings	17,247,349	6,997,054
Customers’ deposits for repo	61,456	61,541
Customers’ deposits for the investor of collective investment securities	652,343,006	456,285,969
Others	80,017	7,780

	9,850,048,867	6,675,288,245

Guarantee deposits
Guarantee deposits in foreign currency	1,529,562,995	680,406,569
Guarantee deposits in Korean won	731,162,021	370,164,013

	2,260,725,016	1,050,570,582

	12,110,773,883	7,725,858,827

17. Borrowings

The details of borrowings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Call money	1,290,000,000		820,000,000
Borrowings:
Borrowing from banks	647,398,189		346,270,177
Borrowing from KSFC	1,465,834,076		1,264,581,631
Asset-backed short-term bonds	2,238,362,671		2,767,930,379
CP borrowings	5,800,000,000		5,000,000,000
Others	105,252,357		247,783,272
Securities sold under repurchase agreements	10,719,460,118		9,419,893,685
Short-term note issued	10,943,325,311		10,130,450,816
Debentures:
Debentures	4,620,670,000		3,463,100,000
Less: discount on debentures issued	(6,865,709	)	(5,408,576	)

	37,823,437,013		33,454,601,384

The details of call money as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		Interest rate (%)			2025			2024
Kiwoom Asset Management Co., Ltd. and others			2.60~2.90			1,290,000,000			820,000,000

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of borrowings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Borrowings from banks	Kookmin Bank and other	0.00~7.70	647,398,189	346,270,177
Borrowings from KSFC	KSFC	2.73~2.94	1,465,834,076	1,264,581,631
Asset-backed short-term bonds	SK Securities co., Ltd., and other	2.00~7.00	2,238,362,671	2,767,930,379
CP borrowings	Hyundai Motor Securities Co., Ltd.and others	2.58~3.20	5,800,000,000	5,000,000,000
Others	KFCC and others	2.00~6.90	105,252,357	247,783,272

			10,256,847,293	9,626,565,459

The details of securities sold under repurchase agreements as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Customers	0.00~4.80	6,693,960,118	5,913,024,606
Financial institution	2.40~2.68	4,025,500,000	3,506,869,079

		10,719,460,118	9,419,893,685

The details of short-term note issued as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Individual	2.00~5.00	5,965,341,642	6,149,462,845
Corporate	2.00~4.50	4,977,983,669	3,980,987,971

		10,943,325,311	10,130,450,816

The details of debentures as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)			Interest rate (%)
The 39-2nd unsecured public debenture	2021.03.04	2026.03.04	1.70	120,000,000	120,000,000
The 40-2nd unsecured public debenture	2021.04.23	2026.04.23	1.94	200,000,000	200,000,000
The 41-1st unsecured public debenture	2023.02.07	2025.02.07	3.88	—	330,000,000
The 41-2nd unsecured public debenture	2023.02.07	2026.02.06	3.85	210,000,000	210,000,000
The 42-1st unsecured public debenture	2023.06.26	2025.06.26	4.39	—	240,000,000
The 42-2nd unsecured public debenture	2023.06.26	2026.06.26	4.43	220,000,000	220,000,000
The 43-1st unsecured public debenture	2024.01.31	2025.07.31	3.94	—	160,000,000
The 43-2nd unsecured public debenture	2024.01.31	2026.01.30	3.94	230,000,000	230,000,000
The 43-3rd unsecured public debenture	2024.01.31	2027.01.29	3.98	410,000,000	410,000,000
The 44-1st unsecured public debenture	2024.04.23	2025.10.23	3.79	—	100,000,000

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The 44-2nd unsecured public debenture		2024.04.23	2026.04.23	3.82	100,000,000		100,000,000
The 44-3rd unsecured public debenture		2024.04.23	2027.04.23	3.86	200,000,000		200,000,000
The 45-1st unsecured public debenture		2024.09.03	2026.09.03	3.56	220,000,000		220,000,000
The 45-2nd unsecured public debenture		2024.09.03	2027.09.03	3.56	280,000,000		280,000,000
The 2nd unsecured privately placed bond<br>^1^		2024.12.12	2026.06.12	7.10	200,000		2,100,000
The 46-1st unsecured public debenture		2025.02.19	2027.02.19	3.03	120,000,000		—
The 46-2nd unsecured public debenture		2025.02.19	2028.02.18	3.08	450,000,000		—
The 46-3rd unsecured public debenture		2025.02.19	2030.02.19	3.17	230,000,000		—
The 47-1st unsecured public debenture		2025.05.28	2027.05.28	2.72	220,000,000		—
The 47-2nd unsecured public debenture		2025.05.28	2028.05.26	2.76	380,000,000		—
The 48-1st unsecured public debenture		2025.09.09	2030.09.09	2.91	100,000,000		—
The 48-2nd unsecured public debenture		2025.09.09	2028.09.08	2.79	440,000,000		—
The 48-3nd unsecured public debenture		2025.09.09	2027.09.09	2.72	60,000,000		—
The 21-1 public debenture in foreign currency ^2^		2021.11.01	2026.11.01	2.13	430,470,000		441,000,000

					4,620,670,000		3,463,100,000

Less: Discount on debentures issued					(6,865,709	)	(5,408,576	)

					4,613,804,291		3,457,691,424

^1^	This privately placed bond was issued by subsidiary named Able Seun Co., Ltd.
:---	:---
^2^	The issuance price of this public debenture is US$ 300,000,000.
:---	:---

The changes in borrowings for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	33,454,601,384		30,640,156,335
Increase(decrease) in call money	470,000,000		(420,000,000	)
Increase(decrease) in borrowings from banks	301,128,012		(307,417,189	)
Increase in borrowings from KSFC	201,252,445		1,761,697
Increase(decrease) in asset-backed short-term bond	(529,567,708	)	422,841,700
Increase in CP borrowings	800,000,000		1,620,000,000
Decrease in other borrowings	(142,530,915	)	(330,866,506	)
Increase in securities sold under repurchase agreements	1,299,566,433		383,796,062
Increase in short-term note issued	812,874,495		542,939,794
Increase in debentures	1,156,112,867		901,389,491

Ending balance	37,823,437,013		33,454,601,384

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

18. Post-employment Benefits

18.1 Defined Benefit Plans

The details of defined benefit liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Present value of defined benefit obligations	84,113,110		79,636,084
Fair value of plan assets	(6,037,497	)	(10,971,828	)

Net defined benefit liabilities	78,075,613		68,664,256

The changes in the defined benefit obligation for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	79,636,084		75,835,223
Current service cost	23,603,780		22,515,097
Interest cost	2,099,064		2,436,755
Remeasurements
Actuarial gains and losses arising from changes in demographic assumptions	2,888,700		34,904
Actuarial gains and losses arising from changes in financial assumptions	(636,407	)	4,697,042
Actuarial gains and losses arising from experience adjustment	6,353,218		1,480,306
Payments from plans	(2,059,923	)	(1,291,060	)
Payments from the Group	(23,863,456	)	(21,543,795	)
Transfer to related companies	(3,907,950	)	(2,777,338	)
Settlement	—		(1,751,050	)

Ending balance	84,113,110		79,636,084

The changes in the fair value of plan assets for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	(10,971,828	)	(13,270,798	)
Interest income	(378,524	)	(549,651	)
Remeasurements:
Return on plan assets (excluding amounts included in interest income)	(8,352	)	180,223
Contributions by employers	(500,000	)	(1,400,000	)
Payments from plans:
Benefits paid	2,059,924		1,291,060
Transfer to related companies	3,761,283		2,777,338

Ending balance	(6,037,497	)	(10,971,828	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Plan assets are composed of the detail assets that have no quoted price in active market. The details of plan assets as at December 31, 2025 and 2024, are as follows:

	2025				2024
(in thousands of Korean won)	Fair value		Composition(%)		Fair value		Composition(%)
Cash and deposits		4,949,407		81.98		10,122,822		92.26
Investment funds		1,088,090		18.02		849,006		7.74

		6,037,497		100.00		10,971,828		100.00

Key actuarial assumptions used as at December 31, 2025 and 2024, are as follows:

		2025		2024
Discount rate		DB(including special retirement by<br>salaries peak plan) 3.9%<br>Compensation promotion DC 3.3%		DB(including special retirement by<br>salaries peak plan) 3.6%<br>Compensation promotion DC 3.2%
Expected salary growth rate		DB : executives 4.7%<br><br>DC: Promotion + Base up 2.8%<br><br>Special retirement by salaries peak<br>plan: 4.7%		DB : executives 4.8%<br><br>DC: Promotion + Base up 2.7%<br><br>Special retirement by salaries peak<br>plan: 4.8%

The sensitivity analysis for significant actuarial assumptions used to determine the present value of the defined benefit obligation as at December 31, 2025, are as follows:

		Effect on the present value of defined benefit obligation
(in thousands of Korean won)		Changes in<br>assumption			Increase			Decrease
Discount rate			0.50	%		(1,787,989	)		1,890,803
Expected salary growth rate^1^			0.50	%		1,698,477			(1,611,528	)
Retirement rate			0.50	%		(1,706,156	)		1,795,967
^1^	The sensitivity analysis for the expected salary growth rate is limited to special retirement by salaries peak<br>plan and DB.
:---	:---

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. The sensitivity of the present value of the defined benefit obligation to changes in actuarial assumptions is calculated using the projected unit credit method, the same method applied when calculating the defined benefit obligations.

The methods and assumptions used in preparing the sensitivity analyses did not change compared to the previous period.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The effect of defined benefit plan on future cash inflows: Expected maturity analysis of undiscounted pension benefits as at December 31, 2025, is as follows:

(in thousands of Korean won)
Pension benefits^1^		7,108,382	11,361,181	30,444,854	32,944,123	64,068,029	145,926,569
^1^	Fixed pension benefits of ~~W~~15,100,000 thousand under promotion compensation defined<br>contribution plan are excluded.
:---	:---

The weighted average duration of the defined benefit obligations is 5.75 years.

Expected contribution to post-employment benefit plans for the year ending December 31, 2026 is ~~W~~ 900,000 thousand.

18.2 Defined Contribution Plans

The Group recognized the expenses of ~~W~~ 8,159,197 thousand and ~~W~~ 4,775,485 thousand for defined contribution plans for the years ended December 31, 2025 and 2024, respectively.

19. Provisions

The details of provisions as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Provisions for non-financial guarantees		6,462,778	4,363,358
Provisions for asset retirement obligation<br>^1^		9,206,853	9,236,979
Provisions for lawsuits		56,008,858	75,204,159
Provisions for others		38,434,048	48,755,377

		110,112,537	137,559,873

^1^	The Group recognized the provision for asset retirement obligation in connection with the leased asset for the<br>expenditures expected to recover the asset.
:---	:---

The changes in provisions for non-financial guarantees for the years ended December 31, 2025 and 2024 are as follows,

	2025
(in thousands of Korean won)	The financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses
			Non-impaired			Impaired
Beginning		4,172,129		191,229			—
Transfer between stages
Transfer to lifetime expected credit Losses		—		—			—
Provision for losses (reversal of provision)		2,290,649		(191,229	)		—
Other transfer (foreign exchange and other)		—		—			—

Ending		6,462,778		—			—

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	The financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses
				Non-impaired			Impaired
Beginning		6,218,110			196,724			—
Transfer between stages
Transfer to lifetime expected credit Losses		(274,031	)		274,031			—
Provision for losses (reversal of provision)		(1,771,950	)		(279,526	)		—
Other transfer(foreign exchange and other)		—			—			—

Ending		4,172,129			191,229			—

The changes in other provisions for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Provisions<br>for asset<br>retirement<br>obligation				Provisions for<br>lawsuits				Provisions for<br>others				Total
Beginning			9,236,979				75,204,159				48,755,377				133,196,515
Contribution			214,584				33,784,354				7,452,000				41,450,938
Reversal			(28,790	)			(25,038,145	)			(7,350,798	)			(32,417,733	)
Use			(253,095	)			(27,941,510	)			(10,422,531	)			(38,617,136	)
Amortization of discounts			37,175				—				—				37,175

Ending			9,206,853				56,008,858				38,434,048				103,649,759

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Provisions<br>for asset<br>retirement<br>obligation				Provisions for<br>lawsuits				Provisions for<br>others				Total
Beginning			9,058,920				111,425,114				86,089,255				206,573,289
Contribution			215,297				12,982,498				25,417,147				38,614,942
Reversal			—				(34,099,212	)			(4,600,000	)			(38,699,212	)
Use			(87,527	)			(15,104,241	)			(58,151,025	)			(73,342,793	)
Amortization of discounts			50,289				—				—				50,289

Ending			9,236,979				75,204,159				48,755,377				133,196,515

20. Other Financial Liabilities

The details of other financial liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other payables	5,447,665,459	1,803,355,494
Accrued expenses	174,096,393	173,026,055
Financial guarantee liabilities	2,792,624	4,888,161
Provisions for financial guarantee contracts	245,001	—
Leasehold deposits received	10,555,100	15,879,109
Non-controlling liabilities	45,692,550	53,722,980
Lease liabilities	92,480,438	110,565,255
Others	87,612,541	49,015,525

	5,861,140,106	2,210,452,579

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in liabilities of the provisions for financial guarantee contracts for the years ended December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)		2025
		The financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses				The financial instruments<br>applying lifetime expected<br>credit losses
						Non-impaired			Impaired
Beginning			—				—			—
Provision			1,070,001				—			—
Other transfer (foreign exchange and other)			(825,000	)			—			—

Ending			245,001				—			—

(in thousands of Korean won)		2024
---	---	:---:	---	---	---	---	---	---	---	---
		The financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses				The financial instruments<br>applying lifetime expected<br>credit losses
						Non-impaired			Impaired
Beginning			142,308				—			—
Provision			14,759,010				—			—
Other transfer (foreign exchange and other)			(14,901,318	)			—			—

Ending			—				—			—

21. Other Liabilities

The details of other liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Accounts payables	—	7,162,892
Accrued expenses	342,617,781	288,909,701
Accrued dividends	1,386,111	1,366,645
Advances from customers	13,906,331	7,819,439
Unearned revenue	40,324,441	26,427,136
Taxes withheld	96,187,722	58,844,142
Other long-term employee benefits	6,600,261	7,244,299
Others	11,434,108	12,413,869

	512,456,755	410,188,123

22. Share Capital

The details of share capital as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won except per share)		Authorized shares		Outstanding shares		Par value<br><br>per share				2025			2024
Ordinary share		1,000,000,000<br>shares		298,620,424<br><br>shares			5,000<br>won				1,493,102,120			1,493,102,120

There are no changes in ordinary shares for the years ended December 31, 2025 and 2024.

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

After the year ended December 31, 2025, in February 2026, the Group issued 33,333,333 common shares at a per-share issuance price of ~~W~~21,000 (par value of KRW 5,000) through a resolution of the board of directors.

23. Hybrid Securities

Details of hybrid security classified as equity as of December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		Issuance date
Bond-type Hybrid Securities No.1^1^		March 31,<br>2022	Permanent	4.30	208,010,652	208,010,652
Bond-type Hybrid Securities No.2		May 30,<br><br>2022	Permanent	4.80	48,170,880	48,170,880
Bond-type Hybrid Securities No.3^2^		September 30,<br>2022	Permanent	5.50	249,948,780	249,948,780
Bond-type Hybrid Securities No.4^3^		May 8, 2023	Permanent	5.35	119,963,080	119,963,080
Bond-type Hybrid Securities No.5		March 21,<br>2024	Permanent	5.22	129,999,380	129,999,380

					756,092,772	756,092,772

^1^	As at December 31, 2025 and 2024, among the hybrid securities issued by the Group, the balance held by KB<br>Financial Group, a related party of the Group, is ~~W~~200,000 million.
:---	:---
^2^	As at December 31, 2025 and 2024, among the hybrid securities issued by the Group, the balance held by KB<br>Financial Group, a related party of the Group, is ~~W~~230,000 million.
:---	:---
^3^	As at December 31, 2025 and 2024, among the hybrid securities issued by the Group, the balance held by KB<br>Financial Group, a related party of the Group, is ~~W~~100,000 million.
:---	:---

The Group may extend the maturity under the same conditions at the time of maturity of the above hybrid securities, and interest payment may be deferred except in cases where a cash dividend or stock dividend has been resolved for common stock. Above hybrid securities are early redeemable by the Group after 5 years from the issuance date and each interest payment date thereafter.

24. Other Paid-in Capital

The details of other paid-in capital as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Share premium ^1^		1,142,353,750		1,142,353,750
Gains and losses on sale of treasury share		(45,331,811	)	(45,331,811	)
Other equity ^2^		382,237,961		382,237,961

		1,479,259,900		1,479,259,900

^1^	Share premium was previously paid from stock issuance and new stock issuance due to merger and can only be used<br>for capitalization and deficit recovery.
:---	:---
^2^	Other equity arose from the paid-in capital increase of preferred share<br>and gains on merger.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in other paid-in capital for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning	1,479,259,900	1,478,687,978
Changes in scope of consolidation	—	571,922

Ending	1,479,259,900	1,479,259,900

25. Retained Earnings

The details of retained earnings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Legal reserve
Earned surplus reserve ^1^		201,656,298	173,656,298
Reserve for liability to compensate for damages^2^		500,000	500,000
Voluntary reserves		2,109,442,799	1,889,816,387
Regulatory reserve for credit losses<br>^3^		66,404,685	47,300,393
Unappropriated retained earnings		398,086,375	598,544,544

		2,776,090,157	2,709,817,622

^1^	The Commercial Act of the Republic of Korea requires the Group to appropriate, as a legal reserve, an amount<br>equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends, but may be transferred to share capital or used to reduce accumulated<br>deficit.
:---	:---
^2^	The Parent Company provides reserve for loss on electronic financial transactions to make reparation for the<br>damage in process of the electronic transfers or operations. Also, the Parent Company provides reserve to compensate for inflicted damage on a credit information subject when violating the Credit Information Use and Protection Act.
:---	:---
^3^	The Group accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for<br>possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Financial Supervisory Service.
:---	:---

Changes in retained earnings for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	2,709,817,622		2,304,302,712
Profit for the year	679,735,667		591,153,190
Dividends	(580,000,000	)	(150,000,000	)
Dividends of hybrid securities	(38,599,700	)	(37,064,078	)
Replacement due to disposal of equity investments at FVOCI	1,051,211		1,425,798
Reclassification of revaluation surplus due to disposal of property and equipment	4,085,357		—

Ending balance	2,776,090,157		2,709,817,622

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The amount of dividends and dividends per share for the years ended December 31, 2025 and 2024, are as follows:

	2025
(in Korean won and number of shares)	Type of<br>share		Number of<br>shares<br>outstanding		Number of<br>treasury<br><br>shares		Number of<br>dividend<br>shares		Dividend<br>per share		Total dividend<br><br>(In thousands of<br>Korean won)
Interim dividend		Ordinary<br>share		298,620,424<br>shares		—		298,620,424<br><br>shares		1,004		300,000,000
Annual dividend		Ordinary<br>share		298,620,424<br>shares		—		298,620,424<br><br>shares		937		280,000,000
	2024
(in Korean won and number of shares)	Type of<br>share		Number of<br>shares<br>outstanding		Number of<br>treasury<br><br>shares		Number of<br>dividend<br>shares		Dividend<br>per share		Total dividend<br><br>(In thousands of<br>Korean won)
Annual dividend		Ordinary<br>share		298,620,424<br>shares		—		298,620,424<br><br>shares		502		150,000,000

Payout and dividend yield ratios as at December 31, 2025 and 2024, are as follows:

	2025			2024
	Ordinary share			Ordinary share
	Interim dividend			Annual dividend
Number of shares outstanding		298,620,424			298,620,424
Number of treasury shares		—			—
Number of dividend shares		298,620,424			298,620,424
Par value per share (in Korean won)		5,000			5,000
Payout ratio		20.08	%		18.75	%
Scheduled dividends (in thousands of Korean won)		300,000,000			280,000,000
Dividends per share (in Korean won)		1,004			937

The Group accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Regulation on Supervision of Financial Investment.

Regulatory reserve for credit losses, a type of voluntary reserve for retained earnings, reverses the exceeding amount if the beginning balance of the reserve exceeds the ending balance at the closing date. Regulatory reserve for credit losses is generally recognized after unappropriated deficit is disposed.

The details of the regulatory reserve for credit losses (reversal of reserve) to be appropriated as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning	66,404,685		47,300,393
Amounts to be reserved (reversed)	(8,837,499	)	19,104,292

Ending	57,567,186		66,404,685

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The adjusted profit of the year after reflection of reversal (provision) of reserve for credit losses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Profit for the year before reserve for credit loss		679,735,667	590,360,820
Amounts to be reversed (reserved)		8,837,499	(19,104,292	)

Adjusted profit after reversed (provision) of reserve for credit losses^1^		688,573,166	571,256,528

^1^	Reserve for credit loss is announced by Article 3 Clause 8 of the Regulation on Financial Investment Business.<br>Adjusted profit after reserve for credit losses is not based on Korean IFRS and is calculated on the assumption that provision or reversal of reserve for credit losses before tax is adjusted to the profit.
:---	:---

26. Other Components of Equity

The details of other components of equity as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Changes in the fair value of financial assets at FVOCI	323,157,359		295,100,380
Share of other comprehensive income of associates	(839,072	)	(52,401	)
Revaluation surplus	57,191,703		62,144,795
Remeasurements of net defined benefit liabilities	(53,717,375	)	(47,480,752	)
Exchange differences on translation of foreign operations	86,475,274		112,942,558
Hedge of net investments in foreign operations	(32,398,689	)	(38,438,855	)
Gain or loss on financial liabilities designated at FVTPL due to the change of credit<br>risk	(20,522,685	)	(17,297,087	)

	359,346,515		366,918,638

The changes in gain or loss on valuation of financial assets at FVOCI for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		295,100,380		289,671,988
Gain (loss) on valuation		55,483,663		13,304,973
Tax effect of gain (loss) on valuation<br>^1^		(20,300,855	)	(3,668,103	)
Transfer to gain due to disposal or impairment		(9,681,835	)	(5,718,041	)
Tax effect of transfer ^1^		2,556,006		1,509,563

Ending balance		323,157,359		295,100,380

^1^	Including income tax effect (Note 35)
:---	:---

The changes in the Group’s share of other comprehensive income of associates for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		(52,401	)	(6,586,082	)
Changes of other comprehensive income of associates		(405,627	)	8,909,673
Tax effect ^1^		(381,044	)	(2,375,992	)

Ending balance		(839,072	)	(52,401	)

^1^	Including income tax effect (Note 35)
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in gain on revaluation of property and equipment for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		62,144,795		62,144,795
Replacement due to disposal of revaluated assets		(5,550,756	)	—
Tax effect related to replacement due to disposal of revaluated assets ^1^		597,664		—

Ending balance		57,191,703		62,144,795

^1^	Including income tax effect (Note 35)
:---	:---

The changes in remeasurements of the net defined benefit liability for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		(47,480,751	)	(42,790,562	)
Changes due to valuation		(8,597,161	)	(6,392,474	)
Tax effect ^1^		2,360,537		1,702,285

Ending balance		(53,717,375	)	(47,480,751	)

^1^	Including income tax effect (Note 35)
:---	:---

The changes in exchange differences on translation of foreign operations for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		112,942,559		48,609,018
Exchange differences on foreign operations translation		(27,871,081	)	63,911,262
Tax effect ^1^		(44,308	)	2,485,191
Non-controlling interest		1,448,104		(2,062,912	)

Ending balance		86,475,274		112,942,559

^1^	Including income tax effect (Note 35)
:---	:---

The changes in gain or loss on valuation of hedge of net investments in foreign operations for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		(38,438,855	)	(16,769,049	)
Gain (loss) on net investment in a foreign operation hedge		7,538,862		(29,442,671	)
Re-classification to net income due to the end of net<br>investments in foreign operations		—		—
Tax effect ^1^		(1,498,696	)	7,772,865

Ending balance		(32,398,689	)	(38,438,855	)

^1^	Including income tax effect (Note 35)
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The change in gain or loss on financial liabilities designated at FVTPL due to the change of credit risk for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		(17,297,087	)	(11,782,162	)
Changes		(4,805,676	)	(7,493,104	)
Tax effect ^1^		1,580,078		1,978,179

Ending balance		(20,522,685	)	(17,297,087	)

^1^	Including income tax effect (Note 35)
:---	:---

27. Fee and Commission Income and Expense

The details of fee and commission income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Brokerage commissions	777,313,489	550,643,935
Underwriting commissions	166,086,582	176,339,844
Brokerage commissions on collective investment securities	34,291,973	23,565,918
Management fee on collective investment securities	—	5,304
Management fee on asset management	50,209,302	38,160,750
Commissions on merger and acquisition	55,334,944	89,101,232
Trust fees and commissions	20,822,534	17,866,581
Other commissions	114,526,370	100,443,111

	1,218,585,194	996,126,675

The details of fee and commission expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Trading commission	63,932,836	53,916,826
Advisory fees	4,348,664	3,047,910
Investment management delegation fees	1,398,604	1,867,849
Commission fees on group brand	19,879,298	21,032,741
Contributions to external institutions	9,461,193	9,056,725
Others	178,488,679	135,324,979

	277,509,274	224,247,030

28. Gain or Loss on Valuation and Disposal of Financial Instruments

The details of gain or loss on valuation and disposal of financial instruments for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain		Loss		Net
Financial instruments at FVTPL			3,789,035,307		1,721,960,987		2,067,074,320
Financial instruments designated at FVTPL			145,592,815		658,229,659		(512,636,844	)
Derivative financial instruments			5,725,790,982		7,041,422,093		(1,315,631,111	)
Financial assets at FVOCI ^1^			27,617,524		4,831,583		22,785,941

			9,688,036,628		9,426,444,322		261,592,306

^1^	Gain or loss on valuation of financial assets at FVOCI is excluded.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Gain		Loss		Net
Financial instruments at FVTPL			1,859,276,411		1,572,167,286		287,109,125
Financial instruments designated at FVTPL			324,748,471		640,871,724		(316,123,253	)
Derivative financial instruments			4,539,490,246		4,382,826,145		156,664,101
Financial assets at FVOCI ^1^			13,207,427		717,576		12,489,851

			6,736,722,555		6,596,582,731		140,139,824

^1^	Gain or loss on valuation of financial assets at FVOCI is excluded.
:---	:---

The details of gain or loss on valuation and disposal of financial instruments at FVTPL for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Financial assets at FVTPL			3,626,543,482			932,099,408			2,694,444,074
Financial liabilities at FVTPL			162,491,825			789,861,579			(627,369,754	)

			3,789,035,307			1,721,960,987			2,067,074,320

		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Financial assets at FVTPL			1,502,637,546			1,214,255,744			288,381,802
Financial liabilities at FVTPL			356,638,865			357,911,542			(1,272,677	)

			1,859,276,411			1,572,167,286			287,109,125

The details of gain or loss on valuation and disposal of financial instruments designated at FVTPL for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold			98,914,557			511,123,772			(412,209,215	)
Other OTC derivative-combined contract sold			18,405,237			99,087,124			(80,681,887	)
Exchange traded notes sold			28,273,021			48,018,763			(19,745,742	)

			145,592,815			658,229,659			(512,636,844	)

		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold			266,262,027			526,918,763			(260,656,736	)
Other OTC derivative-combined contract sold			39,681,189			77,671,319			(37,990,130	)
Exchange traded notes sold			18,805,255			36,281,642			(17,476,387	)

			324,748,471			640,871,724			(316,123,253	)

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of gain or loss on valuation and disposal of derivative financial instruments for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Interest rate			2,084,073,388			1,999,400,554			84,672,834
Currency			591,709,604			670,752,733			(79,043,129	)
Stock			2,782,166,804			4,157,849,499			(1,375,682,695	)
Credit			59,327,916			55,681,259			3,646,657
Commodity			134,684,934			112,210,345			22,474,589
Others			73,828,336			45,527,703			28,300,633

			5,725,790,982			7,041,422,093			(1,315,631,111	)

		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Interest rate			1,255,884,102			1,355,656,950			(99,772,848	)
Currency			752,675,408			697,460,916			55,214,492
Stock			2,347,318,616			2,068,586,278			278,732,338
Credit			46,411,148			42,064,301			4,346,847
Commodity			63,666,021			57,086,321			6,579,700
Others			73,534,951			161,971,379			(88,436,428	)

			4,539,490,246			4,382,826,145			156,664,101

The details of gain or loss on valuation and disposal of financial assets at FVOCI for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Debt instruments			27,617,524			4,831,583			22,785,941

		27,617,524			4,831,583			22,785,941

		2024
---	---	:---:	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Debt instruments			13,207,427			717,576			12,489,851

		13,207,427			717,576			12,489,851

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

29. Interest Income and Interest Expense

The details of interest income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Interest on financial assets at FVTPL
Interest on debt instruments at FVTPL		670,653,926	681,520,108
Interest on loans at FVTPL		37,081,442	14,455,538
Interest on commercial papers		110,681,905	149,585,454

		818,417,273	845,561,100

Interest on financial assets at FVOCI and financial assets measured at amortised cost
Interest on loans measured at amortised cost		19,230,528	22,463,982
Interest on debt instruments at FVOCI		217,346,070	199,362,668
Interest on broker’s loans		279,844,192	259,639,549
Interest on loans		294,804,342	312,885,597
Interest on deposits with KSFC		36,351,403	32,054,407
Interest on certificates of deposit		854,168	3,234,932
Interest on deposits with financial institution		466,358	129,946
Interest on bonds purchased under resale agreements		43,788,732	53,913,386
Gains on transactions of certificates of deposits		62,968	1,922,735
Interest on deposits		42,517,336	37,066,255
Interest on other receivables		1,157,351	769,006
Others ^1^		12,806,888	17,480,439

		949,230,336	940,922,902

		1,767,647,609	1,786,484,002

^1^	Interest on lease receivables of ¥ 594 million and ¥ 779 million for the year ended<br>December 31, 2025 and 2024, respectively, are included.
:---	:---

The details of interest expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Interest on borrowings		86,333,773	106,241,872
Fees for the proceeds from the sale of stocks loaned		264,455	441,330
Interest on customers’ deposits		67,790,894	57,338,824
Interest on bonds sold under repurchase agreements		260,275,600	305,570,078
Losses on transactions of certificates of deposit		7	2,243
Interest on call money		22,920,036	26,066,872
Interest on debentures		150,024,106	112,488,174
Interest on short-term note issued		467,353,331	486,374,722
Interest on asset-backed short-term bonds		55,795,922	71,317,993
Others ^1^		21,830,211	13,349,087

		1,132,588,335	1,179,191,195

^1^	Interest on lease liabilities of ¥ 3,489 milliion and ¥ 4,292 million for the year ended<br>December 31, 2025 and 2024, respectively, are included.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

30. Gain or Loss on Valuation and Disposal of Financial Assets measured at Amortised Costs

The detail of gain or loss on valuation and disposal of financial assets measured at amortised cost for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain(loss) on valuation of financial assets measured at amortised cost
Reversal(provision) of allowance for credit losses of loans	(81,894,343	)	(52,630,200	)
Reversal(provision) of allowance for credit losses of deposits	(321,555	)	(448,028	)
Reversal(provision) of allowance for credit losses of other financial<br>assets	(6,710,818	)	(971,963	)
Gain(loss) on disposal of financial assets measured at amortised cost
Gain(loss) on disposal of loans measured at amortised cost	(78,921,892	)	1,670,968

	(167,848,608	)	(52,379,223	)

31. Gain or Loss on Foreign Currency Transactions

The details of gain on foreign currency transactions for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain on foreign currency transactions	939,706,730	596,499,597
Gain on foreign exchange translation	257,826,579	406,750,477

	1,197,533,309	1,003,250,074

The details of loss on foreign currency transactions for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Loss on foreign currency transactions	914,519,460	586,288,760
Loss on foreign exchange translation	187,238,292	268,970,626

	1,101,757,752	855,259,386

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

32. Other Operating Income and Other Operating Expenses

The details of other operating income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Dividend income	107,957,832	86,535,185
Distribution income	141,024,848	97,789,107
Reversal of provision for credit loss	1,605,359	4,014,930
Operating lease income	9,982,891	16,640,506
Others	7,936,992	11,256,044

	268,507,922	216,235,772

The details of other operating expenses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Provision for credit loss	4,774,780	16,722,464
Others	47,103,039	53,079,228

	51,877,819	69,801,692

33. Selling and Administrative Expenses

(a) The details of selling and administrative expenses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Labor Costs
Salaries	538,064,215	458,287,335
Post-employment benefits	33,483,517	27,426,636
Retirement bonus	2,662,080	15,802,956
Other long-term employee benefits	547,163	837,170
Employee benefits	103,170,487	102,637,110

	677,927,462	604,991,207

Other selling and administrative expenses
Employee benefits	11,605,573	11,576,466
Sales promotion expenses	1,667,169	1,560,973
Computer system operation expenses	76,588,814	71,664,539
Management expenses for rent	21,309,385	20,352,347
Commissions	26,896,701	31,943,754
Research and development	437,305	377,327
Advertising expenses	32,685,742	30,550,556
Depreciation	56,145,306	52,479,360
Training expenses	2,670,955	2,553,712
Amortization expenses of intangible assets	58,477,146	54,692,261
Taxes and dues	56,705,654	45,034,513
Consignment fees	2,021,940	5,139,077
Others	45,574,398	47,655,252

	392,786,088	375,580,137

	1,070,713,550	980,571,344

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b) Stock Grant Agreement

KB Financial Group, the parent company, has entered into a stock-based compensation agreement (Stock Grant) with its executives and employees. KB Financial Group and the Group settle the expenses incurred pursuant to this agreement. The Group recognizes the compensation amount it incurs annually pursuant to the agreement as an expense, recognized as selling and administrative expenses.

The details of the share grants linked to long-term performance as at December 31, 2025, are as follows:

(In number of<br>shares)	Grant date			Vesting conditions
Series 1-1	2010-1-1	732	160	Service, vesting conditions : market 40%, non-market 60%
Series 1-8	2011-1-1	766	219	Service, vesting conditions : market 40%, non-market 60%
Series 1-10	2012-1-1	1,175	384	Service, vesting conditions : market 40%, non-market 60%
Series 1-11	2012-6-18	708	142	Service, vesting conditions : market 40%, non-market 60%
Series 1-13	2013-1-1	2,532	749	Service, vesting conditions : market 40%, non-market 60%
Series 1-19	2015-2-24	1,812	584	Service, vesting conditions : market 30%, non-market 70%
Series 1-21	2016-1-1	5,091	739	Service, vesting conditions : market 30%, non-market 70%
Series 1-22	2016-12-30	32,669	7,643	Service, vesting conditions : market 20%, non-market 80%
Series 1-24	2017-2-24	1,698	1,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-26	2017-9-4	1,551	1,028	Service, vesting conditions : market 20%, non-market 80%
Series 1-28	2018-1-1	6,739	2,253	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1	35,457	19,341	Service, vesting conditions : market 20%, non-market 80%
Series 1-31	2019-2-24	809	637	Service, vesting conditions : market 20%, non-market 80%
Series 1-32	2019-3-4	1,888	1,021	Service, vesting conditions : market 20%, non-market 80%
Series 1-33	2019-6-1	2,246	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-34	2019-9-1	2,927	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-35	2019-9-4	358	207	Service, vesting conditions : market 20%, non-market 80%
Series 1-36	2019-5-27	1,167	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-37	2020-1-1	47,886	5,017	Service, vesting conditions : market 20%, non-market 80%
Series 1-38	2020-3-6	2,856	411	Service, vesting conditions : market 0%, non-market 100%
Series 1-39	2020-8-1	4,003	453	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1	98,808	18,343	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1	5,675	747	Service, vesting conditions : market 0%, non-market 100%
Series 1-41	2021-3-4	3,591	1,856	Service, vesting conditions : market 20%, non-market 80%
Series 1-42	2021-3-15	5,034	913	Service, vesting conditions : market 20%, non-market 80%

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Series 1-43		2021-5-27	604	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-44		2021-6-1	2,904	1,487	Service, vesting conditions : market 20%, non-market 80%
Series 1-45		2021-8-1	2,320	660	Service, vesting conditions : market 20%, non-market 80%
Series 1-46		2021-9-1	3,201	547	Service, vesting conditions : market 20%, non-market 80%
Series 1-47		2022-1-1	58,681	14,237	Service, vesting conditions : market 20%, non-market 80%
Series 1-48		2022-2-17	1,990	1,596	Service, vesting conditions : market 20%, non-market 80%
Series 1-49		2022-3-6	928	86	Service, vesting conditions : market 0%, non-market 100%
Series 1-50		2022-03-14	588	562	Service, vesting conditions : market 20%, non-market 80%
Series 1-51		2022-05-09	2,839	2,524	Service, vesting conditions : market 20%, non-market 80%
Series 1-52		2022-07-18	190	146	Service, vesting conditions : market 20%, non-market 80%
Series 1-53		2022-08-01	3,587	3,053	Service, vesting conditions : market 20%, non-market 80%
Series 1-54		2022-08-16	3,627	3,000	Service, vesting conditions : market 20%, non-market 80%
Series 1-55		2023-01-01	76,500	61,213	Service, vesting conditions : market 20%, non-market 80%
Series 1-55		2023-01-01	5,492	5,274	Service, vesting conditions : market 0%, non-market 100%
Series 1-56		2023-02-15	3,161	3,355	Service, vesting conditions : market 20%, non-market 80%
Series 1-57		2023-03-04	3,076	2,807	Service, vesting conditions : market 20%, non-market 80%
Series 1-58		2023-03-15	1,367	276	Service, vesting conditions : market 20%, non-market 80%
Series 1-59		2023-06-01	2,876	2,686	Service, vesting conditions : market 20%, non-market 80%
Series 1-60		2023-08-01	3,004	3,806	Service, vesting conditions : market 20%, non-market 80%
Series 1-61		2023-09-01	3,390	4,515	Service, vesting conditions : market 20%, non-market 80%
Series 1-62		2024-01-01	78,235	111,382	Service, vesting conditions : market 20%, non-market 80%
Series 1-63		2024-02-17	953	917	Service, vesting conditions : market 20%, non-market 80%
Series 1-64		2024-05-09	2,432	3,218	Service, vesting conditions : market 20%, non-market 80%
Series 1-65		2024-08-01	429	422	Service, vesting conditions : market 20%, non-market 80%
Series 1-66		2024-08-16	397	345	Service, vesting conditions : market 20%, non-market 80%
Series 1-67		2025-01-01	37,684	22,208	Service, vesting conditions : market 30%, non-market 70%
Series 1-67		2025-01-01	4,312	2,156	Service, vesting conditions : market 0%, non-market 100%
Series 1-68		2025-02-01	1,704	779	Service, vesting conditions : market 30%, non-market 70%
Series 1-69		2025-02-15	916	916	Service, vesting conditions : market 30%, non-market 70%
Series 1-70		2025-08-01	1,552	325	Service, vesting conditions : market 30%, non-market 70%
Series 1-71		2025-09-01	1,590	265	Service, vesting conditions : market 30%, non-market 70%

			578,707	319,126

^1^	The number of maximum payable shares per executive as at December 31, 2025.
:---	:---

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The details of share grants linked to short-term performance as at December 31, 2025, are as follows:

(In number of shares)		Grant date			Vesting conditions^2^
Series 2-3		2016-1-1	5,454	1,241	Proportional to service period, vesting conditions satisfied
Series 2-4		2017-1-1	21,346	6,970	Proportional to service period, vesting conditions satisfied
Series 2-5		2018-1-1	30,248	13,842	Proportional to service period, vesting conditions satisfied
Series 2-6		2019-1-1	21,853	13,182	Proportional to service period, vesting conditions satisfied
Series 2-7		2020-1-1	28,507	14,535	Proportional to service period, vesting conditions satisfied
Series 2-8		2021-1-1	63,350	15,444	Proportional to service period, vesting conditions satisfied
Series 2-9		2022-1-1	51,393	27,367	Proportional to service period, vesting conditions satisfied
Series 2-10		2023-1-1	71,755	54,262	Proportional to service period, vesting conditions satisfied
Series 2-11		2024-1-1	28,221	28,103	Proportional to service period, vesting conditions satisfied
Series 2-12		2025-1-1	22,418	22,418	Proportional to service period, vesting conditions satisfied
Series 3-3		2016-1-1	15,036	3,498	Proportional to service period, vesting conditions satisfied
Series 3-4		2017-1-1	12,112	5,631	Proportional to service period, vesting conditions satisfied
Series 3-5		2018-1-1	10,352	6,351	Proportional to service period, vesting conditions satisfied
Series 3-6		2019-1-1	18,194	11,852	Proportional to service period, vesting conditions satisfied
Series 3-7		2020-1-1	18,711	13,222	Proportional to service period, vesting conditions satisfied
Series 3-8		2021-1-1	89,386	23,467	Proportional to service period, vesting conditions satisfied
Series 3-9		2022-1-1	66,060	22,075	Proportional to service period, vesting conditions satisfied
Series 3-10		2023-1-1	76,048	52,628	Proportional to service period, vesting conditions satisfied
Series 3-11		2024-1-1	59,589	59,491	Proportional to service period, vesting conditions satisfied
Series 4-1		2017-12-31	23,667	21,865	Proportional to service period, vesting conditions satisfied
Series 4-2		2019-12-31	2,330	793	Proportional to service period, vesting conditions satisfied
Series 4-3		2020-12-31	10,649	1,396	Proportional to service period, vesting conditions satisfied
Series 4-4		2021-12-31	223,942	5,311	Proportional to service period, vesting conditions satisfied
Series 4-5		2022-12-31	205,947	60,248	Proportional to service period, vesting conditions satisfied
Series 4-6		2023-12-31	266,894	168,292	Proportional to service period, vesting conditions satisfied
Series 4-7		2024-12-31	247,951	238,014	Proportional to service period, vesting conditions satisfied

			1,691,413	891,498

^1^	The number of maximum payable shares per executive as at December 31, 2025.
:---	:---
^2^	Number of vested shares is determined by performance and paid for a deferred payment schedule over 3 to 5<br>years.
:---	:---

100

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Share grants are measured at fair value using the Monte Carlo Simulation Model and assumptions used in determining the fair value as at December 31, 2025, are as follows:

(In Korean won)	Risk free<br>rate (%)	Fair value (Market<br>performance condition)	Fair value (Non-market<br>performance condition)
Series 1-1	2,556	—	125,944~125,944
Series 1-8	2,556	—	125,944~125,944
Series 1-10	2,556	—	125,944~125,944
Series 1-11	2,556	—	47,631~47,631
Series 1-13	2,556	—	47,631~125,944
Series 1-19	2,556	—	45,096~47,631
Series 1-21	2,556	—	45,096~125,944
Series 1-22	2,556	—	45,096~125,944
Series 1-24	2,556	—	45,096~56,379
Series 1-26	2,556	—	45,096~56,379
Series 1-28	2,556	—	45,096~125,944
Series 1-30	2,556	—	50,973~125,944
Series 1-31	2,556	—	45,096~56,379
Series 1-32	2,556	—	115,556~125,944
Series 1-35	2,556	—	45,096~56,379
Series 1-37	2,556	—	111,412~125,944
Series 1-38	2,556	—	125,944~125,944
Series 1-39	2,556	—	125,944~125,944
Series 1-40	2,556	—	107,266~125,944
Series 1-41	2,556	—	115,556~125,944
Series 1-42	2,556	—	120,094~125,944
Series 1-44	2,556	—	115,556~125,944
Series 1-45	2,556	—	120,094~125,944
Series 1-46	2,556	—	120,094~125,944
Series 1-47	2,556	—	111,412~125,944
Series 1-48	2,556	—	115,556~125,944
Series 1-49	2,556	—	125,944~125,944
Series 1-50	2,556	—	115,556~125,944
Series 1-51	2,556	—	115,556~125,944
Series 1-52	2,556	—	115,556~125,944
Series 1-53	2,556	—	115,556~125,944
Series 1-54	2,556	—	115,556~125,944
Series 1-55	2,556	—	107,266~125,944
Series 1-56	2,556	—	111,412~120,094
Series 1-57	2,556	—	115,556~125,944
Series 1-58	2,556	—	120,094~125,944
Series 1-59	2,556	—	115,556~125,944
Series 1-60	2,556	—	111,412~120,094
Series 1-61	2,556	—	111,412~120,094
Series 1-62	2,556	87,156~125,944	115,556~125,944
Series 1-63	2,556	72,231~87,156	72,231~79,280
Series 1-64	2,556	107,266~120,094	107,266~115,556
Series 1-65	2,556	87,156~125,944	115,556~125,944
Series 1-66	2,556	87,156~125,944	115,556~125,944
Series 1-67	2,556	74,382~115,478	107,266~120,094
Series 1-68	2,556	92,562~103,527	103,317~111,412
Series 1-69	2,556	105,128~118,841	111,412~120,094
Series 1-70	2,556	103,059~115,267	103,317~111,412
Series 1-71	2,556	103,317~115,556	103,317~111,412
Series 2-3	2,556	—	47,631~125,944
Series 2-4	2,556	—	45,096~125,944
Series 2-5	2,556	—	45,096~125,944
Series 2-6	2,556	—	45,096~125,944
Series 2-7	2,556	—	50,973~125,944
Series 2-8	2,556	—	111,412~125,944
Series 2-9	2,556	—	52,755~125,944

101

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(In Korean won)	Risk free<br>rate (%)	Fair value (Market<br>performance condition)	Fair value (Non-market<br>performance condition)
Series 2-10	2,556	—	107,266~125,944
Series 2-11	2,556	—	107,266~125,944
Series 2-12	2,556	—	103,317~120,094
Series 3-3	2,556	—	47,631~125,944
Series 3-4	2,556	—	45,096~125,944
Series 3-5	2,556	—	45,096~125,944
Series 3-6	2,556	—	45,096~125,944
Series 3-7	2,556	—	50,973~125,944
Series 3-8	2,556	—	111,412~125,944
Series 3-9	2,556	—	111,412~125,944
Series 3-10	2,556	—	107,266~125,944
Series 3-11	2,556	—	107,266~125,944
Series 4-1	2,556	—	45,096~56,379
Series 4-2	2,556	—	50,973~50,973
Series 4-3	2,556	—	50,973~50,973
Series 4-4	2,556	—	50,973~87,156
Series 4-5	2,556	—	52,755~125,944
Series 4-6	2,556	—	87,156~125,944
Series 4-7	2,556	—	115,556~125,944

The Group used the volatility of the stock price over the previous year as the expected volatility and used the dividend yield as the arithmetic mean of the dividend rate of one year before, two years before, and three years before the base year, in order to calculate fair value. Fair value is calculated based on risk free interest rate of 1 year-KTB rate.

In relation to the above share-based arrangements, the compensation cost amounting to ~~W~~ 128,745,275 thousand and ~~W~~ 92,491,618 thousand is recorded as accrued expenses to KB Financial Group Inc. as at December 31, 2025 and 2024, respectively.

34. Non-operating Income and Non-operating Expenses

The details of non-operating income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain on disposal of property and equipment	18,746,946	2,397
Gain on disposal of investment properties	1,017,941	—
Gain on disposal of intangible assets	171,865	3,922,610
Reversal of impairment loss on intangible assets	393,000	1,019,296
Rent	7,205,543	7,299,613
Gain related to investments in associates	36,499,424	20,361,271
Others	48,907,737	47,347,733

	112,942,456	79,952,920

The details of non-operating expenses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Loss on disposal of property and equipment	12,477	245,419
Depreciation of investment properties	558,673	533,251
Impairment loss on investment properties	21,418,501	—
Impairment loss on intangible assets	265,526	1,105,841
Donation	6,831,261	7,327,168
Loss related to investments in subsidiaries and associates	40,410,129	51,857,988
Others	48,125,180	51,036,717

	117,621,747	112,106,384

102

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

35. Tax Expense and Deferred Tax

The details of income tax expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Current tax
Current tax on profits for the year	47,823,561		275,696,796
Adjustments in respect of prior years	4,405,296		(763,297	)
Deferred tax
Origination and reversal of temporary differences	183,301,420		(113,145,045	)
Tax recognized directly in equity
Gain or loss on valuation for financial assets at FVOCI	(17,744,850	)	(2,158,539	)
Shares of other comprehensive income of associates	(381,044	)	(2,375,992	)
Gain on revaluation of property and equipment	597,663		—
Remeasurements of net defined benefit liabilities	2,360,537		1,702,285
Foreign operations translation	(44,307	)	2,485,191
Hedge of net investments in foreign operations	(1,498,693	)	7,772,865
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit<br>risk	1,580,077		1,978,179
Tax effect derived from group’s income tax system	4,106,633		(12,920,250	)

Income tax expense	224,506,293		158,272,193

Reconciliations of profit before tax and tax expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Profit before tax (A)	906,891,711		748,633,013

Tax based on statutory rate	229,057,412		187,277,115
Adjustments
Non-deductible expense	4,844,479		5,532,864
Non-taxable income	(11,233,085	)	(13,325,036	)
Changes in deferred tax assets (liabilities) that have not been recognized	(4,549,456	)	(25,982,120	)
Effect from tax reduction and credit	(1,618,595	)	(1,379,761	)
Adjustment in respect of prior years	4,405,297		(763,296	)
Tax effect from group’s income tax system	4,106,633		(12,920,250	)
Changes in tax rate	275,898		—
Others	(782,290	)	19,832,677

Tax expense (B)	224,506,293		158,272,193

Effective tax rate (B/A)	24.76	%	21.14	%

103

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The changes in deferred tax assets (liabilities) for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance				Profit (loss) for<br>the year				Other<br>comprehensive<br>income				Ending balance
Provision for impairment			161,330				6,722				—				168,052
Commissions income			5,481,022				1,584,077				—				7,065,099
Financial assets at FVOCI			(108,200,232	)			6,572,033				(17,744,850	)			(119,373,049	)
Defined benefit obligation			20,819,120				(361,935	)			2,360,537				22,817,722
Other long-term employee benefits			1,912,495				(97,423	)			—				1,815,072
Financial assets at FVTPL			56,750,938				(376,414,896	)			—				(319,663,958	)
Financial liabilities at FVTPL			(94,808,622	)			152,845,998				1,580,077				59,617,453
Accrued expenses			84,761,464				22,248,030				—				107,009,494
Dividends (specific overseas company)			10,378,007				1,290,069				—				11,668,076
Accrued income			(46,431,479	)			(10,515,424	)			—				(56,946,903	)
Property and equipment			(21,955,075	)			11,649				597,663				(21,345,763	)
Provisions for asset retirement obligation			2,438,563				93,322				—				2,531,885
Investments in associates and subsidiaries			(6,261,190	)			7,382,301				—				1,121,111
Derivatives			96,628,841				61,258,035				—				157,886,876
Loans			1,340,363				166,200				—				1,506,563
Intangible assets			(21,107,281	)			(178,045	)			—				(21,285,326	)
Plan assets			(2,896,563	)			610,804				—				(2,285,759	)
Advance depreciation provision			(2,401,725	)			(100,072	)			—				(2,501,797	)
Interest related to loan for construction			(51,184	)			1,745				—				(49,439	)
Others			88,324,462				(23,732,404	)			—				64,592,058

Subtotal			64,883,254				(157,329,214	)			(13,206,573	)			(105,652,533	)
Deficit carryforward arising from the current year			—				—				—				—
Subtotal of deferred tax assets (liabilities) of the Parent Company			64,883,254				(157,329,214	)			(13,206,573	)			(105,652,533	)

Unrecognized deferred tax assets (liabilities) of the Parent Company			(17,055,278	)			1,963,622				—				(15,091,656	)

Deferred tax assets (liabilities) of the Parent Company, net ^1^			81,938,532				(159,292,836	)			(13,206,573	)			(90,560,877	)
Deferred tax assets of subsidiaries			643,543				385,130				—				1,028,673
Deferred tax liabilities of subsidiaries			(929,584	)			24,012				—				(905,572	)
Changes in deferred tax assets due to adjustment of consolidation			19,578,635				(9,287,107	)			(1,924,045	)			8,367,483

Deferred tax assets of the Group			101,231,126				(100,202,453	)			—				1,028,673

Deferred tax liabilities of the Group			—				(67,968,348	)			(15,130,618	)			(83,098,966	)

^1^	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate,<br>applicable to the forecasted period when the temporary differences are reversed.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance				Profit (loss)<br>for the year				Other<br>comprehensive<br>income				Ending balance
Provision for impairment			136,402				24,928				—				161,330
Commissions income			9,136,660				(3,655,638	)			—				5,481,022
Financial assets at FVOCI			(105,219,053	)			(822,640	)			(2,158,539	)			(108,200,232	)
Defined benefit obligation			19,780,819				(663,984	)			1,702,285				20,819,120
Other long-term employee benefits			1,867,887				44,608				—				1,912,495
Financial assets at FVTPL			35,908,444				20,842,494				—				56,750,938
Financial liabilities at FVTPL			(237,598,072	)			140,811,271				1,978,179				(94,808,622	)
Accrued expenses			69,216,464				15,545,000				—				84,761,464
Dividends (specific overseas company)			9,278,179				1,099,828				—				10,378,007
Accrued income			(34,529,235	)			(11,902,244	)			—				(46,431,479	)
Property and equipment			(21,955,416	)			341				—				(21,955,075	)

104

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Provisions for asset retirement obligation		2,391,555		47,008		—	2,438,563
Investments in associates and subsidiaries		(2,477,419	)	(3,783,771	)	—	(6,261,190	)
Derivatives		154,172,948		(57,544,107	)	—	96,628,841
Loans		1,506,318		(165,955	)	—	1,340,363
Intangible assets		(20,852,423	)	(254,858	)	—	(21,107,281	)
Plan assets		(3,503,491	)	606,928		—	(2,896,563	)
Advance depreciation provision		(2,401,725	)	—		—	(2,401,725	)
Interest related to loan for construction		(54,907	)	3,723		—	(51,184	)
Others		95,439,313		(7,114,851	)	—	88,324,462

Subtotal		(29,756,752	)	93,118,081		1,521,925	64,883,254
Deficit carryforward arising from the current year		—		—		—	—
Subtotal of deferred tax assets (liabilities) of the Parent Company		(29,756,752	)	93,118,081		1,521,925	64,883,254

Unrecognized deferred tax assets (liabilities) of the Parent Company		(12,365,920	)	(4,689,358	)	—	(17,055,278	)

Deferred tax assets (liabilities) of the Parent Company, net ^1^		(17,390,832	)	97,807,439		1,521,925	81,938,532
Deferred tax assets of subsidiaries		1,023,220		(379,677	)	—	643,543
Deferred tax liabilities of subsidiaries		(810,550	)	(119,034	)	—	(929,584	)
Changes in deferred tax assets due to adjustment of consolidation		6,287,460		5,409,109		7,882,066	19,578,635

Deferred tax assets of the Group		1,023,220		100,207,906		—	101,231,126

Deferred tax liabilities of the Group		(11,913,922	)	2,509,931		9,403,991	—

^1^	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate,<br>applicable to the forecasted period when the temporary differences are reversed.
:---	:---

Temporary differences which were not recognized due to uncertainty of their realization as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Taxable temporary difference
Investments in subsidiaries	263,562,468	252,602,567
Intangible assets	58,888,990	58,888,990
Others	445,550	445,550

	322,897,008	311,937,107

Deductible temporary difference
Commission	9,704,616	9,239,637
Dividends	27,650,075	24,531,338
Investments in subsidiaries	38,245,921	37,911,226
Others	2,705,305	2,705,305

	78,305,917	74,387,506

	244,591,091	237,549,601

105

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Details of income taxes that are charged or credited directly to equity for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Recognized in other comprehensive income
Gain or loss on valuation for financial assets at FVOCI	(20,300,855	)	(3,668,101	)
Shares of other comprehensive income of associates	(381,044	)	(2,375,992	)
Gains on revaluation of property and equipment	597,663		—
Remeasurements of net defined benefit liabilities	2,360,537		1,702,285
Foreign operations translation	(44,307	)	2,485,191
Hedge of net investments in foreign operations	(1,498,693	)	7,772,865
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit<br>risk	1,580,077		1,978,179
Reclassified to profit or loss
Gain or loss on valuation for financial assets at FVOCI	2,556,004		1,509,563

	(15,130,618	)	9,403,990

106

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

36. Carrying Amounts of Financial Instruments by Category

Financial assets and liabilities are measured at fair value or amortised cost. Measurement policies for each category of financial assets and financial liabilities are disclosed in Note 2, ‘Material accounting policies’.

The carrying amounts of financial assets and liabilities by category as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Financial asset<br>measured at fair<br>value through<br><br>profit or loss			Financial asset<br>measured at<br>amortised cost			Financial asset<br>measured at fair<br>value through<br><br>other<br>comprehensive<br>income			Totals
Financial Assets
Cash and deposits			—			4,106,569,157			—			4,106,569,157
Financial assets at FVTPL			42,787,453,811			—			—			42,787,453,811
Derivative financial assets			1,614,613,117			—			—			1,614,613,117
Equity instruments at FVOCI			—			—			1,502,109,926			1,502,109,926
Debt instruments at FVOCI			—			—			7,961,634,491			7,961,634,491
Loans measured at amortised cost			—			10,648,276,535			—			10,648,276,535
Other financial assets			—			6,323,965,381			—			6,323,965,381

			44,402,066,928			21,078,811,073			9,463,744,417			74,944,622,418

		2025
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial<br>liabilities<br>measured at fair<br>value through<br><br>profit or loss			Financial<br>liabilities<br>designated at<br>fair value<br>through profit<br>or loss			Financial<br>liabilities<br>measured at<br>amortised cost			Derivative<br>liabilities<br>(hedging)			Totals
Financial Liabilities
Financial liabilities at FVTPL			2,910,712,724			—			—			—			2,910,712,724
Financial liabilities designated at FVTPL			—			7,996,513,415			—			—			7,996,513,415
Derivative financial liabilities			2,085,411,738			—			—			2,911,200			2,088,322,938
Deposit liabilities			—			—			12,110,773,883			—			12,110,773,883
Borrowings			—			—			37,823,437,013			—			37,823,437,013
Other financial liabilities			—			—			5,861,140,106			—			5,861,140,106

			4,996,124,462			7,996,513,415			55,795,351,002			2,911,200			68,790,900,079

107

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Financial asset<br>measured at fair<br>value through<br><br>profit or loss			Financial asset<br>measured at<br>amortised cost			Financial asset<br>measured at fair<br>value through<br><br>other comprehensive<br>income			Totals
Financial Assets
Cash and deposits			—			3,322,504,801			—			3,322,504,801
Financial assets at FVTPL			37,098,018,781			—			—			37,098,018,781
Derivative financial assets			1,394,203,701			—			—			1,394,203,701
Equity instruments at FVOCI			—			—			1,356,768,478			1,356,768,478
Debt instruments at FVOCI			—			—			5,128,522,928			5,128,522,928
Loans measured at amortised cost			—			10,605,842,882			—			10,605,842,882
Other financial assets			—			2,813,756,957			—			2,813,756,957

			38,492,222,482			16,742,104,640			6,485,291,406			61,719,618,528

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial<br>liabilities<br>measured at<br><br>fair value<br>through<br><br>profit or loss			Financial<br>liabilities<br>designated at fair<br>value through<br>profit or loss			Financial<br>liabilities<br>measured at<br>amortised cost			Derivative<br>liabilities<br>(hedging)			Totals
Financial Liabilities
Financial liabilities at FVTPL			2,558,520,223			—			—			—			2,558,520,223
Financial liabilities designated at FVTPL			—			8,010,047,059			—			—			8,010,047,059
Derivative financial liabilities			1,919,915,454			—			—			4,309,200			1,924,224,654
Deposit liabilities			—			—			7,725,858,827			—			7,725,858,827
Borrowings			—			—			33,454,601,384			—			33,454,601,384
Other financial liabilities			—			—			2,210,452,579			—			2,210,452,579

			4,478,435,677			8,010,047,059			43,390,912,790			4,309,200			55,883,704,726

108

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37. Financial Instruments

37.1 Fair Value of Financial Instruments by Class

Fair values of financial assets and financial liabilities as at December 31, 2025 and 2024, are as follows:

		2025						2024
(in thousands of Korean won)		Carrying<br>amount			Fair value			Carrying<br>amount			Fair value
Financial assets
Cash and deposits ^2^			4,106,569,157			4,106,569,157			3,322,504,801			3,322,504,801
Financial assets at FVTPL ^1^			42,787,453,811			42,787,453,811			37,098,018,781			37,098,018,781
Derivative financial assets ^1^			1,614,613,117			1,614,613,117			1,394,203,701			1,394,203,701
Financial assets at FVOCI			9,463,744,417			9,463,744,417			6,485,291,406			6,485,291,406
Loans measured at amortised cost			10,648,276,535			10,644,089,728			10,605,842,882			10,617,262,736
Other financial assets^2^			6,323,965,381			6,323,965,381			2,813,756,957			2,813,756,957

			74,944,622,418			74,940,435,611			61,719,618,528			61,731,038,382

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---
^2^	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial<br>liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.
:---	:---
		2025						2024
---	---	:---:	---	---	---	---	---	:---:	---	---	---	---
(in thousands of Korean won)		Carrying<br><br>amount			Fair value			Carrying<br><br>amount			Fair value
Financial liabilities
Deposit liabilities ^2^			12,110,773,883			12,110,773,883			7,725,858,827			7,725,858,827
Financial liabilities at FVTPL			2,910,712,724			2,910,712,724			2,558,520,223			2,558,520,223
Financial liabilities designated at<br>FVTPL^1^			7,996,513,415			7,996,513,415			8,010,047,059			8,010,047,059
Derivative financial liabilities^1^			2,088,322,938			2,088,322,938			1,924,224,654			1,924,224,654
Borrowings			37,823,437,013			37,824,623,316			33,454,601,384			33,477,622,455
Other financial liabilities^2^			5,861,140,106			5,861,140,106			2,210,452,579			2,210,452,579

			68,790,900,079			68,792,086,382			55,883,704,726			55,906,725,797

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---
^2^	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial<br>liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.
:---	:---

Fair value is the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For each class of financial assets and financial liabilities, the Group discloses the fair value of that 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.

37.2 Fair Value Hierarchy

Financial instruments measured at fair value are categorized within the fair value hierarchy, and the defined levels are as follows:

Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2		Fair value using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, prices) or indirectly (that is, derived from prices)
Level 3		Fair value using inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)

109

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, 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. The observable input is generally used to the fair value measurement. However, 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.

(a)	Fair value hierarchy of financial instruments measured at fair value

The fair value hierarchy of financial assets and liabilities measured at fair value as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Financial assets at FVTPL – debt instruments<br>^1^			8,237,651,395			25,584,247,608			3,571,635,320			37,393,534,323
Financial assets at FVTPL - equity instruments			3,949,515,695			221,251,741			262,761,622			4,433,529,058
Financial assets at FVTPL - loans			—			—			960,390,430			960,390,430
Derivative financial assets^1^			167,257,951			1,235,559,087			211,796,079			1,614,613,117
Financial assets at FVOCI			422,194,342			8,520,489,732			521,060,343			9,463,744,417

			12,776,619,383			35,561,548,168			5,527,643,794			53,865,811,345

Financial liabilities
Financial liabilities at FVTPL			2,910,712,724			—			—			2,910,712,724
Financial liabilities designated at<br>FVTPL^1^			507,899,785			1,391,155,566			6,097,458,064			7,996,513,415
Derivative financial liabilities^1^			129,319,840			1,538,119,632			420,883,466			2,088,322,938

			3,547,932,349			2,929,275,198			6,518,341,530			12,995,549,077

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Financial assets at FVTPL – debt instruments<br>^1^			7,516,138,758			23,854,828,909			2,831,841,789			34,202,809,456
Financial assets at FVTPL - equity instruments			1,476,635,311			209,125,333			271,825,317			1,957,585,961
Financial assets at FVTPL - loans			—			—			937,623,364			937,623,364
Derivative financial assets^1^			17,271,119			1,126,405,562			250,527,020			1,394,203,701
Financial assets at FVOCI			123,148,567			5,937,790,330			424,352,509			6,485,291,406

			9,133,193,755			31,128,150,134			4,716,169,999			44,977,513,888

Financial liabilities
Financial liabilities at FVTPL			2,558,520,223			—			—			2,558,520,223
Financial liabilities designated at<br>FVTPL^1^			300,489,734			1,529,491,945			6,180,065,380			8,010,047,059
Derivative financial liabilities^1^			180,111,464			1,150,851,062			593,262,128			1,924,224,654

			3,039,121,421			2,680,343,007			6,773,327,508			12,492,791,936

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---

110

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37.3 Valuation techniques and inputs classified by Level 2

The details of the valuation techniques and inputs classified by Level 2 as at December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)		2025		Valuation techniques		Inputs
Financial assets at FVTPL		25,805,499,349		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)		1,235,559,087		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Option Pricing model and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI		8,520,489,732		DCF Model		Discount rate, Interest rate and others

		35,561,548,168

Financial liabilities designated at FVTPL		1,391,155,566		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Mode and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial<br>liabilities(trading)		1,535,208,432		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Option Pricing model and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial<br>liabilities(hedging)		2,911,200		DCF Model		Discount rate, exchange rate<br>and others

		2,929,275,198

(in thousands of Korean won)		2024		Valuation techniques		Inputs
---	---	:---:	---	:---:	---	:---:
Financial assets at FVTPL		24,063,954,242		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate and others
Derivative financial assets(trading)		1,126,405,562		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility and others
Financial assets at FVOCI		5,937,790,330		DCF Model		Discount rate, Interest rate and others

		31,128,150,134

Financial liabilities designated at FVTPL		1,529,491,945		DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate

111

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Derivative financial<br>liabilities(trading)	1,146,541,862	DCF Model, Closed form formula, Monte Carlo model, Black Scholes model, Hull and White Model, Net asset value and others	Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility
Derivative financial<br>liabilities(hedging)	4,309,200	DCF Model	Discount rate, exchange rate<br>and others

	2,680,343,007

37.4 Level 3 of the Fair Value Hierarchy Disclosure

(a)	Valuation Process for Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

The fair value of financial instruments classified as Level 3 is determined by external valuation or self-valuation of the Group. Unobservable inputs are produced by the external appraiser or internal valuation system and the Group reviews the adequacy of the inputs. The Risk Management Council reviews the adequacy of the assessment methodology and valuation method of external appraiser and the internal valuation. The agenda of the Risk Management Council is being reported or approved by the Risk Committee.

(b)	Changes in Fair Value Measurements Categories of the Fair Value hierarchy

The changes in financial instruments with Level 3 fair value for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Financial assets<br><br>at FVTPL				Financial assets<br><br>at FVOCI			Net derivatives				Financial liabilities<br><br>designated at<br>FVTPL
Beginning balance			4,041,290,469				424,352,508			(342,735,108	)			(6,180,065,380	)
Total gains or losses
Profit or loss			198,695,351				—			26,794,883				(398,176,409	)
Other comprehensive income			—				96,279,136			—				(2,870,980	)
Purchases			4,943,868,057				—			11,160				—
Sales			(4,395,018,375	)			428,699			(2,931	)			—
Issues			—				—			(6,709,605	)			(4,575,977,509	)
Settlements			—				—			117,963,852				5,059,632,214
Transfer within levels ^1^			5,951,870				—			(4,409,636	)			—

Ending balance			4,794,787,372				521,060,343			(209,087,385	)			(6,097,458,064	)

^1^	Transfer within levels occurred due to the change in the availability of observable market data on the<br>financial instruments.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial assets<br><br>at FVTPL			Financial assets<br><br>at FVOCI				Net derivatives				Financial liabilities<br><br>designated at<br>FVTPL
Beginning balance			3,324,114,863			435,887,600				(663,925,237	)			(7,037,370,505	)
Total gains or losses
Profit or loss			25,833,132			—				(254,234,941	)			(266,914,729	)
Other comprehensive income			—			(11,946,500	)			—				(10,815,593	)

112

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Purchases		2,746,821,655			3,907,013		—
Sales		(2,056,851,294	)	411,409	(5,253,440	)	—
Issues		—		—	(2,960,406	)	(4,200,663,614	)
Settlements		—		—	579,731,903		5,335,699,061
Transfer within levels ^1^		1,372,114		—	—		—

Ending balance		4,041,290,470		424,352,509	(342,735,108	)	(6,180,065,380	)

^1^	Transfer within levels occurred due to the change in the availability of observable market data on the<br>financial instruments.
:---	:---

In relation to changes in Level 3 fair value, total gains or losses related to the asset and liabilities held at the reporting date are included in the statements of comprehensive income for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Financial assets<br><br>at FVTPL			Financial assets<br><br>at FVOCI			Net derivatives			Financial liabilities<br><br>designated at<br>FVTPL
Profit or loss
Gain or loss on valuation of financial<br>instruments^1^			113,867,583			—			115,017,628			(165,004,897	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI^2^			—			96,279,136			—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk^2^			—			—			—			(2,734,778	)

			113,867,583			96,279,136			115,017,628			(167,739,675	)

^1^	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or<br>Loss.
:---	:---
^2^	Included in other comprehensive income on the statements of comprehensive income.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial assets<br><br>at FVTPL				Financial assets<br><br>at FVOCI				Net derivatives				Financial liabilities<br><br>designated at<br>FVTPL
Profit or loss
Gain or loss on valuation of financial<br>instruments^1^			(22,868,020	)			—				(136,256,576	)			(39,526,996	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI^2^			—				(11,946,500	)			—				—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk^2^			—				—				—				(9,524,866	)

			(22,868,020	)			(11,946,500	)			(136,256,576	)			(49,051,862	)

^1^	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or<br>Loss.
:---	:---
^2^	Included in other comprehensive income on the statements of comprehensive income.
:---	:---

113

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(c)	Valuation techniques and the Inputs classified by Level 3

Valuation techniques and inputs for level 3 financial instruments are as follows:

		2025
(in thousands of<br>Korean won)		Type		Fair value		Valuation<br>techniques		Inputs		Unobservable<br><br>input		Range		Relevance
Financial assets at FVTPL			Equity-linked<br>securities		80,970,708		DCF model,<br>Closed Form,<br>FDM, Monte<br>Carlo		Price of<br>underlying asset,<br>interest rate,<br>discount rate,		Underlying<br>asset volatility		0.01 ~ 0.29		Proportional
											Correlation		-0.36 ~ 0.00		Proportional
			Other derivative<br>linked securities		864,396,238		Simulation, Hull<br>and White,		dividend ratio,<br>volatility of		Underlying<br>asset volatility		0.01 ~ 0.23		Proportional
							Black-Scholes<br>Model,<br>Binomial Tree		underlying<br>assets,<br>correlation of		Correlation		-0.12 ~ 1.00		Proportional
			Other OTC<br>derivative linked<br>contract		136,170,152		model, Net asset<br>value, etc.		underlying<br>assets, volatility<br>of interest rate,<br>probability of<br>default		Underlying<br>asset volatility		0.01 ~ 0.29		Proportional
											Correlation		-0.58 ~ 0.71		Proportional
			Debt instruments		2,490,098,222						Underlying<br>asset volatility		0.13 ~ 0.54		Proportional
			Equity<br>instruments		262,761,622						Underlying<br>asset volatility		0.24 ~ 0.36		Proportional
											Discount rate		0.05 ~ 0.13		Inversely<br>proportional
			Loans		960,390,430						Discount rate		0.05 ~ 0.06		Inversely<br>proportional
Derivative financial assets (trading)			^1^		211,796,079						Underlying<br>asset volatility		0.01 ~ 0.59		Proportional
											Correlation		-0.58 ~ 1.00		Proportional
Financial assets at FVOCI			Equity<br>instruments		521,060,344		DCF model,<br>Risk-adjusted<br>discount rate<br>model, IMV<br>model and<br>others		, Interest rate,<br>dividend ratio,<br>growth rate,<br>discount rate		Growth rate		0.01		Proportional
											Discount rate		0.10 ~ 0.13		Inversely<br>proportional

					5,527,643,795

Financial liabilities designated at FVTPL			Equity-linked<br>securities sold		3,762,969,489		DCF model,<br>Closed Form,<br>FDM, Monte<br>Carlo		Price of<br>underlying asset,<br>interest rate,<br>discount rate,		Underlying<br>asset volatility		0.01 ~ 0.60		Proportional
											Correlation		-0.58 ~ 0.74		Proportional
			Derivatives<br>linked securities<br>sold		2,284,423,388		Simulation, Hull<br>and White,<br>Black-Scholes<br>Model,<br>Binomial Tree		dividend ratio,<br>volatility of<br>underlying<br>assets,<br>correlation of		Underlying<br>asset volatility		0.01 ~ 0.23		Proportional
											Correlation		-0.25 ~ 1.00		Proportional
			Other OTC<br>derivatives linked<br>contract sold		50,065,186		model, Net asset<br>value, etc.		underlying<br>assets, volatility<br>of interest rate,		Underlying<br>asset volatility		0.22 ~ 0.57		Proportional
											Correlation		-0.58 ~ 0.74		Proportional
Derivative financial liabilities (trading)			^1^		420,883,465				probability of<br>default		Underlying<br>asset volatility		0.01 ~ 0.60		Proportional
											Correlation		-0.58 ~ 1.00		Proportional

					6,518,341,528

^1^	Derivatives which derive their value from interest rate, stock price, foreign exchange rate, commodity price,<br>credit rate and others are included.
:---	:---

114

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of<br>Korean won)		Type	Fair value		Valuation<br><br>techniques	Inputs	Unobservable<br><br>input	Range		Relevance
Financial assets at FVTPL		Equity-linked securities		10,897,742	DCF model, Closed Form, FDM, Monte Carlo	Price of underlying asset, interest rate,	Underlying asset volatility		0.26 ~ 0.36	Proportional
							Correlation		0.56 ~ 0.75	Proportional
		Other derivative linked securities		613,969,159	Simulation, Hull<br>and White,	discount rate, dividend ratio,	Underlying asset volatility		0.01 ~ 0.23	Proportional
		Other OTC derivative linked contract		54,268,972	Black-Scholes Model, Binomial Tree model, Net asset value, etc.	volatility of underlying assets, correlation of underlying assets,	Correlation<br><br>Underlying asset<br>volatility		-0.12 ~ 1.00<br><br>0.14 ~ 0.29	Proportional<br><br>Proportional
		Debt instruments		2,152,705,915		volatility of interest rate, probability of default	Correlation<br><br>Underlying asset<br>volatility		-0.58 ~ 0.72<br><br>0.18 ~ 0.37	Proportional<br><br>Proportional
		Equity instruments		271,825,317			Underlying asset volatility		0.30 ~ 0.33	Proportional
							Discount rate		0.06 ~ 0.15	Inversely proportional
		Loans		937,623,364			Probability of default		—	Inversely proportional
Derivative financial assets (trading)		^1^		250,527,020			Underlying asset volatility		0.01 ~ 0.65	Proportional
							Correlation		-0.58 ~ 1.00	Proportional
Financial assets at FVOCI		Equity instruments		424,352,509	DCF model, Risk-adjusted discount rate model, IMV model and others	Growth rate, discount rate	Growth rate		0.01 ~ 0.01	Proportional
							Discount rate		0.14 ~ 0.16	Inversely proportional

				4,716,169,998

Financial liabilities designated at FVTPL		Equity-linked securities sold		4,204,141,655	DCF model,<br>Closed Form,<br>FDM, Monte Carlo	Price of underlying asset, interest rate,	Underlying asset volatility		0.14 ~ 0.54	Proportional
						discount rate,	Correlation		-0.58 ~ 0.75	Proportional
		Derivatives linked securities sold Other OTC derivatives linked contract sold		1,914,786,835<br><br>61,136,890	Simulation, Hull<br>and White,<br>Black-Scholes<br>Model,<br>Binomial Tree<br>model, Net asset	dividend ratio, volatility of underlying assets, correlation of	Underlying asset volatility<br><br>Correlation		0.01 ~ 0.25<br><br>-0.58 ~<br>1.00	Proportional<br><br>Proportional
Derivative financial liabilities (trading)		^1^		593,262,128	value, etc.	underlying assets, volatility of interest rate,	Underlying asset volatility		0.22 ~ 0.65	Proportional
						probability of default	Correlation<br><br>Underlying asset<br>volatility		-0.58 ~ 0.74<br><br>0.01 ~ 0.65	Proportional<br><br>Proportional
							Correlation		-0.58 ~ 1.00	Proportional

				6,773,327,508

^1^	Derivatives which derive their value from interest rate, stock price, foreign exchange rate, commodity price,<br>credit rate and others are included.
:---	:---
(d)	Sensitivity Analysis of Recurring Fair Value Measurements Categorized Within Level 3 of the Fair Value<br>Hierarchy
:---	:---

Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value of financial instruments which are affected by the unobservable inputs, using a statistical technique. When the fair value is affected by more than two inputs, the amounts represent the most favorable or most unfavorable.

115

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The results of the sensitivity analysis for the effect on profit or loss from changes in inputs for each financial instrument as at December 31, 2025 and 2024, are as follows.

		2025
		Profit and loss							Other comprehensive income
(in thousands of Korean won)		Favorable<br>changes			Unfavorable<br>changes				Favorable<br>changes			Unfavorable<br>changes
Financial assets
Financial assets at FVTPL^1^			28,738,378			(20,755,257	)			—			—
Derivative financial assets ^1^			6,334,446			(6,760,857	)			—			—
Financial assets at FVOCI ^2^			—			—				37,999,056			(27,026,364	)

			35,072,824			(27,516,114	)			37,999,056			(27,026,364	)

Financial liabilities
Financial liabilities designated at<br>FVTPL^1^			14,921,342			(13,976,657	)			—			—
Derivative financial liabilities ^1^			9,342,825			(10,107,819	)			—			—

			24,264,167			(24,084,476	)			—			—

^1^	Measured by changes in fair value based on the increasing or decreasing unobservable volatility of underlying<br>assets by 10% or unobservable input(growth rate and discount rate) by 1%.
:---	:---
^2^	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are<br>unobservable inputs.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---
		Profit and loss							Other comprehensive income
(in thousands of Korean won)		Favorable<br>changes			Unfavorable<br>changes				Favorable<br>changes			Unfavorable<br>changes
Financial assets
Financial assets at FVTPL^1^			26,980,468			(17,573,732	)			—			—
Derivative financial assets ^1^			14,841,168			(16,508,885	)			—			—
Financial assets at FVOCI ^2^			—			—				19,296,520			(14,882,691	)

			41,821,636			(34,082,617	)			19,296,520			(14,882,691	)

Financial liabilities
Financial liabilities designated at<br>FVTPL^1^			16,840,216			(16,759,886	)			—			—
Derivative financial liabilities ^1^			22,092,417			(24,479,482	)			—			—

			38,932,633			(41,239,368	)			—			—

^1^	Measured by changes in fair value based on the increasing or decreasing unobservable volatility of underlying<br>assets by 10% or unobservable input(growth rate and discount rate) by 1%.
:---	:---
^2^	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are<br>unobservable inputs.
:---	:---
(e)	Day 1 Profit and Loss
:---	:---

If the Group uses a valuation technique that uses data not obtained from observable markets for the fair value at initial recognition of financial instruments, 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 amortised by using the straight-line method over the life of the financial instruments. If the fair value of the financial instruments can be subsequently determined using observable market inputs, the remaining deferred amount is immediately recognized in profit or loss.

116

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The aggregate difference yet to be recognized in profit or loss at the beginning and end of the year, and the changes in the balance of this difference, are as follows:

(in thousands of Korean won)
Balances at the beginning of the year (A)	18,603,619		32,605,297
Incurred during the year (B)	78,864,105		49,077,880
Amounts recognized in profit or loss during the year (C)	(60,941,447	)	(63,079,559	)

Balances at the end of year (A+B+C)	36,526,277		18,603,618

37.5 Fair value hierarchy of financial instruments which the fair value is disclosed

(a)	The fair value hierarchy of financial assets and liabilities which the fair value is disclosed as at<br>December 31, 2025 and 2024, are as follows:
		2025
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Loans measured at amortised cost			—			—			10,644,089,728			10,644,089,728
Financial liabilities
Borrowings			—			—			37,824,623,316			37,824,623,316

Cash and deposits, other financial assets, deposit liabilities and other financial liabilities that use book amount as a substitute for fair value because their maturities are relatively short or are not set, are not disclosed.

	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Financial assets
Loans measured at amortised cost		—		—		10,617,262,736		10,617,262,736
Financial liabilities
Borrowings		—		—		33,477,622,455		33,477,622,455

(b)	Valuation techniques and inputs
		Valuation technique and inputs
---	---	:---:
Cash and deposits		The fair value of cash is the same as the book amount. The book amount is used as a substitute value of fair value for the majority of deposits consisting of overnight deposits and deposits with variable interest rate.
Loans measured at amortised cost		The fair values are calculated by discount rate considering market interest rates and borrower’s credit risk on expected cash flows.
Deposit liabilities and borrowings		The book amount is used as a substitute value of fair value for demand deposit liabilities, bank overdrafts and call money. With regard to the other deposits and borrowings, the fair values are calculated by discount rate<br>considering residual risks at market interest rates on contractual cash flows.
Other financial assets and liabilities		As a temporary transitional account derived from various transactions, the book amount is used as a substitute value of fair value instead of applying DCF due to the relatively short-term or indefinite maturity.

117

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

37.6 Derecognition of financial assets

The Group continues to recognize bonds sold under repurchase agreements and securities lending agreement, because the Group transferred the financial asset, but the assets does not meet the derecognition criteria. Due to the nature of transaction that bonds sold under repurchase agreements are under repurchase condition with fixed price and securities lending agreement contains the retransfer back condition by the end of lending period, the Group is liable to almost all risks and rewards related to the ownership of the financial assets.

As at December 31, 2025 and 2024, relevant information about transferred financial assets which do not qualify for derecognition are as follows:

		2025
		Financial assets at FVTPL						Financial assets at FVOCI
(in thousands of Korean won)		Debt<br>instruments^1,2, 3^			Equity<br>instruments^2^			Debt<br>instruments^1,3^			Equity<br>instruments
Carrying amount of transferred assets			4,157,455,753			631,623			2,601,915,338			—
Carrying amount of related liabilities			4,188,634,687			—			2,505,325,431			—
^1^	Transferred debt instruments under repurchase agreements.
:---	:---
^2^	Transferred equity instruments and debt instruments under securities lending agreements.
:---	:---
^3^	As at December 31, 2025, the accrued interests related to debt securities of ~~W~~<br>36,562 million is excluded.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Financial assets at FVTPL						Financial assets at FVOCI
(in thousands of Korean won)		Debt<br>instruments^1,2, 3^			Equity<br>instruments^2^			Debt<br>instruments^1,3^			Equity<br>instruments
Carrying amount of transferred assets			4,245,358,415			6,046,174			1,811,592,215			—
Carrying amount of related liabilities			4,138,807,782			—			1,774,216,825			—
^1^	Transferred debt instruments under repurchase agreements.
:---	:---
^2^	Transferred equity instruments and debt instruments under securities lending agreements.
:---	:---
^3^	As at December 31, 2024, the accrued interests related to debt securities of ~~W~~<br>44,110 million is excluded.
:---	:---

Meanwhile, the Group provided additional credit enhancements such as purchase agreements in addition to recourse limited to transferred assets to subsidiaries established for asset securitization purposes.

Details of carrying amounts of the underlying assets and the associated liabilities as of December 31, 2025 and 2024, are as follows:

(In thousands of Korean won)
Underlying assets		Financial assets at fair value through profit or loss	319,912,993	93,804,238
		Loans measured at amortized cost^1^	1,457,212,202	2,271,500,415

			1,777,125,195	2,365,304,653

Associated liabilities		Debentures	1,608,189,688	2,340,021,256
^1^	The amounts disclosed in above table are before deduction of allowances.
:---	:---

118

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38. Financial Risk Management

38.1 Summary

38.1.1 Overview of Financial Risk Management Policy

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

The note regarding financial risk management provides information about the risks that the Group is exposed to, including the objectives, policies and processes for assessing and managing the risks and net operating capital ratio management. Additional quantitative information is disclosed throughout the notes to the consolidated financial statements.

The Group’s risk management system focuses on increasing transparency, developing the risk management environment, preventing transmission of risk to other related subsidiaries, and the preemptive response to risk due to rapid changes in the financial environment to support the Group’s long-term strategy and business decisions efficiently. Credit risk, liquidity risk, market risk, operational risk, and credit concentration risk are recognized as the Group’s key risks. These risks are measured and managed by quantification as regulatory capital and VaR (Value at Risk) using a statistical method.

38.1.2 Risk Management Organization

(a) Board of Directors

Board of Directors are the ultimate decision-making authority that appoint and dismiss Risk Management Committee, establish and amend the Risk Management Committee policies, establish the Group’s criteria for risk limit, decide on basic policy of risk management, and approve large-scale investments.

(b) Risk Management Committee

The Risk Management Committee consists of more than three directors appointed by the Board of Directors (including more than a half of external director). The Risk Management Committee executes the operations delegated by Board Of Directors in accordance with Risk Management Committee policy

Risk Management Council consists of members appointed by Company’s executives, including the director who is responsible for risk management, compliance, planning/management. Also the organization is delegated by Risk Management Committee to perform deliberation/resolution for major policies and matters related to the risk.

(d) Risk management department

Risk management department carries out practical tasks, required for risk management of the Group, such as supporting the Risk Management Committee, reporting the Group’s risk level and computing net operating capital ratio.

38.1.3 Risk Management System

In order to establishing risk management structure, the Group built the total risk management system, ERMS (Enterprise Risk Management System), which is designed for reasonable price valuation against risks and the management of risk limitation to raise the soundness of assets and allocate resources efficiently. Moreover, the Group performs business with risk management basis in mainly by constructing RAPM (Risk Adjusted Performance Measure) and enlarging the portion of performance evaluation.

119

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.1.4 Risk Management Strategy and Policy

As an allocation of risk capital and risk limit establishment process, the risk capital is allocated through resolution of Risk Management Committee meetings, and the amount of risk capital is anticipated for each risk sector, business sector and department by reflecting annual management strategy and business plans.

38.2 Credit Risk

38.2.1 Overview of Credit Risk

The Group is exposed to certain level of credit risk and the credit risk is the risk of possible loss to portfolio due to counterparty’s credit event and breach of covenant. Credit risk exposure occurs in investment activities such as loans, debt instruments, derivative transactions, and non-trading accounts, or can exist in relating to off-balance accounts.

38.2.2 Credit Risk Management

Credit risk is the risk of financial loss to the Group if a customer or counterparty of a financial instrument fails to meet its contractual obligations. If the trading department of the Group wants to deal with the counterparty that may cause the credit risk, the trading department submits product management plan and application in advance to get approval by the Risk Management Council and the Risk Management Committee. The deal is executed when the approval by the Risk Management Council and the Risk Management Committee is completed. Credit risk limit depends on 1) standard credit risk limit, 2) concentration limit on the same person and 3) credit rating and additional limit may be added by the trading department. In addition, credit VaR is measured in addition to the credit management listed above and credit VaR due to the internal model is operated by the credit manager measurement system of the risk metrics group. Limit management is performed on a daily basis and stress test is performed on a regular basis and in case of excess of the limit, trading department expedite the process with the procedure set by the risk management department.

38.2.3 Maximum Exposure to Credit Risk

The maximum exposure of credit risk related to the off-balance as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Agreement to purchase the commercial papers<br>^1^		1,259,846,340	824,171,844
Guarantees and loan commitment		1,581,526,531	1,608,313,801

		2,841,372,871	2,432,485,645

^1^	According to the above arrangement, the Group holds the asset-backed short-term bonds amounting to<br>~~W~~ 86,450 million and ~~W~~ 278,820 million as at December 31, 2025 and 2024, respectively.
:---	:---

The Group does not disclose financial assets (except above contracts) whose carrying amount represents the maximum exposure to credit risk.

120

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.2.4 Credit Risk Concentration Analysis

(a) Loans

Most of counterparties of loan transactions, before considering collaterals and other credit reinforcements, are concentrated in Korea. The ratios of loans to individuals and corporations and related allowances as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Loans			Ratio (%)			Allowances				Carrying<br><br>amount
Individuals			4,331,322,187			39.53			(6,163,898	)			4,325,158,289
Corporations			6,626,428,703			60.47			(303,310,457	)			6,323,118,246

			10,957,750,890			100.00			(309,474,355	)			10,648,276,535

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Loans			Ratio (%)			Allowances				Carrying<br><br>amount
Individuals			2,941,709,421			24.98			(6,513,007	)			2,935,196,414
Corporations			8,834,376,507			75.02			(226,106,675	)			8,608,269,832

			11,776,085,928			100.00			(232,619,682	)			11,543,466,246

The details of the Group’s loans by industry as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying<br><br>amount
Financial service		4,549,752,186		41.52		(247,339,457	)		4,302,412,729
Manufacturing		240,473,566		2.19		(1,685,832	)		238,787,734
Service		1,369,764,379		12.50		(53,293,224	)		1,316,471,155
Others		466,438,573		4.26		(991,944	)		465,446,629
Individuals		4,331,322,187		39.53		(6,163,899	)		4,325,158,288

		10,957,750,891		100.00		(309,474,356	)		10,648,276,535

	2024
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying<br><br>amount
Financial service		6,601,761,843		56.06		(182,838,151	)		6,418,923,692
Manufacturing		560,526,792		4.76		(3,170,539	)		557,356,253
Service		1,067,869,776		9.07		(38,517,398	)		1,029,352,378
Others		604,218,096		5.13		(1,580,587	)		602,637,509
Individuals		2,941,709,421		24.98		(6,513,007	)		2,935,196,414

		11,776,085,928		100.00		(232,619,682	)		11,543,466,246

121

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b) Deposits, Securities (except equity instruments) and Derivatives

Most of deposits, securities (except equity instruments) and derivatives, before considering collaterals and other credit reinforcements, are concentrated in securities issued in Korea. The details of the Group’s securities (except equity instruments) by industry as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Amount			Ratio (%)			Allowances				Carrying<br><br>amount
Deposits measured at amortised cost
Banking and insurance			3,474,773,373			100.00			(1,059,769	)			3,473,713,604

			3,474,773,373			100.00			(1,059,769	)			3,473,713,604

Securities at FVTPL
Government and government funded institutions			14,054,984,211			37.59			—				14,054,984,211
Banking and insurance			12,115,937,613			32.40			—				12,115,937,613
Others			11,222,612,499			30.01			—				11,222,612,499

			37,393,534,323			100.00			—				37,393,534,323

Derivatives financial assets
Government and government funded institutions			18,369,732			1.14			—				18,369,732
Banking and insurance			1,530,397,620			94.78			—				1,530,397,620
Others			65,845,765			4.08			—				65,845,765

			1,614,613,117			100.00			—				1,614,613,117

Securities at FVOCI
Government and government funded institutions			2,523,115,968			31.69			—				2,523,115,968
Banking and insurance			2,592,129,018			32.56			—				2,592,129,018
Others			2,846,389,506			35.75			—				2,846,389,506

			7,961,634,492			100.00			—				7,961,634,492

			50,444,555,305						(1,059,769	)			50,443,495,536

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Amount			Ratio (%)			Allowances				Carrying<br><br>amount
Deposits measured at amortised cost
Banking and insurance			2,540,156,180			100.00			(738,213	)			2,539,417,967

			2,540,156,180			100.00			(738,213	)			2,539,417,967

Securities at FVTPL
Government and government funded institutions			13,578,873,618			39.70			—				13,578,873,618
Banking and insurance			11,270,347,932			32.95			—				11,270,347,932
Others			9,353,587,907			27.35			—				9,353,587,907

			34,202,809,457			100.00			—				34,202,809,457

Derivatives financial assets
Government and government funded institutions			1,436,669			0.10			—				1,436,669
Banking and insurance			1,347,178,446			96.63			—				1,347,178,446
Others			45,588,586			3.27			—				45,588,586

			1,394,203,701			100.00			—				1,394,203,701

Securities at FVOCI
Government and government funded institutions			2,108,565,891			41.11			—				2,108,565,891
Banking and insurance			1,767,614,427			34.47			—				1,767,614,427
Others			1,252,342,610			24.42			—				1,252,342,610

			5,128,522,928			100.00			—				5,128,522,928

			43,265,692,266						(738,213	)			43,264,954,053

122

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.2.5 Credit Quality of Financial Assets

(a) Loans

The credit quality of loans measured at amortised cost and loans measured at fair value through profit or loss as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses							The financial<br>instruments<br>applying<br>Credit loss<br>model			The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model			Total
					Non-impaired			Impaired
Loans measured at amortised cost<br>^1^
Corporates
Grade 1			3,678,792,235			—			—				—			—			3,678,792,235
Grade 2			2,310,742,921			—			—				—			—			2,310,742,921
Grade 3			30,000,000			115,930,236			—				—			—			145,930,236
Grade 4			46,413,654			300,524,105			—				—			—			346,937,759
Grade 5			—			—			144,025,553				—			—			144,025,553

			6,065,948,810			416,454,341			144,025,553				—			—			6,626,428,704

Retails
Grade 1			4,325,038,175			—			—				—			—			4,325,038,175
Grade 2			120,924			—			—				—			—			120,924
Grade 3			—			—			—				—			—			—
Grade 4			—			—			—				—			—			—
Grade 5			—			—			6,163,088				—			—			6,163,088

			4,325,159,099			—			6,163,088				—			—			4,331,322,187

Loans measured at FVTPL
Corporates
Grade 1			—			—			—				—			960,390,430			960,390,430
Grade 2			—			—			—				—			—			—
Grade 3			—			—			—				—			—			—
Grade 4			—			—			—				—			—			—
Grade 5			—			—			—				—			—			—

			—			—			—				—			960,390,430			960,390,430

			10,391,107,909			416,454,341			150,188,641				—			960,390,430			11,918,141,321

^1^	The amounts disclosed in above table are before deduction of allowances
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses							The financial<br>instruments<br>applying<br>Credit loss<br>model			The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model			Total
					Non-impaired			Impaired
Loans measured at amortised cost<br>^1^
Corporates
Grade 1			4,388,199,086			—			—				—			—			4,388,199,086

123

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Grade 2			2,599,570,638		15,388,889	—	—	—	2,614,959,527
Grade 3			21,023,545		644,666,419	—	—	—	665,689,964
Grade 4			42,091,180		108,462,000	—	—	—	150,553,180
Grade 5			—		—	77,351,386	—	—	77,351,386

			7,050,884,449		768,517,308	77,351,386	—	—	7,896,753,143

Retails
Grade 1			2,933,509,136		—	—	—	—	2,933,509,136
Grade 2			252,574		—	—	—	—	252,574
Grade 3			—		—	—	—	—	—
Grade 4			1,434,704		—	—	—	—	1,434,704
Grade 5			—		—	6,513,007	—	—	6,513,007

			2,935,196,414		—	6,513,007	—	—	2,941,709,421

Loans measured at FVTPL
Corporates
Grade 1			—		—	—	—	937,623,364	937,623,364
Grade 2			—		—	—	—	—	—
Grade 3			—		—	—	—	—	—
Grade 4			—		—	—	—	—	—
Grade 5			—		—	—	—	—	—

			—		—	—	—	937,623,364	937,623,364

			9,986,080,863		768,517,308	83,864,393	—	937,623,364	11,776,085,928

^1^	The amounts disclosed in above table are before deduction of allowances
:---	:---
Ranges		Corporates		Retails
---	---	:---:	---	:---:
Grade 1		AAA ~ BBB+		1 ~ 5 grade
Grade 2		BBB ~ BB		6 ~ 8 grade
Grade 3		BB- ~ B		9 ~ 10 grade
Grade 4		B- ~ CCC		11 grade
Grade 5		Below CC		Below 12 grade

The effect of measured credit risk which is released due to enhancement of collateral and other credit supplements secured for loans as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>Credit loss<br>model		The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model		Total
			Non-impaired		Impaired
Guarantee		42,295,857		—		—		—		28,527,899		70,823,756
Real estate		—		—		292,871		—		—		292,871
Securities		8,098,039,146		—		—		—		444,339,137		8,542,378,283

		8,140,335,003		—		292,871		—		472,867,036		8,613,494,910

124

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>Credit loss<br>model		The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model		Total
			Non-impaired		Impaired
Guarantee		23,488,801		—		—		—		—		23,488,801
Real estate		242,619,244		92,237,004		290,222		—		—		335,146,470
Securities		8,083,758,642		2,258,741		—		—		752,340,997		8,838,358,380

		8,349,866,687		94,495,745		290,222		—		752,340,997		9,196,993,651

(b) Securities (debt instruments)

The credit quality of securities (debt instruments) as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>credit loss<br>model			The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model			Total
					Non-impaired			Impaired
Financial assets at FVOCI ^1^
Grade 1			6,894,636,112			—			—			—			—			6,894,636,112
Grade 2			1,066,998,379			—			—			—			—			1,066,998,379
Grade 3			—			—			—			—			—			—
Grade 4			—			—			—			—			—			—
Grade 5			—			—			—			—			—			—

			7,961,634,491			—			—			—			—			7,961,634,491

^1^	Before deduction of allowances
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>credit loss<br>model			The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model			Total
					Non-impaired			Impaired
Financial assets at FVOCI ^1^
Grade 1			4,711,912,740			—			—			—			—			4,711,912,740
Grade 2			416,610,187			—			—			—			—			416,610,187
Grade 3			—			—			—			—			—			—
Grade 4			—			—			—			—			—			—
Grade 5			—			—			—			—			—			—

			5,128,522,927			—			—			—			—			5,128,522,927

^1^	Before deduction of allowances
:---	:---

125

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The Group’s standard for credit quality of securities(except equity investments) linked to credit rating presented by 3^rd^ party credit rating institutions is as follows.

	Domestic			Foreign
Credit<br>Quality	KIS	NICE	FnPricing	S&P	Fitch-IBCA	Moody’s
Grade 1	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-	BBB- to BBB+	BBB- to BBB+	Baa3 to Baa1
Grade 3	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-	B+ to BB-	B+ to BB-	B1 to Ba3
Grade 5	Below BB-	Below BB-	Below BB-	Below B	Below B	Below B2

The classification of credit quality for debt instruments in Korean won is based on lowest credit rating among the one of three domestic credit rating institutions and the classification of credit quality for debt instruments in foreign currency is based on lowest credit rating among the one of three foreign credit rating institutions.

The credit quality of deposits as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>credit loss<br>model			Total
					Non-impaired			Impaired
Deposits measured at amortised cost<br>^1^
Grade 1			3,474,773,373			—			—			—			3,474,773,373
Grade 2			—			—			—			—			—
Grade 3			—			—			—			—			—
Grade 4			—			—			—			—			—
Grade 5			—			—			—			—			—

			3,474,773,373			—			—			—			3,474,773,373

^1^	Before deduction of allowances
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>credit loss<br>model			Total
					Non-impaired			Impaired
Deposits measured at amortised cost<br>^1^
Grade 1			2,540,156,180			—			—			—			2,540,156,180
Grade 2			—			—			—			—			—
Grade 3			—			—			—			—			—
Grade 4			—			—			—			—			—
Grade 5			—			—			—			—			—

			2,540,156,180			—			—			—			2,540,156,180

^1^	Before deduction of allowances
:---	:---

The Group’s standard for credit quality of deposits is same as the one of debt securities.

126

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(d) Commitments

The credit quality of commitments as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>credit loss<br>model			Total
					Non-impaired			Impaired
Guaranteed payment and commitment
Grade 1			942,025,741			—			—			—			942,025,741
Grade 2			1,268,934,683			—			—			—			1,268,934,683
Grade 3			78,914,494			22,725,000			—			—			101,639,494
Grade 4			493,607,523			35,165,430			—			—			528,772,953
Grade 5			—			—			—			—			—

			2,783,482,441			57,890,430			—			—			2,841,372,871

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>credit loss<br>model			Total
					Non-impaired			Impaired
Guaranteed payment and commitment
Grade 1			663,275,523			—			—			—			663,275,523
Grade 2			1,100,207,671			911,111			—			—			1,101,118,782
Grade 3			84,500,179			49,243,753			—			—			133,743,932
Grade 4			514,287,729			20,059,679			—			—			534,347,408
Grade 5			—			—			—			—			—

			2,362,271,102			70,214,543			—			—			2,432,485,645

(e) Other receivables from securities transactions

Among loan and receivables which are classified as other financial assets, other receivables from securities transactions, as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025			2024
Other receivables related to proprietary trading			219,109,166			209,127,588
Other receivables related to brokerage transactions			4,831,990,679			1,652,090,991

The Group recognizes receivables and payables between Korea Exchange (Clearing and Settlement Organization) and customers regarding securities brokerage transactions on the trade date. The Group is exposed to credit risks between the trade date and settlement date (generally less than two business days from the trade date) relating to investment brokerage business, which is standardized by related regulations. As a central counterparty, Korea Exchange mitigates the payment default risk by managing collective fund for default loss, and the Group mitigates customer default risk through margin requirements system. Also, if the customers can not pay by the settlement date, the Group can collect the receivables through covering. Therefore, credit risk that the Group actually bears is linked to the price fluctuation risk of securities between the trade date and the settlement date.

127

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

In addition, related to standardized investment trading of securities, the Group recognizes the on-the-counter transactions on the Korea Exchange, the clearing and settlement institution, and over-the-counter transactions with the customer on the date which the sales contract is signed for the assets and liabilities. Accordingly, the Company is exposed to the risk of price fluctuation risk and credit risk of the securities subject to trading during the period between the date of execution of the sales contract and the settlement date.

38.3 Liquidity Risk

38.3.1 Overview of Liquidity Risk

Liquidity risk is the risk of insolvency or loss due to a disparity between the inflow and outflow of funds, unexpected outflow of funds, and obtaining funds at a high price 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 all financial assets, liabilities and off-statement of financial position items such as commitments and financial guarantee contracts. The Group discloses them by maturity groups: Up to one month, between over one month and three months, between over three months and twelve months, between over one year and five years, and over five years.

38.3.2 Liquidity Risk Management Policy

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Meanwhile, additional details of unused funding arrangement to reduce liquidity risk that the Group holds at its discretion are discussed in Note 41.

38.3.3 Analysis on Remaining Contractual Maturities of Financial Liabilities

Cash flows disclosed for the maturity analysis are undiscounted contractual principal and interest to be received (paid) and, thus, differ from the amount in the financial statements which is based on the present value of expected cash flows in some cases.

The remaining contractual maturities of financial liabilities as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	On demand		Up to one month		One to three<br>months		Three to 12<br>months		12 months to<br>five years		More than<br>five years		Total
Financial liabilities
Financial liabilities at<br>FVTPL		2,910,712,724		—		—		—		—		—		2,910,712,724
Financial liabilities<br>designated at FVTPL ^1^		7,996,513,415		—		—		—		—		—		7,996,513,415
Derivatives (trading) ^2^		2,085,411,738		—		—		—		—		—		2,085,411,738
Derivatives (hedge)		—		—		2,911,200		—		—		—		2,911,200
Deposit liabilities ^3^		12,110,773,883		—		—		—		—		—		12,110,773,883
Borrowings		11,632,795,178		8,790,095,974		3,781,201,622		10,851,412,625		3,160,804,746		21,622,839		38,237,932,984
Other financial liabilities		24,423,633		5,559,191,643		7,877,257		28,506,287		63,014,136		3,026,869		5,686,039,826
Guaranteed payments and<br>commitment ^4^		2,841,372,871		—		—		—		—		—		2,841,372,871

128

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

^1^	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on<br>demand’ because derivatives-linked securities are subject to early settlement.
^2^	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in<br>understanding the cash flow timing of the derivatives
:---	:---
^3^	Deposits that are contractually repayable on demand or on short notice are classified as ‘on<br>demand’ category.
:---	:---
^4^	With respect to the guaranteed payments and commitments, the amounts included above, which the Group might pay<br>at maximum based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.
:---	:---
	2024
---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)	On demand		Up to one month		One to three<br>months		Three to 12<br>months		12 months to<br>five years		More than<br>five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL<br>^1^		8,010,047,059		—		—		—		—		—		8,010,047,059
Derivatives (trading) ^2^		1,919,915,454		—		—		—		—		—		1,919,915,454
Derivatives (hedge)		—		—		—		4,309,200		—		—		4,309,200
Deposit liabilities ^3^		7,725,858,827		—		—		—		—		—		7,725,858,827
Borrowings		10,611,705,622		7,715,085,405		2,850,887,493		9,780,216,826		2,876,120,052		20,323,297		33,854,338,694
Other financial liabilities		17,893,430		1,927,935,637		7,749,439		28,071,301		86,844,309		3,954,341		2,072,448,458
Guaranteed payments and commitment ^4^		2,432,485,645		—		—		—		—		—		2,432,485,645
^1^	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on<br>demand’ because derivatives-linked securities are subject to early settlement.
:---	:---
^2^	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in<br>understanding the cash flow timing of the derivatives
:---	:---
^3^	Deposits that are contractually repayable on demand or on short notice are classified as ‘on<br>demand’ category.
:---	:---
^4^	With respect to the guaranteed payments and commitments, the amounts included above, which the Group might pay<br>at maximum based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.
:---	:---

38.4 Market Risk

38.4.1 Overview of Market Risk

Market risk refers to the risk that the value of a position held by the Group may fluctuate due to price fluctuations of market factors such as stock, interest rates, foreign exchange rates, commodity and others.

Market risk is daily managed by establishing the limitations considering products’ natures such as position limitations, loss limitations, VaR limitations, sensitivity limitations (duration, delta, gamma, vega, others) and others. Relevant business procedures are processed by written regulations and guidelines.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

38.4.2 Value at Risk (“VaR”)

The Exposure to market risk is measured by the Value at Risk (VaR). VaR is the potential loss that can occur in the holding position when the market price moves in an adverse direction within a given confidence level for a given holding period in the normal market.

Historical simulation model is used to calculate 10days VaR. Historical simulation model is based on past changes of market variables without assuming a specific probability distribution.

The Group uses the 10-day return of the past two-year time series of the asset risk factor and uses the 99% confidence level of the two-year time series of the portfolio. 10days VaR that is under 99% of confidence level that the Group uses reflects daily losses do not exceed the reported VaR with 99% chance.

The average, minimum and maximum amount of the Group’s VaR (99%, 10 days) as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Average			Maximum			Minimum			December 31,<br>2025
Total VaR			46,894,143			65,355,956			30,981,690			45,316,446
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Average			Maximum			Minimum			December 31,<br>2024
Total VaR			32,714,101			52,796,377			15,391,508			31,000,920

38.4.3 Risk Management by Market Risk Factors

The Group’s market risk is comprised of interest rate risk, foreign exchange rate risk and stock price risk.

(a) Stock price risk

Stock price risk arises from the Group’s foreign currency stocks and Korean won stocks.

Hedging instruments of Equity Linked Security and Equity Linked Warrant comprise most of stock trading portfolio and certain security proprietary trading is composed of trading securities on the exchange, futures contracts maturing in a month or two, and others under the restriction of position limitation, sale at loss, loss limitation, and others. Marketable stocks among non-trading positions and stock beneficiary certificates are included in stock price risk as market VaR is computed.

Risk Management Council allocates position and loss limitations, and risk management department monitors asset management department’s possible breach of limitations and other special matters on a daily basis.

(b) Interest rate risk

Trading position interest rate risk usually arises from debt instruments denominated in Korean won. The Group’s trading strategy is to benefit from short-term movements in the prices of debt instruments arising from changes in interest rates.

The product prices of the Group’s trading accounts are disclosed daily. The risks related to trading accounts are managed by using market price based method such as market VaR and sensitivity analysis.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Foreign exchange rate risk arises through ownership of assets and liabilities, denominated in currencies other than Korean won, from non-trading positions, or through foreign currency forward contracts, currency swaps and foreign currency trading securities.

The Group computes foreign currency position’s net position regularly to follow the Regulation on Financial Investment Business and reports it to the supervisory body.

Also, the Group manages the risk for total position exposed to foreign exchange rate including non-trading position by using market price base method such as market VaR and sensitivity analysis.

38.4.4 Current Status of Interest Rate Risk Management

The Group is closely monitoring the outputs of various industry working groups and markets managing the transition to new interest rate index, including announcements from IBOR regulators and various consultative bodies involved in the transition to alternative interest rates. In response to these announcements, the group established and IBOR transition plan comparing end-to-end workflows across risk management, according, taxation, legal, information technology and customer management functions. In accordance with this plan, the Group has substantially completed the required transition and replacement processes. Oversight of the plan and monitoring of its progress are led by CFO(Chief Financial Officer), with significant matters reported to the Boarf of Directors. The objective of the plan is to identify the impacts and risks arising from interest rate benchmark reform across the Group’s business operations and to prepare for and execute an orderly transition to alternative reference interest rates.

As at December 31, 2025 and 2024, the Group has no financial instruments that had not yet transitioned to alternative reference interest rates.

38.5 Operational Risk

38.5.1 Concept

The Group defines operational risk to the extent of financial risk and non-financial risk incurred by unreasonable or wrong internal process, labor, system and external incidents.

38.5.2 Operational Risk Management

The purpose of operational risk management is to control activity through continuous improvement of internal controls, performing proactive preventive control, proliferation of culture of risk management by establishing internal control that could respond quickly against change of business environment. OMRS (Operational Risk Management System supports performing overall risk management such as recognition of operational risk, evaluation and monitoring. Periodically, through RCSA (Risk Control Self Assessment), management of KRI (Key Risk Indicator), management of data loss and related preparation of countermeasures, it controls the risks in advance, as well as collecting data for future advanced management method.

38.6 Capital Management

Main purpose of the capital risk management of the Group is optimizing use of capital and sustaining healthy financial status in order to maximize shareholder value. The Group has performed capital risk management through estimating net capital ratio based on ‘Capital Market and Financial Investment Business Act’, enforced in February 2009.

Net capital ratio is the net capital minus the total risk amount divided by the essential equity to sustain per each business unit. [(Net capital – total risk amounts) / essential equity to sustain per each business unit]. This formula is calculated based on the financial statements amount.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

The net capital is calculated by subtracting deductible items from and including additional item to financial investor’s net asset (asset-liability) as at date. The deductible item refers any asset that is difficult to be converted into cash immediately such as property, plant and equipment. The additional item includes any item recorded as liability without redemption obligation, internal reserves against future losses, items redeemable in kind and items that function as complemental capital.

Total amount of risk is quantification of all of possible losses from operation of business as a financial investor. Total amount of risk is comprised of the following ; market risks which quantify the possible losses due to fluctuation of stock price, interest rate, and exchange rate of the securities held by the investment firms ; credit risks which are the possible losses due to the breach of contract by the counterparties ; operation risks which are the possible losses due to accidents, errors, illegal conduct, and any other potential losses from deteriorated operation condition.

According to the Financial Investment Act, the regulation requires that net capital ratio must be maintained above 100% for the appropriation of the capital and it is required to improve the management if the financial investment firm does not meet the regulation for the net capital ratio.

39. Offsetting Financial Assets and Financial Liabilities

The Group enters into International Derivatives Swaps and Dealers Association (“ISDA”) master netting agreements or similar agreement with the Group’s derivative counterparties. The Group also enters into repurchase agreements and securities borrowing and lending agreements similar to the master netting agreement for derivatives. Master netting agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be offset for accounting and risk management purposes.

	2025
(in thousands of Korean won)	Gross Amount		Offset<br><br>amount		Net amounts<br>presented in<br><br>the statement of<br>financial position		Amounts not offset				Net amount
							Recognized<br>financial<br>instruments		Cash<br>collateral
Financial assets
Derivatives assets, others ^1^		1,808,461,566		—		1,808,461,566		1,427,458,830		177,659,247		203,343,489
Securities purchased under reverse repurchase agreements		1,832,100,000		—		1,832,100,000		1,832,100,000		—		—
Other receivables ^4^		4,899,327,214		4,315,518,767		583,808,447		—		—		583,808,447
Other receivables<br><br>(Payment and settlement)		227,717,069		182,255,426		45,461,643		—		—		45,461,643

		8,767,605,849		4,497,774,193		4,269,831,656		3,259,558,830		177,659,247		832,613,579

Financial liabilities
Derivatives liabilities, others ^1^		3,222,403,437		—		3,222,403,437		2,947,115,496		66,027,869		209,260,072
Securities sold under reverse resale agreements<br>^2^		10,719,460,118		—		10,719,460,118		10,719,460,118		—		—
Securities sold ^3^		2,910,712,724		—		2,910,712,724		2,910,712,724		—		—
Other payables ^4^		4,480,531,619		4,315,518,767		165,012,852		—		—		165,012,852
Other payables<br><br>(Payment and settlement)		182,255,426		182,255,426		—		—		—		—

		21,515,363,324		4,497,774,193		17,017,589,131		16,577,288,338		66,027,869		374,272,924

^1^	Both derivatives (trading) and derivatives (hedge) are included.
:---	:---
^2^	Securities sold under reverse resale agreements to the customers is included.
:---	:---
^3^	Securities sold is from securities borrowing and lending agreement.
:---	:---
^4^	In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the Group is included. However, receivables of ~~W~~4,360,987 million and payables of ~~W~~4,183,015 million arising from same-day trans actions between customers and the Group are excluded.
:---	:---

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	Gross Amount		Offset<br><br>amount		Net amounts<br>presented in<br><br>the statement of<br>financial position		Amounts not offset				Net amount
							Recognized<br>financial<br>instruments		Cash<br>collateral
Financial assets
Derivatives assets, others ^1^		1,390,150,719		—		1,390,150,719		1,114,549,100		193,074,080		82,527,539
Securities purchased under reverse repurchase agreements		2,091,017,404		—		2,091,017,404		2,091,017,404		—		—
Other receivables ^4^		1,669,975,970		1,652,694,935		17,281,035		—		—		17,281,035
Other receivables<br><br>(Payment and settlement)		136,966,708		123,672,076		13,294,632		—		—		13,294,632

		5,288,110,801		1,776,367,011		3,511,743,790		3,205,566,504		193,074,080		113,103,206

Financial liabilities
Derivatives liabilities, others ^1^		2,902,445,355		—		2,902,445,355		2,676,007,223		76,853,200		149,584,932
Securities sold under reverse resale agreements<br>^2^		9,419,893,685		—		9,419,893,685		9,419,893,685		—		—
Securities sold ^3^		2,558,520,223		—		2,558,520,223		2,558,520,223		—		—
Other payables ^4^		1,740,843,763		1,652,694,935		88,148,828		—		—		88,148,828
Other payables<br><br>(Payment and settlement)		123,672,076		123,672,076		—		—		—		—

		16,745,375,102		1,776,367,011		14,969,008,091		14,654,421,131		76,853,200		237,733,760

^1^	Both derivatives (trading) and derivatives (hedge) are included.
:---	:---
^2^	Securities sold under reverse resale agreements to the customers is included.
:---	:---
^3^	Securities sold is from securities borrowing and lending agreement.
:---	:---
^4^	In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the Group is included. However, receivables of ~~W~~1,922,392 million and payables of ~~W~~1,785,683 million arising from same-day trans actions between customers and the Group are excluded.
:---	:---

40. Lease

40.1 As a lessee

(a) The amounts recognized in the consolidated statement of financial position

The amounts related to lease recognized in the consolidated statement of financial position as at December 31, 2025 and 2024, are as follows;

(in thousands of Korean won)
Right-of-use<br>assets ^1^
Buildings		65,123,943	78,361,559
Vehicles		1,798,747	1,558,387
Others		3,557,333	1,651,891

		70,480,023	81,571,837

Lease liabilities		92,480,438	110,565,256
^1^	The amount is included in property and equipment in the consolidated statement of financial position.
:---	:---

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

(b) The amounts recognized in the consolidated statement of profit or loss

The amounts related to lease recognized in the consolidated statement of profit or loss for the year ended December 31, 2025 and 2024, are as follows

(in thousands of Korean won)
Depreciation of the<br>right-of-use assets
Buildings	27,491,861	25,889,842
Vehicles	1,390,454	1,326,898
Others	1,113,544	1,036,927

	29,995,859	28,253,667

Interest income from lease receivables (included in financial income)	594,103	779,142
Interest expense to lease liabilities (included in financial cost)	3,488,809	4,291,797
Lease payment for leases for which the underlying asset is of low value (included in administrative expenses, not-including lease for short-term period)	248,697	248,493
Variable lease payments which are not included in the measurement of lease liabilities (included in administrative expenses)	158,422	147,052

The total cash outflows for leases in 2025 and 2024 are ~~W~~ 39,895 million and ~~W~~ 37,734 million, respectively.

40.2 As a Lessor

(a) Financial Lease

As at December 31, 2025 and 2024, total investment on financial lease and present value of minimum lease payments and unrealized interest income of financial lease are as follows:

(in thousands of Korean won)
Total Investment on lease	16,555,000	23,129,979
Net Investment on lease	15,942,629	21,923,504
Present value of minimum lease payments	15,942,629	21,923,504
Unrealized interest income	612,371	1,206,474

(b) Operating Lease

As at December 31, 2025 and 2024, future minimum lease receipts expected under non-cancellable lease contracts are as follows:

(in thousands of Korean won)
Within 1 year	5,657,448	12,069,349
1 - 5 years	19,132,715	43,145,853
Over 5 years	5,633,095	2,871,151

	30,423,258	58,086,353

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

41. Contingent Liabilities and Commitments

As at December 31, 2025 and 2024, the Group is involved in pending lawsuits, as follows:

	2025				2024
(in thousands of Korean won)	Number of<br><br>lawsuits		Amount		Number of<br><br>lawsuits		Amount
Defendant		38		138,398,618		44		203,538,599
Plaintiff		13		226,629,322		16		236,163,306

The Group expects that these lawsuits do not have significant impact on the financial position.

The Group has entered into various agreements with financial institutions as at December 31, 2025 and 2024, as follows:

		Credit line
(in thousands of Korean won)	Financial institution	2025		2024
Overdraft (including daily overdraft)	Kookmin Bank and others		1,287,450,000		1,265,000,000
General loan	Kookmin Bank		40,000,000		40,000,000
Securities underwriting loan	KSFC		600,000,000		600,000,000
Working capital loan (general)	KSFC		475,000,000		475,000,000
Note trading at a discount (general)	KSFC		300,000,000		300,000,000
Note trading at a discount (trust)	KSFC		Limit of subscription<br>deposits		Limit of subscription<br>deposits
Bond dealer’s loan (general)	KSFC		300,000,000		300,000,000
Securities underwriting financing	KSFC		1,710,000,000		1,710,000,000
Committed line	Industrial and Commercial<br>Bank of China, etc		480,634,000		452,746,000
Credit line	VIETCOMBANK and other		1,041,675,750		894,026,100

The guarantees and various commitment as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Agreement to purchase commercial papers<br>^1^		1,259,846,340	824,171,844
Loan agreements		151,500,000	54,000,000
Credit line agreements		724,667,552	903,109,980
LOC and Investment commitments		705,358,979	651,203,821

		2,841,372,871	2,432,485,645

^1^	According to the above arrangement, the Group holds the asset-backed short-term bonds amounting to<br>~~W~~ 86,450 million and ~~W~~ 278,820 million as at December 31, 2025 and 2024, respectively.
:---	:---

The Group has been provided with ~~W~~ 18,557 million and ~~W~~ 14,622 million in guarantees related to provisional attachment and others by Seoul Guarantee Insurance as at December 31, 2025 and 2024, respectively.

The securities in custody as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)			Valuation method
Trustor securities	300,600,043,794	240,661,735,301	Fair value
Saver securities	2,059,709,772	1,122,794,510	Fair value
Beneficiary securities	45,102,838,605	41,779,858,329	Standard selling price

	347,762,592,171	283,564,388,140

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

As at December 31, 2025, the main lawsuits against the group as a defendant are as follows:

(in thousands of Korean won)	No. of<br>lawsuits	Amount	Contents	Situation of lawsuits
Return of purchase price, etc<br><br>Unjust gains<br><br>(Fund in Australia)	3	59,926,668	The Group, as a selling company of qualified investor private equity fund that aims to lend money to corporations (borrowers) investing in apartment rental business for disabled people in Australia, intermediated<br>~~W~~ 326.5 billion of trusts and funds to the individuals and institutional investors. However, the local borrower’s breach of the contract made the fund inoperable and the Group was sued for unjust gains/return of<br>sales price, etc.	1st lawsuit: 3rd trial in progress<br><br>(1st trial : February 7, 2023. Judgment ordering payment of ~~W~~ 29.8 billion in investment<br>principal and delayed interest thereon<br><br>2nd trial : January 29, 2024. Judgment ordering payment of ~~W~~ 12 billion in investment<br>principal and delayed interest thereon with different conclusion)<br><br>2nd lawsuit: 2nd<br>trial in progress<br><br>(1st trial : February 14, 2024. Judgment ordering payment of ~~W~~<br>12.2 billion in investment principal and delayed interest thereon)<br><br>3rd lawsuit: 3rd trial in progress<br><br>(1st trial : October 26, 2023. Judgment ordering payment of ~~W~~ 8.46 billion in remaining<br>principal and delayed interest on ~~W~~ 8.29 billion in principal<br><br>2nd: January 16, 2025. Judgment ordering the return of ~~W~~ 4.4 billion, a portion of<br>8.07 billion paid in there first trial)
Compensation for damages<br><br>(Winners Delegated<br>Customer)	1	4,469,546	8 clients who had signed an investment agency contract with Winners Asset Management Co.,LTD. and opened accounts with the Group to trade Nikkei 225 options claimed damages from the company, claiming that the short sales that Group<br>conducted as a result of increased intraday risk due to the sharp decline in the Nikkei 225 index caused by COVID-19 in August 2020 was illegal.	2 plaintiffs filed an appeal<br><br>(1st trial : February 2, 2023. Judgment dismissing all plaintiffs’ claims for damages<br><br>2nd trial : October 30, 2025. Judgment<br>dismissing all plaintiffs’ appeal against the first trial)
Damages and Unjust Gains<br><br>(Winners Fund<br>Investors)	4	7,202,350	Investors who invested in funds managed by Winners Asset Management Co.,LTD.filed lawsuits against the Group, which was an investment broker, claimed compensation for damages or return of unjust gains due to contract cancellation<br>(60 plaintiffs in total)	1 cases: Appeal filed<br><br>(1st trial : ① September 26, 2024. the Group wins in full ② September 18, 2025. the Group wins<br>in full)<br><br>2 cases: 2nd trial in progress<br><br>(1st trial : ① August 22, 2024. the Group wins in full ② November 28, 2025. the Group wins in<br>full)<br><br>1 cases: 1st trial in<br>progress
Damages and Unjust Gains<br><br>(TA_DLS Trust)	7	9,082,031	Investors who invested in KB able DLS Trust (a specific money trust that includes derivative linked securities linked to TA-OPAL Fund, which TransAsia Management invests in trade finance loan<br>receivables) argued that the Group’s sales staff misleaded that the principal was guaranteed by an insurance company’s guarantee, and claimed the return of unjust gains by the cancellation of the contract due to the error.	2 cases: Appeal filed<br><br>(1st trial : ① July 23, 2025. the plaintiff win in partially. ② October 23, 2025. . the plaintiff<br>win in partially .<br><br>5 cases: 1st trial in<br>progress

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Unjust Gains<br><br>(Heritage Banzaran DLS)	3	38,768,140	The Group provided false information about the business capabilities of the operator (GPG), etc., thereby causing the plaintiff to misunderstand the key investment conditions of the DLS in this case. Therefore, the plaintiff<br>requested to cancel the acquisition contract for the DLS in this case due to the mistake and claimed the return of the acquisition price of the DLS in this case and the delay damages as unjust gains.	3 cases: 1st trial In progress

The Fair Trade Commission is currently reviewing whether the Group has engaged in unfair joint activities with other banks and securities firms, and the results of the deliberation and decision are uncertain at this time.

During the year ended December 31, 2025, the Group underwent a regular tax audit by the Seoul Regional Tax Office for the fiscal years from 2020 to 2024, and paid ~~W~~ 19,398 million in corporate taxes and other taxes (including local income tax) in December 2025 and January 2026. Accordingly, the Group filed an appeal for ~~W~~ 15,249 million in February 2026, considering the items indicated in the tax notice. As at December 31, 2025, the Group did not recognize any tax liabilities for amounts it determined were likely to be refunded through an appeal. However, the final tax liability may change depending on the outcome of the appeal.

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Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

42. Related Party Transactions

KB Financial Group Inc. owns 100% of ordinary shares of the KB Securities Co., Ltd. as at December 31, 2025 and 2024.

Significant balances and transactions, excluding loan and borrowing transactions, with related parties as at December 31, 2025 and 2024, are as follows:

(a) Receivables and payables

(in thousands of Korean won)	2025				2024
	Receivables		Payables		Receivables		Payables
The Parent Company
KB Financial Group Inc.		177,981,457		129,572,183		—		100,482,725
Others
Kookmin Bank		57,592,045		118,712,300		148,169,617		92,559,065
KB Asset Management Co., Ltd.		—		29,854		—		34,401
KB Real Estate Trust Co., Ltd.		—		355		—		417
KB Investment Co., Ltd.		751,581		131		848,476		165
KB Data System Co., Ltd.		5,356,594		356,049		925,927		331,681
KB Kookmin Card Co., Ltd.		14,395		9,066,102		455		8,427,724
KB Savings Bank Co., Ltd.		—		574		—		657
KB Capital Co., Ltd.		1,035,197		1,065,333		1,416,693		2,850,380
KB Insurance Co., Ltd		151,341,852		22,345,124		6,846,890		92,036,600
KB Life Insurance Co., Ltd.		44,486,042		18,286,691		1,062,706		4,440,280
KB Wisestar Private Real Estate<br><br>Fund Investment Trust No. 1		—		—		5,274		—
Other funds		4,141,026		1,743,740		2,413,016		6,875,206

(b) Revenue and expenses

	2025				2024
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
Associates
KBTS Technology Venture Private Equity Fund		170,353		—		174,883		—
KB-SJ Tourism Venture Fund		788,468		—		272,001		—
KB SPROTT Renewable Private Equity Fund I		77,970		—		255,062		—
KB-Stonebridge Secondary Private Equity Fund		364,486		—		401,890		—
KB-UTC Inno-Tech Venture Fund		146,853		—		230,269		—
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		800,322		—		619,004		—
KB Material and Parts No. 1 PEF<br>^1^		—		—		175,287		—
KB Special Purpose Acquisition Company No.21<br>^1^		—		—		135,842		—
KB-KTB Technology Venture Fund		398,659		—		341,826		—
KB-GeneN Medical Venture Fund 1		88,800		—		88,800		—
KB-BridgePole Venture Investment Fund ^1^		—		—		100,973		—
KB-Kyobo New Mobility Power Fund ^1^		—		—		75,523		—
KB-FT 1st Green Growth Investment Fund		135,415		—		135,639		—
KB-NP Green ESG New Technology Venture Capital<br>Fund		1,095,469		—		1,133,636		—
KB Special Purpose Acquisition Company No.25		65,452		—		—		175,265

138

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

	2025				2024
(in thousands of Korean won)	Revenue		Expenses		Revenue		Expenses
KB Special Purpose Acquisition Company No.26<br>^1^		—		—		—		53,795
KB-SUSUNG 1st Investment Fund		142,365		—		192,368		—
KB Special Purpose Acquisition Company No.27		405,334		—		—		176,877
KB-BridgePole Venture Investment Fund #2		105,000		—		105,000		—
U-KB Credit No.1 Private Equity		967,500		—		970,151		—
KB Special Purpose Acquisition Company No.28<br>^1^		—		—		1,292,589		—
KB Special Purpose Acquisition Company No.29		143,758		—		1,735,480		—
AKK Robotech Valueup New Technology Investment Fund<br>^1^		235,495		—		101,116		—
KB-SOLIDUS Healthcare Investment Fund		860,181		—		768,198		—
KB-CJ Venture Fund 1st		150,000		—		79,918		—
KB-SUSUNG 2nd Investment Fund		154,772		—		77,518		—
KB Global Commerce Private Equity Investment Fund<br>^1^		—		—		—		—
KB KONEX Market Vitalization Fund ^1^		—		—		—		—
KB Star REIT		9,442,306		—		—		—
KB Special Purpose Acquisition Company No.30		57,619		—		1,620,135		—
KB Special Purpose Acquisition Company No.31		177,402		—		2,111,082		—
KB-Cyrus Tourism Venture Fund		337,500		—		63,627		—
KB-IMM Newstar Real Estate Private Fund 1		2,277,815		—		—		—
KB Special Purpose Acquisition Company No.33		2,214,139		—		—		—
KBLB Middle Market Enterprises Innovation Private Equity Fund		1,199,742		—		—		—
Semicolon Susong Commissioned Real Estate Investment Trust		5,650,210		—		—		—
KB-Novus Genesis Private Equity Fund		103,905		—		—		—
AIM-KB-DOUBLE<br>Connected Future Investment Fund		30,378		—		—		—
KB-SP Private Equity Fund IV ^1^		62,547		—		—		—
E&I Holdings Co., Ltd ^1^		3,446,057		—		—		—
IMM global Secondary 1-1 Equity Private Fund		3,511		—		—		—
KB-IMM Newstar Real Estate Private Fund 2		138,002		—		—		—
The Parent Company
KB Financial Group Inc.		1,421,759		65,443		778,875		99,196
Others
Kookmin Bank		75,750,216		222,486,519		176,460,934		152,374,594
KB Asset Management Co., Ltd.		903		911,493		782		839,780
KB Real Estate Trust Co., Ltd.		622		7,014		215,636		937
KB Investment Co., Ltd.		1,570,303		5		1,666,529		6
KB Data System Co., Ltd.		1,021		2,722,953		8,483		5,749,905
KB Kookmin Card Co., Ltd.		111,825		1,017,147		57,063		837,257
KB Savings Bank Co., Ltd.		996		69		23		23
KB Capital Co., Ltd.		811,018		77,590		492,222		41,598
KB Insurance Co., Ltd.		215,567,089		—		6,994,519		56,730,129
KB Life Insurance Co., Ltd.		44,935,958		2,604,916		1,112,355		469,723
KB Wisestar Private Real Estate<br><br>Fund Investment Trust No. 1		9,549		—		110,292		—

139

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2025				2024
(in thousands of Korean won)		Revenue		Expenses		Revenue		Expenses
Other funds			17,455,819		168,140		23,588,133		—
Retirement pension			1,222,235		—		1,230,487		—
The Group
Employees			773,600		—		379,157		—
^1^	These companies are excluded from related parties during the year ended December 31, 2025 or 2024. The<br>transaction amounts are up to the date of the exclusion.
:---	:---

(c) Significant loan and borrowing transactions with related parties for the years ended December 31, 2025 and 2024 are as follows:

	2025
(in thousands of Korean won)	Accounts	Beginning<br>balance		Increase		Decrease			Other			Ending<br>balance
Associates
KB Special Purpose Acquisition Company No.21<br>^1^	Hybrid bond with<br><br>securities-<br>like<br>features		3,122,444		—		(3,122,444	)		—			—
KB Special Purpose Acquisition Company No.25	Hybrid bond with<br><br>securities-<br>like<br>features		1,849,919		—		—			65,453			1,915,372
KB Special Purpose Acquisition Company No.26<br>^1^	Hybrid bond with<br><br>securities-<br>like<br>features		2,150,426		—		—			(2,150,426	)		—
KB Special Purpose Acquisition Company No.27	Hybrid bond with<br><br>securities-<br>like<br>features		5,876,876		—		—			405,334			6,282,210
KB Special Purpose Acquisition Company No.28<br>^1^	Hybrid bond with<br><br>securities-<br>like<br>features		2,112,589		—		—			(2,112,589	)		—
KB Special Purpose Acquisition Company No.29	Hybrid bond with<br><br>securities-<br>like<br>features		3,015,480		—		—			143,758			3,159,238
KB Special Purpose Acquisition Company No.30	Hybrid bond with<br><br>securities-<br>like<br>features		2,835,135		—		—			57,619			2,892,754
KB Special Purpose Acquisition Company No.31	Hybrid bond with<br>securities- like<br>features		4,301,082		—		—			177,402			4,478,484
KB Special Purpose Acquisition Company No.33	Hybrid bond with<br><br>securities-<br>like<br>features		—		2,090,000		—			2,214,139			4,304,139
Others
Kookmin Bank	Deposits ^2^		499,683,258		—		—			(123,829,944	)		375,853,314
	Borrowings		121,654,100		1,028,552,673		(852,271,239	)		—			297,935,534
PT Bank KB Bukopin Tbk	Borrowings		—		8,560,000		—			—			8,560,000
KB Kookmin Card Co., Ltd.	Debt Securities		—		10,001,122		(10,001,122	)		—			—

140

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB Capital Co., Ltd.		Debt Securities		—		10,002,628		(10,002,628	)	—		—
Executives		Deposit Liabilities		373,997		510,499		(217,242	)	—		667,254
The Group
Employees		Loans to employees		23,488,800		20,235,774		(6,466,148	)	—		37,258,426
^1^	These companies are not related parties of the Group as at December 31, 2025.
:---	:---
^2^	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn<br>at any time between related parties are disclosed in net amounts.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Accounts		Beginning<br>balance			Increase			Decrease			Other			Ending<br>balance
Associates
KB Special Purpose Acquisition<br>Company No.21		Hybrid bond with<br>securities- like<br>features			2,986,602			—			—			135,842			3,122,444
KB Special Purpose Acquisition<br>Company No.22<br>^1^		Hybrid bond with<br>securities- like<br>features			2,984,646			—			—			(2,984,646	)		—
KB Special Purpose Acquisition<br>Company No.23<br>^1^		Hybrid bond with<br>securities- like<br>features			1,488,699			—			—			(1,488,699	)		—
KB Special Purpose Acquisition<br>Company No.25		Hybrid bond with<br>securities- like<br>features			2,025,184			—			—			(175,265	)		1,849,919
KB Special Purpose Acquisition<br>Company No.26		Hybrid bond with<br>securities-like<br>features			2,204,221			—			—			(53,795	)		2,150,426
KB Special Purpose Acquisition<br>Company No.27		Hybrid bond with<br>securities- like<br>features			6,053,752			—			—			(176,876	)		5,876,876
KB Special Purpose Acquisition<br>Company No.28		Hybrid bond with<br>securities- like<br>features			—			995,000			—			1,117,589			2,112,589
KB Special Purpose Acquisition<br>Company No.29		Hybrid bond with<br>securities- like<br>features			—			1,490,000			—			1,525,480			3,015,480
KB Special Purpose Acquisition<br>Company No.30		Hybrid bond with<br>securities- like<br>features			—			1,390,000			—			1,445,135			2,835,135
KB Special Purpose Acquisition<br>Company No.31		Hybrid bond with<br>securities- like<br>features			—			2,190,000			—			2,111,082			4,301,082
Others
Kookmin Bank		Deposits ^2^			383,027,563			—			—			116,655,695			499,683,258
		Borrowings			265,927,798			811,389,573			(955,663,271	)		—			121,654,100
KB Kookmin Card Co., Ltd.		Debt Securities			30,127,334			—			(30,127,334	)		—			—
KB Savings Bank Co., Ltd.		Borrowings			3,000,000			—			(3,000,000	)		—			—

141

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB Insurance Co., Ltd		Borrowings	70,500,000	—	(70,500,000	)	—	—
KB Capital Co., Ltd.		Borrowings	43,312,000	—	(43,312,000	)	—	—
KB STAR CLASBY 1 st Inc.		Borrowings	72,000,000	—	(72,000,000	)	—	—
Executives		Deposit Liabilities	635,217	283,283	(544,503	)	—	373,997
The Group
Employees		Loans to employees	12,587,095	16,252,859	(5,351,154	)	—	23,488,800
^1^	These companies are not related parties of the Group as at December 31, 2024.
:---	:---
^2^	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn<br>at any time between related parties are disclosed in net amounts.
:---	:---

In addition to the above, the balance of hybrid securities held by KB Financial Group Inc., issued by the Group as at December 31, 2025, is ~~W~~ 530,000 million (2024 : ~~W~~ 530,000 million), and the related dividend payment for the year ended December 31, 2025 is ~~W~~ 26,600 million (2024 : ~~W~~ 31,913 million).

And the dividend paid by the Group to KB Financial Group Inc., the parent company, through disposal of retained earnings in 2025 during the year ended December 31, 2025 is ~~W~~ 580,000 million (2024 : ~~W~~ 150,000 million).

Meanwhile, the above financial transactions do not include details of increases or decreases in deposits that occur for business reasons between related parties.

(d) Other transactions with related parties for the years ended December 31, 2025 and 2024, are as follows:

(In thousands of Korean won)	2025
	Contribution		Collection and others
Associates
KB Special Purpose Acquisition Company No.21<br>^1^		—		10,000
KB Special Purpose Acquisition Company No.26<br>^1^		—		5,000
KB Special Purpose Acquisition Company No.28<br>^1^		—		5,000
KB Special Purpose Acquisition Company No.32		10,000		—
KB New Paradigm Agriculture Venture Fund		—		375,000
KB KONEX Market Vitalization Fund ^1^		—		540,000
KB-KDBC New Technology Business Investment Fund		—		1,500,000
KB-SJ Tourism Venture Fund		—		190,000
KB-Stonebridge Secondary Private Equity Fund		—		1,248,439
KB-SP Private Equity Fund IV ^1^		—		2,494,808
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		1,800,000		1,700,815
KB Digital Platform Fund		10,000,000		—
KB-SOLIDUS Healthcare Investment Fund		1,316,667		—
JS Private Equity Fund III		—		749,248
THE CHAEUL FUND NO.1 ^1^		—		1,000,000
POSITVE Sobujang Venture Fund #1 ^1^		—		879,121
KB-NP Green ESG New Technology Venture Capital<br>Fund		3,480,000		1,136,153
Hisstory 2022 Fintech Fund ^1^		—		2,000,000
KB Bio Private Equity Investment Fund IV<br>^1^		—		7,500,000
KB-SUSUNG 1st Investment Fund		—		946,000
Shinhan-Eco Venture Fund 2nd		25,000		190,000
2023 JB Newtech No.2 Fund ^1^		—		1,405,557
U-KB Credit No.1 Private Equity		11,953,489		—
AKK Robotech Valueup New Technology Investment Fund<br>^1^		—		1,000,000
IMM global Secondary 1-1 Equity Private Fund		756,186		162,251

142

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

NOVORSEC-SJG Consumer Secondary Fund 1	—	1,700,000
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	10,215,000	—
KB-Cyrus Tourism Venture Fund	1,000,000	—
NICE DATA INTELLIGENCE VENTURE FUND<br>1	—	1,000,000
Pectus Hanwha Fund No.2 1	—	2,000,000
KB-IMM Newstar Real Estate Private Fund 1	19,386,033	—
KBLB Middle Market Enterprises Innovation Private Equity Fund	4,284,000	—
YG AI Industrial Automation Solutions FUND	2,000,000	—
KB-Novus Genesis Private Equity Fund	2,300,000	—
KB Special Purpose Acquisition Company No.33	160,000	—
E&I Holdings Co., Ltd 1	27,300,000	27,300,000
Korea Environment Technology Co., LTD<br>1	—	107,427,843
Semicolon Susong Commissioned Real Estate Investment Trust	77,000,000	857,210
Others
KB BMO Senior Loan Private Special Asset Fund 2	—	6,588,099
KB Overseas Investment Private Real Estate Investment Trust No. 22	4,016,340	—
KB Wisestar Private Real Estate Fund Investment Trust No. 1	—	2,414,882
KB North America Jefferies Private Special Asset Investment Trust No.1	4,683,542	1,346,657
KB North America Jefferies Private Special Asset Investment Trust No.2	262,750	89,659
KB Corporation Dollar MMF()	28,989,000	43,844,420
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	22,857	10,442
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2	44,338	28,032
KB Apax Global Buyout Fund	1,912,740	—
KB Global Infra Private Special Asset Fund No.6	—	130,507
KB Overseas Investment Private Real Estate Investment Trust No. 35	50,606	—
KB Global Senior Loan Private Fund No.1()	18,489,479	5,808,597
KB Wisestar General Real Estate Fund 24	14,700,000	14,700,000
KB Global Platform Fund	—	2,880,000
KB New Deal Innovation Fund	—	1,000,000
Paramark KB Fund I	1,830,000	411,000
KB Secondary Plus Fund	—	1,676,310
KB Prime Digital Platform Fund	1,125,000	—
KB Scale-up Fund No.2	3,500,000	—
KB Global Platform Fund No.2	2,400,000	—
Startup Korea KB Secondary Fund	1,500,000	1,961
Timefolio The Time-Frontier Star Specialized Private Investment Trust	10,097,349	490,175
KB Wisestar General Real Estate Fund 21	8,899,000	230,400
KB ValueRise Blind Private Real Estate Fund No.1	10,684,210	—
PineStreet Global Corporate FoF 28-2(AOP II)	141,706	1,265
KB BX Europe Infra Private SpecialAsset Fund 1()	4,177,909	—
KB RISE Short-Term MSB ETF	71,909,225	71,909,111
KB Wisestar General Real Estate Fund 28	20,500,000	—
^1^	These companies are not related parties of the Group as at December 31, 2025.
:---	:---

143

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Associates
KB Special Purpose Acquisition Company No.22<br>^1^	—	10,000
KB Special Purpose Acquisition Company No.28	5,000	—
KB Special Purpose Acquisition Company No.29	10,000	—
KB Special Purpose Acquisition Company No.30	10,000	—
KB Special Purpose Acquisition Company No.31	10,000	—
KB New Paradigm Agriculture Venture Fund	—	825,000
KB KONEX Market Vitalization Fund	—	75,000
KB-KDBC New Technology Business Investment Fund	—	300,000
KBTS Technology Venture Private Equity Fund	—	704,000
KB-SJ Tourism Venture Fund	—	4,030,000
KB-Stonebridge Secondary Private Equity Fund	—	190,539
KB-UTC Inno-Tech Venture Fund	—	112,500
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	4,482,000	3,889,195
KB Material and Parts No. 1 PEF<br>^1^	—	3,400,000
KB Global Commerce Private Equity Investment Fund<br>^1^	—	7,000,000
KB-KTB Technology Venture Fund	2,000,000	—
KB Digital Platform Fund	10,000,000	—
KB-SOLIDUS Healthcare Investment Fund	1,300,000	—
KB-BridgePole Venture Investment Fund ^1^	—	136,000
KB-Kyobo New Mobility Power Fund ^1^	—	3,000,000
JS Private Equity Fund III	—	754,979
POSITVE Sobujang Venture Fund #1	—	1,120,879
KB-NP Green ESG New Technology Venture Capital<br>Fund	7,920,000	—
LAKEWOOD-AVES Fund No.1 ^1^	—	2,000,000
KB-SUSUNG 1st Investment Fund	—	924,000
Friend 55 New Technology Business Investment Fund<br>^1^	—	1,200,000
Bitgoeul Cheomdan Green 1st Co., Ltd.	152,000	—
DSIP-Pharos Bioenergy Fund ^1^	—	4,000,000
Shinhan-Eco Venture Fund 2^nd^	225,000	—
2023 JB Newtech No.2 Fund	—	394,443
U-KB Credit No.1 Private Equity	279,070	—
Timefolio Athleisure Investment Fund	4,000,000	—
COMPA Global Scale-Up Fund No.3	1,000,000	—
AKK Robotech Valueup New Technology Investment Fund	1,000,000	—
YG MCE PROJECT No.1 Fund	1,500,000	—
HI YG Win-win Fund No.2	2,000,000	—
KB-CJ Venture Fund 1st	1,800,000	—
Elohim-Bilanx aerospace No.1 Fund	2,000,000	—
KB-SUSUNG 2nd Investment Fund	2,000,000	—
IMM global Secondary 1-1 Equity Private Fund	2,819,038	—
LIB Material Investment Fund	4,098,144	—
NOVORSEC-SJG Consumer Secondary Fund	1,700,000	—
KBSBI Global High-tech Strategic Private Equity Investment<br><br>Limited Partnership	5,059,098	—
KB-Cyrus Tourism Venture Fund	1,000,000	—
IBKS Design Fund	2,000,000	—
NICE DATA INTELLIGENCE VENTURE FUND	1,000,000	—
Pectus Hanwha Fund No.2	2,000,000	—
KB-IMM Newstar Real Estate Private Fund 1	20,897,275	—
G Payment Joint Stock Company	—	1,504,288
Korea Environment Technology Co., LTD	107,427,843	—
Others
KB BMO Senior Loan Private Special Asset Fund 2	—	5,119,216

144

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

KB Overseas Investment Private Real Estate Investment Trust No. 22	2,728,938	853,778
KB Global Platform Fund	—	2,540,000
Paramark KB Fund I	2,710,000	—
KB Prime Digital Platform Fund	900,000	—
KB Scale-up Fund No.2	1,500,000	—
KB Global Platform Fund No.2	3,600,000	—
KB Overseas Investment Private Real Estate Investment Trust No. 35	50,535	—
KB North America Jefferies Private Special Asset Investment Trust No.2	38,129	—
KB KBSTAR Money Market Active	10,090,203	81,692,923
KB KBSTAR US Short-Term IG Corporate Bond ETF	—	30,915,000
KB Wise star General Real Estate Fund 22	—	96,145,931
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	372,857	—
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2	64,458	—
KB Apax Global Buyout Fund	2,669,708	—
KB Global Infra Private Special Asset Fund No.6	2,006,602	—
KB Global Senior Loan Private Fund No.1()	5,996,748	—
Startup Korea KB Secondary Fund	1,500,000	—
REKSA DANA VALBURY STABLE GROWTH FUND	—	126,277

All values are in US Dollars.

^1^	These companies are not related parties of the Group as at December 31, 2024.

(e) Details of guarantees and assets pledged as collateral to related parties as at December 31, 2025 and 2024 are as follows:

Guarantees

		Limit amount
(in thousands of Korean won)		Details				2025			2024
KB Star Galaxy Towers REIT			Funding<br>replenishment<br>agreement B				—			40,000,000

Assets pledged as collateral

(in thousands of Korean won)		2025				2024
	Details of<br><br>assets pledged	Carrying<br>amount		Collateralized<br>amount		Carrying<br>amount		Collateralized<br>amount
Other related parties
Kookmin Bank	Time deposits and others		173,000,000		167,000,000		173,000,000		167,000,000
	Bonds denominated in Korean won		100,962,906		105,126,000		19,197,211		20,000,000
	Stocks denominated in Korean won		105,943,750		119,887,500		—		—
	Investment Properties		25,022,287		25,022,287		32,449,970		22,992,136
KB Insurance Co., Ltd	Bonds denominated in Korean won		—		—		92,936,186		91,962,000

145

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Assets received as collateral

(in thousands of Korean won)	Details of<br><br>assets pledged	2025		2024
		Collateralized<br>amount		Collateralized<br>amount
Other related parties
Kookmin Bank	Bonds denominated in Korean won		585,760,000		108,891,000
KB Insurance Co., Ltd.	Bonds denominated in Korean won		277,790,000		10,000,000
KB Life Insurance Co., Ltd.	Bonds denominated in Korean won		143,738,832		—

As at December 31, 2025, the Group has ~~W~~ 140,000 million (2024 : ~~W~~ 144,362 million) of credit line such as loan agreement. . And the Group has entered into a CLS (Foreign Exchange Simultaneous Settlement) third-party service agreement with Kookmin Bank Co., Ltd., and according to the related agreement, it can receive intraday liquidity of USD 500 million on the condition of repayment on the settlement date.

(f) Details of unused loan commitments provided to the related parties as at December 31, 2025 and 2024, are as follows:

(In thousands of Korean won)	Details	Amounts
		2025		2024
KB BMO Senior Loan Private Special Asset Fund 2	Purchase agreements of securities		22,076		22,616
KB Global Infra Private Special Asset Fund No.6	Purchase agreements of securities		2,993,171		2,993,171
KB-NAU Special Situation Corporate Restructuring<br>Private Equity Fund	Purchase agreements of securities		462,000		2,262,000
Paramark KB Fund I	Purchase agreements of securities		290,000		2,120,000
KB-SOLIDUS Healthcare Investment Fund 1	Purchase agreements of securities		—		1,316,667
KB Digital Platform Fund	Purchase agreements of securities		12,000,000		22,000,000
KB-NP Green ESG New Technology Venture Capital<br>Fund	Purchase agreements of securities		420,000		3,900,000
KB Prime Digital Platform Fund	Purchase agreements of securities		—		1,125,000
KB Scale-up Fund No.2	Purchase agreements of securities		2,000,000		5,500,000
KB Overseas Investment Private Real Estate Investment Trust No. 22	Purchase agreements of securities		3,530,738		7,709,267
KB Global Platform Fund No.2	Purchase agreements of securities		5,400,000		7,800,000
KB North America Jefferies Private Special Asset Investment Trust No.1	Purchase agreements of securities		1,570,513		6,416,289
KB North America Jefferies Private Special Asset Investment Trust No.2	Purchase agreements of securities		82,659		337,699
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	Purchase agreements of securities		604,238		727,095
U-KB Credit No.1 Private Equity	Purchase agreements of securities		12,953,488		24,906,977
KB Wisestar Private Real Estate Fund Investment Trust No. 1	Purchase agreements of securities		—		19,000

146

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Shinhan-Eco Venture Fund 2nd	Purchase agreements of securities	425,000	450,000
KB Apax Global Buyout Fund	Purchase agreements of securities	12,158,512	13,069,562
KB-CJ Venture Fund 1st	Purchase agreements of securities	4,200,000	4,200,000
KB-Cyrus Tourism Venture Fund	Purchase agreements of securities	3,000,000	4,000,000
KB Global Senior Loan Private Fund No.1()	Purchase agreements of securities	18,420,801	38,119,931
KB Overseas Investment Private Real Estate Investment Trust No. 35	Purchase agreements of securities	184,387	241,039
KB Development Blind General Private Real Estate Investment Trust No.2	Purchase agreements of securities	—	360,000
Startup Korea KB Secondary Fund	Purchase agreements of securities	7,000,000	8,500,000
IMM global Secondary 1-1 Equity Private<br>Fund	Purchase agreements of securities	10,847,438	11,814,216
PineStreet Global Corporate FoF 28-2	Purchase agreements of securities	143,227	200,526
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	Purchase agreements of securities	14,725,902	24,940,902
KB-IMM Newstar Real Estate Private Fund 1	Purchase agreements of securities	8,716,692	28,102,725
KBLB Middle Market Enterprises Innovation Private Equity Fund	Purchase agreements of securities	15,716,000	—
KB ValueRise Blind Private Real Estate Fund No.1	Purchase agreements of securities	1,815,790	—
KB BX Europe Infra Private SpecialAsset Fund 1()	Purchase agreements of securities	4,136,158	—
KB-IMM Newstar Real Estate Private Fund 2	Purchase agreements of securities	25,490,182	—
KB Wisestar General Real Estate Fund 21	Purchase agreements of securities	11,101,000	—
KB-ANDA Deep Tech Venture Fund	Purchase agreements of securities	6,250,500	—

The Group received credit card commitment amounting to ~~W~~ 30,000 million(~~W~~ 23,000 million as at December 31, 2024) from KB Kookmin Card Co., Ltd. as at December 31, 2025.

(g) Debt instruments purchased or sold via the Group by the related party for the years ended December 31, 2025 and 2024, are as follows.

		2025
(in thousands of Korean won)		Sale		Purchase ^1^
KB Financial Group Inc.			—		210,000,000
Kookmin Bank			10,734,429,024		10,324,889,295
KB Insurance Co., Ltd			1,405,912,442		189,055,117
KB Life Insurance Co., Ltd			832,968,613		335,653,115
KB Capital Co., Ltd.			—		260,320,000
KB Kookmin Card Co., Ltd.			—		90,000,000
^1^	Debt instruments issued by the related parties and purchased by the Group are included.
:---	:---

147

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Sale		Purchase ^1^
KB Financial Group Inc.			—		20,000,000
Kookmin Bank			8,981,924,390		8,213,942,162
KB Insurance Co., Ltd.			969,601,763		395,133,652
KB Life Insurance Co., Ltd.			538,960,937		431,117,063
KB Capital Co., Ltd.			—		220,000,000
KB Kookmin Card Co., Ltd.			—		130,000,000
^1^	Debt instruments issued by the related parties and purchased by the Group are included.
:---	:---

(h) The key management includes directors, members of BOD, CFO, person in charge for internal audit and their compensation for the years ended December 31, 2025 and 2024, are as follows.

(in thousands of Korean won)
Salaries	26,372,671	17,868,966
Post-employment benefits	857,002	845,549
Share-based payment	29,144,965	24,598,629

	56,374,638	43,313,144

43. Supplemental Cash Flow Information

Adjustments for non-cash items of cash flows from operating activities for the years ended December 31, 2025 and 2024, are as follows.

(in thousands of Korean won)
Interest income	(1,767,447,056	)	(1,786,484,002	)
Interest expenses	1,148,067,884		1,179,191,195
Dividend income and distribution income	(116,166,843	)	(91,056,529	)
Tax expenses	224,506,293		158,272,193
Gains on valuation of financial assets (liabilities) required to be mandatorily measured at<br>FVTPL	(1,846,047,283	)	(593,355,209	)
Losses on valuation of financial assets (liabilities) required to be mandatorily measured at<br>FVTPL	757,388,551		523,121,917
Gains on valuation of financial assets (liabilities) designated at FVTPL	(49,800,640	)	(138,878,158	)
Losses on valuation of financial assets (liabilities) designated at FVTPL	236,511,091		187,567,451
Gains on valuation of derivative financial assets (liabilities)	(2,201,611,473	)	(1,224,670,567	)
Losses on valuation of derivative financial assets (liabilities)	2,482,180,251		1,422,207,317
Gains or losses on disposal of financial assets at FVOCI	(24,498,535	)	(12,705,258	)
Provision for allowances for loan losses	88,926,716		54,050,191
Depreciation	59,613,156		56,885,629
Amortization	58,477,146		54,692,261
Foreign currency translations	(70,588,288	)	(137,779,851	)
Others	92,567,066		113,535,980

	(927,921,964	)	(235,405,440	)

148

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Changes in operating assets and liabilities of cash flows for the years ended December 31, 2025 and 2024, are as follows.

(in thousands of Korean won)
Deposits in financial institutions	(796,908,552	)	(41,876,130	)
Financial assets required to be mandatorily measured at FVTPL	(4,253,091,457	)	(1,121,560,056	)
Derivative financial instruments	(342,484,895	)	(329,637,150	)
Loans measured at amortised cost	(173,999,549	)	(142,436,152	)
Other assets	(3,525,638,264	)	1,197,627,263
Deposit liabilities	4,312,800,785		413,778,005
Financial liabilities required to be mandatorily measured at FVTPL	11,909,296		(185,579,133	)
Financial liabilities designated at FVTPL	(205,049,772	)	(21,982,796	)
Defined benefit obligation	(24,515,202	)	(22,923,860	)
Securities sold under repurchase agreements	791,868,208		325,265,250
Other liabilities	3,693,643,525		(1,552,482,049	)

	(511,465,877	)	(1,481,806,808	)

Changes in liabilities of cash flows from financing activities for the years ended December 31, 2025 and 2024, are as follows.

		2025
(in thousands of Korean won)		Borrowings			Debentures			Guarantee<br>deposits			Lease<br>liabilities			Others			Total
Beginning balance (net)			24,083,885,354			3,457,691,424			15,879,110			110,565,256			55,089,625			27,723,110,769
Cash Transactions			2,861,360,138			1,168,100,000			492,762			(38,314,233	)		16,665,222			4,008,303,889
Exchanges in foreign currency			(18,155,048	)		(10,530,000	)		(7,185	)		175,035			—			(28,517,198	)
Changes in consolidation scope			(411,417,840	)		—			(6,031,442	)		—			(21,238	)		(417,470,520	)
Non-cash transactions			—			(1,457,133	)		221,855			20,054,380			(24,654,948	)		(5,835,846	)

Ending balance(net)			26,515,672,604			4,613,804,291			10,555,100			92,480,438			47,078,661			31,279,591,094

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Borrowings			Debentures			Guarantee<br>deposits			Lease<br>liabilities			Others			Total
Beginning balance (net)			22,505,037,220			2,556,301,933			16,255,758			108,095,746			92,117,465			25,277,808,122
Cash Transactions			1,685,010,913			848,655,508			(565,526	)		(46,492,571	)		(32,697,143	)		2,453,911,181
Exchanges in foreign currency			28,537,841			54,036,492			26,348			(485,759	)		—			82,114,922
Changes in consolidation scope			(134,700,620	)		—			—			—			(57,391,789	)		(192,092,409	)
Non-cash transactions			—			(1,302,509	)		162,530			49,447,840			53,061,092			101,368,953

Ending balance(net)			24,083,885,354			3,457,691,424			15,879,110			110,565,256			55,089,625			27,723,110,769

149

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

44. Non-cash Transactions

Significant non-cash transactions from investing activities and financing activities which are not included in consolidated statements of cash flows for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025			2024
Increase due to gains on valuation of financial assets at FVOCI			43,057,273			7,160,042

45. Interests in Unconsolidated Structured Entities

Information about interests in unconsolidated structured entities, which the Group does not have control over, including the nature, purpose and activities of the structured entity and how the structured entity is financed, is as follows:

Nature	Purpose	Activities	Method of financing
Asset-backed<br><br>securitization	•<br><br>Early cash generation through transfer of securitization assets<br><br>•<br><br>Fees earned as services to SPC, such as providing lines of credit and ABCP purchase commitments	•<br><br>Fulfillment of Asset-backed securitization plan<br><br>•<br><br>Purchase and transfer of securitization assets<br><br>•<br><br>Issuance and repayment of ABS and ABCP	•<br><br>Issuance of ABS and ABCP based on securitization assets
Project financing	•<br><br>Granting PF loans to SOC and real estate<br><br>•<br><br>Granting loans to ships/ aircrafts SPC	•<br><br>Construction of SOC and real estate<br><br>•<br><br>Building ships/ construction and purchase of aircrafts	•<br><br>Loan commitments through Credit Line, providing lines of credit and investment agreements
Trust	Management of financial trusts;<br><br>•<br><br>Development trust<br><br>•<br><br>General unspecified money trust<br><br>•<br><br>Principal non-guaranteed trust	•<br><br>Development, management, and disposal of trusted real estate assets<br><br>•<br><br>Payment of trust fees and allocation of trust profits.	•<br><br>Sales of financial trusts
Investment funds	•<br><br>Investment in beneficiary certificates<br><br>•<br><br>Investment in PEF and partnerships	•<br><br>Management of fund assets<br><br>•<br><br>Payment of fund fees and allocation of fund profits	•<br><br>Sales of beneficiary certificate instruments<br><br>•<br><br>Investment of managing partners and limited partners

Details of the size of the interest in unconsolidated structured entities and the nature of risks related are as follows:

	2025
(in thousands of Korean won)	Asset-backed<br><br>securitization		Investment fund		Others		Total
Total assets of unconsolidated structured entities		28,050,654,761		45,393,658,753		6,258,050,875		79,702,364,389
Assets recognized in the consolidated financial statements of the Group
Loans		1,355,306,045		119,127,758		187,729,852		1,662,163,655
Securities		5,220,766,756		2,264,299,591		5,100,000		7,490,166,347

150

KB SECURITIES CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

December 31, 2025 and 2024

Investments in associates			—				375,198,960				—				375,198,960
Derivative financial assets			—				—				—				—
Other assets			9,894,795				—				—				9,894,795

			6,585,967,596				2,758,626,309				192,829,852				9,537,423,757

Liabilities recognized in the consolidated financial statements of the Group
Derivatives financial liabilities			—				—				—				—
Other liabilities			347,666				—				99,046				446,712

			347,666				—				99,046				446,712

Maximum exposure to loss
Holding assets			6,585,967,596				2,758,626,309				192,829,852				9,537,423,757
Payment guarantee and loan commitments			825,879,042				498,872,419				—				1,324,751,461

			7,411,846,638				3,257,498,728				192,829,852				10,862,175,218

The way that the maximum exposure to loss is determined			Amount of<br>credit offerings<br>and purchase<br>agreement				Amount of<br>investment<br>commitment				Amount of<br>investment<br>commitment
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Asset-backed<br><br>securitization				Investment fund				Others				Total
Total assets of unconsolidated structured entities			27,494,499,486				36,922,739,184				1,747,360,472				66,164,599,142
Assets recognized in the consolidated financial statements of the Group
Loans			1,215,820,606				101,876,459				391,718,184				1,709,415,249
Securities			4,527,878,198				1,855,322,317				4,390,000				6,387,590,515
Investments in associates			—				299,527,388				—				299,527,388
Derivative financial assets			7,741,844				4,110,593				—				11,852,437
Other assets			4,153,655				188,710				—				4,342,365

			5,755,594,303				2,261,025,467				396,108,184				8,412,727,954

Liabilities recognized in the consolidated financial statements of the Group
Derivatives financial liabilities			—				—				—				—
Other liabilities			514,822				—				—				514,822

			514,822				—				—				514,822

Maximum exposure to loss
Holding assets			5,755,594,303				2,261,025,467				396,108,184				8,412,727,954
Payment guarantee and loan commitments			611,068,184				528,516,403				—				1,139,584,587

			6,366,662,487				2,789,541,870				396,108,184				9,552,312,541

The way that the maximum exposure to loss is determined			Amount of<br>credit offerings<br>and purchase<br>agreement				Amount of<br>investment<br>commitment				Amount of<br>investment<br>commitment

151

EX-99.2

Exhibit 99.2

KB SECURITIES CO., LTD.

Separate Financial Statements

December 31, 2025 and 2024

(With Independent Auditor’s Report Thereon)

KB SECURITIES CO., LTD.

Index

December 31, 2025 and 2024

		Page(s)
Independent Auditor’s Report			1~3
Separate Financial Statements
Separate Statements of Financial Position			4
Separate Statements of Profit or Loss			5
Separate Statements of Comprehensive Income			6
Separate Statements of Changes in Equity			7
Separate Statements of Cash Flows			8
Notes to the Separate Financial Statements			9-140
Report on Independent Auditor’s Review of Internal Control over Financial<br>Reporting			141-142
Report on the Effectiveness of Internal Control over Financial Reporting			143-148

Independent Auditor’s Report

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of KB Securities Co.,Ltd.

Opinion

We have audited the separate financial statements of KB Securities Co.,Ltd. (the Company), which comprise the separate statements of financial position as at December 31, 2025 and 2024, and the separate statement of profit or loss, separate statement of comprehensive income, separate statement of changes in equity and separate statement of cash flows for the year 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 KB Securities Co.,Ltd. as at December 31, 2025 and 2024, 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).

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 Separate 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 separate 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.

Other Matter

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

Responsibilities of Management and Those Charged with Governance for the Separate 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 separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate 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 Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate 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 separate 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 separate financial statements, whether due to fraud<br>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, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
:---	:---
•	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 separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up<br>to the date 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 separate financial statements, including the<br>disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
:---	:---

/s/ Samil PricewaterhouseCoopers
Seoul, Korea
March 05, 2026

This report is effective as of March 05, 2026, 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 separate 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 SECURITIES Co., Ltd.

Separate Statements of Financial Position

December 31, 2025 and 2024

(in Korean won)
Assets
Cash and deposits	5,36,37,38	3,767,944,128,595	2,952,551,951,253
Financial assets at fair value through profit or loss	6,36,37,38	42,376,304,042,704	36,753,823,519,333
Derivative financial assets	7,36,37,38,39	1,611,961,052,874	1,395,942,910,151
Financial assets at fair value through other comprehensive income	8,36,37,38	9,459,679,647,147	6,481,713,944,068
Investments in subsidiaries	9	638,647,274,515	768,913,285,170
Investments in associates	9	346,345,075,073	244,815,981,444
Financial assets measured at amortised cost	10,36,37,38,39	8,635,267,843,336	8,100,472,956,531
Property and equipment	11,40	228,692,054,701	243,820,525,074
Investment properties	12	14,001,887,948	20,239,722,505
Intangible assets	13	221,477,760,424	241,869,772,994
Deferred tax assets	35	—	81,938,532,931
Other financial assets	14,36,37,38,39	6,222,041,704,574	2,857,380,118,961
Other assets	15	364,180,592,573	173,584,230,752

Total assets		73,886,543,064,464	60,317,067,451,167

Liabilities
Deposit liabilities	16,36,37,38	12,124,648,436,191	7,744,650,276,148
Financial liabilities at fair value through profit or loss	6,36,37,38,39	10,907,226,138,761	10,568,567,281,885
Derivative financial liabilities	7,36,37,38,39	2,087,034,755,184	1,922,667,377,892
Borrowings	17,36,37,38,39	35,563,421,133,548	30,520,337,600,595
Net defined benefit liabilities	18	76,936,041,402	67,888,481,699
Deferred tax liabilities35	35	90,560,876,795	—
Provisions	19	110,132,844,118	137,397,544,569
Other financial liabilities	20,36,37,38,39,40	5,768,687,545,754	2,294,298,047,391
Other liabilities	21	465,140,939,100	381,561,433,870

Total liabilities		67,193,788,710,853	53,637,368,044,049

Equity
Share capital	22	1,493,102,120,000	1,493,102,120,000
Hybrid securities	23	756,092,772,000	756,092,772,000
Other paid-in capital	24	1,479,110,085,557	1,479,110,085,557
Retained earnings	25	2,657,923,577,324	2,658,003,781,948
Other components of equity	26	306,525,798,730	293,390,647,613

Total equity		6,692,754,353,611	6,679,699,407,118

Total liabilities and equity		73,886,543,064,464	60,317,067,451,167

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

KB SECURITIES Co., Ltd.

Separate Statements of Profit or Loss

Years Ended December 31, 2025 and 2024

(in Korean won)
Operating income
Fee and commission income	27	1,202,239,750,516	995,537,172,854
Gain on valuation and disposal of financial instruments	28	9,655,956,046,858	6,720,923,329,573
Interest income	29	1,579,483,450,418	1,610,651,941,834
Interest income from financial instruments at FVTPL		810,161,763,253	839,778,185,014
Interest income in applying of effective interest rate		769,321,687,165	770,873,756,820
Gain on valuation and disposal of financial assets measured at amortised costs	30	2,542,233,294	13,770,336,723
Gain on foreign currency transactions	31	1,192,985,739,030	1,024,613,462,449
Other operating income	32	262,612,618,653	245,893,137,460

		13,895,819,838,769	10,611,389,380,893

Operating expenses
Fee and commission expense	27	268,307,962,290	212,931,569,896
Loss on valuation and disposal of financial instruments	28	9,407,604,430,419	6,578,355,851,254
Interest expense	29	1,021,196,098,769	1,065,865,474,972
Loss on valuation and disposal of financial assets measured at amortised cost	30	48,920,013,281	44,480,620,826
Loss on foreign currency transactions	31	1,102,628,613,261	881,734,131,235
Selling and administrative expenses	33	1,013,235,227,816	925,849,578,530
Other operating expenses	32	166,574,520,807	148,242,136,982

		13,028,466,866,643	9,857,459,363,695

Operating profit		867,352,972,126	753,930,017,198
Non-operating income	34	98,231,136,327	83,088,361,334
Non-operating expenses	34	145,435,961,591	95,504,150,942

Profit before income tax		820,148,146,862	741,514,227,590
Income tax expense	35	206,765,219,318	159,145,243,061

Profit for the year		613,382,927,544	582,368,984,529

The above separate statements of profit or loss should be read in conjunction with the accompanying notes.

KB SECURITIES Co., Ltd.

Separate Statements of Comprehensive Income

Years Ended December 31, 2025 and 2024

(in Korean won)
Profit for the year		613,382,927,544		582,368,984,529

Other comprehensive income(loss)
Items that will not be reclassified to profit or loss
Net gains on valuation of equity instruments at fair value through other comprehensive<br>income	8,26	66,955,384,270		(1,234,364,827	)
Fair value changes on financial liabilities designated at fair value due to own credit<br>risk	6,26	(3,225,599,161	)	(5,514,924,589	)
Remeasurements of the net defined benefit liabilities	18,26	(6,223,233,556	)	(4,745,765,249	)
Revaluation of property and equipment	26	(867,736,179	)	—
Items that may be subsequently reclassified to profit or loss
Net gains(losses) on valuation of debt instrument at fair value through other comprehensive<br>income	8,26	(38,367,096,425	)	8,677,907,545

Other comprehensive income for the year, net of tax		18,271,718,949		(2,817,147,120	)

Total comprehensive income for the year		631,654,646,493		579,551,837,409

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

KB SECURITIES Co., Ltd.

Separate Statements of Changes in Equity

Years Ended December 31, 2025 and 2024

					Other paid in capital
	Share<br><br>Capital		Hybrid<br><br>Securities		Share<br><br>Premium		Other<br><br>Equity		Retained<br><br>Earnings			Other<br><br>Components<br><br>of<br>Equity			Total Equity
Balance at January 1, 2024		1,493,102,120,000		626,093,392,000		1,142,353,750,001		336,756,335,556		2,261,273,077,370			297,633,593,206			6,157,212,268,133
Issuance of hybrid securities		—		129,999,380,000		—		—		—			—			129,999,380,000
Dividends of hybrid securities		—		—		—		—		(37,064,078,424	)		—			(37,064,078,424	)
Dividends		—		—		—		—		(150,000,000,000	)		—			(150,000,000,000	)
Replacement due to disposal of equity investments at FVOCI		—		—		—		—		1,425,798,473			(1,425,798,473	)		—
Total comprehensive income
Profit for the year		—		—		—		—		582,368,984,529			—			582,368,984,529
Other comprehensive income		—		—		—		—		—			(2,817,147,120	)		(2,817,147,120	)
Balance at December 31, 2024		1,493,102,120,000		756,092,772,000		1,142,353,750,001		336,756,335,556		2,658,003,781,948			293,390,647,613			6,679,699,407,118

Balance at January 1, 2025		1,493,102,120,000		756,092,772,000		1,142,353,750,001		336,756,335,556		2,658,003,781,948			293,390,647,613			6,679,699,407,118

Dividends of hybrid securities		—		—		—		—		(38,599,700,000	)		—			(38,599,700,000	)
Dividends		—		—		—		—		(580,000,000,000	)		—			(580,000,000,000	)
Replacement due to disposal of equity investments at FVOCI		—		—		—		—		1,051,211,175			(1,051,211,175	)		—
Replacement of Revaluation Surplus due to disposal of property and equipment		—		—		—		—		4,085,356,657			(4,085,356,657	)		—
Total comprehensive income
Profit for the year		—		—		—		—		613,382,927,544			—			613,382,927,544
Other comprehensive income		—		—		—		—		—			18,271,718,949			18,271,718,949

Balance at December 31, 2025		1,493,102,120,000		756,092,772,000		1,142,353,750,001		336,756,335,556		2,657,923,577,324			306,525,798,730			6,692,754,353,611

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

KB SECURITIES Co., Ltd.

Separate Statements of Cash Flows

Years Ended December 31, 2025 and 2024

(in Korean won)
Cash flows from operating activities
Cash generated from operating activities
Profit for the year		613,382,927,544		582,368,984,529
Adjustment for non-cash items	43	(785,205,806,661	)	(212,175,136,823	)
Changes in operating assets and liabilities	43	(848,324,501,139	)	(1,855,957,202,259	)

		(1,020,147,380,256	)	(1,485,763,354,553	)
Interest received		1,539,820,421,343		1,550,443,037,620
Interest paid		(1,019,826,846,046	)	(1,042,793,269,591	)
Dividends received		120,997,793,989		113,413,709,540
Income taxes paid		(249,075,505,611	)	(266,284,033,929	)

Net cash used in operating activities		(628,231,516,581	)	(1,130,983,910,913	)

Cash flows from investing activities
Decrease in long-term deposit		(73,480,000,000	)	—
Acquisition of financial assets at fair value through other comprehensive income		(11,735,348,404,508	)	(5,810,505,707,282	)
Disposal of financial assets at fair value through other comprehensive income		8,826,591,230,785		4,537,441,905,557
Acquisition of investments of subsidiaries and associates	9	(167,692,097,387	)	(124,199,902,708	)
Disposal of investment of subsidiaries and associates	9	103,692,715,240		101,621,289,695
Acquisition of property and equipment	11	(23,652,678,618	)	(27,177,227,776	)
Disposal of property and equipment	11	29,667,329,292		—
Acquisition of intangible assets	13	(57,377,618,151	)	(63,829,037,442	)
Disposal of intangible assets	13	1,528,165,692		11,562,328,808
Disposal of investment properties	12	1,459,865,433		—
Others		(33,327,025	)	(91,281,928	)

Net cash provided by (used in) investing activities		(3,094,644,819,247	)	(1,375,177,633,076	)

Cash flows from financing activities
Increase in borrowings	43	3,103,317,183,882		1,848,040,493,951
Issuance of debentures	43	2,000,000,000,000		1,700,000,000,000
Repayment of debentures	43	(830,000,000,000	)	(810,000,000,000	)
Decrease in guarantee deposit liabilities	43	140,691,763		50,069,007
Dividends paid	25	(580,000,000,000	)	(150,000,000,000	)
Redemption of principal elements of lease payments	43	(35,884,675,718	)	(34,529,148,847	)
Issuance of hybrid securities	23	—		129,999,380,000
Dividends of hybrid securities	25	(38,599,700,000	)	(42,652,275,000	)

Net cash provided by financing activities		3,618,973,499,927		2,640,908,519,111

Effect of exchange rate changes on cash and cash equivalents		2,889,548,978		15,979,335,695

Net increase in cash and cash equivalents		(101,013,286,923	)	150,726,310,817
Cash and cash equivalents at the beginning of the year	5	592,896,175,519		442,169,864,702

Cash and cash equivalents at the end of the year	5	491,882,888,596		592,896,175,519

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

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

1. The Company

KB Securities Co., Ltd. (the “Company” or “KB Securities”, formerly, Hyundai Securities Co., Ltd.) was established on June 1, 1962, under the name of Kookil Securities Co., Ltd. On June 5, 1986, the Company changed its name to “Hyundai Securities Co., Ltd.”. After several capital increases, the share capital of the Company amounts to ~~W~~ 1,493,102 million as at December 31, 2025.

The Company became a wholly owned subsidiary of KB Financial Group Inc. on October 19, 2016, through a comprehensive exchange of shares. At the end of the reporting period, KB Financial Group Inc. owns 100% of ordinary shares of the Company.

Meanwhile, the Company merged with KB Investment & Securities Co., Ltd. (the “KB Investment & Securities”) on December 30, 2016 as a surviving company and changed its name to KB Securities Co., Ltd. As at December 31, 2025, the Company has 74 branch offices in Korea and two overseas branch offices.

2. Material Accounting Policies

The material 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.

2.1 Basis of Preparation

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying separate financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Company’s financial position, financial performance or cash flows, is not presented in the accompanying separate financial statements.

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

The separate financial statements have been prepared on the historical cost basis except for the following items:

•	Certain financial assets and liabilities (including derivatives instruments), certain classes of property,<br>plant and equipment and investment properties measured at fair value
•	Assets held for sale measured at fair value less costs to sell, and
:---	:---
•	Defined benefit obligation and plan assets measured at fair value
:---	:---

The preparation of the separate financial statements requires the use of certain significant accounting estimates. Management also needs to exercise judgement in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the separate financial statements are disclosed in Note 3.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.2 Changes in Accounting Policy and Disclosures

2.2.1 New and amended standards adopted by the Company

The Company has applied the following amended standards for the first time for its annual reporting period commencing January 1, 2025.

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

•	Amendment of Korean IFRS No.1117 “Insurance contracts”

2.2.2 The following amended standards have been published that are not mandatory for December 31, 2025 reporting periods and have not been early adopted by the Company.

•	Amendments to Korean IFRS No.1109 Financial Instruments and Korean IFRS No.1107 Financial Instruments –<br>Disclosure

The amendments of Korean IFRS 1109, Financial Instruments, and Korean IFRS 1107, Financial Instruments: Disclosure have been made for the purpose of addressing questions raised in practice and reflecting new requirements. The amendments should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The main amendments are as follows: The Company is in the process of reviewing the impact of these amendments on the financial statements.

•	Allowing financial liabilities to be considered settled (derecognized) through electronic<br>payment systems before the settlement date, if certain criteria are met.
•	Clarifying and adding additional guidance for assessing whether a financial asset meets the criteria for<br>payments of principal and interest only.
:---	:---
•	Disclosing the impact on the company and the extent to which the company is exposed, of contractual terms that<br>change the timing or amount of cash flows under the contract, for each type of financial instrument.
:---	:---
•	Additional disclosures for FVOCI-designated equity instruments
:---	:---
•	Annual Improvement of Korean IFRS Volume 11
:---	:---

Annual Improvements to Korean IFRS Volume 11 should be applied for annual reporting periods beginning on or after January 1, 2026, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the consolidated financial statements.

•	Korean IFRS No. 1101, First-Time Adoption of Korean IFRS : Application of Hedge Accounting upon<br>First-Time Adoption of K-IFRS
•	Korean IFRS No. 1107, Financial Instruments: Disclosure: Derecognition of Profit and Loss, Guidance on<br>Practice
:---	:---
•	Korean IFRS No. 1109, Financial Instruments: Derecognition of Lease Liabilities and Definition of<br>Transaction Price
:---	:---
•	Korean IFRS No. 1110, Consolidated Financial Statements: Determination of De facto Agent
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

•	Korean IFRS No. 1007, Cash Flow Statement: Cost Method
•	Amendments to Korean Accounting Standards No. 1109, “Financial Instruments,” and Korean<br>Accounting Standards No. 1107, “Financial Instruments: Disclosures”- Contracts Related to Power Reliant on Nature
:---	:---

•	Enactment of Corporate Accounting Standards No. 1118, “Presentation and Disclosure of<br>Financial Statements”

The Company has not yet adopted Korean IFRS 1118 and is currently assessing the impact of its adoption. The Company is developing a transition plan and is preparing, as scheduled, its first interim financial statements under No. 1118 for the period ended March 31, 2027, and its annual financial statements for the year ended December 31, 2027.

2.3 Foreign Currency Translation

(a) Functional and presentation currency

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

(b) Transactions and balances

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.4 Investments in Associates and Subsidiaries

The Company has prepared the separate financial statements in accordance with Korean IFRS No.1027, Separate Financial Statements. Investments in associates and subsidiaries are recognized at cost. The Company recognizes dividend income from subsidiaries or associates in profit or loss when its right to receive dividend is established.

2.5 Recognition and Measurement of Financial Instruments

2.5.1 Classification

The Company classifies financial assets as follows.

•	Those to be measured at fair value (through profit or loss or other comprehensive income)
•	Those to be measured at amortised cost
:---	:---

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows.

For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Company reclassifies debt investments when, and only when its business model for managing those assets changes.

For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of non-designated equity investment are recognized in profit or loss.

2.5.2 Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

2.5.2.1 Debt instruments

Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments into one of the following three measurement categories:

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(a) Amortised cost

(b) Fair value through other comprehensive income

2.5.2.2 Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividend income from such investments continues to be recognized in profit or loss when the right to receive payments is established.

2.5.3 Impairment

The Company assesses on a forward-looking basis expected credit losses associated with its debt instruments carried at amortised cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

Expected credit losses are a probability-weighted estimate of credit losses (i.e. the present value of all cash shortfalls) over the expected life of the financial instrument. The Company measures expected credit losses by reflecting reasonable and supportable information that is reasonably available at the reporting date without undue cost or effort, including information about past events, current conditions and forecasts of future economic conditions.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The Company uses the following three measurement techniques in accordance with Korean IFRS:

•	General approach: for financial assets and<br>off-balance-sheet unused credit line that below two approaches are not applied
•	Simplified approach: for receivables, contract assets and lease receivables
:---	:---
•	Credit-impaired approach: for purchased or originated credit-impaired financial assets
:---	:---

The Company determines whether the credit risk has increased significantly since initial recognition using the following information. One or more of the following circumstances is deemed significant increase in credit risk.

•	More than 30 days past due;
•	Decline in credit rating at period end by more than certain notches as compared to that at initial<br>recognition;
:---	:---
•	Decline in ratings below certain level in the early warning system;
:---	:---

Under simplified approach, the Company shall always measure the loss allowance at an amount equal to lifetime expected credit losses. Under credit-impaired approach, the Company shall only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

The Company generally deems credit-impaired in case of one or more of the following circumstances:

•	90 days or more past due;
•	Legal proceedings related to collection;
:---	:---
•	Refinancing;
:---	:---
•	Corporate borrowers that are rated C or D;
:---	:---
•	Debt restructuring.
:---	:---

2.5.3.1 Forward-looking information

The Company uses forward-looking information, when it determines whether the credit risk has increased significantly since initial recognition and measures expected credit losses.

The Company assumes the risk component has a certain correlation with the business cycle, and calculates the expected credit loss by reflecting the forward-looking information with macroeconomic variables on the measurement inputs.

2.5.3.2 Measuring expected credit losses on financial assets at amortised cost

The amount of the expected credit losses on financial assets at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The Company estimates expected future cash flows for financial assets that are individually significant (individual assessment of impairment).

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

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

•	Individual assessment of impairment

Individual assessment of impairment losses are calculated using management’s best estimate on present value of expected future cash flows. The Company uses all the available information including operating cash flow of the borrower and net realizable value of any collateral held.

•	Collective assessment of impairment

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

2.5.4 Recognition and Derecognition

Regular way purchases and sales of financial assets are recognized or derecognized on trade-date, the date on which the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.

If a transfer does not result in derecognition because the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Company classified the financial liability as “borrowings” in the statement of financial position.

The Company writes off the carrying amount and allowance of financial assets in its entirety or to a portion thereof when the principal and interest are determined to be no longer recoverable. In general, the Company considers write-off when it is determined that the debtor does not have sufficient resources or income to cover the principal and interest, and this write-off decision is made in accordance with internal regulations.

2.5.5 Offsetting of financial instruments

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.6 Financial Liabilities

2.6.1 Classification and Measurement

The Company classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for derecognition, as financial liabilities carried at amortised cost and present as ‘deposits liabilities’, ‘borrowings’, and ‘other financial liabilities’ in the statement of financial position.

2.6.2 Derecognition

The Company’s financial liabilities at fair value through profit or loss are financial instruments held for trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing in the near term. A derivative that is not a designated as hedging instruments and an embedded derivative that is separated are also classified as held for trading. Financial liabilities designated the financial liabilities at fair value through profit or loss is the structured financial liabilities containing embedded derivatives issued by the Company.

2.7 Derivative Financial Instruments

The Company enters into numerous derivative financial instrument contracts such as stock options, stock swaps, interest rate swaps and others for trading purposes or sale and issue of derivative combined securities. These derivative financial instruments are presented as derivative financial instruments within the financial statements irrespective of transaction purpose and subsequent measurement requirement.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.7.1 Day 1 Profit and Loss

Accordance with Korean IFRS, if there is no available price from active market and if the Company uses a valuation technique that uses unobservable valuation parameters from market for the fair value at initial recognition of financial instruments, 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 amortised by using the straight line method over the life of the financial instruments.

2.7.2 Credit risk adjustments

2.7.3 Hedge accounting

The accounting treatment of changes of fair value for the derivatives varies as the character of hedging items and the purpose of hedging. The Company holds derivative contracts for the purpose of hedging the risk and the Company designates certain derivatives as hedging instruments to hedge the risk as follows.

(a)	Fair value hedge : a hedge of the exposure to changes in fair value of a recognized asset or liability or an<br>unrecognized firm commitment
(b)	Cash flow hedge : a hedge of the exposure to variability in cash flows that is attributable to a particular<br>risk associated with all, or a component of, the recognized asset or liability or a highly probable forecast transaction
:---	:---
(c)	Hedge of net investments in foreign operations
:---	:---

On initial designation of the hedge, the Company formally documents the relationship between the hedging instrument(s) and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship.

The fair value of derivatives for hedge is disclosed in note 37.

The accounting treatments of hedge of net investments in foreign operations are similar to those of cash flow hedge.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.8 Property and Equipment

Property and equipment	Estimated useful lives	Depreciation method
Buildings	40 years	Straight-line method
Vehicles	4 years	Straight-line method
Furniture and equipment	4 years	Straight-line method
Other	4 years	Straight-line method
Right-of-use assets	1~10 years<br><br>(initial date of the contract<br>entered into ~ maturity date)	Straight-line method

2.9 Investment Property

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.10 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		Estimated useful lives		Amortization method
Development costs		4 years		Straight-line method
Software		4 years		Straight-line method

2.11 Impairment of Non-financial Assets

2.12 Lease

Lease income from operating leases where the Company is a lessor is recognized 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.

The Company should assess whether a contract is, or contains a lease at the date the contract entered into and the initial application date under Korean IFRS No.1116. But the Company may elect not to reassess whether a contract is, or contains a lease for the contract entered into before the transition date by applying practical expedient permitted by Korean IFRS No.1116. The Company has gone through all the contract to assess whether the contract is, or contains, a lease at the date the contract entered into after the date of initial application.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

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 payment that are based 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, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms and conditions.

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

•	The amount of the initial measurement of 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
:---	:---

The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term.

Related to sale and leaseback, the Company (seller-lessee) is required to apply the 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. However, the Company shall not reassess sale and leaseback transactions entered into before the date of initial application.

Large number of lease contracts held by the Company have extension option and termination option. These conditions are generally used for maximizing the flexibility of lease operation in a view of managing the contracts. Extension option or termination option included in the lease contracts are generally owned by the Company, not lessor. The Company re-evaluated the lease term of the lease contracts by taking into account the contract type, operation plan for branch offices, and costs related to lease termination. As a result, no significant change in the existing lease term has occurred.

2.13 Provisions

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

2.14 Financial Guarantee Contracts

Financial guarantees contracts provided by the Company are initially measured at fair value on the date the guarantee was given. Subsequent to initial recognition, the Company’s liabilities under such guarantees are measured at the higher of the amounts below and recognized as ‘other financial liabilities’:

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

2.15 Revenue Recognition

The Company recognizes revenues in accordance with the following five-step revenue recognition standard (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.
:---	:---

2.16 Employee Benefits

2.16.1 Retirement benefit liabilities: Defined benefit plans and Defined contribution plans

The Company has both defined benefit and defined contribution plans. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The contributions are recognized as employee benefit expenses when an employee has rendered service. A defined benefit plan is a pension plan that is not a defined contribution plan.

If any plan amendments, curtailments, or settlements occur, past service costs or any gains or losses on settlement are recognized as profit or loss for the year.

2.16.2 Short-term employee benefits

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

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

2.16.3 Share-based payment

The Company is under share-based payment arrangements that grant shares to the executives of the Company. When the arrangements are exercised, the Company provides share or cash equal to the monetary value of the share.

The Company measures the services acquired and the liability incurred at fair value, and the fair value is recognized as expense and accrued expenses over the vesting period. 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.

2.17 Income Tax Expenses

2.17.1 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 to settle on a net basis.

2.17.2 Deferred income tax

Deferred income tax is recognized on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company 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 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 SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

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.

Current income tax and deferred income tax are included in the calculation of income tax expense. Income taxes related to prior period are included in current income tax.

Deferred income taxes, recognized directly in equity or arisen from business combination, are directly deducted from equity or goodwill.

2.17.3 Tax Uncertainties

Due to the complexity of transactions and differences in tax law interpretation, tax policies adopted by the Company may present tax uncertainties. These tax uncertainties arise in tax correction claims, refund lawsuits for tax surcharges by the tax authorities, tax audits and so on. The Company accounts for such tax uncertainties in accordance with Korean IFRS No. 1012 and Korean IFRS No. 2123.

In other words, if the Company has paid an amount due to an additional tax assessment by the tax authorities but the likelihood of a future refund is high, it recognizes the amount as a corporate tax asset. Conversely, amounts expected to be paid as a result of a tax audit or similar investigation are recognized as a corporate tax liability. However, penalties and interest on refunds are regarded, based on their economic substance, as interest or fines, and are accounted for in accordance with Korean IFRS 1037.

2.18 Operating Segment Reporting

Operating segments are components of the Company, about which separate internal reporting information is evaluated regularly by the chief operating decision makers including Board of Directors in deciding how to allocate resources and to assess performance. Each segment is a strategic business unit that offers different products and services, and is managed separately because each business has different risks and opportunities, different technology required and marketing strategies.

Segment information includes the items which are directly attributable and reasonably allocated to the segment.

2.19 Other Receivables and Payables Related to Brokerage Transactions

Regarding customer brokerage transactions, the Company recognizes the receivable from and payable to the Korea Exchange (Clearing and settlement organization) and customers in total amounts, which the Company recognizes as other financial assets and other financial liabilities. The Company offsets the receivable and payable that arise between Korea Exchange and the Company within the same day.

2.20 Business Combinations

The acquisition method of accounting is used to account for business combinations by the Company. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The Company 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 values on the financial statements of the ultimate parent entity. In addition, the difference between the sum of book values of the assets and liabilities transferred and accumulated other comprehensive income; and the consideration paid is recognized as capital surplus.

2.21 Approval of Issuance of the Financial Statements

The issuance of the December 31, 2025 separate financial statements of the Company was approved by the Board of Directors on February 4, 2026, which is subject to change with approval at the annual shareholder’s meeting.

3. Critical Accounting Estimates and Assumptions

The preparation of financial statements requires the Company to make estimates and assumptions concerning the future. Management also needs to exercise judgement in applying the Company’s accounting policies. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As the resulting accounting estimates will, by definition, seldom equal the related actual results, it can contain a significant risk of causing a material adjustment.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

3.1 Income taxes

The Company recorded, based on its best estimate, current taxes and deferred taxes that the Company will be liable in the future for the operating results at the end of the reporting period. However, the final tax outcome in the future may be different from the amounts that were initially recorded. Such differences will impact the current and deferred income tax assets and liabilities in the period in which the final tax outcome is determined.

If certain portion of the taxable income is not used for investments or increase in wages in accordance with the Special Taxation for Facilitation of Investment and Mutually-Beneficial Cooperation, the Company is liable to pay additional income tax calculated based on the tax law. Accordingly, the measurement of current and deferred income tax is affected by the tax effects from such tax law. As the Company’s income tax is dependent on the investments and increase in wages, there exists uncertainty with regard to measuring the final tax effects.

3.2 Fair value of financial instruments

3.3 Impairment of financial assets

In accordance with Korean IFRS No.1109, the provision for impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation based on the Company’s past history, existing market conditions as well as forward-looking estimates at the end of each reporting period (Note 2.5).

3.4 Measurement of defined benefit obligation

The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the defined benefit liability. The Company determines the appropriate discount rate at the end of the reporting period. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the defined benefit liability. In determining the appropriate discount rate, the Company considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the pension benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. Other key assumptions for defined benefit liability are based in part on current market conditions.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

4. Segment Information

4.1 Types of services from which each reportable segment derives its revenues

Management of the Company decides operating segment based on the information, which is to be reported to the chief executive officer, in order to allocate resources to the segment and evaluate performance of the segment. The Company’s operating segments consist of brokerage and wealth management, investment banking, trading and other business part.

In accordance with Korean IFRS No.1108, reporting segments of the Company by type of services categories are as follows:

Reporting segment		Main business activities
Brokerage and wealth management		Sales and services relating to wealth management and brokerage provided to individuals, corporations and institutional investors
Investment banking		Underwriting and advisory services related to bond issuance, structured finance, initial public offering, and mergers and acquisition
Trading		Trading of securities and derivatives, and proprietary trading
Others		Other services and support services

4.2 Revenue and income of segment reporting

Financial information by operating segment for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
		2025
		Operating<br><br>income			Operating<br><br>expense			Operating<br><br>profit			Non-operating<br><br>income(expense)			Profit(loss) before<br>income tax<br>expense(income)
Brokerage and wealth management			7,811,177,508			7,265,679,464			545,498,044			(17,324,181	)		528,173,863
Investment banking			1,081,465,860			958,205,423			123,260,437			(64,939,472	)		58,320,965
Trading			4,366,089,181			4,323,561,931			42,527,250			(1,604,868	)		40,922,382
Others			637,087,290			481,020,049			156,067,241			36,663,695			192,730,936

			13,895,819,839			13,028,466,867			867,352,972			(47,204,826	)		820,148,147

(in thousands of Korean won)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
		2024
		Operating<br><br>income			Operating<br><br>expense			Operating<br><br>profit			Non-operating<br><br>income(expense)			Profit(loss) before<br>income tax<br>expense(income)
Brokerage and wealth management			5,125,756,055			4,794,443,838			331,312,217			(60,504,564	)		270,807,653
Investment banking			1,072,383,201			884,050,444			188,332,757			6,322			188,339,079
Trading			3,929,880,919			3,893,811,293			36,069,626			3,244,181			39,313,807
Others			483,369,206			285,153,789			198,215,417			44,838,272			243,053,689

			10,611,389,381			9,857,459,364			753,930,017			(12,415,789	)		741,514,228

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

4.3 Assets and liabilities of segments

Total assets and liabilities by each segment as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025
		Total assets			Total liabilities
Brokerage and wealth management			12,611,300,028			13,572,887,278
Investment banking			4,550,396,512			141,713,487
Trading			28,093,545,290			11,483,443,934
Others			28,631,301,234			41,995,744,012

			73,886,543,064			67,193,788,711

(in thousands of Korean won)		2024
---	---	:---:	---	---	---	---
		Total assets			Total liabilities
Brokerage and wealth management			7,565,851,146			8,306,698,054
Investment banking			4,077,781,107			207,642,939
Trading			26,389,808,564			11,811,736,915
Others			22,283,626,634			33,311,290,136

			60,317,067,451			53,637,368,044

4.4 Information on principal customers

No single customer contributed 10% or more to the Company’s revenue for the years ended December 31, 2025 and 2024.

5. Cash and Deposits

The details of cash and deposits as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Cash and cash equivalents
Cash on hand	168		123
Demand deposits	115,565,427		342,209,931
Checking deposit	16,244,316		12,908,712
Foreign currency deposits	113,122,205		143,469,919
MMDA	246,950,772		87,210,942
Accommodation notes	—		7,096,548

	491,882,888		592,896,175

Deposits
Deposits for securities subscription	21,538,625		1,083,733
Reserve for claims of customers’ deposits	1,506,899,724		802,442,695
Guarantee deposits for securities lending and borrowing	389,805,312		46,752,792
Deposits for exchange-traded derivatives	461,947,188		572,602,786
Guarantee deposits for KSFC trading	1,294,281		—
Long-term deposits	146,745,000		75,000,000
Restricted due from financial institutes	39,000		39,000
Others	748,851,880		862,472,983
Allowances for credit losses of deposits	(1,059,769	)	(738,213	)
	3,276,061,241		2,359,655,776

	3,767,944,129		2,952,551,951

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Restricted deposits as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Deposits for securities subscription<br>^1^		21,538,625	1,083,733
Reserve for claims of customers’ deposits^2^		1,506,899,724	802,442,695
Guarantee deposits for securities lending and borrowing ^3^		389,805,312	46,752,792
Deposits for exchange-traded derivatives<br>^4^		461,947,188	572,602,786
Guarantee deposits for KSFC trading<br>^5^		1,294,281	—
Long-term deposits ^6^		69,000,000	69,000,000
Restricted due from financial institutes<br>^7^		39,000	39,000
Others ^8^		748,851,880	862,472,983

		3,199,376,010	2,354,393,989

^1^	Subscription deposits are subscription margin of investors and the Company that are separately deposited at<br>Korea Securities Finance Corporation(KSFC) or other relevant financial institutions until due date for payment for the subscription of the newly issued or sold securities in accordance with the provisions of Article<br>4-44 of the Regulation on Financial Investment Business.
:---	:---
^2^	The reserve for claims of customers’ deposits is deposited separately in a form of trust in KSFC to meet<br>the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.
:---	:---
^3^	Deposited in Korea Securities Depository to guarantee for securities lending and borrowing.
:---	:---
^4^	The deposits for exchange-traded derivatives that the investors and the Company pay for foreign futures option<br>trading to KEB Hana Bank and Forex Dealer Member.
:---	:---
^5^	In the case of an investor’s loan transaction, a certain portion of the price of securities sold is<br>deposited at KSFC as margin.
:---	:---
^6^	Pledged deposits provided for securities lending and borrowing, repurchase agreements between institutions and<br>retail payment through investment & securities companies are included.
:---	:---
^7^	Guarantee deposits for checking accounts
:---	:---
^8^	Deposits in foreign currency and others consist of the margin accounts for trading financial instruments in<br>foreign markets and
:---	:---

deposits to court.

Changes in allowances for credit losses of deposits for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	12-month<br>expected<br>credit losses		Lifetime expected credit losses
			Non- impaired		Impaired
Beginning		738,213		—		—
Provision		321,556		—		—

Ending		1,059,769		—		—

(in thousands of Korean won)	2024
	12-month<br>expected<br>credit losses		Lifetime expected credit losses
			Non- impaired		Impaired
Beginning		290,185		—		—
Provision		448,028		—		—

Ending		738,213		—		—

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

6. Financial Instruments at FVTPL

The details of financial instruments at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	Financial Assets at FVTPL				Financial Liabilities at FVTPL
	2025		2024		2025		2024
Financial assets required to be mandatorily measured at FVTPL		42,376,304,043		36,753,823,519		2,910,712,724		2,558,520,223
Financial assets designated at FVTPL		—		—		7,996,513,415		8,010,047,059

		42,376,304,043		36,753,823,519		10,907,226,139		10,568,567,282

6.1 Financial assets required to be mandatorily measured at FVTPL

The details of financial assets required to be mandatorily measured at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Deposits
Reserve for claims of customers’ deposits (trust) ^1^		6,291,667,379	4,458,853,144
Equity instruments
Stocks		4,068,823,032	1,601,664,976
Debt instruments
Government and local government bonds		2,931,969,940	4,038,123,584
Special bonds		4,210,324,688	4,394,107,831
Corporate bonds		6,824,486,015	5,887,629,630
Corporate commercial papers		5,369,662,486	5,668,511,190
Asset-backed short-term bonds		1,124,792,053	1,731,958,269
Hybrid bond with security-like features		328,391,430	267,899,220
Investment in partnerships		717,130,999	621,369,479
Collective investment securities		6,567,589,823	4,869,469,164
Hybrid stock with bond-like features		114,874,396	169,454,179
Loans
Loans		860,312,817	937,460,555
Derivative linked securities
Equity-linked securities		80,970,708	10,897,742
Other derivative linked securities		1,021,084,300	783,440,520
Other OTC derivative combined contract		143,046,855	102,732,731
Securities in foreign currency
Stocks in foreign currency		42,276,781	49,737,589
Bonds in foreign currency		1,049,644,746	597,549,013
Investments in partnerships in foreign currency		49,909,886	52,692,465
Collective investment securities in foreign currency		186,922,175	125,807,545
Collective fund for default loss		96,241,957	82,900,562
Hybrid bonds		293,249,242	271,689,060
Exchange traded notes		134,273	—
Other short-term securities held for sale		2,798,062	29,875,071

		42,376,304,043	36,753,823,519

^1^	The reserve for claims of customers’ deposits is restricted to use because this reserve is deposited<br>separately in a form of trust in KSFC to meet the demands of investors, such as return of deposit and others, in accordance with Article 74 of the Financial Investment Services and Capital Markets Act.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Details of securities sold which are classified as financial liabilities at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Equity Securities
Stocks	1,640,199,761	798,188,133
Debt Securities
Government and local government bonds	1,243,927,993	1,758,937,852
Collective investment securities	26,584,970	1,394,238

	2,910,712,724	2,558,520,223

Assets Pledged as Collateral

The details of financial assets pledged as collateral as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		Description ^1^			Security right holder
Financial assets at FVTPL		Guarantee deposits for lending and borrowing securities and bonds	11,148,996,178	9,908,290,516	Korea Securities<br><br>Depository, KSFC,<br>etc.
		Margin required and guarantee deposits for derivatives trading	1,741,587,209	1,591,262,017	Korea Stock Exchange, etc.
		Guarantee deposits for reverse repurchase agreements	4,148,851,974	4,232,134,843	Customer, Institution
Financial assets at FVOCI		Guarantee deposits for lending and borrowing securities and bonds	4,041,764,331	2,510,367,880	Korea Securities<br><br>Depository, KSFC,<br>etc.
		Guarantee deposits for for derivatives trading	106,035,567	183,121,174	Korea Stock Exchange, etc.
		Guarantee deposits for reverse repurchase agreements	2,601,915,338	1,811,592,215	Customer, Institution

			23,789,150,597	20,236,768,645

^1^	As at December 31, 2025 and 2024, the accrued interests related to debt securities provided as collateral<br>of ~~W~~ 235,903 million and ~~W~~ 406,426 million, respectively, are excluded.
:---	:---

The Company provides ~~W~~ 10,485,363 million and ~~W~~ 8,027,229 million of its borrowing securities held as collateral to KSFC and others as at December 31, 2025 and 2024, respectively.

As at December 31, 2025 and 2024, the fair values of collaterals sold or repledged as collaterals regardless of default are as follows:

(in thousands of Korean won)	Securities
	2025		2024
Fair value of collateral held		2,034,440,723		2,255,447,484
Fair value of collaterals sold or re-provided as<br>collateral		—		—

		2,034,440,723		2,255,447,484

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

6.2 Financial liabilities designated at FVTPL

The details of financial liabilities designated at FVTPL as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	Financial liabilities designated at<br>FVTPL
	2025		2024
Derivative linked securities
Equity-linked securities		3,959,492,400		4,437,103,116
Other derivative linked securities		2,440,972,492		2,062,512,677
Other OTC derivative combined contract		1,088,148,738		1,209,941,532
Exchange traded notes		507,899,785		300,489,734

		7,996,513,415		8,010,047,059

The differences between the contractual value to be paid at maturity and the carrying amount of financial liabilities at FVTPL as at December 31, 2025 and 2024, are as follows :

(in thousands of Korean won)
Contractual value to be paid at maturity	7,909,016,857		7,947,235,520
Carrying amount	7,996,513,415		8,010,047,059

Differences	(87,496,558	)	(62,811,539	)

Accumulated changes in fair value of financial liabilities at FVTPL due to the change of credit risk as at December 31, 2025 and 2024, are as follows :

(in thousands of Korean won)		Other comprehensive income recognized<br>from changes of fair value due to the change<br>of credit<br>risk (before tax) ^1^
		2025		2024
Beginning of the year			23,501,476		16,008,372
Change of fair value			4,805,676		7,493,104

End of the year			28,307,152		23,501,476

^1^	The Company assessed OCI based on the probability of default corresponding to the Company’s credit rating<br>and loss given default. The amount is before tax.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

7. Derivatives and Hedge Accounting

Derivatives owned by the Company as at December 31, 2025 and 2024, are as follows:

		2025
		Assets						Liabilities
(in thousands of Korean won)		Hedging			Trading			Hedging			Trading			Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures			—			242,633			—			1,340,185			2,596,548,486
Equity:
Futures			—			395,800			—			6,880,804			3,552,399,956
Purchase options			—			164,620,094			—			—			471,966,622
Written options			—			—			—			119,129,766			885,215,546
Currency:
Futures			—			699,339			—			19,982			601,432,351
Goods:
Futures			—			1,055,889			—			1,949,104			81,630,722

			—			167,013,755			—			129,319,841			8,189,193,683

OTC derivatives
Interest rate:
Forwards			—			831,678,573			—			789,179,536			24,953,579,400
Swaps			—			170,399,971			—			288,078,925			81,372,320,305
Options			—			9,462,701			—			12,711,975			450,000,000
Currency:
Forwards			—			102,907,598			2,911,200			187,393,191			10,909,032,853
Swaps			—			911,841			—			830,633			183,715,562
Options			—			2,739,390			—			—			143,490,000
Equity:
Swaps			—			235,392,049			—			378,805,763			6,099,312,971
Purchase options			—			41,840,388			—			—			444,767,350
Written options			—			—			—			42,262,638			450,988,980
Credit:
Swaps			—			35,971,365			—			26,470,050			5,122,155,324
Goods:
Swaps			—			10,571,788						10,185,126			568,777,593
Options			—			3,071,634			—			3,109,343			101,737,280
Others:
Swaps			—			—			—			215,776,534			729,940,931

			—			1,444,947,298			2,911,200			1,954,803,714			131,529,818,549

			—			1,611,961,053			2,911,200			2,084,123,555			139,719,012,232

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
		Assets						Liabilities
(in thousands of Korean won)		Hedging			Trading			Hedging			Trading			Unsettled amount
Exchange-traded derivatives
Interest rate:
Futures			—			718,474			—			5,406,671			4,109,620,037
Equity:
Futures			—			3,260,046			—			7,962,965			2,140,518,324
Purchase options			—			9,946,986			—			—			264,716,897
Written options			—			—			—			165,495,252			1,305,007,298

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Currency:
Futures	—	1,132,412	—	234,401	404,531,400
Goods:
Futures	—	1,191,265	—	1,012,175	42,764,421

	—	16,249,183	—	180,111,464	8,267,158,377

OTC derivatives
Interest rate:
Forwards	—	697,806,221	—	674,883,353	17,627,246,000
Swaps	—	118,669,376	—	312,957,041	122,722,303,442
Options	—	10,235,246	—	12,676,965	450,100,000
Currency:
Forwards	—	182,379,316	4,309,200	229,088,752	8,101,373,429
Swaps	—	32,996,658	—	28,835,713	601,281,009
Options	—	4,415,787	—	6,151	147,000,000
Equity:
Swaps	—	276,216,278	—	156,075,309	4,946,600,638
Purchase options	—	4,396,415	—	—	471,018,000
Written options	—	—	—	5,872,788	483,738,001
Credit:
Swaps	—	37,123,089	—	27,397,061	4,411,630,000
Goods:
Swaps	—	12,389,786		11,780,566	1,297,182,950
Options	—	3,018,458	—	3,130,137	292,290,390
Others:
Swaps	—	47,097	—	275,542,878	796,712,171

	—	1,379,693,727	4,309,200	1,738,246,714	162,348,476,030

	—	1,395,942,910	4,309,200	1,918,358,178	170,615,634,407

The Company entered into the derivative contracts and applied fair value hedge accounting for hedging foreign exchange risk of the investment in subsidiaries and others.

Gain or loss on fair value hedge for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain(loss) on the hedging instrument	6,824,272		(33,134,172	)
Gain(loss) on the hedged item attributable to the hedged risk	(6,824,272	)	33,134,172

	—		—

The average price related to hedge of net investments in foreign operations as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	The nominal amount of<br><br>the hedging instrument		Average price<br>(KRW/, Korean won)
1 year		242,498,100	1,173.81
2 year		—	—
3 year		—	—
Over 3 year		—	—

		242,498,100	1,173.81

All values are in US Dollars.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2024
	The nominal amount of<br><br>the hedging instrument		Average price<br>(KRW/, Korean won)
1 year		15,876,000	1,071.00
2 year		236,670,000	1,179.00
3 year		—	—
Over 3 year		—	—

		252,546,000	1,172.13

All values are in US Dollars.

The contents of fair value hedge as of December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Carrying amount<br>(asset)			Accumulated fair<br>value (asset)			Change of fair value<br>for the year
Currency
Investment in subsidiaries			273,716,713			44,687,844			(6,824,272	)
		2024
---	---	:---:	---	---	---	---	---	---	---
(in thousands of Korean won)		Carrying amount<br>(asset)			Accumulated fair<br>value (asset)			Change of fair value<br>for the year
Currency
Investment in subsidiaries			284,468,575			52,226,706			33,134,172

8. Financial Assets at FVOCI

The details of financial assets at FVOCI as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Equity instruments
Stocks ^1^		555,227,794	472,013,719
Investment in partnerships		1,200,000	1,200,000
Other		941,617,363	879,977,298
Debt instruments
Government and municipal government bonds		113,091,530	70,709,895
Special bonds		2,331,033,103	1,821,452,212
Corporate bonds		4,657,305,415	2,595,239,175
Debt instruments in foreign currency		860,204,442	641,121,645

		9,459,679,647	6,481,713,944

^1^	Equity investment on Korea Stock Exchange and other relative institutions.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Changes in gains and losses on valuation of financial assets at FVOCI (before tax) for the year ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance				Valuation^1^				Disposal /<br><br>transfer				Ending<br><br>balance
Stocks			370,452,931				102,445,443				1,586,092				474,484,466
Government and local government bonds			(447,623	)			(8,018,955	)			447,623				(8,018,955	)
Special bonds			9,273,877				(14,240,022	)			(5,205,743	)			(10,171,888	)
Corporate bonds			13,629,179				(21,429,749	)			(7,634,040	)			(15,434,610	)
Securities in foreign currency			(1,139,976	)			3,064,054				420,107				2,344,185
Other securities in Korean won			10,515,554				(8,443,100	)			1,094,085				3,166,539

			402,283,942				53,377,671				(9,291,876	)			446,369,737

^1^	Provision for credit loss of debt instruments at FVOCI as ~~W~~ 1,746 million are excluded.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance				Valuation^1^				Disposal /<br><br>transfer				Ending<br><br>balance
Stocks			386,171,268				(15,718,337	)			—				370,452,931
Government and local government bonds			57,031				(447,623	)			(57,031	)			(447,623	)
Special bonds			3,686,348				7,970,335				(2,382,806	)			9,273,877
Corporate bonds			6,816,506				8,237,295				(1,424,622	)			13,629,179
Securities in foreign currency			(1,035,064	)			(243,344	)			138,432				(1,139,976	)
Other securities in Korean won			(1,588,431	)			14,095,998				(1,992,013	)			10,515,554

			394,107,658				13,894,324				(5,718,040	)			402,283,942

^1^	Provision for credit loss of debt instruments at FVOCI as ~~W~~ 215 million are excluded.
:---	:---

The derecognized equity investments at FVOCI for the year ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Marketable securities	20,817,460	—
Other quity investments at FVOCI	136,243,062	151,937,226

	157,060,522	151,937,226

The dividend income from equity investments at FVOCI for the years ended December 31, 2025 and 2024, are as follows;

(in thousands of Korean won)	2025				2024
	Derecognised		Held at the<br>end of<br>reporting<br>period		Derecognised		Held at the<br>end of<br>reporting<br>period
Equity investments at FVOCI
Marketable securities		1,610,875		2,107,287		—		—
Non marketable securities		—		13,569,397		—		14,628,399
Other equity investments		143,647		45,823,737		698,774		31,745,544

		1,754,522		61,500,421		698,774		46,373,943

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The Company recognized provision for credit loss of debt instruments at FVOCI amount (before tax) to ~~W~~ 3,489 million and ~~W~~ 1, 743 million, as at December 31, 2025 and 2024, respectively.

9. Investments in Subsidiaries and Associates

Investments in subsidiaries and associates as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	2025
	Location		Percentage<br><br>of<br><br>ownership(%)		Date of<br>financial<br>statements ^4^		Net Asset			Book amount		Main<br><br>Business
Subsidiaries
KBFG Securities America Inc.		USA		100.00		December		36,825,509			17,259,715	Investment, advisory
KB Securities Hong Kong Ltd.		Hong<br>Kong		100.00		December		302,199,043			260,095,513	Investment, advisory
KB Securities Vietnam Joint Stock Company		Vietnam		99.81		December		248,520,094			173,875,579	Investment, advisory
KB FINA COMPANY LIMITED(formely, KB FINA Joint Stock Company)		Vietnam		100.00		December		2,322,685			2,634,471	IT(Fintech)
PT. KB Valbury Sekuritas		Indonesia		65.00		December		92,505,672			57,221,997	Investment, advisory
KB Digital Innovation&growth New Technology Business Investment Fund ^1^		Korea		20.00		December		9,569,314			2,000,000	Other financial
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund 1 ^1^		Korea		42.86		December		17,899,228			3,000,000	Other financial
KB Global Contents Private Investment Fund<br>^1^		Korea		27.27		December		14,350,388			4,500,000	Other financial
KB Securities ESG Value Enhancement Fund		Korea		93.75		December		2,971,201			3,000,000	Other financial
LB Ireland Private Real Estate Investment Trust 8		Korea		96.64		December		(4,326,877	)		—	Funds
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		Korea		98.51		December		2,664,855			2,073,861	Funds
JB Dry Street Private Fund 1		Korea		100.00		December		102,840			102,840	Funds
JB Australia108 Private Fund 1		Korea		100.00		December		64,687			64,687	Funds
JB Forge Private Fund 1		Korea		100.00		December		46,095			46,096	Funds
JB Hall Street Private Fund 1		Korea		100.00		December		113,011			113,011	Funds
JB Margaret Street Private Fund 1		Korea		100.00		December		30,938			30,938	Funds
GVA Europe Pre-IPO Private Investment Trust No.1		Korea		100.00		December		26,137,774			11,650,034	Funds
LIFE Global Reits Pre-IPO General Private Investment Trust<br>1		Korea		99.89		December		59,360,533			39,663,469	Funds
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		Korea		99.78		December		(4,618,948	)		—	Funds
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No.<br>2(H)		Korea		99.99		December		1,247,193			1,247,048	Funds
PineStreet AIOFIII Infrastructure General Private Trust No.2 ^2^		Korea		99.92		December		4,689,790			4,720,405	Funds
Samsung Vista Credit BDC Private Investment No.2<br>^2^		Korea		99.93		December		21,532,236			22,026,000	Funds
Mangrove Feeder Fund		Cayman<br>Islands		71.63		December		12,622,967			13,621,200	Funds
GH Real Estate I LP		Guernsey		81.00		December		27,408,030			19,700,411	Investment
Able Gwonseon 1st Co., Ltd. ^1^		Korea		—		December		86,062			—	Asset-backed securitization

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2025
	Location	Percentage<br><br>of<br>ownership(%)	Date of<br>financial<br>statements ^4^	Net Asset			Book<br>amount		Main<br><br>Business
Newstar Gimpo 1st Co., Ltd ^1^	Korea	—	December		84,487			—	Asset-backed securitization
Able Sewoon Co., Ltd. ^1^	Korea	—	December		899,589			—	Asset-backed securitization
KB MyeongJi 1st Co.,Ltd. ^1^	Korea	—	December		(405,062	)		—	Asset-backed securitization
KB Mapo 2nd Co.,Ltd. ^1^	Korea	—	December		(418,358	)		—	Asset-backed securitization
Zitaress 1st Co., Ltd. ^1^	Korea	—	December		699,081			—	Asset-backed securitization
Newstar Gimpo 4th Co.,Ltd. ^1^	Korea	—	December		(6,634,578	)		—	Asset-backed securitization
Powerplay 1st Co., Ltd. ^1^	Korea	—	December		(5,750,183	)		—	Asset-backed securitization
Able Maseok 1st Co., Ltd. ^1^	Korea	—	December		(95,443	)		—	Asset-backed securitization
Newstar Wave 1st Co., Ltd. ^1^	Korea	—	December		702,254			—	Asset-backed securitization
Able Next 1st Co., Ltd ^1^	Korea	—	December		(753,044	)		—	Asset-backed securitization
YSMC 1st Co., Ltd. ^1^	Korea	—	December		949,856			—	Asset-backed securitization
Stoke 2nd Corp ^1^	Korea	—	December		(35,489,250	)		—	Asset-backed securitization
Newstar Seongnam 1st Co.,Ltd ^1^	Korea	—	December		163,496			—	Asset-backed securitization
KPS Sihwa 1st Co., Ltd. ^1^	Korea	—	December		(77,414,834	)		—	Asset-backed securitization
Able alpha Co., Ltd. ^1^	Korea	—	December		(535,858	)		—	Asset-backed securitization
Newstar Gimpo 7th Co.,Ltd. ^1^	Korea	—	December		(41,860,419	)		—	Asset-backed securitization
able hi position 1st ^1^	Korea	—	December		(652,702	)		—	Asset-backed securitization
Able Yongin Wonsam 2nd Co.,Ltd. ^1^	Korea	—	December		(540,230	)		—	Asset-backed securitization
TRUE HOUSE FIRST CO., LTD. ^1^	Korea	—	December		415,487			—	Asset-backed securitization
Able Gongpyeong 3rd Co.,Ltd ^1^	Korea	—	December		135,977			—	Asset-backed securitization
NEW STAR L CARD 1ST CO.,LTD. ^1^	Korea	—	December		1,107,188			—	Asset-backed securitization
Olivia 1st Co.,Ltd. ^1^	Korea	—	December		576,482			—	Asset-backed securitization
New Star Sinar Third Co., Ltd ^1,2^	Korea	—	December		144,437			—	Asset-backed securitization
New Star YJ Second Co., Ltd ^1,2^	Korea	—	December		(242,432	)		—	Asset-backed securitization
HJ GALAXY No.4 Co.,ltd ^1.2^	Korea	—	December		(1,791,654	)		—	Asset-backed securitization
Hyosung Vina Second Co., Ltd ^1,2^	Korea	—	December		806,829			—	Asset-backed securitization
newstarwoncle 1st. Co.ltd ^1,2^	Korea	—	December		230,865			—	Asset-backed securitization
NetFabric Suncheon First Co., Ltd.<br>^1,2^	Korea	—	December		(886,204	)		—	Asset-backed securitization
KB Infra 4th Co.,Ltd. ^1,2^	Korea	—	December		(493,947	)		—	Asset-backed securitization
Newstar Songam 1st Co.,ltd. ^1,2^	Korea	—	December		160,867			—	Asset-backed securitization
New Star SJ First Co., Ltd ^1,2^	Korea	—	December		(91,799	)		—	Asset-backed securitization
New Star REITs First Co., Ltd ^1,2^	Korea	—	December		107,230			—	Asset-backed securitization
Newstar Cine 1st Co.,ltd. ^1.2^	Korea	—	December		(2,183,031	)		—	Asset-backed securitization
MS Cheongna No.2 Co., Ltd. ^1,2^	Korea	—	December		(20,041	)		—	Asset-backed securitization
Next Yeongjong First Co., Ltd. ^1,2^	Korea	—	December		(6,298,279	)		—	Asset-backed securitization

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2025
	Location	Percentage<br><br>of<br>ownership(%)	Date of<br>financial<br>statements ^4^	Net Asset			Book amount		Main<br><br>Business
New Star KM First Co., Ltd ^1,2^	Korea	—	December		(116,488	)		—	Asset-backed securitization
Newstar Next 1st Co.,ltd. ^1,2^	Korea	—	December		(1,096,318	)		—	Asset-backed securitization
Newstar Next 2nd Co.,ltd. ^1,2^	Korea	—	December		(771,512	)		—	Asset-backed securitization
Newstar Doan first Co., Ltd ^1,2^		—	December		(266,880	)		—	Asset-backed securitization
PAV Co., Ltd ^1,2^	Korea	—	December		116,149			—	Asset-backed securitization
Still No.1 2nd Co., Ltd ^1,2^		—	December		(65,722	)		—	Asset-backed securitization
Newstar L Chemi 1st ^1,2^		—	December		—			—	Asset-backed securitization

								638,647,275

Associates
KB Special Purpose Acquisition Company No.25<br>^3^	Korea	0.12	November		8,752,399			5,000	SPAC
KB Special Purpose Acquisition Company No.27<br>^3^	Korea	0.04	November		26,996,258			5,000	SPAC
KB Special Purpose Acquisition Company No.29<br>^3^	Korea	0.16	November		12,668,512			10,000	SPAC
KB Special Purpose Acquisition Company No.30<br>^3^	Korea	0.19	November		10,582,957			10,000	SPAC
KB Special Purpose Acquisition Company No.31<br>^3^	Korea	0.16	November		12,448,756			10,000	SPAC
KB Special Purpose Acquisition Company No.32<br>^3^	Korea	0.16	November		12,406,196			10,000	SPAC
KB Special Purpose Acquisition Company No.33<br>^3^	Korea	1.08	November		15,492,593			160,000	SPAC
KB New Paradigm Agriculture Venture Fund	Korea	25.00	December		2,359,904			589,976	Investment
KBTS Technology Venture Private Equity Fund<br>^3^	Korea	16.00	December		17,028,768			1,888,000	Investment
KB-SJ Tourism Venture Fund ^3^	Korea	18.52	December		8,198,340			380,000	Investment
KB Shinjasanaubo Fund ^3^	Korea	14.67	December		4,643,753			681,084	Investment
UNION Media Commerce Fund	Korea	28.99	December		3,245,457			1,000,000	Investment
KB SPROTT Renewable Private Equity Fund I	Korea	26.69	December		8,074,943			907,561	Investment
KB-Stonebridge Secondary Private Equity Fund ^3^	Korea	4.16	December		82,441,735			3,371,606	Investment
KB-UTC Inno-Tech Venture Fund ^3^	Korea	14.76	December		16,703,944			2,476,896	Investment
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund ^3^	Korea	6.60	December		150,136,149			5,478,329	Investment
KB-KTB Technology Venture Fund ^3^	Korea	18.18	December		48,290,993			10,000,000	Investment
KB Bio Global Expansion Private Equity Fund No.1	Korea	39.47	December		43,797,540			15,000,000	Investment
KB Digital Platform Fund ^3^	Korea	16.67	December		311,322,458			38,000,000	Investment
KB-SOLIDUS Healthcare Investment Fund ^3^	Korea	5.10	December		99,856,221			5,000,000	Investment
KB-GeneN Medical Venture Fund 1	Korea	22.52	December		8,162,434			2,000,000	Investment
DA-Friend Investment Fund II	Korea	27.06	December		3,332,286			987,633	Investment
Cornerstone Pentastone IV Fund	Korea	21.52	December		3,547,539			817,742	Investment
JS Private Equity Fund III	Korea	20.48	December		2,005,345			195,773	Investment
Mirae Asset Mobility Investment Fund I	Korea	22.99	December		8,201,521			2,000,000	Investment
KB-FT 1st Green Growth Investment Fund ^3^	Korea	10.34	December		17,867,770			2,000,000	Investment

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		2025
		Location		Percentage<br><br>of<br>ownership(%)		Date of<br>financial<br>statements ^4^		Net Asset		Book amount		Main<br><br>Business
KB-NP Green ESG New Technology Venture Capital Fund ^3^			Korea		11.59		December		160,969,908		18,443,847		Investment
KB Star REIT			Korea		26.13		December		235,362,440		29,772,238		Investment
Nextrade Co., Ltd. ^3^			Korea		6.64		September		126,123,631		9,700,000		Investment
MW-Pyco NewWave New Technology Investment<br>Fund 4th			Korea		51.28		December		—		—		Investment
KB-SUSUNG 1st Investment Fund ^3^			Korea		10.00		December		5,550,179		130,000		Investment
Bitgoeul Cheomdan Green 1st Co.,<br>Ltd. ^3^			Korea		19.00		December		1,265,217		342,000		Investment
Shinhan-Eco Venture Fund 2^nd^			Korea		20.00		December		9,036,179		1,885,000		Investment
Leading H2O Fund 1			Korea		48.23		December		2,945,301		1,500,000		Investment
U-KB Credit No.1 Private Equity			Korea		23.26		December		69,541,318		17,046,512		Investment
KB-BridgePole Venture Investment Fund #2 ^3^			Korea		14.29		December		10,027,217		1,500,000		Investment
Sirius Silicon Valley I New Technology Fund			Korea		23.81		December		1,944,463		500,000		Investment
Timefolio Athleisure Investment Fund			Korea		48.19		December		7,781,539		4,000,000		Investment
COMPA Global Scale-Up Fund No.3			Korea		29.99		December		3,190,978		1,000,000		Investment
YG MCE PROJECT No.1 Fund			Korea		27.78		December		—		—		Investment
HI YG Win-win Fund No.2			Korea		20.62		December		10,446,432		2,000,000		Investment
KB-CJ Venture Fund 1st			Korea		40.00		December		4,673,306		1,800,000		Investment
Elohim-Bilanx aerospace No.1 Fund			Korea		20.94		December		9,248,721		2,000,000		Investment
KB-SUSUNG 2nd Investment Fund ^3^			Korea		12.66		December		15,475,453		2,000,000		Investment
IMM global Secondary 1-1 Equity Private Fund			Korea		41.65		December		11,946,087		3,412,973		Investment
LIB Material Investment Fund			Korea		27.26		December		3,041,835		877,181		Investment
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership ^3^			Korea		16.30		December		89,882,221		15,274,098		Investment
KB-Cyrus Tourism Venture Fund ^3^			Korea		18.52		December		10,019,466		2,000,000		Investment
IBKS Design Fund			Korea		46.51		December		10,343,544		2,000,000		Investment
KB-IMM Newstar Real Estate Private Fund 1			Korea		43.00		December		97,029,938		40,283,308		Investment
KBLB Middle Market Enterprises<br><br>Innovation Private Equity Fund ^3^			Korea		19.05		December		19,546,692		4,284,000		Investment
YG AI Industrial Automation Solutions FUND			Korea		28.17		December		7,072,662		2,000,000		Investment
KB-Novus Genesis Private Equity Fund ^3^			Korea		9.39		December		24,151,948		2,300,000		Investment
ATP TP VC Fund No.1			Korea		39.60		December		4,990,420		2,000,000		Investment
AIM-KB-DOUBLE<br>Connected Future Investment Fund ^2,3^			Korea		8.33		December		11,805,066		1,000,000		Investment
KB-IMM Newstar Real Estate Private Fund 2			Korea		38.18		December		43,279,272		16,509,818		Investment
K-1 23th Yeoksam Real Estate Investment Trust<br>Company			Korea		41.30		December		125,222,559		16,050,000		Investment
IMM Korea Beauty Co-Invest Private Equity Fund			Korea		51.02		December		97,281,431		50,000,000		Investment
KB-GVA Premier Mezzanine Investment Fund ^3^			Korea		3.07		December		16,212,787		500,000		Investment
KB-ANDA Deep Tech Venture Fund			Korea		30.00		December		4,165,000		1,249,500		Investment

											346,345,075

											984,992,350

^1^	The Company has control over the special purpose entities (“SPEs”) and is exposed to variable<br>returns. Accordingly, these SPEs are included as subsidiaries although the Company’s ownership is less than 50%.
:---	:---
^2^	Newly established in 2024 and included as subsidiaries.
:---	:---
^3^	Although the ownership of the Company is less than 20%, these are included as associates, since the Company has<br>a significant influence over investee’s policy and operations.
:---	:---
^4^	The date is the closing date of financial statements used for the purpose of assessment of net asset value.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2024
	Location		Percentage<br><br>of<br><br>ownership(%)		Date of<br>financial<br>statements ^4^		Net Asset			Book amount		Main<br><br>Business
Subsidiaries
KBFG Securities America Inc.		USA		100.00		December		25,529,467			17,259,715	Investment, advisory
KB Securities Hong Kong Ltd.		Hong<br>Kong		100.00		December		294,504,905			266,236,375	Investment, advisory
KB Securities Vietnam Joint Stock Company		Vietnam		99.81		December		250,658,226			173,875,579	Investment, advisory
KB FINA Joint Stock Company		Vietnam		100.00		December		2,634,471			2,634,471	IT(Fintech)
PT. KB Valbury Sekuritas		Indonesia		65.00		December		89,769,492			57,221,997	Investment, advisory
KB Digital Innovation&growth New Technology Business Investment Fund ^1^		Korea		20.00		December		7,737,182			2,000,000	Other financial
KB Pre-IPO 2nd (TCB) New Technology<br><br>Business Investment Fund ^1^		Korea		42.86		December		25,228,894			10,665,000	Other financial
KB Global Contents Private Investment Fund<br>^1^		Korea		27.27		December		15,682,080			4,500,000	Other financial
JB New Jersey Private Real Estate Fund 1		Korea		98.15		December		56,317			—	Funds
LB Ireland Private Real Estate Investment Trust 8		Korea		96.64		December		(4,087,198	)		—	Funds
Pacific US BlackRock Private Placement<br><br>Real Estate Fund Investment Trust No. 15		Korea		98.51		December		4,904,932			4,862,303	Funds
Mangrove Feeder Fund		Cayman<br>Islands		74.90		December		18,562,431			18,232,200	Funds
GH Real Estate I LP		Guernsey		81.00		December		27,107,882			20,228,930	Investment
JB Dry Street Private Fund 1		Korea		100.00		December		192,453			239,920	Funds
JB Australia108 Private Fund 1		Korea		100.00		December		127,351			165,847	Funds
JB Forge Private Fund 1		Korea		100.00		December		90,953			118,464	Funds
JB Hall Street Private Fund 1		Korea		100.00		December		195,293			245,327	Funds
JB Margaret Street Private Fund 1		Korea		100.00		December		54,323			68,655	Funds
GVA Europe Pre-IPO Private Investment Trust No.1		Korea		100.00		December		29,618,615			17,866,800	Funds
LIFE Global Reits Pre-IPO General Private Investment Trust<br>1		Korea		99.89		December		59,358,576			53,065,676	Funds
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11		Korea		99.78		December		31,083,636			44,900,000	Funds
Able Gwonseon 1st Co., Ltd. ^1^		Korea		—		December		68,839			—	Asset-backed securitization
Newstar Gimpo 1st Co., Ltd ^1^		Korea		—		December		(262,779	)		—	Asset-backed securitization
Able Sewoon Co., Ltd. ^1^		Korea		—		December		(842,626	)		—	Asset-backed securitization
KB MyeongJi 1st Co.,Ltd. ^1^		Korea		—		December		356,835			—	Asset-backed securitization
Able Dangjin 1st Co.,Ltd. ^1^		Korea		—		December		1,060,237			—	Asset-backed securitization
KB Mapo 2nd Co.,Ltd. ^1^		Korea		—		December		(338,515	)		—	Asset-backed securitization
Able Wonchang 1st Co., Ltd. ^1^		Korea		—		December		(1,210,316	)		—	Asset-backed securitization
Zitaress 1st Co., Ltd. ^1^		Korea		—		December		358,205			—	Asset-backed securitization

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2024
	Location	Percentage<br><br>of<br>ownership(%)	Date of<br>financial<br>statements ^4^	Net Asset			Book amount		Main<br><br>Business
Able Beomeo-one Co., Ltd. ^1^	Korea		December		385,218			—	Asset-backed securitization
Newstar Gimpo 4th Co.,Ltd. ^1^	Korea	—	December		(6,694,846	)		—	Asset-backed securitization
Powerplay 1st Co., Ltd. ^1^	Korea	—	December		(372,596	)		—	Asset-backed securitization
Able Dosan 1st Co., Ltd ^1^	Korea	—	December		1,778,541			—	Asset-backed securitization
Able Maseok 1st Co., Ltd. ^1^	Korea	—	December		(459,765	)		—	Asset-backed securitization
TW Seocho 1st Co., Ltd. ^1^	Korea	—	December		2,046,663			—	Asset-backed securitization
TW Seocho 2nd Co., Ltd. ^1^	Korea	—	December		926,752			—	Asset-backed securitization
Newstar Wave 1st Co., Ltd. ^1^	Korea	—	December		385,123			—	Asset-backed securitization
Able Next 1st Co., Ltd ^1^	Korea	—	December		(646,234	)		—	Asset-backed securitization
YSMC 1st Co., Ltd. ^1^	Korea	—	December		(219,814	)		—	Asset-backed securitization
Gyeongsan Logis 1st Co., Ltd^1^	Korea	—	December		(13,978	)		—	Asset-backed securitization
Stoke 2nd Corp ^1^	Korea	—	December		(6,788,935	)		—	Asset-backed securitization
Newstar Seongnam 1st Co.,Ltd ^1^	Korea	—	December		85,548			—	Asset-backed securitization
KPS Sihwa 1st Co., Ltd. ^1^	Korea	—	December		(42,294,192	)		—	Asset-backed securitization
Newstar NRB First Co., Ltd. ^1^	Korea	—	December		(1,346,805	)		—	Asset-backed securitization
Able alpha Co., Ltd. ^1^	Korea	—	December		(1,400,446	)		—	Asset-backed securitization
K-1 23th Yeoksam Real Estate Investment Trust<br>Company	Korea	51.11	December		132,285,289			31,050,000	Real-estate Investment
KB Securities ESG Value Enhancement Fund	Korea	93.75	December		1,995,296			2,000,000	Other financial
Able Eunhwasam 2nd Co., Ltd. ^1^	Korea	—	December		(1,369,569	)		—	Asset-backed securitization
Newstar Sina 2nd Co., Ltd. ^1^	Korea	—	December		858,444			—	Asset-backed securitization
Newstar Gimpo 7th Co.,Ltd. ^1, 2^	Korea	—	December		(44,492,446	)		—	Asset-backed securitization
NewStar Yui the 1st ^1, 2^	Korea	—	December		(1,069,235	)		—	Asset-backed securitization
able hi position 1st ^1, 2^	Korea	—	December		(767,025	)		—	Asset-backed securitization
Graha 2nd Co., Ltd. ^1, 2^	Korea	—	December		12,005			—	Asset-backed securitization
Able Yongin Wonsam 2nd Co.,Ltd. ^1,<br>2^	Korea	—	December		(239,052	)		—	Asset-backed securitization
ABLE GUNPO 1ST CO.,LTD. ^1, 2^	Korea	—	December		(493,322	)		—	Asset-backed securitization
TRUE HOUSE FIRST CO., LTD. ^1, 2^	Korea	—	December		200,565			—	Asset-backed securitization
Breeze Air Primary Co.,Ltd. ^1, 2^	Korea	—	December		(148,182	)		—	Asset-backed securitization
Able Gongpyeong 3rd Co.,Ltd ^1, 2^	Korea	—	December		70,027			—	Asset-backed securitization
NEW STAR L CARD 1ST CO.,LTD. ^1, 2^	Korea	—	December		(392,862	)		—	Asset-backed securitization
Olivia 1st Co.,Ltd. ^1, 2^	Korea	—	December		136,167			—	Asset-backed securitization
THE APOGEE THE FIRST CO.,LTD. ^1, 2^	Korea	—	December		31,284			—	Asset-backed securitization
EULJI NAIN 1ST CO.,LTD. ^1, 2^	Korea	—	December		(647,501	)		—	Asset-backed securitization
E&F Blacksapphire Private Equity Fund<br>^2^	Korea	98.76	December		39,896,349			40,000,000	Other financial

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2024
	Location	Percentage<br><br>of<br>ownership(%)	Date of<br>financial<br>statements ^4^		Net Asset			Book amount		Main<br><br>Business
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H) ^2^	Korea	99.99		December		1,476,172			1,476,026		Funds
Able Civic 4th Co., Ltd. ^1, 2^	Korea	—		December		(256,082	)		—		Asset-backed securitization
NEWSTAR EXPER 1ST CO.,LTD. ^1, 2^	Korea	—		December		(777,240	)		—		Asset-backed securitization

									768,913,285

Associates
KB Special Purpose Acquisition Company No.21<br>^3^	Korea	0.13		November		16,109,139			10,000		SPAC
KB Special Purpose Acquisition Company No.25<br>^3^	Korea	0.12		November		8,580,129			5,000		SPAC
KB Special Purpose Acquisition Company No.26<br>^3^	Korea	0.09		November		10,829,695			5,000		SPAC
KB Special Purpose Acquisition Company No.27<br>^3^	Korea	0.04		November		26,419,296			5,000		SPAC
KB Special Purpose Acquisition Company No.28<br>^3^	Korea	0.09		November		10,618,937			5,000		SPAC
KB Special Purpose Acquisition Company No.29<br>^3^	Korea	0.16		November		12,428,561			10,000		SPAC
KB Special Purpose Acquisition Company No.30<br>^3^	Korea	0.19		November		10,363,936			10,000		SPAC
KB Special Purpose Acquisition Company No.31<br>^3^	Korea	4.76		November		474,974			10,000		SPAC
KB New Paradigm Agriculture Venture Fund	Korea	25.00		December		5,165,014			1,275,000		Investment
KB KONEX Market Vitalization Fund	Korea	23.44		December		8,227,161			540,000		Investment
KB-KDBC New Technology Business Investment Fund	Korea	33.33		December		7,803,895			1,500,000		Investment
KBTS Technology Venture Private Equity Fund<br>^3^	Korea	16.00		December		19,873,358			1,888,000		Investment
KB-SJ Tourism Venture Fund ^3^	Korea	18.52		December		9,617,047			570,000		Investment
KB Shinjasanaubo Fund ^3^	Korea	14.67		December		7,034,772			1,804,000		Investment
UNION Media Commerce Fund	Korea	28.99		December		3,262,579			1,000,000		Investment
KB SPROTT Renewable Private Equity Fund I<br>^3^	Korea	12.56		December		24,296,915			3,682,135		Investment
KB-Stonebridge Secondary Private Equity Fund ^3^	Korea	4.16		December		115,799,846			4,620,045		Investment
KB-SP Private Equity Fund IV ^3^	Korea	18.10		December		22,071,363			2,494,808		Investment
KB-UTC Inno-Tech Venture Fund ^3^	Korea	14.76		December		26,487,335			6,262,500		Investment
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund ^3^	Korea	6.50		December		123,026,518			5,379,144		Investment
KB-KTB Technology Venture Fund ^3^	Korea	18.18		December		49,986,506			10,000,000		Investment
KB Bio Global Expansion Private Equity Fund No.1	Korea	39.47		December		45,271,614			15,000,000		Investment
KB Digital Platform Fund ^3^	Korea	16.67		December		169,731,013			28,000,000		Investment
KB-SOLIDUS Healthcare Investment Fund ^3^	Korea	5.10		December		69,000,852			3,683,333		Investment
KB-GeneN Medical Venture Fund 1	Korea	22.52		December		8,348,219			2,000,000		Investment
DA-Friend Investment Fund II	Korea	27.06		December		3,348,957			987,633		Investment
Cornerstone Pentastone IV Fund	Korea	21.52		December		3,550,028			817,742		Investment
JS Private Equity Fund III	Korea	20.48		December		3,624,689			945,021		Investment
Mirae Asset Mobility Investment Fund I	Korea	22.99		December		8,341,764			2,000,000		Investment
KB-FT 1st Green Growth Investment Fund ^3^	Korea	10.34		December		18,270,632			2,000,000		Investment

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		2024
		Location	Percentage<br><br>of<br>ownership(%)	Date of<br>financial<br>statements ^4^		Net Asset		Book amount		Main<br><br>Business
THE CHAEUL FUND NO.1(formerly, SKS IB NEW M&T FUND NO.1)		Korea	31.25		December		3,052,675		1,000,000	Investment
POSITVE Sobujang Venture Fund #1		Korea	43.96		December		1,977,444		879,121	Investment
KB-NP Green ESG New Technology Venture Capital Fund ^3^		Korea	11.59		December		133,153,255		16,100,000	Investment
Hisstory 2022 Fintech Fund		Korea	34.78		December		5,451,583		2,000,000	Investment
KB Star REIT		Korea	26.84		December		367,097,153		39,787,364	Investment
KB Bio Private Equity Investment Fund IV		Korea	24.19		December		30,459,936		7,500,000	Investment
Nextrade Co., Ltd. ^3^		Korea	6.64		September		123,213,152		9,700,000	Investment
MW-Pyco NewWave New Technology Investment Fund<br>4th		Korea	51.28		December		3,747,448		2,000,000	Investment
KB-SUSUNG 1st Investment Fund ^3^		Korea	10.00		December		14,589,744		1,076,000	Investment
Bitgoeul Cheomdan Green 1st Co., Ltd.<br>^3^		Korea	19.00		December		1,269,501		342,000	Investment
Shinhan-Eco Venture Fund 2^nd^		Korea	20.00		December		9,865,302		2,050,000	Investment
Leading H2O Fund 1		Korea	48.23		December		3,016,561		1,500,000	Investment
2023 JB Newtech No.2 Fund		Korea	25.71		December		6,631,365		1,405,557	Investment
U-KB Credit No.1 Private Equity		Korea	23.26		December		24,014,225		5,093,023	Investment
KB-BridgePole Venture Investment Fund #2 ^3^		Korea	14.29		December		10,244,395		1,500,000	Investment
Sirius Silicon Valley I New Technology Fund		Korea	23.81		December		1,992,817		500,000	Investment
Timefolio Athleisure Investment Fund		Korea	48.19		December		8,139,720		4,000,000	Investment
COMPA Global Scale-Up Fund No.3		Korea	29.99		December		3,266,256		1,000,000	Investment
AKK Robotech Valueup New Technology Investment Fund<br>^3^		Korea	4.98		December		22,645,242		1,000,000	Investment
YG MCE PROJECT No.1 Fund		Korea	27.78		December		5,316,511		1,500,000	Investment
HI YG Win-win Fund No.2		Korea	20.62		December		9,568,040		2,000,000	Investment
KB-CJ Venture Fund 1st		Korea	40.00		December		4,331,867		1,800,000	Investment
Elohim-Bilanx aerospace No.1 Fund		Korea	20.94		December		9,446,122		2,000,000	Investment
KB-SUSUNG 2nd Investment Fund ^3^			12.66		December		15,648,898		2,000,000	Investment
IMM global Secondary 1-1 Equity Private Fund		Korea	41.65		December		9,013,297		2,819,038	Investment
LIB Material Investment Fund		Korea	25.49		December		5,786,900		4,098,144	Investment
NOVORSEC-SJG Consumer Secondary Fund		Korea	24.29		December		6,949,377		1,700,000	Investment
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership ^3^		Korea	16.30		December		29,629,640		5,059,098	Investment
KB-Cyrus Tourism Venture Fund ^3^		Korea	18.52		December		5,276,727		1,000,000	Investment
IBKS Design Fund		Korea	46.51		December		4,291,749		2,000,000	Investment
NICE DATA INTELLIGENCE VENTURE FUND		Korea	23.53		December		4,240,923		1,000,000	Investment
Pectus Hanwha Fund No.2		Korea	29.41		December		6,631,095		2,000,000	Investment
KB-IMM Newstar Real Estate Private Fund 1		Korea	40.83		December		53,625,920		20,897,275	Investment

									244,815,981

									1,013,729,266

^1^	The Company has control over the special purpose entities (“SPEs”) and is exposed to variable<br>returns. Accordingly, these SPEs are included as subsidiaries although the Company’s ownership is less than 50%.
:---	:---
^2^	Newly established in 2024 and included as subsidiaries.
:---	:---
^3^	Although the ownership of the Company is less than 20%, these are included as associates, since the Company has<br>a significant influence over investee’s policy and operations.
:---	:---
^4^	The date is the closing date of financial statements used for the purpose of assessment of net asset value.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Changes in investments in subsidiaries for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance		Acquisition		Disposal			Impaired			Re-classification ^1^			Others			Ending<br><br>balance
KBFG Securities America Inc.			17,259,715		—		—			—			—			—			17,259,715
KB Securities Hong Kong Ltd.			266,236,375		—		—			—			—			(6,140,862	)		260,095,513
KB Securities Vietnam Joint Stock Company			173,875,579		—		—			—			—			—			173,875,579
KB FINA COMPANY LIMITED(formely, KB FINA Joint Stock Company)			2,634,471		—		—			—			—			—			2,634,471
PT. KB Valbury Sekuritas			57,221,997		—		—			—			—			—			57,221,997
KB Digital Innovation&growth New Technology Business Investment Fund			2,000,000		—		—			—			—			—			2,000,000
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund 1			10,665,000		—		(7,665,000	)		—			—			—			3,000,000
KB Global Contents Private Investment Fund			4,500,000		—		—			—			—						4,500,000
KB Securities ESG Value Enhancement Fund			2,000,000		1,000,000		—			—			—			—			3,000,000
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15			4,862,303		—		(2,788,442	)		—			—			—			2,073,861
JB Dry Street Private Fund 1			239,920		—		—			(137,080	)		—			—			102,840
JB Australia108 Private Fund 1			165,847		—		—			(101,160	)		—			—			64,687
JB Forge Private Fund 1			118,464		—		—			(72,368	)		—			—			46,096
JB Hall Street Private Fund 1			245,327		—		—			(132,316	)		—			—			113,011
JB Margaret Street Private Fund 1			68,655		—		—			(37,717	)		—			—			30,938
GVA Europe Pre-IPO Private Investment Trust No.1			17,866,800		—		—			(6,216,766	)		—			—			11,650,034
LIFE Global Reits Pre-IPO General Private Investment Trust<br>1			53,065,676		—		—			(13,402,207	)		—			—			39,663,469
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11			44,900,000		—		—			(44,900,000	)		—			—			—
K-1 23th Yeoksam Real Estate Investment Trust<br>Company			31,050,000		—		(15,000,000	)		—			(16,050,000	)		—			—
E&F Blacksapphire Private Equity Fund			40,000,000		—		(40,000,000	)		—			—			—			—
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No.<br>2(H)			1,476,026		—		—			(228,978	)		—			—			1,247,048
PineStreet AIOFIII Infrastructure General Private Trust No.2			—		4,720,405		—			—			—			—			4,720,405
Samsung Vista Credit BDC Private Investment No.2			—		22,026,000		—			—			—			—			22,026,000
Mangrove Feeder Fund			18,232,200		—		(3,971,100	)		—			—			(639,900	)		13,621,200
GH Real Estate I LP			20,228,930		—		—			(528,519	)		—			—			19,700,411

			768,913,285		27,746,405		(69,424,542	)		(65,757,111	)		(16,050,000	)		(6,780,762	)		638,647,275

^1^	These investments are reclassified to investments in associates due to disposal in partially for the year ended<br>December 31, 2025.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Beginning<br>balance		Acquisition		Disposal			Impaired			Re-classification ^1^			Others		Ending<br><br>balance
KBFG Securities America Inc.			17,259,715		—		—			—			—			—		17,259,715
KB Securities Hong Kong Ltd.			235,795,783		—		—			—			—			30,440,592		266,236,375
KB Securities Vietnam Joint Stock Company			173,875,579		—		—			—			—			—		173,875,579
KB FINA Joint Stock Company			11,146,330		—		—			(8,511,859	)		—			—		2,634,471
PT. KB Valbury Sekuritas			57,221,997		—		—			—			—			—		57,221,997
KB Digital Innovation&growth New Technology Business Investment Fund			2,000,000		—		—			—			—			—		2,000,000
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund			14,550,000		—		(3,885,000	)		—			—			—		10,665,000
JB New Jersey Private Real Estate Fund 1			1,074,621		—		—			(1,074,621	)		—			—		—
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15			17,757,064		933,277		(7,677,053	)		(6,150,985	)		—			—		4,862,303
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38			1,633,129		—		—			(1,633,129	)		—			—		—
Mangrove Feeder Fund			34,117,020		—		(17,900,820	)		—			—			2,016,000		18,232,200
GH Real Estate I LP			22,089,260		—		—			(1,860,330	)		—			—		20,228,930
JB Dry Street Private Fund 1			239,920		—		—			—			—			—		239,920
JB Australia108 Private Fund 1			165,847		—		—			—			—			—		165,847
JB Forge Private Fund 1			118,464		—		—			—			—			—		118,464
JB Hall Street Private Fund 1			245,327		—		—			—			—			—		245,327
JB Margaret Street Private Fund 1			68,655		—		—			—			—			—		68,655
KB Global Contents Private Investment Fund			4,500,000		—		—			—			—			—		4,500,000
GVA Europe Pre-IPO Private Investment Trust No.1			20,000,000		—		—			(2,133,200	)		—			—		17,866,800
LIFE Global Reits Pre-IPO General Private Investment Trust<br>1			59,470,000		—		—			(6,404,324	)		—			—		53,065,676
Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11			44,900,000		—		—			—			—			—		44,900,000
K-1 23th Yeoksam Real Estate Investment Trust<br>Company			46,050,000		—		(15,000,000	)		—			—			—		31,050,000
KB Securities ESG Value Enhancement Fund			1,000,000		1,000,000		—			—			—			—		2,000,000
E&F Blacksapphire Private Equity Fund			—		40,000,000		—			—			—			—		40,000,000
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No.<br>2(H)			—		1,476,026		—			—			—			—		1,476,026
Keppel Private Real Estate Investment Trust No.13			64,400,000		—		(25,000,000	)		—			(39,400,000	)		—		—

			829,678,711		43,409,303		(69,462,873	)		(27,768,448	)		(39,400,000	)		32,456,592		768,913,285

^1^	These instruments are reclassified to financial assets measured at FVTPL during the year ended<br>December 31, 2024.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Changes in investment in associates for the years ended December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Beginning<br>balance		Acquisition		Disposal			Impaired			Re-classification ^1^		Ending<br>balance
KB Special Purpose Acquisition Company No.21		10,000		—		(10,000	)		—			—		—
KB Special Purpose Acquisition Company No.25		5,000		—		—			—			—		5,000
KB Special Purpose Acquisition Company No.26		5,000		—		(5,000	)		—			—		—
KB Special Purpose Acquisition Company No.27		5,000		—		—			—			—		5,000
KB Special Purpose Acquisition Company No.28		5,000		—		(5,000	)		—			—		—
KB Special Purpose Acquisition Company No.29		10,000		—		—			—			—		10,000
KB Special Purpose Acquisition Company No.30		10,000		—		—			—			—		10,000
KB Special Purpose Acquisition Company No.31		10,000		—		—			—			—		10,000
KB Special Purpose Acquisition Company No.32		—		10,000		—			—			—		10,000
KB Special Purpose Acquisition Company No.33		—		160,000		—			—			—		160,000
KB New Paradigm Agriculture Venture Fund		1,275,000		—		(375,000	)		(310,024	)		—		589,976
KB KONEX Market Vitalization Fund		540,000		—		(540,000	)		—			—		—
KB-KDBC New Technology Business Investment Fund		1,500,000		—		(1,500,000	)		—			—		—
KBTS Technology Venture Private Equity Fund		1,888,000		—		—			—			—		1,888,000
KB-SJ Tourism Venture Fund		570,000		—		(190,000	)		—			—		380,000
KB Shinjasanaubo Fund		1,804,000		—		—			(1,122,916	)		—		681,084
UNION Media Commerce Fund		1,000,000		—		—			—			—		1,000,000
KB SPROTT Renewable Private Equity Fund I		3,682,135		—		—			(2,774,574	)		—		907,561
KB-Stonebridge Secondary Private Equity Fund		4,620,045		—		(1,248,439	)		—			—		3,371,606
KB-SP Private Equity Fund IV		2,494,808		—		(2,494,808	)		—			—		—
KB-UTC Inno-Tech Venture Fund		6,262,500		—		—			(3,785,604	)		—		2,476,896
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		5,379,144		1,800,000		(1,700,815	)		—			—		5,478,329
KB-KTB Technology Venture Fund		10,000,000		—		—			—			—		10,000,000
KB Bio Global Expansion Private Equity Fund No.1		15,000,000		—		—			—			—		15,000,000
KB Digital Platform Fund		28,000,000		10,000,000		—			—			—		38,000,000
KB-SOLIDUS Healthcare Investment Fund		3,683,333		1,316,667		—			—			—		5,000,000
KB-GeneN Medical Venture Fund 1		2,000,000		—		—			—			—		2,000,000
DA-Friend Investment Fund II		987,633		—		—			—			—		987,633
Cornerstone Pentastone IV Fund		817,742		—		—			—			—		817,742
JS Private Equity Fund III		945,021		—		(749,248	)		—			—		195,773
Mirae Asset Mobility Investment Fund I		2,000,000		—		—			—			—		2,000,000
KB-FT 1st Green Growth Investment Fund		2,000,000		—		—			—			—		2,000,000
THE CHAEUL FUND NO.1		1,000,000		—		(1,000,000	)		—			—		—
POSITVE Sobujang Venture Fund #1		879,121		—		(879,121	)		—			—		—
KB-NP Green ESG New Technology Venture Capital<br>Fund		16,100,000		3,480,000		(1,136,153	)		—			—		18,443,847
Hisstory 2022 Fintech Fund		2,000,000		—		(2,000,000	)		—			—		—
KB Star REIT		39,787,364		—		—			(10,015,126	)		—		29,772,238
KB Bio Private Equity Investment Fund IV		7,500,000		—		(7,500,000	)		—			—		—
Nextrade Co., Ltd.		9,700,000		—		—			—			—		9,700,000
MW-Pyco NewWave New Technology Investment Fund<br>4th		2,000,000		—		—			(2,000,000	)		—		—
KB-SUSUNG 1st Investment Fund		1,076,000		—		(946,000	)		—			—		130,000
Bitgoeul Cheomdan Green 1st Co., Ltd.		342,000		—		—			—			—		342,000
Shinhan-Eco Venture Fund 2nd		2,050,000		25,000		(190,000	)		—			—		1,885,000
Leading H2O Fund 1		1,500,000		—		—			—			—		1,500,000
2023 JB Newtech No.2 Fund		1,405,557		—		(1,405,557	)		—			—		—
U-KB Credit No.1 Private Equity		5,093,023		11,953,489		—			—			—		17,046,512
KB-BridgePole Venture Investment Fund #2		1,500,000		—		—			—			—		1,500,000

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Sirius Silicon Valley I New Technology Fund		500,000	—	—		—		—	500,000
Timefolio Athleisure Investment Fund		4,000,000	—	—		—		—	4,000,000
COMPA Global Scale-Up Fund No.3		1,000,000	—	—		—		—	1,000,000
AKK Robotech Valueup New Technology Investment Fund		1,000,000	—	(1,000,000	)	—		—	—
YG MCE PROJECT No.1 Fund		1,500,000	—	—		(1,500,000	)	—	—
HI YG Win-win Fund No.2		2,000,000	—	—		—		—	2,000,000
KB-CJ Venture Fund 1st		1,800,000	—	—		—		—	1,800,000
Elohim-Bilanx aerospace No.1 Fund		2,000,000	—	—		—		—	2,000,000
KB-SUSUNG 2nd Investment Fund		2,000,000	—	—		—		—	2,000,000
IMM global Secondary 1-1 Equity Private Fund		2,819,038	756,186	(162,251	)	—		—	3,412,973
LIB Material Investment Fund		4,098,144	—	—		(3,220,963	)	—	877,181
NOVORSEC-SJG Consumer Secondary Fund		1,700,000	—	(1,700,000	)	—		—	—
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership		5,059,098	10,215,000	—		—		—	15,274,098
KB-Cyrus Tourism Venture Fund		1,000,000	1,000,000	—		—		—	2,000,000
IBKS Design Fund		2,000,000	—	—		—		—	2,000,000
NICE DATA INTELLIGENCE VENTURE FUND		1,000,000	—	(1,000,000	)	—		—	—
Pectus Hanwha Fund No.2		2,000,000	—	(2,000,000	)	—		—	—
KB-IMM Newstar Real Estate Private Fund 1		20,897,275	19,386,033	—		—		—	40,283,308
KBLB Middle Market Enterprises Innovation Private Equity Fund		—	4,284,000	—		—		—	4,284,000
YG AI Industrial Automation Solutions FUND		—	2,000,000	—		—		—	2,000,000
KB-Novus Genesis Private Equity Fund		—	2,300,000	—		—		—	2,300,000
ATP TP VC Fund No.1		—	2,000,000	—		—		—	2,000,000
AIM-KB-DOUBLE<br>Connected Future Investment Fund		—	1,000,000	—		—		—	1,000,000
KB-IMM Newstar Real Estate Private Fund 2		—	16,509,818	—		—		—	16,509,818
K-1 23th Yeoksam Real Estate Investment Trust Company ^1^		—	—	—		—		16,050,000	16,050,000
IMM Korea Beauty Co-Invest Private Equity Fund		—	50,000,000	—		—		—	50,000,000
KB-GVA Premier Mezzanine Investment Fund		—	500,000	—		—		—	500,000
KB-ANDA Deep Tech Venture Fund		—	1,249,500	—		—		—	1,249,500

		244,815,981	139,945,693	(29,737,392	)	(24,729,207	)	16,050,000	346,345,075

^1^	These investments are reclassified from investments in subsidiaries to associates due to disposal in partially<br>for the year ended December 31, 2025.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	Beginning<br>balance		Acquisition		Disposal			Impaired		Ending<br>balance
KB Special Purpose Acquisition Company No.21		10,000		—		—			—		10,000
KB Special Purpose Acquisition Company No.22		10,000		—		(10,000	)		—		—
KB Special Purpose Acquisition Company No.25		5,000		—		—			—		5,000
KB Special Purpose Acquisition Company No.26		5,000		—		—			—		5,000
KB Special Purpose Acquisition Company No.27		5,000		—		—			—		5,000
KB Special Purpose Acquisition Company No.28		—		5,000		—			—		5,000
KB Special Purpose Acquisition Company No.29		—		10,000		—			—		10,000
KB Special Purpose Acquisition Company No.30		—		10,000		—			—		10,000
KB Special Purpose Acquisition Company No.31		—		10,000		—			—		10,000
KB New Paradigm Agriculture Venture Fund		2,100,000		—		(825,000	)		—		1,275,000
KB KONEX Market Vitalization Fund		615,000		—		(75,000	)		—		540,000
KB-KDBC New Technology Business Investment Fund		1,800,000		—		(300,000	)		—		1,500,000
KBTS Technology Venture Private Equity Fund		2,592,000		—		(704,000	)		—		1,888,000
KB-SJ Tourism Venture Fund		4,600,000		—		(4,030,000	)		—		570,000
KB Shinjasanaubo Fund		1,804,000		—		—			—		1,804,000
UNION Media Commerce Fund		1,000,000		—		—			—		1,000,000
KB SPROTT Renewable Private Equity Fund I		3,682,135		—		—			—		3,682,135
KB-Stonebridge Secondary Private Equity Fund		4,810,584		—		(190,539	)		—		4,620,045
KB-SP Private Equity Fund IV		2,494,808		—		—			—		2,494,808
KB-UTC Inno-Tech Venture Fund		6,375,000		—		(112,500	)		—		6,262,500
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		4,786,339		4,482,000		(3,889,195	)		—		5,379,144
KB Material and Parts No. 1 PEF		3,400,000		—		(3,400,000	)		—		—
KB Global Commerce Private Equity Investment Fund		7,000,000		—		(7,000,000	)		—		—
KB-KTB Technology Venture Fund		8,000,000		2,000,000		—			—		10,000,000
KB Bio Global Expansion Private Equity Fund No.1		15,000,000		—		—			—		15,000,000
KB Digital Platform Fund		18,000,000		10,000,000		—			—		28,000,000
KB-SOLIDUS Healthcare Investment Fund		2,383,333		1,300,000		—			—		3,683,333
KB-GeneN Medical Venture Fund 1		2,000,000		—		—			—		2,000,000
KB-BridgePole Venture Investment Fund		136,000		—		(136,000	)		—		—
KB-Kyobo New Mobility Power Fund		3,000,000		—		(3,000,000	)		—		—

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

DA-Friend Investment Fund II	987,633	—	—		—		987,633
Cornerstone Pentastone IV Fund	817,742	—	—		—		817,742
JS Private Equity Fund III	1,700,000	—	(754,979	)	—		945,021
Mirae Asset Mobility Investment Fund I	2,000,000	—	—		—		2,000,000
KB-FT 1st Green Growth Investment Fund	2,000,000	—	—		—		2,000,000
THE CHAEUL FUND NO.1	1,000,000	—	—		—		1,000,000
POSITVE Sobujang Venture Fund #1	2,000,000	—	(1,120,879	)	—		879,121
KB-NP Green ESG New Technology Venture Capital<br>Fund	8,180,000	7,920,000	—		—		16,100,000
History 2022 Fintech Fund	2,000,000	—	—		—		2,000,000
KB Star REIT	45,523,300	—	—		(5,735,936	)	39,787,364
KB Bio Private Equity Investment Fund IV	7,500,000	—	—		—		7,500,000
Nextrade Co., Ltd.	9,700,000	—	—		—		9,700,000
LAKEWOOD-AVES Fund No.1	2,000,000	—	(2,000,000	)	—		—
MW-Pyco NewWave New Technology Investment Fund<br>4th	2,000,000	—	—		—		2,000,000
KB-SUSUNG 1st Investment Fund	2,000,000	—	(924,000	)	—		1,076,000
Friend 55 New Technology Business Investment Fund	1,200,000	—	(1,200,000	)	—		—
Bitgoeul Cheomdan Green 1st Co., Ltd.	190,000	152,000	—		—		342,000
DSIP-Pharos Bioenergy Fund	4,000,000	—	(4,000,000	)	—		—
Shinhan-Eco Venture Fund 2nd	1,825,000	225,000	—		—		2,050,000
Leading H2O Fund 1	1,500,000	—	—		—		1,500,000
2023 JB Newtech No.2 Fund	1,800,000	—	(394,443	)	—		1,405,557
U-KB Credit No.1 Private Equity	4,813,953	279,070	—		—		5,093,023
KB-BridgePole Venture Investment Fund #2	1,500,000	—	—		—		1,500,000
Sirius Silicon Valley I New Technology Fund	500,000	—	—		—		500,000
Timefolio Athleisure Investment Fund	—	4,000,000	—		—		4,000,000
COMPA Global Scale-Up Fund No.3	—	1,000,000	—		—		1,000,000
AKK Robotech Valueup New Technology Investment Fund	—	1,000,000	—		—		1,000,000
YG MCE PROJECT No.1 Fund	—	1,500,000	—		—		1,500,000
HI YG Win-win Fund No.2	—	2,000,000	—		—		2,000,000
KB-CJ Venture Fund 1st	—	1,800,000	—		—		1,800,000
Elohim-Bilanx aerospace No.1 Fund	—	2,000,000	—		—		2,000,000
KB-SUSUNG 1st Investment Fund	—	2,000,000	—		—		2,000,000
IMM global Secondary 1-1 Equity Private Fund	—	2,819,038	—		—		2,819,038
LIB Material Investment Fund	—	4,098,144	—		—		4,098,144
NOVORSEC-SJG Consumer Secondary Fund	—	1,700,000	—		—		1,700,000
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	—	5,059,098	—		—		5,059,098
KB-Cyrus Tourism Venture Fund	—	1,000,000	—		—		1,000,000
IBKS Design Fund	—	2,000,000	—		—		2,000,000
NICE DATA INTELLIGENCE VENTURE FUND	—	1,000,000	—		—		1,000,000
Pectus Hanwha Fund No.2	—	2,000,000	—		—		2,000,000
KB-IMM Newstar Real Estate Private Fund 1	—	20,897,275	—		—		20,897,275

	202,351,827	82,266,625	(34,066,535	)	(5,735,936	)	244,815,981

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

10. Loans Measured at Amortised Cost

The details of loans measured at amortised cost as at December 31, 2025 and 2024, are as follows:

(in thousands of<br><br>Korean won)	2025									2024
	Total amount			Allowances			Book amount			Total amount			Allowances			Book amount
Retails
Broker’s loans		3,752,218,153			—			3,752,218,153			2,525,170,144			—			2,525,170,144
Loans to employees		37,702,673			(810	)		37,701,863			23,774,577			—			23,774,577
Present value discount		—			—			—			—			—			—

		3,789,920,826			(810	)		3,789,920,016			2,548,944,721			—			2,548,944,721

Corporates
Broker’s loans		263,888,421			—			263,888,421			202,338,242			—			202,338,242
Securities purchased under repurchase agreements		1,832,100,000			—			1,832,100,000			2,091,017,404			—			2,091,017,404
Loans receivable		2,625,412,302			(91,751,328	)		2,533,660,974			3,209,415,942			(53,553,889	)		3,155,862,053
Purchased loans		28,248,225			(332,553	)		27,915,672			56,718,382			(388,518	)		56,329,864
Advances for customers		6,842,141			(6,842,141	)		—			7,465,522			(7,465,522	)		—
Privately placed bonds		376,950,000			(198,203,180	)		178,746,820			62,762,000			(33,373,429	)		29,388,571
Financial lease receivables		16,555,000			—			16,555,000			23,129,979			—			23,129,979
Net deferred origination fees and costs		(6,906,689	)		—			(6,906,689	)		(5,130,850	)		—			(5,130,850	)
Present value discount		(612,371	)		—			(612,371	)		(1,407,028	)		—			(1,407,028	)

		5,142,477,029			(297,129,202	)		4,845,347,827			5,646,309,593			(94,781,358	)		5,551,528,235

		8,932,397,855			(297,130,012	)		8,635,267,843			8,195,254,314			(94,781,358	)		8,100,472,956

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in book amount of loan measured at amortised cost for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of<br><br>Korean<br>won)	2025
	Retails								Corporates
	The<br><br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The<br><br>financial<br><br>instruments<br><br>applying<br><br>credit<br>loss<br><br>model		The<br><br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		2,548,944,721		—		—		—		5,370,072,227			195,185,980			81,051,386			—
Transfer between stages
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—		—		—		—		—			—			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(1,975,000	)		(73,000,000	)		74,975,000			—
Write-off		—		—		—		—		—			—			(623,381	)		—
Sales		—		—		—		—		(150,241,156	)		—			—			—
Other increase /decrease, net		1,240,976,106		—		—		—		(622,940,700	)		200,550,125			69,422,547			—

Ending		3,789,920,827		—		—		—		4,594,915,371			322,736,105			224,825,552			—

(in thousands of Korean won)	2024
---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Retails								Corporates
	The<br><br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The<br>financial<br>instruments<br>applying<br>credit loss<br>model		The<br><br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		3,082,756,252		—		—		—		4,847,521,674			36,919,543			57,327,382			—
Transfer between stages
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—		—		—		—		(46,743,287	)		46,743,287			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(22,825,440	)		(10,000,000	)		32,825,440			—
Write-off		—		—		—		—		—			—			(1,975,000	)		—
Sales		—		—		—		—		(577,401,682	)		—			—			—
Other increase /decrease, net		(533,811,531)		—		—		—		1,169,520,962			121,523,150			(7,126,436)			—

Ending		2,548,944,721		—		—		—		5,370,072,227			195,185,980			81,051,386			—

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in allowances for loan losses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of<br><br>Korean<br>won)	2025
	Retails								Corporates
	The<br><br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The<br>financial<br>instruments<br>applying<br>credit loss<br>model		The<br><br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model
			Non-impaired		Impaired							Non-impaired			Impaired
Beginning		—		—		—		—		9,101,593			15,853,919			69,825,846			—
Transfer between stages
Transfer to 12-month expected credit Losses		—		—		—		—		—			—			—			—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		—		—		—		—		—			—			—			—
Transfer to lifetime expected credit Losses (impaired)		—		—		—		—		(143,110	)		(8,126,981	)		8,270,091			—
Write-off		—		—		—		—		—			—			(623,381	)		—
Recovery of write-off loans		—		—		—		—		—			—			(290,634	)		—
Sale		—		—		—		—		(360,673	)		—			—			—
Provision (Reversal)		810		—		—		—		(137,551	)		5,264,024			38,273,722			—
Contract Execution		—		—		—		—		—			87,800,000			71,500,000			—
Other transfer (changes in for FX rate, etc.)		—		—		—		—		—			922,337			—			—

Ending		810		—		—		—		8,460,259			101,713,299			186,955,644			—

(In thousands of Korean won)		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
		Corporates
		The<br>financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses				The financial instruments<br>applying lifetime expected<br>credit losses								The<br><br>financial<br><br>instruments<br><br>applying<br><br>credit<br>loss<br>model
						Non-impaired				Impaired
Beginning			11,101,566				11,558,281				28,260,199				—
Transfer between stages
Transfer to lifetime expected credit Losses (Non-impaired)			(1,463,460	)			1,463,460				—				—
Transfer to lifetime expected credit Losses (impaired)			(72,220	)			(1,539,108	)			1,611,328				—
Write-off			—				—				(2,069,426	)			—
Sale			(1,738,460	)			—				—				—
Provision (reversal) for loan losses			1,274,167				(2,295,243	)			33,788,956				—
Execution of the contract			—				6,666,529				8,234,789				—

Ending			9,101,593				15,853,919				69,825,846				—

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Among the loans which have been written-off, the Company manages loans for which the claims against borrowers have not been lost due to reasons such as incomplete extinctive prescription pursuant to relevant laws and uncollected receivables after writing-off, as the written-off loans. As at December 31, 2025 and 2024, the balances of the written-off loans are ~~W~~ 31,293,471 thousand and ~~W~~ 23,256,163 thousand, respectively.

Broker’s loan

The Company provides loans for stock purchases with credit period of 180 days (can be extended for six times) for investors using margin transaction. As at December 31, 2025, interest rate of the loan is differentiated from 5.2% to 9.3% based on maturities, and overdue interest rate is 9.9%.

Also, as the Company operates loans secured by securities. At the initial transaction, in case of superior shares and common shares, the Company requires trading securities or cash as collateral, corresponding to 167% and 250% of the loan, respectively. Over 140% collateral of the loan is required. As at December 31, 2025, the interest rate of loans secured by securities is differentiated from Annual Percentage Rate(APR) 6.9% to 9.3% based on maturities, from APR 7.3% to 8.8% based on credit rating, and the loan with past due date is 9.9%

For margin loans to customers, trading securities or cash is required to be pledged corresponding to 140% of the loan. Because of this condition, the Company pledged securities as collateral which are purchased with the margin loans. If the value of the pledged securities do not reach to 140% of the loan, the Company requires additional cash or trading securities as collateral.

Advances for Customers

Advances for customers consist of advanced payments on loss compensation and advanced payments for others.

Advanced payments on loss compensation are the monetary amount of claim for reimbursement, paid by the Company, if any losses from embezzlement and arbitrary trading are occurred.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

11. Property and Equipment

The details of property and equipment as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Acquisition<br>cost			Accumulated<br>depreciation				Accumulated<br>revaluation			Book amount
Land			24,694,778			—				77,441,935			102,136,713
Buildings			40,384,830			(21,717,622	)			—			18,667,208
Furniture and equipment			200,516,119			(171,491,181	)			—			29,024,938
Others			70,053,236			(52,945,180	)			—			17,108,056
Right-of-use<br>assets			188,319,876			(126,564,736	)			—			61,755,140

			523,968,839			(372,718,719	)			77,441,935			228,692,055

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Acquisition<br>cost			Accumulated<br>depreciation				Accumulated<br>revaluation			Book amount
Land			24,968,018			—				83,580,757			108,548,775
Buildings			35,261,074			(18,434,749	)			—			16,826,325
Furniture and equipment			189,588,367			(158,282,457	)			—			31,305,910
Others			63,979,468			(48,232,762	)			—			15,746,706
Right-of-use<br>assets			180,390,780			(108,997,971	)			—			71,392,809

			494,187,707			(333,947,939	)			83,580,757			243,820,525

The details of right-of-use assets as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Acquisition<br>cost		Accumulated<br>depreciation			Book<br>amount
Buildings		178,155,497		(121,711,332	)		56,444,165
Vehicles		4,396,161		(2,627,566	)		1,768,595
Others		5,768,217		(2,225,837	)		3,542,380

		188,319,875		(126,564,735	)		61,755,140

	2024
(in thousands of Korean won)	Acquisition<br>cost		Accumulated<br>depreciation			Book<br>amount
Buildings		172,248,338		(104,051,701	)		68,196,637
Vehicles		4,036,673		(2,487,740	)		1,548,933
Others		4,105,769		(2,458,530	)		1,647,239

		180,390,780		(108,997,971	)		71,392,809

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in property and equipment for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance			Acquisition			Disposal			Depreciation			Others ^1^			Ending<br>balance
Land			108,548,775			2,005,290			(10,983,844	)		—			2,566,492			102,136,713
Buildings			16,826,326			—			—			(885,306	)		2,726,188			18,667,208
Furniture and equipment			31,305,910			13,281,641			(4,210	)		(15,558,403	)		—			29,024,938
Others			15,746,706			8,365,747			(4,214	)		(7,000,183	)		—			17,108,056
Right-of-use<br>assets			71,392,808			17,431,135			(761,013	)		(26,307,790	)		—			61,755,140

			243,820,525			41,083,813			(11,753,281	)		(49,751,682	)		5,292,680			228,692,055

^1^	Others consist of reclassification to investment properties and others.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance			Acquisition			Disposal			Depreciation			Others ^1^			Ending<br>balance
Land			111,950,474			—			—			—			(3,401,699	)		108,548,775
Buildings			20,948,763			—			—			(908,413	)		(3,214,025	)		16,826,325
Furniture and equipment			28,597,648			16,954,630			(12,122	)		(14,234,246	)		—			31,305,910
Others			11,788,620			10,400,418			(99,866	)		(6,342,466	)		—			15,746,706
Right-of-use<br>assets			60,158,995			37,281,025			(1,172,393	)		(24,874,818	)		—			71,392,809

			233,444,500			64,636,073			(1,284,381	)		(46,359,943	)		(6,615,724	)		243,820,525

^1^	Others consist of reclassification to investment properties and others.
:---	:---

The changes in right-of-use assets for the year ended December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Beginning<br>balance		Acquisition		Disposal			Depreciation			Ending<br>balance
Buildings		68,196,637		12,441,788		(371,439	)		(23,822,821	)		56,444,165
Vehicles		1,548,932		1,985,564		(389,574	)		(1,376,327	)		1,768,595
Others		1,647,239		3,003,783		—			(1,108,642	)		3,542,380

		71,392,808		17,431,135		(761,013	)		(26,307,790	)		61,755,140

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	Beginning<br>balance		Acquisition		Disposal			Depreciation			Ending<br>balance
Buildings		56,102,806		35,380,380		(755,810	)		(22,530,739	)		68,196,637
Vehicles		1,668,328		1,609,049		(416,583	)		(1,311,861	)		1,548,933
Others		2,387,861		291,596		—			(1,032,218	)		1,647,239

		60,158,995		37,281,025		(1,172,393	)		(24,874,818	)		71,392,809

The Company applies the revaluation model in relation to the measurement after the initial recognition of the land and the date of revaluation of the land was August 5, 2022. The Company used the assessed price provided by qualified appraiser for the revaluation of the land.

Classification of land that is measured at fair value by fair value hierarchy levels as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		102,136,713		102,136,713
	2024
(in thousands of Korean won)	Level 1		Level 2		Level 3		Total
Land		—		—		108,548,775		108,548,775

Changes in land which is classified to Level 3 for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	108,548,775		111,950,474
Reclassification from investment properties to property and equipment	2,566,492		—
Reclassification from property and equipment to investment properties	—		(3,401,699	)
Acquisition	2,005,290		—
Disposal	(10,983,844	)	—

Ending balance	102,136,713		108,548,775

Book amounts of land under cost model as at December 31, 2025 and 2024, are as follows:

		2025						2024
(in thousands of Korean won)		Under<br><br>revaluation model			Under<br><br>cost model			Under<br><br>revaluation<br>model			Under<br><br>cost model
Land			102,136,713			24,694,778			108,548,775			24,968,018

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Changes in other comprehensive income related to the revaluation for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance			Revaluation			Reclassification			Other			Ending<br>balance
Land			84,032,663			—			(848,457	)		(5,290,365	)		77,893,841
Income tax effects			(22,282,377	)		—			—			763,817			(21,518,560	)

			61,750,286			—			(848,457	)		(4,526,548	)		56,375,281

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance				Other			Ending<br>balance
Land			84,032,663				—			84,032,663
Income tax effects			(22,282,377	)			—			(22,282,377	)

After income tax			61,750,286				—			61,750,286

12. Investment Properties

The details of investment properties as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Acquisition<br>cost			Accumulated<br>depreciation				Accumulated<br>revaluation			Book<br>amount
Land			8,476,966			—				255,816			8,732,782
Buildings			15,532,172			(10,263,066	)			—			5,269,106

			24,009,138			(10,263,066	)			255,816			14,001,888

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Acquisition<br>cost			Accumulated<br>depreciation				Accumulated<br>revaluation				Book<br>amount
Land			12,073,448			—				(332,250	)			11,741,198
Buildings			20,655,928			(12,157,403	)			—				8,498,525

			32,729,376			(12,157,403	)			(332,250	)			20,239,723

The changes in investment properties for the years ended December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Beginning<br>balance		Disposal			Depreciation			Re-classi-<br>fication			Ending<br>balance
Land		11,741,198		(441,924	)		—			(2,566,492	)		8,732,782
Buildings		8,498,525		—			(503,230	)		(2,726,189	)		5,269,106

		20,239,723		(441,924	)		(503,230	)		(5,292,681	)		14,001,888

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	Beginning<br>balance		Disposal		Depreciation			Re-classi-<br>fication		Ending<br>balance
Land		8,339,498		—		—			3,401,700		11,741,198
Buildings		5,764,625		—		(480,124	)		3,214,024		8,498,525

		14,104,123		—		(480,124	)		6,615,724		20,239,723

Details of income and expenditure on investment properties for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Rental income	2,191,028		2,252,676
Expenditure on operating investment properties	(1,295,868	)	(657,475	)
Expenditure on non-operating investment<br>properties	(59	)	—

	895,101		1,595,201

Details of fair value of investment properties as at December 31, 2025 and 2024 are as follows:

	2025				2024
(in thousands of Korean won)	Book<br>amount		Fair value		Book<br>amount		Fair value
Land		8,732,782		43,447,423		11,741,198		51,738,955
Buildings		5,269,106		8,680,083		8,498,525		11,830,760

		14,001,888		52,127,506		20,239,723		63,569,715

The fair values of investment properties as at December 31, 2025 was evaluated by an independent appraiser, based on the evaluation result at August 5, 2022. The qualified appraiser is a member of the Korea Appraisers Association and has appropriate qualifications and experience in evaluating real estate in the location of investment properties. This evaluation was based on international evaluation standards and is based on the market price of similar real estate.

The fair values of investment properties are classified as Level 3 based upon the inputs, which are used in valuation method.

Investment properties are provided as collaterals for rental deposits and lease hold right, which amount to ~~W~~ 1,338,000 thousand and ~~W~~ 610,000 thousand as at December 31, 2025 and 2024, respectively.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

13. Intangible Assets

The details of intangible assets as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment			Book amount
Goodwill		58,888,990		—			—			58,888,990
Development costs		345,985,097		(257,483,826	)		—			88,501,271
Software		137,317,926		(122,876,254	)		—			14,441,672
Memberships		43,121,263		(153,716	)		(6,616,437	)		36,351,110
Others		23,294,717		—			—			23,294,717

		608,607,993		(380,513,796	)		(6,616,437	)		221,477,760

	2024
(in thousands of Korean won)	Acquisition<br>cost		Accumulated<br>amortization			Accumulated<br>impairment			Book amount
Goodwill		58,888,990		—			—			58,888,990
Development costs		312,698,214		(209,465,882	)		—			103,232,332
Software		131,754,829		(112,738,150	)		—			19,016,679
Memberships		44,676,414		(146,117	)		(7,093,242	)		37,437,055
Others		23,294,717		—			—			23,294,717

		571,313,164		(322,350,149	)		(7,093,242	)		241,869,773

The changes in intangible assets for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance			Acquisition^1^			Disposal			Amorti<br><br>-zation			Impairment^2^			Reversal of<br>Impairment^3^			Ending<br>balance
Goodwill			58,888,990			—			—			—			—			—			58,888,990
Development costs			103,232,332			33,428,243			(141,360	)		(48,017,944	)		—			—			88,501,271
Software			19,016,679			5,563,095			—			(10,138,102	)		—			—			14,441,672
Memberships			37,437,055			—			(1,214,941	)		(7,600	)		(256,404	)		393,000			36,351,110
Others			23,294,717			—			—			—			—			—			23,294,717

			241,869,773			38,991,338			(1,356,301	)		(58,163,646	)		(256,404	)		393,000			221,477,760

^1^	Advance payments and others transferred from other accounts are included.
:---	:---
^2^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Company recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2025.
:---	:---
^3^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Company recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2025.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance			Acquisition^1^			Disposal			Amorti<br><br>-zation			Impairment^2^			Reversal of<br>Impairment^3^			Ending<br>balance
Goodwill			58,888,990			—			—			—			—			—			58,888,990
Development costs			104,399,311			40,991,592			—			(42,158,571	)		—			—			103,232,332
Software			24,046,649			6,987,091			—			(12,017,061	)		—			—			19,016,679
Memberships			34,642,404			2,887,619			(970,900	)		(12,626	)		(128,738	)		1,019,296			37,437,055
Others			23,294,717			—			—			—			—			—			23,294,717

			245,272,071			50,866,302			(970,900	)		(54,188,258	)		(128,738	)		1,019,296			241,869,773

^1^	Advance payments and others transferred from other accounts are included.
:---	:---
^2^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Company recognized a impairment loss because the market price of the asset is lower than book amount as at December 31, 2024.
:---	:---
^3^	Memberships are composed of condominium and golf memberships, which are intangible assets with indefinite<br>useful lives. The Company recognized a reversal of impairment loss because the market price of the asset is higher than book amount as at December 31, 2024.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

14. Other Financial Assets

The details of other financial assets as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other receivables	5,586,840,121		2,127,747,012
Accrued income	341,915,516		286,481,269
Accrued interest on bonds	172,967,451		295,740,832
Guarantee deposits	63,042,959		62,385,232
Other	110,787,474		137,520,224
Provision for other financial assets	(53,511,816	)	(52,494,450	)

	6,222,041,705		2,857,380,119

15. Other Assets

The details of other assets as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other receivables	195,150,962	—
Advance payments	57,376,162	39,142,703
Prepaid expenses	100,167,587	121,001,625
Prepaid value-added taxes	81,824	33,293
Others	11,404,058	13,406,610

	364,180,593	173,584,231

16. Deposit Liabilities

The details of deposit liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Customers’ deposits
Customers’ deposits for brokerage	8,542,825,436	5,773,748,168
Customers’ deposits for exchange-traded derivatives trading	651,366,156	456,979,182
Customers’ deposits for savings	17,247,349	6,997,054
Customers’ deposits for repo	61,456	61,541
Customers’ deposits for the investor of collective investment securities	652,343,006	456,285,969
Others	80,017	7,780

	9,863,923,420	6,694,079,694

Guarantee deposits
Guarantee deposits in foreign currency	1,529,562,995	680,406,569
Guarantee deposits in Korean won	731,162,021	370,164,013

	2,260,725,016	1,050,570,582

	12,124,648,436	7,744,650,276

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

17. Borrowings

The details of borrowings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Call money	1,290,000,000		820,000,000
Borrowings:
Borrowing from banks	1,030,634		—
Borrowing from KSFC	1,465,834,076		1,264,581,631
Asset-backed short-term bonds	730,000,000		430,000,000
CP borrowings	5,800,000,000		5,000,000,000
Securities sold under repurchase agreements	10,719,460,118		9,419,893,685
Short-term note issued	10,943,325,311		10,130,450,816
Debentures:
Debentures	4,620,470,000		3,461,000,000
Less: discount on debentures issued	(6,699,005	)	(5,588,531	)

	35,563,421,134		30,520,337,601

The details of call money as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		Interest rate (%)			2025			2024
Kiwoom Asset Management Co., Ltd. and others			2.60~2.90			1,290,000,000			820,000,000

The details of borrowings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Borrowings from bank	Kookmin Bank	4.51	1,030,634	—
Borrowings from KSFC	KSFC	2.73~2.94	1,465,834,076	1,264,581,631
Asset-backed short-term bonds	SK Securities Co., Ltd. and<br>others	3.18~3.20	730,000,000	430,000,000
CP borrowings	Hyundai Motor Securities Co.,<br>Ltd. and others	2.58~3.20	5,800,000,000	5,000,000,000

			7,996,864,710	6,694,581,631

The details of securities sold under repurchase agreements as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Customers	0.00~4.80	6,693,960,118	5,913,024,606
Financial institution	2.40~2.68	4,025,500,000	3,506,869,079

		10,719,460,118	9,419,893,685

The details of short-term note issued as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Individual	2.00~5.00	5,965,341,642	6,149,462,845
Corporate	2.00~4.50	4,977,983,669	3,980,987,971

		10,943,325,311	10,130,450,816

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The details of debentures as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
The 39-2nd unsecured public debenture		2021.03.04	2026.03.04	1.70	120,000,000		120,000,000
The 40-2nd unsecured public debenture		2021.04.23	2026.04.23	1.94	200,000,000		200,000,000
The 41-1st unsecured public debenture		2023.02.07	2025.02.07	3.88	—		330,000,000
The 41-2nd unsecured public debenture		2023.02.07	2026.02.06	3.85	210,000,000		210,000,000
The 42-1st unsecured public debenture		2023.06.26	2025.06.26	4.39	—		240,000,000
The 42-2nd unsecured public debenture		2023.06.26	2026.06.26	4.43	220,000,000		220,000,000
The 43—1st unsecured public debenture		2024.01.31	2025.07.31	3.94	—		160,000,000
The 43-2nd unsecured public debenture		2024.01.31	2026.01.30	3.94	230,000,000		230,000,000
The 43—3rd unsecured public debenture		2024.01.31	2027.01.29	3.98	410,000,000		410,000,000
The 44-1st unsecured public debenture		2024.04.23	2025.10.23	3.79	—		100,000,000
The 44-2nd unsecured public debenture		2024.04.23	2026.04.23	3.82	100,000,000		100,000,000
The 44—3rd unsecured public debenture		2024.04.23	2027.04.23	3.86	200,000,000		200,000,000
The 45—1st unsecured public debenture		2024.09.03	2026.09.03	3.56	220,000,000		220,000,000
The 45-2nd unsecured public debenture		2024.09.03	2027.09.03	3.56	280,000,000		280,000,000
The 46-1st unsecured public debenture		2025.02.19	2027.02.19	3.03	120,000,000		—
The 46-2nd unsecured public debenture		2025.02.19	2028.02.18	3.08	450,000,000		—
The 46-3rd unsecured public debenture		2025.02.19	2030.02.19	3.17	230,000,000		—
The 47-1st unsecured public debenture		2025.05.28	2027.05.28	2.72	220,000,000		—
The 47-2nd unsecured public debenture		2025.05.28	2028.05.26	2.76	380,000,000		—
The 48-1st unsecured public debenture		2025.09.09	2030.09.09	2.91	100,000,000		—
The 48-2nd unsecured public debenture		2025.09.09	2028.09.08	2.79	440,000,000		—
The 48-3nd unsecured public debenture		2025.09.09	2027.09.09	2.72	60,000,000		—
The 21-1 public debenture in foreign currency ^1^		2021.11.01	2026.11.01	2.13	430,470,000		441,000,000

					4,620,470,000		3,461,000,000

Less: Discount on debentures issued					(6,699,005	)	(5,588,531	)

					4,613,770,995		3,455,411,469

^1^	The issuance price of this public debenture is US$ 300,000,000.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in borrowings for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	30,520,337,601	27,393,887,530
Increase(decrease) in call money	470,000,000	(420,000,000	)
Increase in borrowings from banks	1,030,634	—
Increase in borrowings from KSFC	201,252,445	1,761,697
Increase in asset-backed short-term bonds	300,000,000	55,000,000
Increase in CP borrowings	800,000,000	1,620,000,000
Increase in securities sold under repurchase agreements	1,299,566,433	383,796,062
Increase in short-term note issued	812,874,495	542,939,794
Increase in debentures	1,158,359,526	942,952,518

Ending balance	35,563,421,134	30,520,337,601

18. Post-employment Benefits

18.1 Defined Benefit Plans

The details of defined benefit liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Present value of defined benefit obligations	82,973,538		78,860,310
Fair value of plan assets	(6,037,497	)	(10,971,828	)

Net defined benefit liabilities	76,936,041		67,888,482

The changes in the defined benefit obligation for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	78,860,310		74,927,348
Current service cost	23,138,111		22,230,351
Interest cost	2,099,064		2,436,755
Remeasurements:
Actuarial gains and losses arising from changes in demographic assumptions	2,888,700		34,904
Actuarial gains and losses arising from changes in financial assumptions	(636,407	)	4,697,042
Actuarial gains and losses arising from experience adjustments	6,339,828		1,535,882
Payments from plans:	(2,059,923	)	(1,291,060	)
Payments from the Company	(23,748,195	)	(21,182,524	)
Transfer to related companies	(3,907,950	)	(2,777,338	)
Gain or loss on settlement	—		(1,751,050	)

Ending balance	82,973,538		78,860,310

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in the fair value of plan assets for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	(10,971,828	)	(13,270,798	)
Interest income	(378,524	)	(549,651	)
Remeasurements:
Return on plan assets (excluding amounts included in interest income)	(8,352	)	180,223
Contributions by employers	(500,000	)	(1,400,000	)
Payments from plans:
Benefits paid	2,059,924		1,291,060
Transfer from related companies	—		—
Transfer to related companies	3,761,283		2,777,338

Ending balance	(6,037,497	)	(10,971,828	)

Plan assets are composed of the detail assets that have no quoted price in active market. The details of plan assets as at December 31, 2025 and 2024, are as follows:

	2025				2024
(in thousands of Korean won)	Fair value		Composition(%)		Fair value		Composition(%)
Cash and deposits		4,949,407		81.98		10,122,822		92.26
Investment funds		1,088,090		18.02		849,006		7.74

		6,037,497		100.00		10,971,828		100.00

Key actuarial assumptions used as at December 31, 2025 and 2024, are as follows:

		2025		2024
Discount rate		DB (including special retirement by<br>salaries peak plan) 3.9%,<br>Compensation promotion DC 3.3%		DB (including special retirement by<br>salaries peak plan) 3.6%,<br>Compensation promotion DC 3.2%
Expected salary growth rate		DB : executives 4.7%<br><br>DC: Promotion + Base up: 2.8%,<br>Special retirement by salaries peak<br>plan :<br>4.7%		DB : executives 4.8%<br><br>DC: Promotion + Base up: 2.7%,<br>Special retirement by Salaries peak<br>plan :<br>4.8%

The sensitivity analysis for significant actuarial assumptions used to determine the present value of the defined benefit obligation as at December 31, 2025, are as follows:

		Effect on the present value of defined benefit obligation
(in thousands of Korean won)		Changes in<br>assumption			Increase			Decrease
Discount rate			0.50	%		(1,787,989	)		1,890,803
Expected salary growth rate^1^			0.50	%		1,698,477			(1,611,528	)
Retirement rate			0.50	%		(1,706,156	)		1,795,967
^1^	The sensitivity analysis for the expected salary growth rate is limited to special retirement by salaries peak<br>plan and DB.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The methods and assumptions used in preparing the sensitivity analyses did not change compared to the previous period.

The effect of defined benefit plan on future cash inflows

Expected maturity analysis of undiscounted pension benefits as at December 31, 2025, is as follows:

(in thousands of Korean won)
Pension benefits^1^		7,108,382	11,361,181	30,444,854	32,944,123	64,068,029	145,926,569
^1^	Fixed pension benefits of ~~W~~ 15,100,000 thousand under promotion compensation defined<br>contribution plan are excluded.
:---	:---

The weighted average duration of the defined benefit obligations is 5.75 years.

Expected contribution to post-employment benefit plans for the year ending December 31, 2026 are ~~W~~ 900,000 thousand.

18.2 Defined Contribution Plans

The Company recognized the expenses of ~~W~~ 8,159,197 thousand and ~~W~~ 4,775,485 thousand for defined contribution plans for the years ended December 31, 2025 and 2024, respectively.

19. Provisions

The details of provisions as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Provisions for non-financial guarantees		6,486,329	4,363,358
Provisions for asset retirement<br>obligation^1^		9,206,853	9,236,979
Provisions for lawsuits		56,008,858	75,204,159
Provisions for others		38,430,804	48,593,048

		110,132,844	137,397,544

^1^	The Company recognized the provision for asset retirement obligation in connection with the leased asset for<br>the expenditures expected to recover the asset.
:---	:---

The changes in provisions for non-financial guarantees for the years ended December 31, 2025 and 2024 are as follows,

	2025
(in thousands of Korean won)	The financial<br><br>instruments<br><br>applying<br><br>12-month<br><br>expected<br><br>credit losses		The financial<br>instruments<br>applying lifetime<br>expected<br>credit losses
			Non-<br><br>impaired			Impaired
Beginning		4,172,130		191,229			—
Transfer between stages
Transfer to lifetime expected credit<br>Losses(non-impaired)		—		—			—
Provision for losses (reversal of provision)		2,314,199		(191,229	)		—

Ending		6,486,329		—			—

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	The financial<br>instruments<br>applying<br>12-month<br>expected<br>credit<br>losses			The financial instruments<br>applying lifetime expected<br>credit losses
				Non-impaired			Impaired
Beginning		6,218,110			196,724			—
Transfer between stages
Transfer to lifetime expected credit<br>Losses(non-impaired)		(274,031	)		274,031			—
Provision for losses (reversal of provision)		(1,771,950	)		(279,526	)		—

Ending		4,172,129			191,229			—

The changes in other provisions for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Provisions<br>for asset<br>retirement<br>obligation			Provisions for<br>lawsuits			Provisions for<br>others			Total
Beginning			9,236,979			75,204,159			48,593,048			133,034,186
Contribution			214,584			33,784,354			7,452,000			41,450,938
Reversal			(28,790	)		(25,038,145	)		(7,191,713	)		(32,258,648	)
Use			(253,095	)		(27,941,510	)		(10,422,531	)		(38,617,136	)
Amortization of discounts			37,175			—			—			37,175

Ending			9,206,853			56,008,858			38,430,804			103,646,515

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Provisions<br>for asset<br>retirement<br>obligation			Provisions for<br>lawsuits			Provisions for<br>others			Total
Beginning			9,058,920			111,425,114			86,029,362			206,513,396
Contribution			215,297			12,982,498			25,314,711			38,512,506
Reversal			—			(34,099,212	)		(4,600,000	)		(38,699,212	)
Use			(87,527	)		(15,104,241	)		(58,151,025	)		(73,342,793	)
Amortization of discounts			50,289			—			—			50,289

Ending			9,236,979			75,204,159			48,593,048			133,034,186

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

20. Other Financial Liabilities

The details of other financial liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Other payables	5,318,972,539	1,779,667,697
Accrued expenses	142,124,827	162,550,204
Financial guarantee liabilities	65,010,404	85,380,689
Provisions for financial guarantee contracts	65,240,725	111,502,489
Leasehold deposits received	8,849,504	8,486,957
Lease liabilities	83,271,245	100,240,625
Other	85,218,302	46,469,386

	5,768,687,546	2,294,298,047

The changes in liabilities of the provisions for financial guarantee contracts for the years ended December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)	2025
	The financial<br><br>instruments<br><br>applying 12-month<br>expected credit losses			The financial instruments<br>applying lifetime expected<br>credit losses
				Non-impaired			Impaired
Beginning		5,755,592			105,746,897			—
Transfer between stages
Transfer to 12-month expected credit Losses		—			—			—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		(19,123	)		19,123			—
Transfer to lifetime expected credit Losses (Impaired)		—			(71,500,000	)		71,500,000
Provision (reversal)		4,224,050			113,466,124			—
Contract execution		—			(88,722,338	)		(71,500,000	)
Other (foreign exchange, etc)		(3,729,600	)		—			—

Ending		6,230,919			59,009,806			—

(in thousands of Korean won)	2024
	The financial<br><br>instruments<br>applying 12-month<br>expected credit losses			The financial instruments<br>applying lifetime expected<br>credit losses
				Non-impaired			Impaired
Beginning		21,881,154			65,743,019			—
Transfer between stages
Transfer to 12-month expected credit Losses		3,166,992			(3,166,992	)		—
Transfer to lifetime expected credit Losses<br>(Non-impaired)		(8,143,934	)		8,143,934			—
Transfer to lifetime expected credit Losses (Impaired)		—			(8,234,789	)		8,234,789
Provision (reversal)		(1,848,620	)		49,928,254			—
Execution of the contract		—			(6,666,529	)		(8,234,789	)
Sales		(9,300,000	)		—			—

Ending		5,755,592			105,746,897			—

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

21. Other Liabilities

The details of other liabilities as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Account payables	—	7,162,892
Accrued expenses	342,617,781	288,909,701
Accrued dividends	1,359,608	1,359,608
Advances from customers	11,372,180	5,875,006
Unearned revenue	7,561,159	11,075,339
Taxes withheld	92,404,967	57,035,532
Other long-term employee benefits	6,600,261	7,244,299
Others	3,224,983	2,899,057

	465,140,939	381,561,434

22. Share Capital

The details of share capital as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won, except per share)		Authorized shares				Outstanding shares				Par value<br><br>per share				2025			2024
Ordinary share			1,000,000,000<br>shares				298,620,424<br>shares				5,000<br>won				1,493,102,120			1,493,102,120

There are no changes in ordinary shares for the years ended December 31, 2025 and 2024.

After the year ended December 31, 2025, in February 2026, the company issued 33,333,333 common shares at a per-share issuance price of ~~W~~ 21,000 (par value of KRW 5,000) through a resolution of the board of directors.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

23. Hybrid Securities

Details of hybrid security classified as equity as of December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Bond-type Hybrid Securities No.1^1^		March 31,<br>2022	Permanent	4.30	208,010,652	208,010,652
Bond-type Hybrid Securities No.2		May 30,<br><br>2022	Permanent	4.80	48,170,880	48,170,880
Bond-type Hybrid Securities No.3^2^		September<br>30, 2022	Permanent	5.50	249,948,780	249,948,780
Bond-type Hybrid Securities No.4^3^		May 8,<br>2023	Permanent	5.35	119,963,080	119,963,080
Bond-type Hybrid Securities No.5		March 21,<br>2024	Permanent	5.22	129,999,380	129,999,380

					756,092,772	756,092,772

^1^	As at December 31, 2025 and 2024, among the hybrid securities issued by the Company, the balance held by<br>KB Financial Group, a related party of the Company, is ~~W~~ 200,000 million.
:---	:---
^2^	As at December 31, 2025 and 2024, among the hybrid securities issued by the Company, the balance held by<br>KB Financial Group, a related party of the Company, is ~~W~~ 230,000 million.
:---	:---
^3^	As at December 31, 2025 and 2024, among the hybrid securities issued by the Company, the balance held by<br>KB Financial Group, a related party of the Company, is ~~W~~ 100,000 million.
:---	:---

The Company may extend the maturity under the same conditions at the time of maturity of the above hybrid securities, and interest payment may be deferred except in cases where a cash dividend or stock dividend has been resolved for common stock. Above hybrid securities are early redeemable by the Company after 5 years from the issuance date and each interest payment date thereafter.

24. Other Paid-in Capital

The details of other paid-in capital as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Share premium ^1^		1,142,353,750		1,142,353,750
Gains and losses on sale of treasury share		(45,331,811	)	(45,331,811	)
Other equity ^2^		382,088,147		382,088,147

		1,479,110,086		1,479,110,086

^1^	Share premium was previously paid from stock issuance and new stock issuance due to merger and can only be used<br>for capitalization and deficit recovery.
:---	:---
^2^	Other equity arose from the paid-in capital increase of preferred share<br>and gains on merger.
:---	:---

There are no changes in other paid-in capital for the years ended December 31, 2025 and 2024.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

25. Retained Earnings

The details of retained earnings as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Legal reserve
Earned surplus reserve ^1^		201,656,298	173,656,298
Reserve for liability to compensate for damages^2^		500,000	500,000
Voluntary reserves		2,109,442,799	1,889,816,387
Regulatory reserve for credit losses<br>^3^		66,404,685	47,300,393
Unappropriated retained earnings		279,919,795	546,730,704

		2,657,923,577	2,658,003,782

^1^	The Commercial Act of the Republic of Korea requires the Company to appropriate, as a legal reserve, an amount<br>equal to a minimum of 10% of cash dividends paid until such reserve equals 50% of its issued share capital. The reserve is not available for the payment of cash dividends, but may be transferred to share capital or used to reduce accumulated<br>deficit.
:---	:---
^2^	The Company provides reserve for loss on electronic financial transactions to make reparation for the damage in<br>process of the electronic transfers or operations. Also, the Company provides reserve to compensate for inflicted damage on a credit information subject when violating the Credit Information Use and Protection Act.
:---	:---
^3^	The Company accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for<br>possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Financial Supervisory Service.
:---	:---

Changes in retained earnings for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance	2,658,003,782		2,261,273,077
Profit for the year	613,382,928		582,368,985
Dividends	(580,000,000	)	(150,000,000	)
Dividends of hybrid securities	(38,599,700	)	(37,064,078	)
Replacement due to disposal of equity investments at FVOCI	1,051,210		1,425,798
Reclassification of revaluation surplus due to disposal of property and equipment	4,085,357		—

Ending balance	2,657,923,577		2,658,003,782

The amount of dividends and dividends per share for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in Korean won and number of shares)		Type of<br>share		Number of<br>shares<br>outstanding				Number of<br>treasury<br><br>shares			Number of<br>dividend<br>shares				Dividend<br>per<br>share			Total dividend<br><br>(In thousands of<br>Korean won)
Interim dividend		Ordinary<br>share			298,620,424<br>shares				—			298,620,424<br><br>shares				1,004			300,000,000
Annual dividend		Ordinary<br>share			298,620,424<br>shares				—			298,620,424<br><br>shares				937			280,000,000
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in Korean won and number of shares)		Type of<br>share		Number of<br>shares<br>outstanding				Number of<br>treasury<br><br>shares			Number of<br>dividend<br>shares				Dividend<br>per<br>share			Total dividend<br><br>(In thousands of<br>Korean won)
Annual dividend		Ordinary<br>share			298,620,424<br>shares				—			298,620,424<br><br>shares				502			150,000,000

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Appropriation of retained earnings for the years ended December 31, 2025 and 2024, consists of:

	2025				2024
(in thousands of Korean won)	(Expected date of appropriation:<br>March 24, 2026)				(Date of appropriation:<br>March 21, 2025)
Unappropriated retained earnings
Balance at the beginning of year		—				—
Changes of accounting policies		—				—
Interim dividend		(300,000,000	)			—
Dividends of hybrid securities		(38,599,700	)			(37,064,078	)
Replacement due to disposal of equity investments at FVOCI		1,051,211				1,425,798
Replacement of Revaluation Surplus of property and equipment		4,085,357				—
Profit for the year		613,382,928		279,919,796		582,368,985		546,730,705

Transfers such as discretionary reserves
Regulatory reserve for credit losses		8,837,499				—
Voluntary reserves				8,837,499		—		—

				288,757,295				546,730,705

Appropriation of retained earnings
Earned surplus reserve		30,000,000				28,000,000
Regulatory reserve for credit losses		—				19,104,292
Voluntary reserves		258,757,295				219,626,413
Dividends		—		288,757,295		280,000,000		546,730,705

(cash dividends per ordinary share: ~~W~~ - (-%) in 2025)
(cash dividends per ordinary share: ~~W~~ 937 (18.75%) in 2024)
Unappropriated retained earnings carried forward to subsequent year				—				—

Payout and dividend yield ratios as at December 31, 2025 and 2024, are as follows:

	2025			2024
	Ordinary share			Ordinary share
	Interim dividend			Annual dividend
Number of shares outstanding		298,620,424			298,620,424
Number of treasury shares		—			—
Number of dividend shares		298,620,424			298,620,424
Par value per share (in Korean won)		5,000			5,000
Payout ratio		20.09	%		18.75	%
Scheduled dividends (in thousands of Korean won)		300,000,000			280,000,000
Dividends per share (in Korean won)		1,004			937

The Company accumulates allowances for possible loan losses in accordance with Korean IFRS and reserve for possible loan losses as much as the amount below the provision of allowances according to minimum accumulation ratio required by Regulation on Supervision of Financial Investment.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The details of the regulatory reserve for credit losses (reversal of reserve) to be appropriated as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning	66,404,685		47,300,393
Amounts to be reserved (reversed)	(8,837,499	)	19,104,292

Ending	57,567,186		66,404,685

The adjusted profit of the year after reflection of reserve for credit losses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Profit for the year before reserve for credit loss		613,382,928	582,368,985
Amounts to be reversed (reserved)		8,837,499	(19,104,292	)

Adjusted profit after reversal (provision) of reserve for credit losses^1^		622,220,427	563,264,693

^1^	Reserve for credit loss is announced by Article 3 Clause 8 of the Regulation on Financial Investment Business.<br>Adjusted profit after reserve for credit losses is not based on Korean IFRS and is calculated on the assumption that provision or reversal of reserve for credit losses before tax is adjusted to the profit.
:---	:---

26. Other Components of Equity

The details of other components of equity as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Changes in the fair value of financial assets at FVOCI	323,618,057		296,080,981
Revaluation surplus	57,191,703		62,144,795
Remeasurements of net defined benefit liabilities	(53,761,276	)	(47,538,042	)
Gain or loss on financial liabilities designated at FVTPL due to the change of credit<br>risk	(20,522,685	)	(17,297,087	)

	306,525,799		293,390,647

The changes in gain or loss on valuation of financial assets at FVOCI for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		296,080,981		290,063,237
Gain on valuation		54,963,762		13,894,324
Tax effect of gain (loss) on valuation<br>^1^		(20,300,855	)	(3,668,102	)
Transfer to gain due to disposal or impairment		(9,681,835	)	(5,718,041	)
Tax effect of transfer ^1^		2,556,004		1,509,563

Ending balance		323,618,057		296,080,981

^1^	Including income tax effect (Note 35)
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in gain on revaluation of property and equipment for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		62,144,795		62,144,795
Replacement due to disposal of revaluated assets		(5,550,756	)	—
Tax effect related to replacement due to disposal of revaluated assets ^1^		597,664		—

Ending balance		57,191,703		62,144,795

^1^	Including income tax effect (Note 35)
:---	:---

The changes in remeasurements of the net defined benefit liability for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		(47,538,042	)	(42,792,277	)
Changes during the year		(8,583,771	)	(6,448,050	)
Tax effect ^1^		2,360,537		1,702,285

Ending balance		(53,761,276	)	(47,538,042	)

^1^	Including income tax effect (Note 35)
:---	:---

The change in gain or loss on financial liabilities designated at FVTPL due to the change of credit risk for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Beginning balance		(17,297,087	)	(11,782,162	)
Changes during the year		(4,805,676	)	(7,493,104	)
Tax effect ^1^		1,580,078		1,978,179

Ending balance		(20,522,685	)	(17,297,087	)

^1^	Including income tax effect (Note 35)
:---	:---

27. Fee and Commission Income and Expense

The details of fee and commission income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Brokerage commissions	743,977,909	527,054,557
Underwriting commissions	168,967,690	173,075,978
Brokerage commissions on collective investment securities	34,291,973	23,565,918
Management fee on asset management	50,759,131	38,491,400
Commissions on merger and acquisition	55,334,944	90,377,909
Trust fees and commissions	20,822,534	17,866,581
Other commissions	128,085,570	125,104,830

	1,202,239,751	995,537,173

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The details of fee and commission expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Trading commission	71,986,888	56,741,202
Advisory fees	4,348,664	3,047,910
Investment management delegation fees	148,063	282,523
Commission fees on group brand	19,843,297	21,019,189
Contributions to other institutions	9,461,193	9,056,725
Others	162,519,857	122,784,021

	268,307,962	212,931,570

28. Gain or Loss on Valuation and Disposal of Financial Instruments

The details of gain or loss on valuation and disposal of financial instruments for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Financial instruments at FVTPL			3,763,474,972			1,713,728,642			2,049,746,330
Financial instruments designated at FVTPL			145,592,815			658,229,659			(512,636,844	)
Derivative financial instruments			5,719,270,737			7,030,814,545			(1,311,543,808	)
Financial assets at FVOCI ^1^			27,617,523			4,831,584			22,785,939

			9,655,956,047			9,407,604,430			248,351,617

^1^	Gain or loss on valuation of financial assets at FVOCI is excluded.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Financial instruments at FVTPL			1,841,452,937			1,549,680,899			291,772,038
Financial instruments designated at FVTPL			324,748,471			640,871,724			(316,123,253	)
Derivative financial instruments			4,541,514,495			4,387,085,652			154,428,843
Financial assets at FVOCI ^1^			13,207,427			717,576			12,489,851

			6,720,923,330			6,578,355,851			142,567,479

^1^	Gain or loss on valuation of financial assets at FVOCI is excluded.
:---	:---

The details of gain or loss on valuation and disposal of financial instruments at FVTPL for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Financial assets at FVTPL			3,600,983,147			923,867,064			2,677,116,083
Financial liabilities at FVTPL			162,491,825			789,861,578			(627,369,753	)

			3,763,474,972			1,713,728,642			2,049,746,330

		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Financial assets at FVTPL			1,484,814,072			1,191,769,358			293,044,714
Financial liabilities at FVTPL			356,638,865			357,911,541			(1,272,676	)

			1,841,452,937			1,549,680,899			291,772,038

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The details of gain or loss on valuation and disposal of financial instruments designated at FVTPL for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold			98,914,557			511,123,772			(412,209,215	)
Other OTC derivative-combined contract sold			18,405,238			99,087,125			(80,681,887	)
Exchange traded notes sold			28,273,020			48,018,762			(19,745,742	)

			145,592,815			658,229,659			(512,636,844	)

		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Financial liabilities designated at FVTPL
Derivatives-linked securities sold			266,262,027			526,918,763			(260,656,736	)
Other OTC derivative-combined contract sold			39,681,189			77,671,319			(37,990,130	)
Exchange traded notes sold			18,805,255			36,281,642			(17,476,387	)

			324,748,471			640,871,724			(316,123,253	)

The details of gain or loss on valuation and disposal of derivative financial instruments for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Interest rate			2,084,073,388			1,998,189,329			85,884,059
Currency			585,940,563			661,682,146			(75,741,583	)
Stock			2,781,415,598			4,157,523,762			(1,376,108,164	)
Credit			59,327,916			55,681,259			3,646,657
Commodity			134,684,934			112,210,345			22,474,589
Others			73,828,338			45,527,704			28,300,634

			5,719,270,737			7,030,814,545			(1,311,543,808	)

		2024
---	---	:---:	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Gain			Loss			Net
Interest rate			1,254,844,029			1,355,656,950			(100,812,921	)
Currency			756,112,000			702,054,414			54,057,586
Stock			2,346,946,346			2,068,252,287			278,694,059
Credit			46,411,148			42,064,301			4,346,847
Commodity			63,666,021			57,086,321			6,579,700
Others			73,534,951			161,971,379			(88,436,428	)

			4,541,514,495			4,387,085,652			154,428,843

The details of gain or loss on disposal of financial assets at FVOCI for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Gain			Loss			Net
Debt instruments			27,617,523			4,831,584			22,785,939

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Gain			Loss			Net
Debt instruments			13,207,427			717,576			12,489,851

29. Interest Income and Interest Expense

The details of interest income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Interest on financial assets at FVTPL
Interest on debt instruments at FVTPL		663,227,607	675,737,193
Interest on loans at FVTPL		36,252,250	14,455,538
Interest on commercial papers		110,681,906	149,585,454

		810,161,763	839,778,185

Interest on financial assets at FVOCI and financial assets measured at amortised cost
Interest on loans measured at amortised cost		11,792,909	7,418,368
Interest on debt instruments at FVOCI		217,346,070	199,362,668
Interest on broker’s loans		236,506,944	221,243,066
Interest on loans		175,340,727	210,184,851
Interest on deposits with KSFC		36,351,403	32,054,407
Interest on certificate of deposit		6,341	778,877
Interest on deposits with financial institution		466,358	129,946
Interest on bonds purchased under resale agreements		43,788,732	53,913,386
Gains on transactions of certificates of deposits		51,910	79,435
Interest on deposits		33,707,015	27,459,312
Interest on other receivables		1,157,351	769,006
Others ^1^		12,805,927	17,480,435

		769,321,687	770,873,757

		1,579,483,450	1,610,651,942

^1^	Interest on lease receivables of ~~W~~ 594 million and ~~W~~ 779 million<br>for the year ended December 31, 2025 and 2024, respectively, are included.
:---	:---

The details of interest expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Interest on borrowings		51,611,078	63,068,307
Interest on customers’ deposits		67,628,807	57,234,396
Interest on bonds sold under repurchase agreements		260,275,600	305,570,078
Interest on call money		22,920,036	26,066,872
Losses on transactions of certificates of deposit		7	13
Interest on debentures		141,777,794	109,656,787
Interest on short-term note issued		467,353,331	486,374,722
Interest on asset-backed short-term bonds		5,744,552	13,124,433
Fees for the proceeds from the sale of stocks loaned		1,135	41
Others ^1^		3,883,759	4,769,826

		1,021,196,099	1,065,865,475

^1^	Interest on lease liabilities of ~~W~~ 2,932 million and ~~W~~<br>3,700 million for the year ended December 31, 2025 and 2024, respectively, are included.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

30. Gain or Loss on Valuation and Disposal of Financial Assets measured at Amortised Costs

The details of gain or loss on valuation and disposal of financial assets measured at amortised cost for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain(loss) on valuation of financial assets measured at amortised cost
Reversal(provision) of allowance for credit losses of loans	(42,459,064	)	(29,327,335	)
Reversal(provision) of allowance for credit losses of deposits	(321,555	)	(448,028	)
Reversal(provision) of allowance for credit losses of other financial assets	(1,017,366	)	(971,963	)
Gain(loss) on disposal of financial assets measured at amortised cost
Gain(loss) on disposal of loans measured at amortised cost	(2,579,795	)	37,042

	(46,377,780	)	(30,710,284	)

31. Gain or Loss on Foreign Currency Transactions

The details of gain on foreign currency transactions for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain on foreign currency transactions	937,625,208	594,712,201
Gain on foreign exchange translation	255,360,531	429,901,261

	1,192,985,739	1,024,613,462

The details of loss on foreign currency transactions for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Loss on foreign currency transactions	914,179,823	585,924,414
Loss on foreign exchange translation	188,448,790	295,809,717

	1,102,628,613	881,734,131

32. Other Operating Income and Other Operating Expenses

The details of other operating income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Dividend income	107,948,741	86,535,185
Distribution income	137,941,327	92,735,398
Reversal of provision for credit loss	9,263,519	56,295,878
Gains on sale of general commodity	2,395,457	—
Others	5,063,575	10,326,676

	262,612,619	245,893,137

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The details of other operating expenses for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Provision for credit losses	129,076,664	102,324,037
Others	37,497,857	45,918,100

	166,574,521	148,242,137

33. Selling and Administrative Expenses

(a)	The details of selling and administrative expenses for the years ended December 31, 2025 and 2024, are as<br>follows:
(in thousands of Korean won)		2025			2024
---	---	:---:	---	---	:---:	---
Labor costs
Salaries			503,451,805			432,362,399
Post-employment benefits			33,017,848			27,141,890
Retirement bonus			2,662,080			15,802,956
Other long-term employee benefits			547,163			837,170
Employee benefits			101,890,957			97,776,901

			641,569,853			573,921,316

Other selling and administrative expenses
Employee benefits			11,565,338			11,539,189
Sales promotion expenses			1,667,169			1,560,973
Computer system operation expenses			75,507,590			70,704,152
Management expenses for rent			20,982,667			19,849,051
Commissions			23,991,087			25,467,759
Research and development			437,305			377,327
Advertising expenses			29,920,338			29,476,761
Depreciation			49,751,683			46,359,943
Training expenses			2,548,662			2,484,272
Amortization expenses of intangible assets			58,163,647			54,188,259
Taxes and dues			55,394,560			43,621,051
Consignment fees			212,660			3,020,429
Others			41,522,669			43,279,097

			371,665,375			351,928,263

			1,013,235,228			925,849,579

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(b)	Stock Grant Agreement

KB Financial Group, the parent company, has entered into a stock-based compensation agreement (Stock Grant) with its executives and employees. KB Financial Group and the Company settle the expenses incurred pursuant to this agreement. The Company recognizes the compensation amount it incurs annually pursuant to the agreement as an expense, recognized as selling and administrative expenses.

The details of the share grants linked to long-term performance as at December 31, 2025, are as follows:

(In number of shares)	Grant date			Vesting conditions
Series 1-1	2010-1-1	732	160	Service, vesting conditions : market 40%, non-market 60%
Series 1-8	2011-1-1	766	219	Service, vesting conditions : market 40%, non-market 60%
Series 1-10	2012-1-1	1,175	384	Service, vesting conditions : market 40%, non-market 60%
Series 1-11	2012-6-18	708	142	Service, vesting conditions : market 40%, non-market 60%
Series 1-13	2013-1-1	2,532	749	Service, vesting conditions : market 40%, non-market 60%
Series 1-19	2015-2-24	1,812	584	Service, vesting conditions : market 30%, non-market 70%
Series 1-21	2016-1-1	5,091	739	Service, vesting conditions : market 30%, non-market 70%
Series 1-22	2016-12-30	32,669	7,643	Service, vesting conditions : market 20%, non-market 80%
Series 1-24	2017-2-24	1,698	1,516	Service, vesting conditions : market 20%, non-market 80%
Series 1-26	2017-9-4	1,551	1,028	Service, vesting conditions : market 20%, non-market 80%
Series 1-28	2018-1-1	6,739	2,253	Service, vesting conditions : market 20%, non-market 80%
Series 1-30	2019-1-1	35,457	19,341	Service, vesting conditions : market 20%, non-market 80%
Series 1-31	2019-2-24	809	637	Service, vesting conditions : market 20%, non-market 80%
Series 1-32	2019-3-4	1,888	1,021	Service, vesting conditions : market 20%, non-market 80%
Series 1-33	2019-6-1	2,246	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-34	2019-9-1	2,927	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-35	2019-9-4	358	207	Service, vesting conditions : market 20%, non-market 80%
Series 1-36	2019-5-27	1,167	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-37	2020-1-1	47,886	5,017	Service, vesting conditions : market 20%, non-market 80%
Series 1-38	2020-3-6	2,856	411	Service, vesting conditions : market 0%, non-market 100%
Series 1-39	2020-8-1	4,003	453	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1	98,808	18,343	Service, vesting conditions : market 20%, non-market 80%
Series 1-40	2021-1-1	5,675	747	Service, vesting conditions : market 0%, non-market 100%
Series 1-41	2021-3-4	3,591	1,856	Service, vesting conditions : market 20%, non-market 80%

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Series 1-42		2021-3-15	5,034	913	Service, vesting conditions : market 20%, non-market 80%
Series 1-43		2021-5-27	604	—	Service, vesting conditions : market 20%, non-market 80%
Series 1-44		2021-6-1	2,904	1,487	Service, vesting conditions : market 20%, non-market 80%
Series 1-45		2021-8-1	2,320	660	Service, vesting conditions : market 20%, non-market 80%
Series 1-46		2021-9-1	3,201	547	Service, vesting conditions : market 20%, non-market 80%
Series 1-47		2022-1-1	58,681	14,237	Service, vesting conditions : market 20%, non-market 80%
Series 1-48		2022-2-17	1,990	1,596	Service, vesting conditions : market 20%, non-market 80%
Series 1-49		2022-3-6	928	86	Service, vesting conditions : market 0%, non-market 100%
Series 1-50		2022-03-14	588	562	Service, vesting conditions : market 20%, non-market 80%
Series 1-51		2022-05-09	2,839	2,524	Service, vesting conditions : market 20%, non-market 80%
Series 1-52		2022-07-18	190	146	Service, vesting conditions : market 20%, non-market 80%
Series 1-53		2022-08-01	3,587	3,053	Service, vesting conditions : market 20%, non-market 80%
Series 1-54		2022-08-16	3,627	3,000	Service, vesting conditions : market 20%, non-market 80%
Series 1-55		2023-01-01	76,500	61,213	Service, vesting conditions : market 20%, non-market 80%
Series 1-55		2023-01-01	5,492	5,274	Service, vesting conditions : market 0%, non-market 100%
Series 1-56		2023-02-15	3,161	3,355	Service, vesting conditions : market 20%, non-market 80%
Series 1-57		2023-03-04	3,076	2,807	Service, vesting conditions : market 20%, non-market 80%
Series 1-58		2023-03-15	1,367	276	Service, vesting conditions : market 20%, non-market 80%
Series 1-59		2023-06-01	2,876	2,686	Service, vesting conditions : market 20%, non-market 80%
Series 1-60		2023-08-01	3,004	3,806	Service, vesting conditions : market 20%, non-market 80%
Series 1-61		2023-09-01	3,390	4,515	Service, vesting conditions : market 20%, non-market 80%
Series 1-62		2024-01-01	78,235	111,382	Service, vesting conditions : market 20%, non-market 80%
Series 1-63		2024-02-17	953	917	Service, vesting conditions : market 20%, non-market 80%
Series 1-64		2024-05-09	2,432	3,218	Service, vesting conditions : market 20%, non-market 80%
Series 1-65		2024-08-01	429	422	Service, vesting conditions : market 20%, non-market 80%
Series 1-66		2024-08-16	397	345	Service, vesting conditions : market 20%, non-market 80%
Series 1-67		2025-01-01	37,684	22,208	Service, vesting conditions : market 30%, non-market 70%
Series 1-67		2025-01-01	4,312	2,156	Service, vesting conditions : market 0%, non-market 100%
Series 1-68		2025-02-01	1,704	779	Service, vesting conditions : market 30%, non-market 70%
Series 1-69		2025-02-15	916	916	Service, vesting conditions : market 30%, non-market 70%
Series 1-70		2025-08-01	1,552	325	Service, vesting conditions : market 30%, non-market 70%
Series 1-71		2025-09-01	1,590	265	Service, vesting conditions : market 30%, non-market 70%

			578,707	319,126

^1^	The number of maximum payable shares per executive as at December 31, 2025.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The details of share grants linked to short-term performance as at December 31, 2025, are as follows:

(In number of shares)		Grant date			Vesting conditions^2^
Series 2-3		2016-1-1	5,454	1,241	Proportional to service period, vesting conditions satisfied
Series 2-4		2017-1-1	21,346	6,970	Proportional to service period, vesting conditions satisfied
Series 2-5		2018-1-1	30,248	13,842	Proportional to service period, vesting conditions satisfied
Series 2-6		2019-1-1	21,853	13,182	Proportional to service period, vesting conditions satisfied
Series 2-7		2020-1-1	28,507	14,535	Proportional to service period, vesting conditions satisfied
Series 2-8		2021-1-1	63,350	15,444	Proportional to service period, vesting conditions satisfied
Series 2-9		2022-1-1	51,393	27,367	Proportional to service period, vesting conditions satisfied
Series 2-10		2023-1-1	71,755	54,262	Proportional to service period, vesting conditions satisfied
Series 2-11		2024-1-1	28,221	28,103	Proportional to service period, vesting conditions satisfied
Series 2-12		2025-1-1	22,418	22,418	Proportional to service period, vesting conditions satisfied
Series 3-3		2016-1-1	15,036	3,498	Proportional to service period, vesting conditions satisfied
Series 3-4		2017-1-1	12,112	5,631	Proportional to service period, vesting conditions satisfied
Series 3-5		2018-1-1	10,352	6,351	Proportional to service period, vesting conditions satisfied
Series 3-6		2019-1-1	18,194	11,852	Proportional to service period, vesting conditions satisfied
Series 3-7		2020-1-1	18,711	13,222	Proportional to service period, vesting conditions satisfied
Series 3-8		2021-1-1	89,386	23,467	Proportional to service period, vesting conditions satisfied
Series 3-9		2022-1-1	66,060	22,075	Proportional to service period, vesting conditions satisfied
Series 3-10		2023-1-1	76,048	52,628	Proportional to service period, vesting conditions satisfied
Series 3-11		2024-1-1	59,589	59,491	Proportional to service period, vesting conditions satisfied
Series 4-1		2017-12-31	23,667	21,865	Proportional to service period, vesting conditions satisfied
Series 4-2		2019-12-31	2,330	793	Proportional to service period, vesting conditions satisfied
Series 4-3		2020-12-31	10,649	1,396	Proportional to service period, vesting conditions satisfied
Series 4-4		2021-12-31	223,942	5,311	Proportional to service period, vesting conditions satisfied
Series 4-5		2022-12-31	205,947	60,248	Proportional to service period, vesting conditions satisfied
Series 4-6		2023-12-31	266,894	168,292	Proportional to service period, vesting conditions satisfied
Series 4-7		2024-12-31	247,951	238,014	Proportional to service period, vesting conditions satisfied

			1,691,413	891,498

^1^	The number of maximum payable shares per executive as at December 31, 2025.
:---	:---
^2^	Number of vested shares is determined by performance and paid for a deferred payment schedule over 3 to 5<br>years.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Share grants are measured at fair value using the Monte Carlo Simulation Model and assumptions used in determining the fair value as at December 31, 2025, are as follows:

(In Korean won)	Risk free<br>rate (%)	Fair value (Market<br>performance condition)	Fair value (Non-market<br>performance condition)
Series 1-1	2,556	—	125,944~125,944
Series 1-8	2,556	—	125,944~125,944
Series 1-10	2,556	—	125,944~125,944
Series 1-11	2,556	—	47,631~47,631
Series 1-13	2,556	—	47,631~125,944
Series 1-19	2,556	—	45,096~47,631
Series 1-21	2,556	—	45,096~125,944
Series 1-22	2,556	—	45,096~125,944
Series 1-24	2,556	—	45,096~56,379
Series 1-26	2,556	—	45,096~56,379
Series 1-28	2,556	—	45,096~125,944
Series 1-30	2,556	—	50,973~125,944
Series 1-31	2,556	—	45,096~56,379
Series 1-32	2,556	—	115,556~125,944
Series 1-35	2,556	—	45,096~56,379
Series 1-37	2,556	—	111,412~125,944
Series 1-38	2,556	—	125,944~125,944
Series 1-39	2,556	—	125,944~125,944
Series 1-40	2,556	—	107,266~125,944
Series 1-41	2,556	—	115,556~125,944
Series 1-42	2,556	—	120,094~125,944
Series 1-44	2,556	—	115,556~125,944
Series 1-45	2,556	—	120,094~125,944
Series 1-46	2,556	—	120,094~125,944
Series 1-47	2,556	—	111,412~125,944
Series 1-48	2,556	—	115,556~125,944
Series 1-49	2,556	—	125,944~125,944
Series 1-50	2,556	—	115,556~125,944
Series 1-51	2,556	—	115,556~125,944
Series 1-52	2,556	—	115,556~125,944
Series 1-53	2,556	—	115,556~125,944
Series 1-54	2,556	—	115,556~125,944
Series 1-55	2,556	—	107,266~125,944
Series 1-56	2,556	—	111,412~120,094
Series 1-57	2,556	—	115,556~125,944
Series 1-58	2,556	—	120,094~125,944
Series 1-59	2,556	—	115,556~125,944
Series 1-60	2,556	—	111,412~120,094
Series 1-61	2,556	—	111,412~120,094
Series 1-62	2,556	87,156~125,944	115,556~125,944
Series 1-63	2,556	72,231~87,156	72,231~79,280
Series 1-64	2,556	107,266~120,094	107,266~115,556
Series 1-65	2,556	87,156~125,944	115,556~125,944
Series 1-66	2,556	87,156~125,944	115,556~125,944
Series 1-67	2,556	74,382~115,478	107,266~120,094
Series 1-68	2,556	92,562~103,527	103,317~111,412
Series 1-69	2,556	105,128~118,841	111,412~120,094
Series 1-70	2,556	103,059~115,267	103,317~111,412

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(In Korean won)	Risk free<br>rate (%)	Fair value (Market<br>performance condition)	Fair value (Non-market<br>performance condition)
Series 1-71	2,556	103,317~115,556	103,317~111,412
Series 2-3	2,556	—	47,631~125,944
Series 2-4	2,556	—	45,096~125,944
Series 2-5	2,556	—	45,096~125,944
Series 2-6	2,556	—	45,096~125,944
Series 2-7	2,556	—	50,973~125,944
Series 2-8	2,556	—	111,412~125,944
Series 2-9	2,556	—	52,755~125,944
Series 2-10	2,556	—	107,266~125,944
Series 2-11	2,556	—	107,266~125,944
Series 2-12	2,556	—	103,317~120,094
Series 3-3	2,556	—	47,631~125,944
Series 3-4	2,556	—	45,096~125,944
Series 3-5	2,556	—	45,096~125,944
Series 3-6	2,556	—	45,096~125,944
Series 3-7	2,556	—	50,973~125,944
Series 3-8	2,556	—	111,412~125,944
Series 3-9	2,556	—	111,412~125,944
Series 3-10	2,556	—	107,266~125,944
Series 3-11	2,556	—	107,266~125,944
Series 4-1	2,556	—	45,096~56,379
Series 4-2	2,556	—	50,973~50,973
Series 4-3	2,556	—	50,973~50,973
Series 4-4	2,556	—	50,973~87,156
Series 4-5	2,556	—	52,755~125,944
Series 4-6	2,556	—	87,156~125,944
Series 4-7	2,556	—	115,556~125,944

The Company used the volatility of the stock price over the previous year as the expected volatility and used the dividend yield as the arithmetic mean of the dividend rate of one year before, two years before, and three years before the base year, in order to calculate fair value. Fair value is calculated based on risk free interest rate of 1 year-KTB rate.

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

34. Non-operating Income and Non-operating Expenses

The details of non-operating income for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Gain on disposal of property and equipment	18,683,486	—
Gain on disposal of investment properties	1,017,941	—
Gain on disposal of intangible assets	171,865	3,922,610
Reversal of impairment loss on intangible assets	393,000	1,019,296
Rent	6,905,004	6,978,502
Gain related to investments in subsidiaries and associates	23,810,298	27,744,956
Others	47,249,542	43,422,997

	98,231,136	83,088,361

The details of non-operating expenses for the years ended December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)
Loss on disposal of property and equipment		8,424	111,989
Depreciation of investment properties		503,230	480,124
Impairment loss on intangible assets		256,404	128,738
Loss related to investments in subsidiaries and associates^1^		91,521,846	37,605,049
Donation		6,745,377	7,252,185
Others		46,400,681	49,926,066

		145,435,962	95,504,151

^1^	During the year ended December 31, 2025, there were signs of impairment for investments related to<br>Star-Lord Alpha Flux General Investors Private Real Estate Investment Company No.11, GVA Europe Pre-IPO Private Investment Trust No.1 and LIFE Global Reits Pre-IPO<br>General Private Investment Trust 1 which were subsidiaries of the Company, and the estimated recoverable amount was lower than the book value, so KRW 44,900 million, KRW 6,217 million and KRW 13,402 million of impairment losses,<br>respectively, were recognized. Also during the year ended December 31, 2025, there were signs of impairment for investments related to Global One Professional Investment Type Private U.S. Real Estate Investment Trust No. 2(H) which was<br>associate of the Company, and the estimated recoverable amount was lower than the book value, so KRW 10,015 million of impairment losses, respectively, were recognized. The estimated recoverable amount was assessed using data available as at<br>December 31, 2025, and will be re-estimated by continuously reflecting changes thereafter.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

35. Tax Expense and Deferred Tax

The details of income tax expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Current tax
Current tax on profits for the year	38,960,452		270,636,227
Adjustments in respect of prior years	4,405,297		(763,296	)
Deferred tax
Origination and reversal of temporary differences	172,499,410		(99,329,364	)
Tax recognized directly in equity
Gain or loss on valuation for financial assets at FVOCI	(17,744,850	)	(2,158,539	)
Gain on revaluation of property and equipment	597,663		—
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit<br>risk	1,580,077		1,978,179
Remeasurements of net defined benefit liabilities	2,360,537		1,702,285
Tax effect derived from group’s income tax system	4,106,633		(12,920,249	)

Income tax expense	206,765,219		159,145,243

Reconciliations of profit before tax and tax expense for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Profit before tax (A)	820,148,147		741,514,228
Tax based on statutory rate	206,157,111		185,397,756
Adjustments
Non-deductible expense	4,844,479		6,044,292
Non-taxable income	(11,233,085	)	(13,325,036	)
Changes in deferred tax assets (liabilities) that have<br><br>not been recognized	1,840,868		(4,689,358	)
Effect from tax reduction and credit	(1,618,595	)	(1,379,761	)
Adjustment in respect of prior years	4,405,297		(763,296	)
Tax effect from group’s income tax system	4,106,633		(12,920,250	)
Changes in tax rate	(1,003,123	)	—
Others	(734,366	)	780,896

Tax expense (B)	206,765,219		159,145,243

Effective tax rate (B/A)	25.21	%	21.46	%

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The changes in deferred tax assets (liabilities) for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Beginning<br>balance				Profit (loss)<br>for the year				Other<br>comprehensive<br>income				Ending balance
Provision for impairment			161,330				6,722				—				168,052
Commissions income			5,481,022				1,584,077				—				7,065,099
Financial assets at FVOCI			(108,200,230	)			6,572,033				(17,744,850	)			(119,373,047	)
Defined benefit obligation			20,819,121				(361,935	)			2,360,537				22,817,723
Other long-term employee benefits			1,912,495				(97,423	)			—				1,815,072
Financial assets at FVTPL			56,750,938				(376,414,896	)			—				(319,663,958	)
Financial liabilities at FVTPL			(94,808,621	)			152,845,998				1,580,077				59,617,454
Accrued expenses			84,761,464				22,248,030				—				107,009,494
Dividends (specific overseas company)			10,378,007				1,290,069				—				11,668,076
Accrued income			(46,431,479	)			(10,515,424	)			—				(56,946,903	)
Property and equipment			(21,955,075	)			11,649				597,663				(21,345,763	)
Provisions for asset retirement obligation			2,438,563				93,322				—				2,531,885
Investments in associates and subsidiaries			(6,261,190	)			7,382,301				—				1,121,111
Derivatives			96,628,841				61,258,035				—				157,886,876
Loans			1,340,363				166,200				—				1,506,563
Intangible assets			(21,107,281	)			(178,045	)			—				(21,285,326	)
Plan assets			(2,896,563	)			610,804				—				(2,285,759	)
Advance depreciation provision			(2,401,725	)			(100,072	)			—				(2,501,797	)
Interest related to loan for construction			(51,184	)			1,745				—				(49,439	)
Others			88,324,459				(23,732,405	)			—				64,592,054

Subtotal			64,883,255				(157,329,215	)			(13,206,573	)			(105,652,533	)
Unrecognized deferred tax assets (liabilities)			(17,055,278	)			1,963,622				—				(15,091,656	)

Deferred tax assets (liabilities), net^1^			81,938,533				(159,292,837	)			(13,206,573	)			(90,560,877	)

^1^	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate,<br>applicable to the forecasted period when the temporary differences are reversed.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Beginning<br>balance				Profit (loss)<br>for the year				Other<br>comprehensive<br>income				Ending balance
Provision for impairment			136,402				24,928				—				161,330
Commissions income			9,136,660				(3,655,638	)			—				5,481,022
Financial assets at FVOCI			(105,219,052	)			(822,640	)			(2,158,538	)			(108,200,230	)
Defined benefit obligation			19,780,820				(663,984	)			1,702,285				20,819,121
Other long-term employee benefits			1,867,887				44,608				—				1,912,495
Financial assets at FVTPL			35,908,444				20,842,494				—				56,750,938
Financial liabilities at FVTPL			(237,598,071	)			140,811,271				1,978,179				(94,808,621	)
Accrued expenses			69,216,464				15,545,000				—				84,761,464
Dividends (specific overseas company)			9,278,179				1,099,828				—				10,378,007
Accrued income			(34,529,235	)			(11,902,244	)			—				(46,431,479	)
Property and equipment			(21,955,416	)			341				—				(21,955,075	)
Provisions for asset retirement obligation			2,391,555				47,008				—				2,438,563
Investments in associates and subsidiaries			(2,477,419	)			(3,783,771	)			—				(6,261,190	)
Derivatives			154,172,948				(57,544,107	)			—				96,628,841
Loans			1,506,318				(165,955	)			—				1,340,363
Intangible assets			(20,852,423	)			(254,858	)			—				(21,107,281	)
Plan assets			(3,503,491	)			606,928				—				(2,896,563	)
Advance depreciation provision			(2,401,725	)			—				—				(2,401,725	)
Interest related to loan for construction			(54,907	)			3,723				—				(51,184	)

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Others		95,439,311		(7,114,852	)	—	88,324,459

Subtotal		(29,756,751	)	93,118,080		1,521,926	64,883,255
Unrecognized deferred tax assets (liabilities)		(12,365,920	)	(4,689,358	)	—	(17,055,278	)

Deferred tax assets (liabilities), net^1^		(17,390,831	)	97,807,438		1,521,926	81,938,533

^1^	The income tax rates used in computing deferred tax assets (liabilities) are the expected average tax rate,<br>applicable to the forecasted period when the temporary differences are reversed.
:---	:---

Temporary differences which were not recognized due to uncertainty of their realization as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Taxable temporary difference
Investments in subsidiaries	59,592,187	65,733,049
Intangible assets	58,888,990	58,888,990
Others	445,550	445,550

	118,926,727	125,067,589

Deductible temporary difference
Commission	9,704,616	9,239,637
Dividends	27,650,075	24,531,338
Investments in subsidiaries	23,987,983	23,987,983
Others	2,705,305	2,705,305

	64,047,979	60,464,263

	54,878,748	64,603,326

Details of income taxes that are charged or credited directly to equity for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Recognized in other comprehensive income
Gain or loss on valuation for financial assets at FVOCI	(20,300,855	)	(3,668,101	)
Changes on the fair value of financial liabilities designated at FVTPL due to the change of credit<br>risk	1,580,077		1,978,179
Gain on revaluation of property and equipment	597,663		—
Remeasurements of net defined benefit liabilities	2,360,537		1,702,285
Reclassified to profit or loss
Gain or loss on valuation for financial assets at FVOCI	2,556,004		1,509,563

	(13,206,574	)	1,521,926

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

36. Carrying Amounts of Financial Instruments by Category

The carrying amounts of financial assets and liabilities by category as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Financial asset<br>measured at fair<br>value through<br><br>profit or loss				Financial asset<br>measured at fair<br>value through<br>Other<br>Comprehensive<br>income			Financial asset<br>measured at<br>amortised cost			Totals
Financial Assets
Cash and deposits			—				—			3,767,944,129			3,767,944,129
Financial Assets at FVTPL			42,376,304,043				—			—			42,376,304,043
Derivative financial assets			1,611,961,053				—			—			1,611,961,053
Equity instruments at FVOCI			—				1,498,045,156			—			1,498,045,156
Debt instruments at FVOCI			—				7,961,634,491			—			7,961,634,491
Loans measured at amortised cost			—				—			8,635,267,843			8,635,267,843
Other financial assets			—				—			6,222,041,705			6,222,041,705

			43,988,265,096				9,459,679,647			18,625,253,677			72,073,198,420

		2025
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial<br>liabilities<br>measured at fair<br>value through<br><br>profit or loss			Financial<br>liabilities<br>designated at<br>fair value<br>through profit<br>or loss			Financial<br>liabilities<br>measured at<br>amortised cost			Derivative<br>liabilities<br>(hedging)			Totals
Financial Liabilities
Financial liabilities at FVTPL			2,910,712,724			—			—			—			2,910,712,724
Financial liabilities designated at FVTPL			—			7,996,513,415			—			—			7,996,513,415
Derivative financial liabilities			2,084,123,555			—			—			2,911,200			2,087,034,755
Deposit liabilities			—			—			12,124,648,436			—			12,124,648,436
Borrowings			—			—			35,563,421,134			—			35,563,421,134
Other financial liabilities			—			—			5,768,687,546			—			5,768,687,546

			4,994,836,279			7,996,513,415			53,456,757,116			2,911,200			66,451,018,010

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Financial asset<br>measured at fair<br>value through<br><br>profit or loss				Financial asset<br>measured at fair<br><br>value through<br>Other<br>Comprehensive<br>income			Financial asset<br>measured at<br>amortised cost			Totals
Financial Assets
Cash and deposits			—				—			2,952,551,951			2,952,551,951
Financial Assets at FVTPL			36,753,823,519				—			—			36,753,823,519
Derivative financial assets			1,395,942,910				—			—			1,395,942,910
Equity instruments at FVOCI			—				1,353,191,016			—			1,353,191,016
Debt instruments at FVOCI			—				5,128,522,928			—			5,128,522,928
Loans measured at amortised cost			—				—			8,100,472,957			8,100,472,957
Other financial assets			—				—			2,857,380,119			2,857,380,119

			38,149,766,429				6,481,713,944			13,910,405,027			58,541,885,400

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial<br>liabilities<br>measured at fair<br>value through<br><br>profit or loss			Financial<br>liabilities<br>designated at<br>fair value<br>through profit<br>or loss			Financial<br>liabilities<br>measured at<br>amortised cost			Derivative<br>liabilities<br>(hedging)			Totals
Financial Liabilities
Financial liabilities at FVTPL			2,558,520,223			—			—			—			2,558,520,223
Financial liabilities designated at FVTPL			—			8,010,047,059			—			—			8,010,047,059
Derivative financial liabilities			1,918,358,178			—			—			4,309,200			1,922,667,378
Deposit liabilities			—			—			7,744,650,276			—			7,744,650,276
Borrowings			—			—			30,520,337,601			—			30,520,337,601
Other financial liabilities			—			—			2,294,298,047			—			2,294,298,047

			4,476,878,401			8,010,047,059			40,559,285,924			4,309,200			53,050,520,584

37. Financial Instruments

37.1 Fair Value of Financial Instruments by Class

Fair values of financial assets and financial liabilities as at December 31, 2025 and 2024, are as follows:

		2025				2024
(in thousands of Korean won)		Carrying<br><br>amount		Fair value		Carrying<br><br>amount		Fair value
Financial assets
Cash and deposits ^2^			3,767,944,129		3,767,944,129		2,952,551,951		2,952,551,951
Financial assets at FVTPL ^1^			42,376,304,043		42,376,304,043		36,753,823,519		36,753,823,519
Derivative financial assets ^1^			1,611,961,053		1,611,961,053		1,395,942,910		1,395,942,910
Financial assets at FVOCI			9,459,679,647		9,459,679,647		6,481,713,944		6,481,713,944
Loans measured at amortised cost			8,635,267,843		8,641,184,139		8,100,472,957		8,113,194,528
Other financial assets ^2^			6,222,041,705		6,222,041,705		2,857,380,119		2,857,380,119

			72,073,198,420		72,079,114,716		58,541,885,400		58,554,606,971

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---
^2^	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial<br>liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2025				2024
(in thousands of Korean won)		Carrying<br><br>amount		Fair value		Carrying<br><br>amount		Fair value
Financial liabilities
Deposit liabilities ^2^			12,124,648,436		12,124,648,436		7,744,650,276		7,744,650,276
Financial liabilities at FVTPL			2,910,712,724		2,910,712,724		2,558,520,223		2,558,520,223
Financial liabilities designated at FVTPL<br>^1^			7,996,513,415		7,996,513,415		8,010,047,059		8,010,047,059
Derivative financial liabilities ^1^			2,087,034,755		2,087,034,755		1,922,667,378		1,922,667,378
Borrowings			35,563,421,134		35,564,607,436		30,520,337,601		30,543,358,672
Other financial liabilities ^2^			5,768,687,546		5,768,687,546		2,294,298,047		2,294,298,047

			66,451,018,010		66,452,204,312		53,050,520,584		53,073,541,655

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---
^2^	The fair value of cash and deposits, other financial assets, deposit liabilities and other financial<br>liabilities with short maturity dates or uncertain maturity dates is presented at their book amounts.
:---	:---

Fair value is the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For each class of financial assets and financial liabilities, the Company discloses the fair value of that 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.

37.2 Fair Value Hierarchy

Financial instruments measured at fair value are categorized within the fair value hierarchy, and the defined levels are as follows:

Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2		Fair value using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, prices) or indirectly (that is, derived from prices)
Level 3		Fair value using inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(a) Fair value hierarchy of financial instruments measured at fair value

The fair value hierarchy of financial assets and liabilities measured at fair value as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Financial assets at FVTPL – debt instruments<br>^1^			8,237,651,395			25,390,050,977			3,484,299,404			37,112,001,776
Financial assets at FVTPL - equity instruments			3,941,004,475			221,251,741			241,733,233			4,403,989,449
Financial assets at FVTPL - Loans			—			—			860,312,817			860,312,817
Derivative financial assets ^1^			167,013,754			1,233,151,220			211,796,079			1,611,961,053
Financial assets at FVOCI			419,821,510			8,520,489,732			519,368,406			9,459,679,648

			12,765,491,134			35,364,943,670			5,317,509,939			53,447,944,743

Financial liabilities
Financial liabilities at FVTPL			2,910,712,724			—			—			2,910,712,724
Financial liabilities designated at<br>FVTPL^1^			507,899,785			1,391,155,566			6,097,458,063			7,996,513,414
Derivative financial liabilities ^1^			129,319,840			1,536,831,449			420,883,465			2,087,034,754

			3,547,932,349			2,927,987,015			6,518,341,528			12,994,260,892

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Financial assets at FVTPL – debt instruments<br>^1^			7,516,138,758			23,609,885,486			2,767,557,635			33,893,581,879
Financial assets at FVTPL - equity instruments			1,468,890,974			209,125,333			244,764,778			1,922,781,085
Financial assets at FVTPL - Loans			—			—			937,460,555			937,460,555
Derivative financial assets ^1^			16,249,183			1,129,166,707			250,527,020			1,395,942,910
Financial assets at FVOCI			121,377,584			5,937,790,329			422,546,031			6,481,713,944

			9,122,656,499			30,885,967,855			4,622,856,019			44,631,480,373

Financial liabilities
Financial liabilities at FVTPL			2,558,520,223			—			—			2,558,520,223
Financial liabilities designated at<br>FVTPL^1^			300,489,734			1,529,491,945			6,180,065,380			8,010,047,059
Derivative financial liabilities ^1^			180,111,464			1,149,293,786			593,262,128			1,922,667,378

			3,039,121,421			2,678,785,731			6,773,327,508			12,491,234,660

^1^	Deferred transaction gain or losses are adjusted in the carrying amount.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

37.3 Valuation techniques and inputs classified by Level 2

The details of the valuation techniques and inputs classified by Level 2 as at December 31, 2025 and 2024 are as follows:

(in thousands of Korean won)		2025			Valuation techniques		Inputs
Financial assets at FVTPL			25,611,302,718		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model, Net asset value and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate and<br>others
Derivative financial assets(trading)			1,233,151,220		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model, Option Pricing model and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility<br>and others
Financial assets at FVOCI			8,520,489,732		DCF Model		Discount rate, Interest rate and others

			35,364,943,670

Financial liabilities designated at FVTPL			1,391,155,566		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)			1,533,920,249		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model, Option Pricing model and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate,<br>volatility
Derivative financial liabilities(hedging)			2,911,200		DCF Model		Discount rate, exchange rate and others

			2,927,987,015

(in thousands of Korean won)		2024			Valuation techniques		Inputs
---	---	:---:	---	---	:---:	---	:---:
Financial assets at FVTPL			23,819,010,819		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model, Net asset value and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate and<br>others
Derivative financial assets(trading)			1,129,166,707		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model, Option Pricing model and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate, volatility<br>and others
Financial assets at FVOCI			5,937,790,330		DCF Model		Discount rate, Interest rate and others

			30,885,967,856

Financial liabilities designated at FVTPL			1,529,491,945		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model and others		Price of underlying asset, interest rate, dividend rate, volatility, discount rate
Derivative financial liabilities(trading)			1,144,984,586		DCF Model, Closed form formula, Monte Carlo Simulation, Black Scholes model, Hull and White<br>Model, Option Pricing model and others		Interest rate, price of underlying asset, exchange rate, credit spread, discount rate,<br>volatility
Derivative financial liabilities(hedging)			4,309,200		DCF Model		Discount rate, exchange rate and others

			2,678,785,731

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

37.4 Level 3 of the Fair Value Hierarchy Disclosure

(a) Valuation Process for Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

The fair value of financial instruments classified as Level 3 is determined by external valuation or self-valuation of the Company. Unobservable inputs are produced by the external appraiser or internal valuation system and the Company reviews the adequacy of the inputs. The Risk Management Council reviews the adequacy of the assessment methodology and valuation method of external appraiser and the internal valuation. The agenda of the Risk Management Council is being reported or approved by the Risk Committee.

(b) Changes in Fair Value Measurements Categories of the Fair Value hierarchy

The changes in financial instruments with Level 3 fair value for the years ended December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Financial assets<br><br>at FVTPL				Financial assets<br><br>at FVOCI			Net derivatives				Financial liabilities<br><br>designated at FVTPL
Beginning balance			3,949,782,968				422,546,031			(342,735,108	)			(6,180,065,379	)
Total gains or losses
Profit or loss			186,270,246				—			26,794,883				(398,176,409	)
Other comprehensive income			—				96,822,375			—				(2,870,980	)
Purchases			4,815,059,745				—			11,160				—
Sales			(4,370,719,375	)			—			(2,931	)			—
Issues			—				—			(6,709,605	)			(4,575,977,509	)
Settlements			—				—			117,963,852				5,059,632,215
Transfer within levels ^1^			5,951,870				—			(4,409,636	)			—

Ending balance			4,586,345,454				519,368,406			(209,087,385	)			(6,097,458,062	)

^1^	Transfer within levels occurred due to the change in the availability of observable market data on the<br>financial instruments.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial assets<br><br>at FVTPL				Financial assets<br><br>at FVOCI				Net derivatives				Financial liabilities<br><br>designated at FVTPL
Beginning balance			3,087,075,805				434,186,575				(663,925,237	)			(7,037,370,505	)
Total gains or losses
Profit or loss			33,785,817				—				(254,234,941	)			(266,914,729	)
Other comprehensive income			—				(11,640,544	)			—				(10,815,593	)
Purchases			2,723,954,471				—				3,907,013				—
Sales			(1,897,688,807	)			—				(5,253,440	)			—
Issues			—				—				(2,960,406	)			(4,200,663,614	)
Settlements			—				—				579,731,903				5,335,699,062
Transfer within levels ^1^			2,655,682				—				—				—

Ending balance			3,949,782,968				422,546,031				(342,735,108	)			(6,180,065,379	)

^1^	Transfer within levels occurred due to the change in the availability of observable market data on the<br>financial instruments.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2025
(in thousands of Korean won)		Financial assets<br><br>at FVTPL			Financial assets<br><br>at FVOCI			Net derivatives			Financial liabilities<br><br>designated at<br><br>FVTPL
Profit or loss
Gain or loss on valuation of financial instruments ^1^			114,252,281			—			115,017,628			(165,004,897	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI ^2^			—			96,822,375			—			—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk ^2^			—			—			—			(2,734,778	)

			114,252,281			96,822,375			115,017,628			(167,739,675	)

^1^	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or<br>Loss.
:---	:---
^2^	Included in other comprehensive income on the statements of comprehensive income.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Financial assets<br><br>at FVTPL				Financial assets<br><br>at FVOCI				Net derivatives				Financial liabilities<br><br>designated at<br><br>FVTPL
Profit or loss
Gain or loss on valuation of financial instruments ^1^			(8,282,906	)			—				(136,256,576	)			(39,526,996	)
Other comprehensive income
Gain or loss on valuation of financial assets at FVOCI ^2^			—				(11,640,544	)			—				—
Changes in fair value of financial liabilities at FVTPL due to the change of credit risk ^2^			—				—				—				(9,524,866	)

			(8,282,906	)			(11,640,544	)			(136,256,576	)			(49,051,862	)

^1^	Included in gain or loss on valuation and disposal of financial instruments on the statements of Profit or<br>Loss.
:---	:---
^2^	Included in other comprehensive income on the statements of comprehensive income.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Valuation techniques and inputs for level 3 financial instruments are as follows:

		2025
(in thousands of Korean won)		Type	Fair value		Valuation<br>techniques	Inputs	Unobservable<br><br>input	Range	Relevance
Financial assets at FVTPL		Equity-linked securities		80,970,708	DCF model, Closed Form, FDM, Monte Carlo	Price of underlying asset, interest rate, discount rate, dividend ratio, volatility of underlying assets, correlation of<br>underlying assets,probability<br><br>of default, volatility of interest rate	Underlying asset Volatility	0.01 ~ 0.29	Proportional
							Correlation	-0.36 ~ 0.00	Proportional
		Other derivative linked securities		864,396,238	Simulation, Black-Scholes Model, Hull and White,		Underlying asset Volatility	0.01 ~ 0.23	Proportional
						Correlation	-0.12 ~ 1.00	Proportional
		Other OTC derivative linked contract		136,170,152	Black Scholes modem, Binomial		Underlying asset Volatility	0.01 ~ 0.29	Proportional
						Correlation	-0.58 ~ 0.71	Proportional
		Debt instruments		2,402,762,307	Tree model		Underlying asset Volatility	0.13 ~ 0.54	Proportional
		Equity instruments		241,733,233			Underlying asset Volatility	0.24 ~ 0.36	Proportional
							Discount rate	0.05 ~ 0.13	Inversely proportional
		Loans^1^		860,312,817			Discount rate	0.05 ~ 0.06	Inversely proportional
Derivative financial assets (trading)				211,796,079			Underlying asset Volatility	0.01 ~ 0.59	Proportional
							Correlation	-0.58 ~ 1.00	Proportional
Financial assets at FVOCI		Equity instruments		519,368,406	DCF model, Risk-adjusted discount rate model, IMV model and others	Growth rate, discount rate	Growth rate	0.01	Proportional
							Discount rate	0.1 ~ 0.13	Inversely proportional

				5,317,509,940

Financial liabilities designated at FVTPL		Equity-linked securities sold		3,762,969,489	DCF model, Closed Form, FDM, Monte Carlo	Price of underlying asset, interest rate, discount rate, dividend ratio, volatility of underlying assets, correlation of underlying assets, probability of default, volatility of interest rate	Underlying asset Volatility	0.01 ~ 0.60	Proportional
							Correlation	-0.58 ~ 0.74	Proportional
		Derivatives linked securities sold		2,284,423,388	Simulation, Hull and White, Black-Scholes		Underlying asset Volatility	0.01 ~ 0.23	Proportional
						Correlation	-0.25 ~ 1.00	Proportional
		Other OTC derivatives linked contract sold^1^		50,065,186	Model,		Underlying asset Volatility	0.22 ~ 0.57	Proportional
						Correlation	-0.58 ~ 0.74	Proportional
Derivative financial liabilities (trading)				420,883,465			Underlying asset Volatility	0.01 ~ 0.60	Proportional
							Correlation	-0.58 ~ 1.00	Proportional

				6,518,341,528

^1^	Derivatives which derive their value from interest rate, stock price, foreign exchange rate, commodity price,<br>credit rate and others are included.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		Type	Fair value		Valuation<br>techniques	Inputs	Unobservable<br><br>input	Range	Relevance
Financial assets at FVTPL		Equity-linked securities		10,897,742	DCF model, Closed Form, FDM, Monte Carlo	Price of underlying asset, interest rate, discount rate, dividend ratio, volatility of underlying assets, correlation of<br>underlying assets , volatility<br><br>of interest rate, probability of default	Underlying asset volatility	0.26 ~ 0.36	Proportional
							Correlation	0.56 ~ 0.75	Proportional
		Other derivative linked securities		613,969,159	Simulation, Black-Scholes Model, Hull and White,		Underlying asset volatility	0.01 ~ 0.23	Proportional
							Correlation	-0.12 ~ 1.00	Proportional
		Other OTC derivative linked contract		54,268,972	Black Scholes modem, Binomial		Underlying asset volatility	0.14 ~ 0.29	Proportional
							Correlation	-0.58 ~ 0.72	Proportional
		Debt instruments		2,088,421,761	Tree model, Net asset value, etc.		Underlying asset volatility	0.18 ~ 0.37	Proportional
		Equity instruments		244,764,778			Underlying asset volatility	0.30 ~ 0.33	Proportional
							Discount rate	0.06 ~ 0.15	Inversely proportional
		Loans^1^		937,460,555			Probability<br><br>of default	—	Inversely proportional
Derivative financial assets (trading)				250,527,020			Underlying asset volatility	0.01 ~ 0.65	Proportional
							Correlation	-0.58 ~ 1.00	Proportional
Financial assets at FVOCI		Equity instruments		422,546,031	DCF model, Risk-adjusted discount rate model, IMV model and others	Growth rate, discount rate	Growth rate	0.01 ~ 0.01	Proportional
							Discount rate	0.14 ~ 0.16	Inversely proportional

				4,622,856,018

Financial liabilities designated at FVTPL		Equity-linked securities sold		4,204,141,656	DCF model, Closed Form, FDM, Monte Carlo	Price of underlying asset, interest rate, discount rate,<br><br>dividend ratio, volatility of underlying assets, correlation of<br><br>underlying assets , volatility of interest rate, probability of default	Underlying asset volatility	0.14 ~ 0.54	Proportional
							Correlation	-0.58 ~ 0.75	Proportional
		Derivatives linked securities sold		1,914,786,835	Simulation, Hull and White, Black-Scholes Model, Net		Underlying asset volatility	0.01 ~ 0.25	Proportional
							Correlation	-0.58 ~ 1.00	Proportional
		Other OTC derivatives linked contract sold^1^		61,136,890	asset value, etc.		Underlying asset volatility	0.22 ~ 0.65	Proportional
							Correlation	-0.58 ~ 0.74	Proportional
Derivative financial liabilities (trading)				593,262,128			Underlying asset volatility	0.01 ~ 0.65	Proportional
							Correlation	-0.58 ~ 1.00	Proportional

				6,773,327,509

^1^	Derivatives which derive their value from interest rate, stock price, foreign exchange rate, commodity price,<br>credit rate and others are included.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(d) Sensitivity Analysis of Recurring Fair Value Measurements Categorized Within Level 3 of the Fair Value Hierarchy

The results of the sensitivity analysis for the effect on profit or loss from changes in inputs for each financial instrument as at December 31, 2025 and 2024, are as follows.

		2025
		Profit and loss							Other comprehensive income
(in thousands of Korean won)		Favorable<br>changes			Unfavorable<br>changes				Favorable<br>changes			Unfavorable<br>changes
Financial assets
Financial assets at FVTPL^1^			26,706,530			(19,038,712	)			—			—
Derivative financial assets ^1^			6,334,446			(6,760,857	)			—			—
Financial assets at FVOCI ^2^			—			—				37,999,056			(27,026,364	)

			33,040,976			(25,799,569	)			37,999,056			(27,026,364	)

Financial liabilities
Financial liabilities designated at<br>FVTPL^1^			14,921,342			(13,976,657	)			—			—
Derivative financial liabilities ^1^			9,342,825			(10,107,819	)			—			—

			24,264,167			(24,084,476	)			—			—

^1^	Measured by changes in fair value based on increasing or decreasing unobservable volatility of underlying<br>assets by 10% or unobservable input(growth rate and discount rate) by 1%.
:---	:---
^2^	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are<br>unobservable inputs.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
		Profit and loss						Other comprehensive income
(in thousands of Korean won)		Favorable<br>changes			Unfavorable<br>changes			Favorable<br>changes			Unfavorable<br>changes
Financial assets
Financial assets at FVTPL^1^			26,007,160			(17,089,483	)		—			—
Derivative financial assets ^1^			14,841,168			(16,508,885	)		—			—
Financial assets at FVOCI ^2^			—			—			19,296,520			(14,882,691	)

			40,848,328			(33,598,368	)		19,296,520			(14,882,691	)

Financial liabilities
Financial liabilities designated at<br>FVTPL^1^			16,840,216			(16,759,886	)		—			—
Derivative financial liabilities ^1^			22,092,417			(24,479,482	)		—			—

			38,932,633			(41,239,368	)		—			—

^1^	Measured by changes in fair value based on increasing or decreasing unobservable volatility of underlying<br>assets by 10% or unobservable input(growth rate and discount rate) by 1%.
:---	:---
^2^	Measured by changes in fair value based on growth rate ((-)1~1%) and discount rate ((-)1~1%) that are<br>unobservable inputs.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(e) Day 1 Profit and Loss

If the Company uses a valuation technique that uses data not obtained from observable markets for the fair value at initial recognition of financial instruments, 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 amortised by using the straight-line method over the life of the financial instruments. If the fair value of the financial instruments can be subsequently determined using observable market inputs, the remaining deferred amount is immediately recognized in profit or loss.

The aggregate difference yet to be recognized in profit or loss at the beginning and end of the year, and the changes in the balance of this difference, are as follows:

(in thousands of Korean won)
Balances at the beginning of the year (A)	18,603,619		32,605,297
Incurred during the year (B)	78,864,105		49,077,880
Amounts recognized in profit or loss during the year (C)	(60,941,447	)	(63,079,559	)

Balances at the end of the year (A+B+C)	36,526,277		18,603,618

37.5 Fair value hierarchy of financial instruments which the fair value is disclosed

(a) The fair value hierarchy of financial assets and liabilities which the fair value is disclosed as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Loans measured at amortised cost			—			—			8,641,184,139			8,641,184,139
Financial liabilities
Borrowings			—			—			35,564,607,436			35,564,607,436
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Level 1			Level 2			Level 3			Total
Financial assets
Loans measured at amortised cost			—			—			8,113,194,528			8,113,194,528
Financial liabilities
Borrowings			—			—			30,543,358,672			30,543,358,672

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(b)	Valuation techniques and inputs
		Valuation technique and inputs
---	---	:---:
Cash and deposits		The fair value of cash is the same as the book amount. The book amount is used as a substitute value of fair value for the majority of deposits consisting of overnight deposits and deposits with variable interest rate.
Loans measured at amortised cost		The fair values are calculated with discount rate considering market interest rates and borrower’s credit risk on expected cash flows.
Deposit liabilities and borrowings		The book amount is used as a substitute value of fair value for demand deposit liabilities, bank overdrafts and call money. With regard to the other deposits and borrowings, the fair values are calculated with discount rate<br>considering residual risks at market interest rates on contractual cash flows.
Other financial assets and liabilities		As a temporary transitional account derived from various transactions, the book amount is used as a substitute value of fair value instead of applying DCF due to the relatively short-term or indefinite maturity.

37.6 Derecognition of financial assets

The Company continues to recognize bonds sold under repurchase agreements and securities lending agreement, because the Company transferred the financial asset, but the assets does not meet the derecognition criteria. Due to the nature of transaction that bonds sold under repurchase agreements are under the repurchase condition with fixed price and securities lending agreement contains the retransfer back condition by the end of lending period, the Company is liable to almost all risks and rewards related to the ownership of the financial assets.

As at December 31, 2025 and 2024, relevant information about transferred financial assets which do not qualify for derecognition are as follows:

		2025
		Financial assets at FVTPL						Financial assets at FVOCI
(in thousands of Korean won)		Debt<br>instruments^1,2,3^			Equity<br>instruments^2^			Debt<br>instruments^1,3^			Equity<br>instruments
Carrying amount of transferred assets			4,157,455,753			631,623			2,601,915,338			—
Carrying amount of related liabilities			4,188,634,687			—			2,505,325,431			—
^1^	Transferred debt instruments under repurchase agreements.
:---	:---
^2^	Transferred equity instruments and debt instruments under securities lending agreements.
:---	:---
^3^	As at December 31, 2025, the accrued interests related to debt securities of ~~W~~<br>36,562 million is excluded.
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
		Financial assets at FVTPL						Financial assets at FVOCI
(in thousands of Korean won)		Debt<br>instruments^1,2,3^			Equity<br>instruments^2^			Debt<br>instruments^1,3^			Equity<br>instruments
Carrying amount of transferred assets			4,245,358,415			6,046,174			1,811,592,215			—
Carrying amount of related liabilities			4,138,807,782			—			1,774,216,825			—
^1^	Transferred debt instruments under repurchase agreements.
:---	:---
^2^	Transferred equity instruments and debt instruments under securities lending agreements.
:---	:---
^3^	As at December 31, 2024, the accrued interests related to debt securities of ~~W~~<br>44,110 million is excluded.
:---	:---

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

38. Financial Risk Management

38.1 Summary

38.1.1 Overview of Financial Risk Management Policy

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

The note regarding financial risk management provides information about the risks that the Company is exposed to, including the objectives, policies and processes for assessing and managing the risks and net operating capital ratio management. Additional quantitative information is disclosed throughout the notes to the separate financial statements.

The Company’s risk management system focuses on increasing transparency, developing the risk management environment, preventing transmission of risk to other related subsidiaries, and the preemptive response to risk due to rapid changes in the financial environment to support the Company’s long-term strategy and business decisions efficiently. Credit risk, liquidity risk, market risk, operational risk, and credit concentration risk are recognized as the Company’s key risks. These risks are measured and managed by quantification as regulatory capital and VaR (Value at Risk) using a statistical method.

38.1.2 Risk Management Organization

(a) Board of Directors

Board of Directors are the ultimate decision-making authority that appoint and dismiss Risk Management Committee, establish and amend the Risk Management Committee policies, establish the Company’s criteria for risk limit, decide on basic policy of risk management, and approve large-scale investments.

(b) Risk Management Committee

The Risk Management Committee consists of more than three directors appointed by the Board of Directors (including more than a half of external director). The Risk Management Committee executes the operations delegated by Board of Directors in accordance with Risk Management Committee policy

Risk Management Council consists of members, appointed by Company’s executives, including the director who is responsible for risk management, compliance, planning/management. Also the organization is delegated by Risk Management Committee to perform deliberation/resolution for major policies and matters related to the risk.

(d) Risk management department

Risk management department carries out practical tasks, required for risk management of the Company, such as supporting the Risk Management Committee, reporting the Company’s risk level and computing net operating capital ratio.

38.1.3 Risk Management System

In order to establishing risk management structure, the Company built the total risk management system, ERMS (Enterprise Risk Management System), which is designed for reasonable price valuation against risks and the management of risk limitation to raise the soundness of assets and allocate resources efficiently. Moreover, the Company performs business with risk management basis in mainly by constructing RAPM (Risk Adjusted Performance Measure) and enlarging the portion of performance evaluation.

100

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

38.1.4 Risk Management Strategy and Policy

38.2 Credit Risk

38.2.1 Overview of Credit Risk

The Company is exposed to certain level of credit risk and the credit risk is the risk of possible loss to portfolio due to counterparty’s credit event and breach of covenant. Credit risk exposure occurs in investment activities such as loans, debt instruments, derivative transactions, and non-trading accounts, or can exist in relating to off-balance accounts.

38.2.2 Credit Risk Management

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations. If the trading department of the Company wants to deal with the counterparty that may cause the credit risk, the trading department submits product management plan and application in advance to get approval by the Risk Management Council and the Risk Management Committee. The deal is executed when the approval by the Risk Management Council and the Risk Management Committee is completed. Credit risk limit depends on 1) standard credit risk limit, 2) concentration limit on the same person and 3) credit rating and additional limit may be added by the trading department. In addition, credit VaR is measured in addition to the credit management listed above and credit VaR due to the internal model is operated by the credit manager measurement system of the risk metrics group. Limit management is performed on a daily basis and stress test is performed on a regular basis and in case of excess of the limit, trading department expedite the process with the procedure set by the risk management department.

38.2.3 Maximum Exposure to Credit Risk

The maximum exposure of credit risk related to the off-balance as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Agreement to purchase the commercial papers<br>^1^		1,259,846,340	824,171,844
Guarantees and loan commitment		3,233,725,178	4,199,064,777

		4,493,571,518	5,023,236,621

^1^	According to the above arrangement, the Company holds the asset-backed short-term bonds amounting to<br>~~W~~ 86,450 million and ~~W~~ 278,820 million as at December 31, 2025 and 2024, respectively.
:---	:---

The Company does not disclose financial assets (except above contracts) whose carrying amount represents the maximum exposure to credit risk.

101

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

38.2.4 Credit Risk Concentration Analysis

(a) Loans

Most counterparties of loan transactions, before considering collaterals and other credit reinforcements, are concentrated in Korea. The ratios of loans to individuals and corporations and related allowances as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Loans			Ratio (%)			Allowances				Carrying<br><br>amount
Individuals			3,789,920,827			42.43			(810	)			3,789,920,017
Corporations			5,142,477,029			57.57			(297,129,203	)			4,845,347,826

			8,932,397,856			100.00			(297,130,013	)			8,635,267,843

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Loans			Ratio (%)			Allowances				Carrying<br><br>amount
Individuals			2,548,944,720			27.91			—				2,548,944,720
Corporations			6,583,770,149			72.09			(94,781,357	)			6,488,988,792

			9,132,714,869			100.00			(94,781,357	)			9,037,933,512

The details of the Company’s loans by industry as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying<br><br>amount
Financial service		4,241,435,072		47.48		(287,178,830	)		3,954,256,242
Manufacturing		170,473,566		1.92		(1,537,535	)		168,936,031
Service		268,129,818		3.00		(7,542,712	)		260,587,106
Others		462,438,573		5.18		(870,125	)		461,568,448
Individuals		3,789,920,827		42.42		(811	)		3,789,920,016

		8,932,397,856		100.00		(297,130,013	)		8,635,267,843

	2024
(in thousands of Korean won)	Loans		Ratio (%)		Allowances			Carrying<br><br>amount
Financial service		5,312,752,945		58.71		(84,704,299	)		5,228,048,646
Manufacturing		541,478,247		5.93		(1,790,267	)		539,687,980
Service		142,120,860		1.56		(7,201,543	)		134,919,317
Others		587,418,096		6.43		(1,085,247	)		586,332,849
Individuals		2,548,944,720		27.91		—			2,548,944,720

		9,132,714,868		100.00		(94,781,356	)		9,037,933,512

102

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(b) Deposits, Securities (except equity instruments) and Derivatives

Most of deposits, securities (except equity instruments) and derivatives, before considering collaterals and other credit reinforcements, are concentrated in securities issued in Korea. The details of the Company’s securities (except equity instruments) by industry as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Amount			Ratio (%)			Allowances				Carrying<br><br>amount
Deposits measured at amortised cost
Banking and insurance			3,277,121,009			100.00			(1,059,769	)			3,276,061,240

			3,277,121,009			100.00			(1,059,769	)			3,276,061,240

Securities at FVTPL
Government and government funded institutions			14,038,577,320			37.83			—				14,038,577,320
Banking and insurance			11,971,371,855			32.26			—				11,971,371,855
Others			11,102,052,602			29.91			—				11,102,052,602

			37,112,001,777			100.00			—				37,112,001,777

Derivatives financial assets
Government and government funded institutions			18,369,732			1.14			—				18,369,732
Banking and insurance			1,526,856,503			94.72			—				1,526,856,503
Others			66,734,818			4.14			—				66,734,818

			1,611,961,053			100.00			—				1,611,961,053

Securities at FVOCI
Government and government funded institutions			2,523,115,968			31.69			—				2,523,115,968
Banking and insurance			2,592,129,018			32.56			—				2,592,129,018
Others			2,846,389,506			35.75			—				2,846,389,506

			7,961,634,492			100.00			—				7,961,634,492

			49,962,718,331						(1,059,769	)			49,961,658,562

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Amount			Ratio (%)			Allowances				Carrying<br><br>amount
Deposits measured at amortised cost
Banking and insurance			2,360,393,989			100.00			(738,213	)			2,359,655,776

			2,360,393,989			100.00			(738,213	)			2,359,655,776

Securities at FVTPL
Government and government funded institutions			13,578,873,617			40.06			—				13,578,873,617
Banking and insurance			11,136,432,514			32.86			—				11,136,432,514
Others			9,178,275,749			27.08			—				9,178,275,749

			33,893,581,880			100.00			—				33,893,581,880

Derivatives financial assets
Government and government funded institutions			1,436,669			0.10			—				1,436,669
Banking and insurance			1,341,009,085			96.07			—				1,341,009,085
Others			53,497,156			3.83			—				53,497,156

			1,395,942,910			100.00			—				1,395,942,910

Securities at FVOCI
Government and government funded institutions			2,108,565,891			41.11			—				2,108,565,891
Banking and insurance			1,767,614,427			34.47			—				1,767,614,427
Others			1,252,342,610			24.42			—				1,252,342,610

			5,128,522,928			100.00			—				5,128,522,928

			42,778,441,707						(738,213	)			42,777,703,494

103

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

38.2.5 Credit Quality of Financial Assets

(a) Loans measured at amortised cost

The credit quality of loans measured at amortised cost and loans measured at fair value through profit or loss as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>credit loss<br>model		The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model		Total
				Non-impaired		Impaired
Loans measured at amortised cost<br>^1^
Corporates
Grade 1			3,332,620,569		—		—		—		—		3,332,620,569
Grade 2			1,257,294,802		—		—		—		—		1,257,294,802
Grade 3			5,000,000		31,112,000		—		—		—		36,112,000
Grade 4			—		291,624,105		77,100,000		—		—		368,724,105
Grade 5			—		—		147,725,553		—		—		147,725,553

			4,594,915,371		322,736,105		224,825,553		—		—		5,142,477,029

Retails
Grade 1			3,789,799,902		—		—		—		—		3,789,799,902
Grade 2			120,924		—		—		—		—		120,924
Grade 3			—		—		—		—		—		—
Grade 4			—		—		—		—		—		—
Grade 5			—		—		—		—		—		—

			3,789,920,826		—		—		—		—		3,789,920,826

Loans at FVPL
Grade 1			—		—		—		—		860,312,817		860,312,817
Grade 2			—		—		—		—		—		—
Grade 3			—		—		—		—		—		—
Grade 4			—		—		—		—		—		—
Grade 5			—		—		—		—		—		—

			—		—		—		—		860,312,817		860,312,817

			8,384,836,197		322,736,105		224,825,553		—		860,312,817		9,792,710,672

^1^	The amounts disclosed in above table are before deduction of allowances.
:---	:---

104

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

		2024
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>credit loss<br>model		The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model		Total
					Non-impaired		Impaired
Loans measured at amortised cost ^1^
Corporates
Grade 1			3,680,719,280			—		—		—		—		3,680,719,280
Grade 2			1,687,377,948			—		—		—		—		1,687,377,948
Grade 3			1,975,000			94,923,980		—		—		—		96,898,980
Grade 4			—			100,262,000		—		—		—		100,262,000
Grade 5			—			—		81,051,386		—		—		81,051,386

			5,370,072,228			195,185,980		81,051,386		—		—		5,646,309,594

Retails
Grade 1			2,547,257,443			—		—		—		—		2,547,257,443
Grade 2			252,574			—		—		—		—		252,574
Grade 3			—			—		—		—		—		—
Grade 4			1,434,704			—		—		—		—		1,434,704
Grade 5			—			—		—		—		—		—

			2,548,944,721			—		—		—		—		2,548,944,721

Loans at FVPL
Grade 1			—			—		—		—		937,460,555		937,460,555
Grade 2			—			—		—		—		—		—
Grade 3			—			—		—		—		—		—
Grade 4			—			—		—		—		—		—
Grade 5			—			—		—		—		—		—

			—			—		—		—		937,460,555		937,460,555

			7,919,016,949			195,185,980		81,051,386		—		937,460,555		9,132,714,870

^1^	The amounts disclosed in above table are before deduction of allowances.
:---	:---
Ranges		Corporates		Retails
---	---	:---:	---	:---:
Grade 1		AAA ~ BBB+		1 ~ 5 grade
Grade 2		BBB ~ BB		6 ~ 8 grade
Grade 3		BB- ~ B		9 ~ 10 grade
Grade 4		B- ~ CCC		11 grade
Grade 5		Below CC		Below 12 grade

The effect of measured credit risk which is released due to enhancement of collateral and other credit supplements secured for loans as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime<br>expected<br>credit losses				The<br>financial<br>instruments<br>applying<br>Credit loss<br>model		The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model		Total
			Non-impaired		Impaired
Guarantee		42,295,857		—		—		—		28,527,899		70,823,756
Real estate		—		—		292,871		—		—		292,871
Securities		7,290,142,753		—		—		—		644,151,636		7,934,294,389

		7,332,438,610		—		292,871		—		672,679,535		8,005,411,016

105

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The<br>financial<br>instruments<br>applying<br>Credit loss<br>model		The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model		Total
			Non-impaired		Impaired
Guarantee		23,488,801		—		—		—		—		23,488,801
Real estate		19,881,236		29,892,046		9,514,941		—		—		59,288,223
Securities		7,057,063,660		2,258,741		—		—		752,340,997		7,811,663,398

		7,100,433,697		32,150,787		9,514,941		—		752,340,997		7,894,440,422

(b) Securities (debt instruments)

The credit quality of Securities (debt instruments) as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model			The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model			Total
					Non-impaired			Impaired
Financial assets at FVOCI ^1^
Grade 1			6,894,636,112			—			—			—			—			6,894,636,112
Grade 2			1,066,998,379			—			—			—			—			1,066,998,379
Grade 3			—			—			—			—			—			—
Grade 4			—			—			—			—			—			—
Grade 5			—			—			—			—			—			—

			7,961,634,491			—			—			—			—			7,961,634,491

^1^	Before deduction of allowances
:---	:---
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The<br>financial<br>instruments<br>applying<br>credit loss<br>model			The financial<br>instruments<br>not applying<br>expected<br>credit loss<br>model			Total
					Non-impaired			Impaired
Financial assets at FVOCI ^1^
Grade 1			4,711,912,740			—			—			—			—			4,711,912,740
Grade 2			416,610,187			—			—			—			—			416,610,187
Grade 3			—			—			—			—			—			—
Grade 4			—			—			—			—			—			—
Grade 5			—			—			—			—			—			—

			5,128,522,927			—			—			—			—			5,128,522,927

^1^	Before deduction of allowances
:---	:---

106

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The Company’s standard for credit quality of securities (except equity investments) linked to credit rating presented by 3^rd^ party credit rating institutions is as follows.

	Domestic			Foreign
Credit<br><br>Quality	KIS	NICE	FnPricing	S&P	Fitch-IBCA	Moody’s
Grade 1	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-	BBB- to BBB+	BBB- to BBB+	Baa3 to Baa1
Grade 3	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-	B+ to BB-	B+ to BB-	B1 to Ba3
Grade 5	Below BB-	Below BB-	Below BB-	Below B	Below B	Below B2

The credit quality of deposits as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>credit loss<br>model		Total
			Non-impaired		Impaired
Deposits measured at amortised cost<br>^1^
Grade 1		3,277,121,009		—		—		—		3,277,121,009
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		3,277,121,009		—		—		—		3,277,121,009

^1^ Before deduction of allowances

		2024
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>credit loss<br>model		Total
				Non-impaired		Impaired
Deposits measured at amortised cost<br>^1^
Grade 1			2,360,393,989		—		—		—		2,360,393,989
Grade 2			—		—		—		—		—
Grade 3			—		—		—		—		—
Grade 4			—		—		—		—		—
Grade 5			—		—		—		—		—

			2,360,393,989		—		—		—		2,360,393,989

^1^	Before deduction of allowances
:---	:---

The Company’s standard for credit quality of deposits is same as the one of debt securities.

107

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(d) Commitments

The credit quality of commitments as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>Credit loss<br>model			Total
					Non-impaired			Impaired
Guaranteed payment and commitment
Grade 1			1,268,835,741			—			—			—			1,268,835,741
Grade 2			2,210,072,651			—			—			—			2,210,072,651
Grade 3			205,114,494			72,687,680			—			—			277,802,174
Grade 4			493,607,522			71,065,430			—			—			564,672,952
Grade 5			—			—			—			—			—

			4,177,630,408			143,753,110			—			—			4,321,383,518

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses			The financial instruments<br>applying lifetime expected<br>credit losses						The financial<br>instruments<br>applying<br>Credit loss<br>model			Total
					Non-impaired			Impaired
Guaranteed payment and commitment
Grade 1			1,357,975,523			—			—			—			1,357,975,523
Grade 2			2,059,483,274			16,300,000			—			—			2,075,783,274
Grade 3			124,548,724			616,336,955			—			—			740,885,679
Grade 4			515,287,729			83,404,416			—			—			598,692,145
Grade 5			—			—			—			—			—

			4,057,295,250			716,041,371			—			—			4,773,336,621

(e) Guarantees

The credit quality guarantees as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>Credit loss<br>model		Total
			Non-impaired		Impaired
Guarantees
Grade 1		172,188,000		—		—		—		172,188,000
Grade 2		—		—		—		—		—
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		172,188,000		—		—		—		172,188,000

108

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	The<br>financial<br>instruments<br>applying<br>12-month<br>expected<br>credit losses		The financial instruments<br>applying lifetime expected<br>credit losses				The financial<br>instruments<br>applying<br>Credit loss<br>model		Total
			Non-impaired		Impaired
Guarantees
Grade 1		173,460,000		—		—		—		173,460,000
Grade 2		76,440,000		—		—		—		76,440,000
Grade 3		—		—		—		—		—
Grade 4		—		—		—		—		—
Grade 5		—		—		—		—		—

		249,900,000		—		—		—		249,900,000

(f) Other receivables from securities transactions

Among loans and receivables which are classified as other financial assets, other receivables from securities transactions as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025			2024
Other receivables related to proprietary trading			218,933,023			209,031,963
Other receivables related to brokerage transactions			4,706,580,624			1,631,501,552

The Company recognizes receivables and payables between Korea Exchange (Clearing and Settlement Organization) and customers regarding securities brokerage transactions on the trade date. The Company is exposed to credit risks between the trade date and settlement date (generally less than two business days from the trade date) relating to investment brokerage business, which is standardized by related regulations. As a central counterparty, Korea Exchange mitigates the payment default risk by managing collective fund for default loss, and the Company mitigates customer default risk through margin requirements system. Also, if the customers cannot pay by the settlement date, the Company can collect the receivables through covering. Therefore, credit risk that the Company actually bears is linked to the price fluctuation risk of securities between the trade date and the settlement date.

In addition, related to standardized investment trading of securities, the Company recognizes the on-the-counter transactions on the Korea Exchange, the clearing and settlement institution, and over-the-counter transactions with the customer on the date which the sales contract is signed for the assets and liabilities. Accordingly, the Company is exposed to the risk of price fluctuation risk and credit risk of the securities subject to trading during the period between the date of execution of the sales contract and the settlement date.

38.3 Liquidity Risk

38.3.1 Overview of Liquidity Risk

Liquidity risk is the risk of insolvency or loss due to a disparity between the inflow and outflow of funds, unexpected outflow of funds, and obtaining funds at a high price 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, liabilities and off-statement of financial position items such as commitments and financial guarantee contracts. The Company discloses them by maturity groups: Up to one month, between over one month and three months, between over three months and twelve months, between over one year and five years, and over five years.

109

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

38.3.2 Liquidity Risk Management Policy

The Company has established an appropriate liquidity risk management framework for the management of the Company’s short-, medium- and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Meanwhile, additional details of unused funding arrangement to reduce liquidity risk that the Company holds at its discretion are discussed in Note 41.

38.3.3 Analysis on Remaining Contractual Maturities of Financial Liabilities

The remaining contractual maturities of financial liabilities as at December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	On demand		Up to one month		One to three<br>months		Three to 12<br>months		12 months to<br>five years		More than<br>five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,910,712,724		—		—		—		—		—		2,910,712,724
Financial liabilities designated at FVTPL ^1^		7,996,513,415		—		—		—		—		—		7,996,513,415
Derivatives (trading) ^2^		2,084,123,555		—		—		—		—		—		2,084,123,555
Derivatives (hedge)		—		—		2,911,200		—		—		—		2,911,200
Deposit liabilities ^3^		12,124,648,436		—		—		—		—		—		12,124,648,436
Borrowings		11,632,795,178		7,619,104,285		2,947,237,314		10,758,058,217		2,996,132,725		—		35,953,327,719
Other financial liabilities		24,423,633		5,410,826,777		7,122,284		25,756,202		56,813,419		2,923,562		5,527,865,877
Guaranteed payments and commitment ^4^		4,493,571,518		—		—		—		—		—		4,493,571,518
^1^	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on<br>demand’ because derivatives-linked securities are subject to early settlement.
:---	:---
^2^	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in<br>understanding the cash flow timing of the derivatives
:---	:---
^3^	Deposits that are contractually repayable on demand or on short notice are classified as ‘on<br>demand’ category.
:---	:---
^4^	With respect to the guaranteed payments and commitments, the amounts included above, which the Company might<br>pay at maximum amounts based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.
:---	:---

110

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	On demand		Up to one month		One to three<br>months		Three to 12<br>months		12 months to<br>five years		More than<br>five years		Total
Financial liabilities
Financial liabilities at FVTPL		2,558,520,223		—		—		—		—		—		2,558,520,223
Financial liabilities designated at FVTPL ^1^		8,010,047,059		—		—		—		—		—		8,010,047,059
Derivatives (trading) ^2^		1,918,358,178		—		—		—		—		—		1,918,358,178
Derivatives (hedge)		—		—		—		4,309,200		—		—		4,309,200
Deposit liabilities ^3^		7,744,650,276		—		—		—		—		—		7,744,650,276
Borrowings		10,611,705,622		6,168,443,493		1,933,300,955		9,468,876,001		2,707,293,800		—		30,889,619,871
Other financial liabilities		17,893,430		1,909,310,653		7,113,678		25,621,180		78,977,150		3,213,500		2,042,129,591
Guaranteed payments and commitment ^4^		5,023,236,621		—		—		—		—		—		5,023,236,621
^1^	Derivatives-linked securities as financial liabilities designated at FVTPL are classified as ‘on<br>demand’ because derivatives-linked securities are subject to early settlement.
:---	:---
^2^	Derivatives are classified as ‘on demand’ because contract maturity is not necessary in<br>understanding the cash flow timing of the derivatives
:---	:---
^3^	Deposits that are contractually repayable on demand or on short notice are classified as ‘on<br>demand’ category.
:---	:---
^4^	With respect to the guaranteed payments and commitments, the amounts included above, which the Company might<br>pay at maximum amounts based on the contract, if the warrantee claims the entire amount of the guarantee, are classified on the basis of the earliest period when those agreements may be executed.
:---	:---

38.4 Market Risk

38.4.1 Overview of Market Risk

Market risk refers to the risk that the value of a position held by the Company may fluctuate due to price fluctuations of market factors such as stock, interest rates, foreign exchange rates, commodity and others.

38.4.2 Value at Risk (“VaR”)

Historical simulation model is used to calculate 10days VaR. Historical simulation model is based on past changes of market variables without assuming a specific probability distribution.

111

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The Company uses the 10-day return of the past two-year time series of the asset risk factor and uses the 99% confidence level of the two-year time series of the portfolio. 10days VaR that is under 99% of confidence level that the Company uses reflects daily losses do not exceed the reported VaR with 99% chance.

The average, minimum and maximum amount of the Company’s VaR (99%, 10 days) as at December 31, 2025 and 2024, are as follows:

		2025
(in thousands of Korean won)		Average			Maximum			Minimum			December 31,<br>2025
Total VaR			46,894,143			65,355,956			30,981,690			45,316,446
		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Average			Maximum			Minimum			December 31,<br>2024
Total VaR			32,714,101			52,796,377			15,391,508			31,000,920

38.4.3 Risk Management by Market Risk Factors

The Company’s market risk is comprised of interest rate risk, foreign exchange rate risk and stock price risk.

(a) Stock price risk

Stock price risk arises from the Company’s foreign currency stocks and Korean won stocks.

(b) Interest rate risk

Trading position interest rate risk usually arises from debt instruments denominated in Korean won. The Company’s trading strategy is to benefit from short-term movements in the prices of debt instruments arising from changes in interest rates.

The product prices of the Company’s trading accounts are disclosed daily. The risks related to trading accounts are managed by using market price based method such as market VaR and sensitivity analysis.

Foreign exchange rate risk arises through ownership of assets and liabilities, denominated in currencies other than Korean won, from non-trading positions, or through foreign currency forward agreements, currency swaps and foreign currency trading securities.

112

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

The Company computes foreign currency position’s net position regularly to follow the Regulation on Financial Investment Business and reports to the supervisory body.

Also, the Company manages the risk for total position exposed to foreign exchange rate including non-trading position by using market price base method such as market VaR and sensitivity analysis.

38.4.4 Current Status of Interest Rate Risk Management

The Company is closely monitoring the outputs of various industry working groups and markets managing the transition to new interest rate index, including announcements from IBOR regulators and various consultative bodies involved in the transition to alternative interest rates. In response to these announcements, the group established and IBOR transition plan comparing end-to-end workflows across risk management, according, taxation, legal, information technology and customer management functions. In accordance with this plan, the Company has substantially completed the required transition and replacement processes. Oversight of the plan and monitoring of its progress are led by CFO(Chief Financial Officer), with significant matters reported to the Boarf of Directors. The objective of the plan is to identify the impacts and risks arising from interest rate benchmark reform across the Company’s business operations and to prepare for and execute an orderly transition to alternative reference interest rates.

As at December 31, 2025 and 2024, the Company has no financial instruments that had not yet transitioned to alternative reference interest rates.

38.5 Operational Risk

38.5.1 Concept

The Company defines operational risk to the extent of financial risk and non-financial risk incurred by unreasonable or wrong internal process, labor, system and external incidents.

38.5.2 Operational Risk Management

The purpose of operational risk management is to control activity through continuous improvement of internal controls, performing proactive preventive control, proliferation of culture of risk management by establishing internal control that could respond quickly against change of business environment. OMRS (Operational Risk Management System) supports performing overall risk management such as recognition of operational risk, evaluation and monitoring. Periodically, through RCSA (Risk Control Self Assessment), management of KRI (Key Risk Indicator), management of data loss and related preparation of countermeasures, it controls the risks in advance, as well as collecting data for future advanced management method.

38.6 Capital Management

Main purpose of the capital risk management of the Company is optimizing use of capital and sustaining healthy financial status in order to maximize shareholder value. The Company has performed capital risk management through estimating net capital ratio based on ‘Capital Market and Financial Investment Business Act’, enforced in February 2009.

113

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Total amount of risk is quantification of all of possible losses from operation of business as a financial investor. Total amount of risk is composed of the following ; market risks which quantify the possible losses due to fluctuation of stock price, interest rate, and exchange rate of the securities held by the investment firms ; credit risks which are the possible losses due to the breach of contract by the counterparties ; operation risks which are the possible losses due to accidents, errors, illegal conduct, and any other potential losses from deteriorated operation condition.

114

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

39. Offsetting Financial Assets and Financial Liabilities

The Company enters into International Derivatives Swaps and Dealers Association (“ISDA”) master netting agreements or similar agreement with the Company’s derivative counterparties. The Company also enters into repurchase agreements and securities borrowing and lending agreements similar to the master netting agreement for derivatives. Master netting agreements provide protection in bankruptcy in certain circumstances and, where legally enforceable, enable receivables and payables with the same counterparty to be offset for accounting and risk management purposes.

	2025
(in thousands of Korean won)	Gross Amount		Offset<br><br>amount		Net amounts<br>presented in the<br>statement of<br>financial position		Amounts not offset				Net amount
							Recognized<br>financial<br>instruments		Cash<br>collateral
Financial assets
Derivatives assets, others ^1^		1,808,461,566		—		1,808,461,566		1,427,458,830		177,659,247		203,343,489
Securities purchased under reverse repurchase agreements		1,832,100,000		—		1,832,100,000		1,832,100,000		—		—
Other receivables ^4^		4,899,327,214		4,315,518,767		583,808,447		—		—		583,808,447
Other receivables<br>(Payment and settlement)		227,717,069		182,255,426		45,461,643		—		—		45,461,643

		8,767,605,849		4,497,774,193		4,269,831,656		3,259,558,830		177,659,247		832,613,579

Financial liabilities
Derivatives liabilities, others ^1^		3,222,403,437		—		3,222,403,437		2,947,115,496		66,027,869		209,260,072
Securities sold under reverse resale agreements ^2^		10,719,460,118		—		10,719,460,118		10,719,460,118		—		—
Securities sold ^3^		2,910,712,724		—		2,910,712,724		2,910,712,724		—		—
Other payables ^4^		4,480,531,619		4,315,518,767		165,012,852		—		—		165,012,852
Other payables<br>(Payment and settlement)		182,255,426		182,255,426		—		—		—		—

		21,515,363,324		4,497,774,193		17,017,589,131		16,577,288,338		66,027,869		374,272,924

^1^	Both derivatives (trading) and derivatives (hedge) are included.
:---	:---
^2^	Securities sold under reverse resale agreements to the customers is included.
:---	:---
^3^	Securities sold is from securities borrowing and lending agreement.
:---	:---
^4^	In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the company is included. However, receivables of ~~W~~ 4,360,987 million and payables of<br>~~W~~ 4,183,015 million arising from same-day transactions between customers and the company are excluded.
:---	:---
	2024
---	:---:	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)	Gross Amount		Offset<br><br>amount		Net amounts<br>presented in the<br>statement of<br>financial position		Amounts not offset				Net amount
							Recognized<br>financial<br>instruments		Cash<br>collateral
Financial assets
Derivatives assets, others ^1^		1,390,150,719		—		1,390,150,719		1,114,549,100		193,074,080		82,527,539
Securities purchased under reverse repurchase agreements		2,091,017,404		—		2,091,017,404		2,091,017,404		—		—
Other receivables ^4^		1,669,975,970		1,652,694,935		17,281,035		—		—		17,281,035
Other receivables<br>(Payment and settlement)		136,966,708		123,672,076		13,294,632		—		—		13,294,632

		5,288,110,801		1,776,367,011		3,511,743,790		3,205,566,504		193,074,080		113,103,206

Financial liabilities
Derivatives liabilities, others ^1^		2,902,445,355		—		2,902,445,355		2,676,007,223		76,853,200		149,584,932
Securities sold under reverse resale agreements ^2^		9,419,893,685		—		9,419,893,685		9,419,893,685		—		—
Securities sold ^3^		2,558,520,223		—		2,558,520,223		2,558,520,223		—		—
Other payables ^4^		1,740,843,763		1,652,694,935		88,148,828		—		—		88,148,828
Other payables<br>(Payment and settlement)		123,672,076		123,672,076		—		—		—		—

		16,745,375,102		1,776,367,011		14,969,008,091		14,654,421,131		76,853,200		237,733,760

115

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

^1^	Both derivatives (trading) and derivatives (hedge) are included.
^2^	Securities sold under reverse resale agreements to the customers is included.
:---	:---
^3^	Securities sold is from securities borrowing and lending agreement.
:---	:---
^4^	In relation to customer brokerage transactions, the offset amount of receivables and liabilities arising from same-day transactions between the Korea Exchange and the company is included. However, receivables of ~~W~~ 1,559,621 million and payables of ~~W~~<br>1,453,720 million arising from same-day transactions between customers and the company are excluded.
:---	:---

40. Lease

40.1 As a lessee

(a) The amounts recognized in the separate statement of financial position

The amounts related to lease recognized in the separate statement of financial position as at December 31, 2025 and 2024, are as follows;

(in thousands of Korean won)
Right-of-use<br>assets ^1^
Buildings		56,444,165	68,196,637
Vehicles		1,768,595	1,548,933
Others		3,542,380	1,647,239

		61,755,140	71,392,809

Lease liabilities		83,271,245	100,240,625
^1^	The amount is included in property and equipment in the separate statement of financial position.
:---	:---

116

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(b) The amounts recognized in the separate statement of profit or loss

The amounts related to lease recognized in the separate statement of profit or loss for the year ended December 31, 2025 and 2024, are as follows

(in thousands of Korean won)
Depreciation of the<br>right-of-use assets
Buildings	23,822,821	22,530,739
Vehicles	1,376,327	1,311,861
Others	1,108,642	1,032,218

	26,307,790	24,874,818

Interest income from lease receivables (included in financial income)	594,103	779,142
Interest expense to lease liabilities (included in financial cost)	2,931,666	3,699,605
Lease payment for leases for which the underlying asset is of low value (included in administrative expenses, not-including lease for short-term period)	248,697	248,493
Variable lease payments which are not included in the measurement of lease liabilities (included in administrative expenses)	158,422	147,052

The total cash outflow for leases in 2025 and 2024 were ~~W~~ 36,292 million and ~~W~~ 34,925 million, respectively.

40.2 As a Lessor

(a) Financial Lease

As at December 31, 2025 and 2024, total investment on financial lease and present value of minimum lease payments and unrealized interest income of financial lease are as follows:

(in thousands of Korean won)
Total Investment on lease	16,555,000	23,129,979
Net Investment on lease	15,942,629	21,923,504
Present value of minimum lease payments	15,942,629	21,923,504
Unrealized interest income	612,371	1,206,474

(b) Operating Lease

As at December 31, 2025 and 2024, future minimum lease receipts expected under non-cancellable lease contracts are as follows:

(in thousands of Korean won)
Within 1 year	1,468,167	1,429,734
1—5 years	936,101	1,292,700
Over 5 years	11,063	—

	2,415,331	2,722,434

117

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

41. Contingent Liabilities and Commitments

As at December 31, 2025 and 2024, the Company is involved in pending lawsuits as follows:

	2025				2024
(in thousands of Korean won)	Number of<br><br>lawsuits		Amount		Number of<br><br>lawsuits		Amount
Defendant		38		138,398,618		44		203,538,599
Plaintiff		13		226,629,322		16		236,163,306

The Company expects that these lawsuits do not have significant impact on the financial position.

The Company has entered into various agreements with financial institutions as at December 31, 2025 and 2024, are as follows:

		Credit line
(in thousands of Korean won)	Financial institution	2025		2024
Overdraft (including daily overdraft)	Kookmin Bank and others		1,287,450,000		1,265,000,000
General loan	Kookmin Bank		40,000,000		40,000,000
Securities underwriting loan	KSFC		600,000,000		600,000,000
Working capital loan (general)	KSFC		475,000,000		475,000,000
Note trading at a discount (general)	KSFC		300,000,000		300,000,000
Note trading at a discount (trust)	KSFC		Limit of subscription<br>deposits		Limit of subscription<br>deposits
Bond dealer’s loan (general)	KSFC		300,000,000		300,000,000
Securities underwriting financing	KSFC		1,710,000,000		1,710,000,000
Committed line	Industrial and<br>Commercial Bank of<br>China, etc		480,634,000		452,746,000

The guarantees and various commitment as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Guarantees		172,188,000	249,900,000
Agreement to purchase commercial papers<br>^1^		1,259,846,340	824,171,844
Loan agreements		1,830,709,680	2,714,231,347
Credit line agreements		510,628,552	577,479,784
LOC and Investment commitments		720,198,947	657,453,646

		4,493,571,519	5,023,236,621

^1^	According to the above arrangement, the Company holds the asset-backed short-term bonds amounting to<br>~~W~~ 86,450 million and ~~W~~ 278,820 million as at December 31, 2025 and 2024, respectively.
:---	:---

The Company has been provided with ~~W~~ 18,557 million and ~~W~~ 14,622 million in guarantees related to provisional attachment and others by Seoul Guarantee Insurance as at December 31, 2025 and 2024, respectively.

The securities in custody as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Trustor securities	300,600,043,794	240,661,735,301	Fair value
Saver securities	2,059,709,772	1,122,794,510	Fair value
Beneficiary securities	45,102,838,605	41,779,858,329	Standard selling price

	347,762,592,171	283,564,388,140

118

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

As at December 31, 2025, the main lawsuits against the company as a defendant are as follows:

(in thousands of Korean won)	No. of<br><br>lawsuits	Amount	Contents	Situation of lawsuits
Return of purchase<br>price, etc<br><br>Unjust gains<br><br>(Fund in Australia)	3	59,926,668	The Company, as a selling company of qualified investor private equity fund that aims to lend money to corporations (borrowers) investing in apartment rental business for disabled people in Australia, intermediated<br>~~W~~ 326.5 billion of trusts and funds to the individuals and institutional investors. However, the local borrower’s breach of the contract made the fund inoperable and the Company was sued for unjust gains/return of sales<br>price, etc.	1st lawsuit: 3rd trial in progress<br><br>(1st trial : February 7, 2023. Judgment ordering payment of ~~W~~<br>29.8 billion in investment principal and delayed interest thereon<br><br>2nd trial : January 29, 2024. Judgment ordering payment of ~~W~~ 12 billion<br>in investment principal and delayed interest thereon with different conclusion)<br><br>2nd<br>lawsuit: 2nd trial in progress<br><br>(1st trial : February 14, 2024. Judgment ordering payment of<br>~~W~~ 12.2 billion in investment principal and delayed interest thereon)<br><br>3rd lawsuit: 3rd trial in progress<br><br>(1st trial :October 26, 2023. Judgment ordering payment of ~~W~~<br>8.46 billion in remaining principal and delayed interest on ~~W~~ 8.29 billion in principal<br><br>2nd: January 16, 2025. Judgment ordering the return of<br>~~W~~4.4 billion, a portion of 8.07 billion paid in ther first trial)
Compensation for<br>damages<br><br>(Winners Delegated<br>Customer)	1	4,469,546	8 clients who had signed an investment agency contract with Winners Asset Management Co.,LTD.and opened accounts with the company to trade Nikkei 225 options claimed damages from the company, claiming that the short sales that<br>company conducted as a result of increased intraday risk due to the sharp decline in the Nikkei 225 index caused by COVID-19 in August 2020 was illegal.	2 plaintiffs filed an appeal<br><br>(1st trial : February 2, 2023. Judgment dismissing all plaintiffs’ claims for damages<br><br>2nd trial : October 30, 2025. Judgment<br>dismissing all plaintiffs’ appeal against the first trial)
Damages and<br>Unjust Gains<br><br>(Winners Fund<br>Investors)	4	7,202,350	Investors who invested in funds managed by Winners Asset Management Co.,LTD.filed lawsuits against the company, which was an investment broker, claimed compensation for damages or return of unjust gains due to contract cancellation<br>(60 plaintiffs in total)	1 cases: Appeal filed<br><br>(1st trial : ① September 26, 2024. the company wins in full ② September 18, 2025. the company<br>wins in full)<br><br>2 cases: 2nd trial in progress<br><br>(1st trial : ① August 22, 2024. the company wins in full ② November 28, 2025. the company wins<br>in full)<br><br>1 cases: 1st trial in progress

119

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Damages and<br>Unjust Gains<br>(TA_DLS Trust)		7		9,082,031		Investors who invested in KB able DLS Trust (a specific money trust that includes derivative linked securities linked to TA-OPAL Fund, which TransAsia Management invests in trade finance loan<br>receivables) argued that the company’s sales staff misleaded that the principal was guaranteed by an insurance company’s guarantee, and claimed the return of unjust gains by the cancellation of the contract due to the error.		2 cases: Appeal filed<br><br>(1st trial : ① July<br>23, 2025. the plaintiff win in partially. ② October 23, 2025. the plaintiff win in partially.<br><br>5 cases: 1st trial in progress
Unjust Gains<br><br>(Heritage Banzaran<br>DLS)		3		38,768,140		The company provided false information about the business capabilities of the operator (GPG), etc., thereby causing the plaintiff to misunderstand the key investment conditions of the DLS in this case. Therefore, the plaintiff<br>requested to cancel the acquisition contract for the DLS in this case due to the mistake and claimed the return of the acquisition price of the DLS in this case and the delay damages as unjust gains.		3 cases: 1st trial In progress

The Fair Trade Commission is currently reviewing whether the company has engaged in unfair joint activities with other banks and securities firms, and the results of the deliberation and decision are uncertain at this time.

During the year ended December 31, 2025, the Company underwent a regular tax audit by the Seoul Regional Tax Office for the fiscal years from 2020 to 2024, and paid ~~W~~ 19,398 million in corporate taxes and other taxes (including local income tax) in December 2025 and January 2026. Accordingly, the Company filed an appeal for ~~W~~ 15,249 million in February 2026, considering the items indicated in the tax notice. As at December 31, 2025, the Company did not recognize any tax liabilities for amounts it determined were likely to be refunded through an appeal. However, the final tax liability may change depending on the outcome of the appeal.

120

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

42. Related Party Transactions

KB Financial Group Inc. owns 100% of ordinary shares of the Company as at December 31, 2025 and 2024.

Significant balances and transactions, excluding loan and borrowing transactions described in separate notes, with related parties as at December 31, 2025 and 2024, are as follows:

(a) Receivables and payables

(in thousands of Korean won)	2025				2024
	Receivables		Payables		Receivables		Payables
Subsidiaries
KB Securities Hong Kong Ltd.		74,002		14,098,840		84,710		18,880,643
KB Securities Vietnam Joint Stock Company		—		—		294,943		240,183
KB Digital Innovation & growth New Technology Business Investment Fund		147,992		—		152,990		—
Newstar Gimpo 1st Co., Ltd		160,412		—		—		148,578
Newstar Believe Co., Ltd. ^1^		—		—		—		4,808
Able Gwonseon 1st Co., Ltd.		441,336		424,122		921,288		814,697
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund 1		341,266		—		432,356		—
KB MyeongJi 1st Co., Ltd.		—		797,554		50,600		480,597
Able Dangjin 1st Co., Ltd. ^1^		—		—		—		274,348
KB Mapo 2nd Co., Ltd.		—		721,426		74,812		501,786
Able Wonchang 1st Co., Ltd. ^1^		—		—		534,356		—
Zitaress 1st Co., Ltd.		4,142		82,506		14,552		118,467
Able Beomeo-one Co., Ltd. ^1^		—		—		731,322		174,765
Newstar Gimpo 4th Co., Ltd.		186,110		7,000,000		367,584		7,000,000
Powerplay 1st Co., Ltd.		—		6,327,752		—		752,679
Able Dosan 1st Co., Ltd ^1^		—		—		36,882		185,332
Able Maseok 1st Co., Ltd.		—		121,819		209,782		495,339
TW Seocho 1st Co., Ltd. ^1^		—		—		4,403,352		4,188,233
TW Seocho 2nd Co., Ltd. ^1^		—		—		1,028,055		866,767
Newstar Wave 1st Co., Ltd.		7,039		725		12,931		750
Able Next 1st Co., Ltd		229,203		1,514,996		413,625		1,053,751
YSMC 1st Co., Ltd.		1,379,677		1,507,505		—		1,459,480
Gyeongsan Logis 1st Co., Ltd ^1^		—		—		114,236		903,215
Stoke 2nd Corp		—		—		3,303,900		—
Newstar Seongnam 1st Co.,Ltd		—		—		467,596		—
KPS Sihwa 1st Co., Ltd.		3,543,890		—		—		50,900,000
Newstar NRB First Co., Ltd. ^1^		—		—		467,589		1,382,637
LB Ireland Private Real Estate Investment Trust 8		683,942		—		443,442		—
Able alpha Co., Ltd.		104,469		—		485,550		2,775,155
Newstar Sina 2nd Co., Ltd. ^1^		—		—		8,384,129		766,947
Able Eunhwasam 2nd Co., Ltd.^1^		—		—		4,281,657		1,968,572
Black Sapphire Holdings Co., Ltd. ^1^		—		—		835,027		1,279,945
ABLE GUNPO 1ST CO.,LTD. ^1^		—		—		2,606,639		2,149,506
NewStar Yui the 1st ^1^		—		—		1,982,766		2,063,912
Newstar Gimpo 7th Co.,Ltd.		3,626,497		45,680,442		6,698,303		47,596,046
able hi position 1^st^		1,209,231		1,177,434		4,537,949		4,210,694
Graha 2nd Co., Ltd. ^1^		—		—		694,486		769,948

121

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		2025				2024
		Receivables		Payables		Receivables		Payables
Able Yongin Wonsam 2nd Co., Ltd.			4,602,335		4,209,172		6,588,440		6,490,651
TRUE HOUSE FIRST CO., LTD.			575,893		490,354		1,376,876		1,599,011
Breeze Air Primary Co.,Ltd. ^1^			—		—		721,576		1,134,942
Able Gongpyeong 3rd Co.,Ltd			567,419		778,011		4,304,449		3,378,973
NEW STAR L CARD 1ST CO., LTD.			3,554,932		2,989,982		12,248,819		12,020,104
Olivia 1st Co.,Ltd.			—		88,376		—		433,489
THE APOGEE THE FIRST CO., LTD. ^1^			—		—		116,204		112,864
EULJI NAIN 1ST CO., LTD. ^1^			—		—		7,327,139		7,143,309
Able Civic 4th Co., Ltd. ^1^			—		—		9,208,387		9,125,806
NEWSTAR EXPER 1ST CO., LTD. ^1^			—		—		16,868,438		16,684,931
Able Sewoon Co., Ltd.			9,337		—		—		—
New Star YJ Second Co., Ltd			178,630		—		—		—
KB Infra 4th Co.,Ltd.			142,650		23,551		—		—
New Star Sinar Third Co., Ltd			1,425,118		555,457		—		—
HJ GALAXY No.4 Co., ltd			5,218,050		5,789,101		—		—
Hyosung Vina Second Co., Ltd			4,122,218		4,242,460		—		—
newstarwoncle 1st. Co. ltd			3,332,464		2,889,422		—		—
NetFabric Suncheon First Co., Ltd.			7,292,087		6,389,765		—		—
Newstar Songam 1st Co., ltd.			—		189,378		—		—
New Star SJ First Co., Ltd			371,364		510,444		—		—
New Star REITs First Co., Ltd			611,920		662,470		—		—
Newstar Cine 1st Co., ltd.			13,286,929		13,605,875		—		—
Next Yeongjong First Co., Ltd.			13,674,382		13,006,981		—		—
New Star KM First Co., Ltd			828,632		808,092		—		—
Newstar Next 1st Co., ltd.			—		1,675,006		—		—
Newstar Next 2nd Co., ltd.			—		1,301,198		—		—
Newstar Doan first Co., Ltd			1,229,800		1,474,110		—		—
PAV Co., Ltd			173,025		168,194		—		—
Still No.1 2nd Co., Ltd			374,548		—		—		—
Newstar L Chemi 1st			1,402,722		—		—		—
Parent Company
KB Financial Group Inc.			177,981,457		129,572,184		—		100,482,726
Others
Kookmin Bank			61,627,321		116,482,428		151,679,560		91,316,188
KB Asset Management Co., Ltd.			—		548		—		34,401
KB Real Estate Trust Co., Ltd.			—		355		—		417
KB Investment Co., Ltd.			751,581		131		848,476		165
KB Data System Co., Ltd.			5,356,594		356,049		925,927		331,681
KB Kookmin Card Co., Ltd.			14,395		9,066,102		455		8,427,724
KB Savings Bank Co., Ltd.			—		574		—		657
KB Capital Co., Ltd.			1,035,197		1,065,333		1,416,693		2,850,380
KB Insurance Co., Ltd.			151,341,852		22,345,124		6,846,890		92,036,600
KB Life Insurance Co., Ltd.			44,486,042		18,286,691		1,062,706		4,440,280
KB Wisestar Private Real Estate Fund Investment Trust No. 1			—		—		5,274		—
Other funds			105,460		1,743,740		71,459		6,875,206
^1^	These companies are not related parties as at December 31, 2025.
:---	:---

122

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(b) Revenue and expenses

(in thousands of Korean won)	2025				2024
	Revenue		Expenses		Revenue		Expenses
Subsidiaries
KB Securities Hong Kong Ltd.		215,248		12,218,873		203,122		6,180,878
KB Securities Vietnam Joint Stock Company		95,258		—		48,691		20,249
KB Digital Innovation&growth New Technology Business Investment Fund		147,991		—		152,990		—
Newstar Gimpo 1st Co., Ltd		1,728,627		—		1,392,907		—
Newstar Believe Co., Ltd. ^1^		—		—		725,687		—
Able Gwonseon 1st Co., Ltd.		550,623		—		386,132		—
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund 1		341,266		—		432,356		—
KB MyeongJi 1st Co., Ltd.		449,400		316,957		98,944		221,272
Able Dangjin 1st Co., Ltd. ^1^		—		269,236		1,514,937		—
KB Mapo 2nd Co., Ltd.		45,188		219,640		80,945		—
Able Wonchang 1st Co., Ltd. ^1^		—		534,356		534,356		—
Zitaress 1st Co., Ltd.		25,551		—		53,418		—
Able Beomeo-one Co., Ltd. ^1^		—		323,464		—		395,587
Newstar Gimpo 4th Co., Ltd.		199,566		141,040		516,388		—
Powerplay 1st Co., Ltd.		—		5,575,073		—		545,771
Able Dosan 1st Co., Ltd ^1^		148,450		—		—		98,210
Able Maseok 1st Co., Ltd.		704,413		—		3,819,878		—
TW Seocho 1st Co., Ltd. ^1^		—		215,119		6,904,954		—
TW Seocho 2nd Co., Ltd. ^1^		—		161,288		1,269,913		—
Newstar Wave 1st Co., Ltd.		3,133		—		1,244,112		—
Able Next 1st Co., Ltd		94,665		740,332		198,310		110,855
YSMC 1st Co., Ltd.		1,448,529		—		—		776,685
Gyeongsan Logis 1st Co., Ltd ^1^		788,978		—		—		1,158,168
Stoke 2nd Corp		—		—		4,049,076		—
Newstar Seongnam 1st Co., Ltd		62,404		—		3,384,135		—
KPS Sihwa 1st Co., Ltd.		54,443,890		—		6,682,041		47,048,355
Newstar NRB First Co., Ltd. ^1^		964,041		—		2,391,066		—
LB Ireland Private Real Estate Investment Trust 8		240,500		—		240,500		—
Able alpha Co., Ltd.		2,394,074		—		145,648		2,428,373
Newstar Sina 2nd Co., Ltd. ^1^		291,387		—		14,685,095		3,779,883
Able Eunhwasam 2nd Co., Ltd. ^1^		—		—		1,993,348		—
Black Sapphire Holdings Co., Ltd. ^1^		—		835,027		1,881,282		—
ABLE GUNPO 1ST CO., LTD. ^1^		348,415		—		1,040,179		—
NewStar Yui the 1st ^1^		1,101,192		—		2,320,047		1,101,192
Newstar Gimpo 7th Co., Ltd.		1,967,504		1,773,707		2,908,511		42,596,254
able hi position 1^st^		3,344,160		—		2,402,335		—
Graha 2nd Co., Ltd. ^1^		—		—		336,947		—
Able Yongin Wonsam 2nd Co., Ltd.		2,450,265		—		1,245,118		—
TRUE HOUSE FIRST CO., LTD.		307,675		—		248,197		—
Breeze Air Primary Co., Ltd. ^1^		1,085,363		—		670,634		—
Able Gongpyeong 3rd Co., Ltd		828,308		—		929,476		—
NEW STAR L CARD 1ST CO., LTD.		1,565,236		—		232,715		—
Olivia 1st Co., Ltd.		600,867		—		—		433,489
THE APOGEE THE FIRST CO., LTD. ^1^		—		2,984		22,716		14,376
EULJI NAIN 1ST CO., LTD. ^1^		—		—		183,830		—
Able Civic 4th Co., Ltd. ^1^		303,269		—		90,581		—
NEWSTAR EXPER 1ST CO., LTD. ^1^		3,820,713		—		187,507		—

123

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2025				2024
	Revenue		Expenses		Revenue		Expenses
Able Gongpyeong 1st Co., Ltd ^1^		—		—		124,722		—
ABR Joongang2 1st Co., Ltd ^1^		—		—		337,429		—
Able Gasan 1st Co., Ltd. ^1^		—		—		112,432		—
Able Sewoon Co., Ltd.		9,337		—		195,190		—
Able PT 1st Co., Ltd ^1^		—		—		8,599		—
Newstar Plus 1st Co., Ltd. ^1^		—		—		84,843		—
Able MK 1st co. ltd ^1^		—		—		115,722		—
Newstar Sina Co., Ltd. ^1^		—		—		928,911		—
KB Gold 1st Co., Ltd. ^1^		—		—		287,094		—
KB Infra 2nd Co., Ltd. ^1^		—		—		87,532		—
HD Value 1st Co., Ltd. ^1^		—		—		38,658		—
Newstar Enerbil 1st Co., Ltd. ^1^		—		—		260,790		—
KB SmartSchool 1st Co., Ltd. ^1^		—		—		99,778		—
Bighouse 7th Co., Ltd. ^1^		—		—		146,219		—
GDIC 2nd co. ltd ^1^		—		—		3,657,319		—
Able Dongtan 1st Co., Ltd. ^1^		—		—		3,009,210		—
Newstar Gimpo 5th Co., Ltd. ^1^		—		—		36,000,000		—
Able Banpo 1st Co., Ltd. ^1^		—		—		2,989,765		—
Able Banpo 2nd Co., Ltd. ^1^		—		—		2,356,168		—
Newstar one-firm<br>2023-1 5th. Co., Ltd. ^1^		—		—		301,342		—
French Shine 1st Co., Ltd. ^1^		—		—		—		432,802
Able Bonri 1st Co., Ltd. ^1^		—		—		—		4,657,198
Newstar JH Center Co., Ltd. ^1^		—		—		1,642,185		—
Able TY 2nd Co., Ltd. ^1^		—		—		2,888,857		—
KBFG Securities America Inc.		—		9,421,256		—		4,405,172
JB New Jersey Private Real Estate Fund 1 ^1^		—		—		344,513		—
Vestas Qualified Investors’ Private Real Estate Fund Investment Trust No. 38 ^1^		—		—		1,724,448		—
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15		—		—		182,451		—
GVA Europe Pre-IPO Private Investment Trust No.1		4,706,084		—		2,452,274		—
LIFE Global Reits Pre-IPO General Private Investment Trust<br>1		4,079,629		—		4,392,801		—
K-1 23th Yeoksam Real Estate Investment Trust Company ^1^		2,248,043		—		5,028,452		—
Keppel Private Real Estate Investment Trust No.13 ^1^		—		—		1,410,095		—
E&F Blacksapphire Private Equity Fund ^1^		151,631		—		600,000		—
Able Civic Third Co., Ltd. ^1^		—		—		64,855		—
Lalaroro 1st Co., Ltd. ^1^		—		—		318,817		—
New Star YJ Second Co., Ltd		5,126,685		—		—		—
KB Infra 4th Co., Ltd.		536,192		23,551		—		—
MS Cheongna No.2 Co., Ltd.		911,780		—		—		—
New Star Sinar Third Co., Ltd		2,529,961		1,860,999		—		—
Buu 1st Co., Ltd. ^1^		100		—		—		—
Prime Twin Co., Ltd ^1^		210,262		—		—		—
New Star Smile First Co., Ltd ^1^		911,616		—		—		—
HJ GALAXY No.4 Co., ltd		1,289,353		834,404		—		—
Newstar Solution 2nd Co., Ltd ^1^		1,435		—		—		—
Hyosung Vina Second Co., Ltd		1,061,759		—		—		—
newstarwoncle 1st. Co. ltd		443,042		—		—		—
NetFabric Suncheon First Co., Ltd.		1,730,088		—		—		—

124

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)	2025				2024
	Revenue		Expenses		Revenue		Expenses
newstarseongsu 1st. Co. ltd ^1^		312		—		—		—
Newstar Songam 1st Co., ltd.		60,712		180,090		—		—
New Star SJ First Co., Ltd		80,365		—		—		—
New Star REITs First Co., Ltd		74,450		—		—		—
Newstar Cine 1st Co., ltd.		281,054		—		—		—
Next Yeongjong First Co., Ltd.		6,593,401		—		—		—
New Star KM First Co., Ltd		28,540		—		—		—
Newstar Next 1st Co., ltd.		—		1,675,006		—		—
Newstar Next 2nd Co., ltd.		—		1,301,198		—		—
Newstar Doan first Co., Ltd		9,300		—		—		—
PAV Co., Ltd		9,831		—		—		—
Still No.1 2nd Co., Ltd		877,107		—		—		—
Newstar L Chemi 1st		1,402,722		—		—		—
Associates
KBTS Technology Venture Private Equity Fund		170,353		—		174,883		—
KB-SJ Tourism Venture Fund		788,468		—		1,789,462		—
KB SPROTT Renewable Private Equity Fund I		77,970		—		255,062		—
KB-Stonebridge Secondary Private Equity Fund		364,486		—		416,636		—
KB-UTC Inno-Tech Venture Fund		146,853		—		230,269		—
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund		800,322		—		619,004		—
KB Material and Parts No. 1 PEF ^1^		—		—		132,258		—
KB Special Purpose Acquisition Company No.21 ^1^		—		—		135,842		—
KB-KTB Technology Venture Fund		398,659		—		341,826		—
KB-GeneN Medical Venture Fund 1		88,800		—		88,800		—
KB-BridgePole Venture Investment Fund ^1^		—		—		460,776		—
KB-Kyobo New Mobility Power Fund ^1^		—		—		75,523		—
KB-FT 1st Green Growth Investment Fund		135,415		—		135,639		—
KB-NP Green ESG New Technology Venture Capital<br>Fund		1,095,469		—		1,133,636		—
KB Special Purpose Acquisition Company No.25		65,452		—		—		175,265
KB Special Purpose Acquisition Company No.26 ^1^		—		—		—		53,795
KB-SUSUNG 1st Investment Fund		142,365		—		192,368		—
KB Special Purpose Acquisition Company No.27		405,334		—		—		176,877
KB-BridgePole Venture Investment Fund #2 ^1^		105,000		—		105,000		—
U-KB Credit No.1 Private Equity		967,500		—		970,151		—
KB Special Purpose Acquisition Company No.28 ^1^		—		—		1,292,589		—
KB Special Purpose Acquisition Company No.29		143,758		—		1,735,480		—
AKK Robotech Valueup New Technology Investment Fund<br>^1^		235,495		—		101,116		—
KB-SOLIDUS Healthcare Investment Fund		860,181		—		768,198		—
KB-CJ Venture Fund 1st		150,000		—		79,918		—
KB-SUSUNG 2nd Investment Fund		154,772		—		77,518		—
KB KONEX Market Vitalization Fund ^1^		—		—		3,084,375		—
KB Star REIT		9,442,306		—		10,263,978		—
KB Special Purpose Acquisition Company No.30		57,619		—		1,620,135		—

125

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		2025				2024
		Revenue		Expenses		Revenue		Expenses
KB Special Purpose Acquisition Company No.31			177,402		—		2,111,082		—
KB-Cyrus Tourism Venture Fund			337,500		—		63,627		—
KB-IMM Newstar Real Estate Private Fund 1			2,277,815		—		—		—
KB Special Purpose Acquisition Company No.33			2,214,139		—		—		—
KBLB Middle Market Enterprises Innovation Private Equity Fund			1,199,742		—		—		—
Semicolon Susong Commissioned Real Estate Investment Trust			5,650,210		—		—		—
KB-Novus Genesis Private Equity Fund			103,905		—		—		—
AIM-KB-DOUBLE<br>Connected Future Investment Fund			30,378		—		—		—
KB-SP Private Equity Fund IV ^1^			62,547		—		—		—
E&I Holdings Co., Ltd ^1^			3,446,057		—		—		—
IMM global Secondary 1-1 Equity Private Fund			3,511		—		—		—
K-1 23th Yeoksam Real Estate Investment Trust Company ^2^			2,334,156		—		—		—
KB-IMM Newstar Real Estate Private Fund 2			138,002		—		—		—
Parent Company
KB Financial Group Inc.			1,421,760		65,443		778,876		99,196
Others
Kookmin Bank			75,182,466		196,670,594		176,455,808		143,344,573
KB Asset Management Co., Ltd.			903		684,918		782		839,780
KB Real Estate Trust Co., Ltd.			622		7,014		215,636		937
KB Investment Co., Ltd.			1,570,303		5		1,666,529		6
KB Data System Co., Ltd.			1,021		2,722,953		8,483		5,749,905
KB Kookmin Card Co., Ltd.			111,825		1,017,147		57,063		837,257
KB Savings Bank Co., Ltd.			996		69		23		23
KB Capital Co., Ltd.			608,343		77,590		492,222		41,598
KB Insurance Co., Ltd.			215,567,089		—		6,994,519		56,730,129
KB Life Insurance Co., Ltd.			44,935,958		2,604,916		1,112,355		469,723
KB Wisestar Private Real Estate Fund Investment Trust No. 1			9,549		—		110,292		—
Other funds			17,287,679		—		22,403,901		—
Retirement pension			1,222,235		—		1,230,487		—
The Company
Employees			773,600		—		379,157		—
^1^	These companies are excluded from related parties during the year ended December 31, 2025 or 2024. The<br>transaction amounts are up to the date of the exclusion.
:---	:---
^2^	These investments are reclassified from investments in subsidiaries to associates due to disposal in partially<br>for the year ended December 31, 2025.
:---	:---

126

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(c) Significant loan and borrowing transactions with related parties for the years ended December 31, 2025 and 2024, are as follows:

	2025
(in thousands of Korean won)	Accounts	Beginning<br>balance		Increase		Decrease			Other			Ending<br>balance
Subsidiaries
Newstar Gimpo 1st Co., Ltd	Loans		37,139,957		—		(17,774,760	)		198,789			19,563,986
LB Ireland Private Real Estate Investment Trust 8	Loans		—		—		—			—			—
Able Dangjin 1st Co.,Ltd. ^1^	Loans		25,205,000		—		(25,205,000	)		—			—
Newstar Sina 2nd Co., Ltd. ^1^	Loans		12,344,638		—		(11,155,400	)		(1,189,238	)		—
Able Wonchang 1st Co., Ltd. ^1^	Loans		9,224,719		—		(10,000,000	)		775,281			—
Stoke 2nd Corp	Loans		64,873,019		—		—			(28,533,283	)		36,339,736
ABLE GUNPO 1ST<br><br>CO.,LTD. ^1^	Loans		9,940,618		—		(10,000,000	)		59,382			—
Gyeongsan Logis 1st Co., Ltd ^1^	Loans		—		18,000,000		(18,000,000	)		—			—
Black Sapphire Holdings Co.,Ltd. ^1^	Loans		139,594,847		—		(140,000,000	)		405,153			—
New Star YJ Second Co., Ltd	Loans		—		100,000,000		—			(141,930	)		99,858,070
Able alpha Co., Ltd.	Loans		—		28,712,000		—			(6,000,000	)		22,712,000
KB Infra 4th Co.,Ltd.	Loans		—		19,855,600		—			47,683			19,903,283
KPS Sihwa 1st Co., Ltd.	Loans		—		258,000,000		—			(87,800,000	)		170,200,000
MS Cheongna No.2 Co., Ltd.	Loans		—		99,999,952		—			—			99,999,952
Still No.1 2nd Co., Ltd	Loans		—		50,000,000		—			(65,722	)		49,934,278
Newstar L Chemi 1^st^	Loans		—		199,812,500		—			—			199,812,500
Able Sewoon Co., Ltd.	Loans		—		2,400,000		—			—			2,400,000
Associates
KB Special Purpose Acquisition Company No.21 ^1^	Hybrid bond with securities-like features		3,122,444		—		(3,122,444	)		—			—
KB Special Purpose Acquisition Company No.25	Hybrid bond with securities-like features		1,849,919		—		—			65,453			1,915,372
KB Special Purpose Acquisition Company No.26 ^1^	Hybrid bond with securities-like features		2,150,426		—		—			(2,150,426	)		—
KB Special Purpose Acquisition Company No.27	Hybrid bond with securities-like features		5,876,876		—		—			405,334			6,282,210

127

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2025
(in thousands of Korean won)	Accounts	Beginning<br>balance		Increase		Decrease			Other			Ending<br>balance
KB Special Purpose Acquisition Company No.28 ^1^	Hybrid bond with securities-like features		2,112,589		—		—			(2,112,589	)		—
KB Special Purpose Acquisition Company No.29	Hybrid bond with securities-like features		3,015,480		—		—			143,758			3,159,238
KB Special Purpose Acquisition Company No.30	Hybrid bond with securities-like features		2,835,135		—		—			57,619			2,892,754
KB Special Purpose Acquisition Company No.31	Hybrid bond with securities-like features		4,301,082		—		—			177,402			4,478,484
KB Special Purpose Acquisition Company No.33	Hybrid bond with securities-like features		—		2,090,000		—			2,214,139			4,304,139
Others
Kookmin Bank	Deposits ^2^		493,552,397		—		—			(131,468,251	)		362,084,146
	Borrowings		—		857,554,023		(856,523,389	)		—			1,030,634
KB Kookmin Card Co., Ltd.	Debt Securities		—		10,001,122		(10,001,122	)		—			—
KB Capital Co., Ltd.	Debt Securities		—		10,002,628		(10,002,628	)		—			—
Executives	Deposit Liabilities		373,997		510,499		(217,242	)		—			667,254
The Company
Employees	Loans to employees		23,488,800		20,235,774		(6,466,148	)		—			37,258,426
^1^	These companies are not related parties of the Company as at December 31, 2025.
:---	:---
^2^	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn<br>at any time between related parties are disclosed in net amounts.
:---	:---
	2024
---	:---:	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)	Accounts	Beginning<br>balance		Increase		Decrease			Other			Ending<br>balance
Subsidiaries
Newstar Gimpo 1st Co., Ltd	Loans		16,300,000		41,400,000		(30,251,134	)		9,691,092			37,139,958
Able MK 1st co. ltd ^1^	Loans		30,806,681		—		(31,000,000	)		193,319			—
KB Gold 1st Co., Ltd. ^1^	Loans		20,000,000		—		(20,000,000	)		—			—
Able Dangjin 1st Co., Ltd.	Loans		20,490,636		4,060,000		—			654,364			25,205,000
Newstar Sina 2nd Co., Ltd.	Loans		10,806,024		—		—			1,538,614			12,344,638
KB Tongyoung 1st Co., Ltd ^1^	Loans		20,580,850		—		(20,710,000	)		129,150			—
Able Wonchang 1st Co., Ltd.	Loans		8,460,892		—		—			763,827			9,224,719
Stoke 2nd Corp	Loans		—		73,000,000		—			(8,126,981	)		64,873,019
ABLE GUNPO 1ST CO., LTD.	Loans		—		10,000,000		—			(59,382	)		9,940,618

128

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

	2024
(in thousands of Korean won)	Accounts	Beginning<br>balance		Increase		Decrease			Other			Ending<br>balance
Black Sapphire Holdings Co., Ltd.	Loans		—		140,000,000		—			(405,153	)		139,594,847
Newstar one-firm<br>2023-1 3rd. Co., Ltd. ^1^	Corporate commercial papers		20,806,683		—		—			(20,806,683	)		—
Newstar one-firm<br>2023-1 4th. Co., Ltd. ^1^	Corporate commercial papers		52,262,896		—		—			(52,262,896	)		—
Associates
KB Special Purpose Acquisition Company No.21	Hybrid bond with securities-like features		2,986,602		—		—			135,842			3,122,444
KB Special Purpose Acquisition Company No.22 ^1^	Hybrid bond with securities-like features		2,984,646		—		—			(2,984,646	)		—
KB Special Purpose Acquisition Company No.23 ^1^	Hybrid bond with securities-like features		1,488,699		—		—			(1,488,699	)		—
KB Special Purpose Acquisition Company No.25	Hybrid bond with securities-like features		2,025,184		—		—			(175,265	)		1,849,919
KB Special Purpose Acquisition Company No.26	Hybrid bond with securities-like features		2,204,221		—		—			(53,795	)		2,150,426
KB Special Purpose Acquisition Company No.27	Hybrid bond with securities-like features		6,053,752		—		—			(176,876	)		5,876,876
KB Special Purpose Acquisition Company No.28	Hybrid bond with securities-like features		—		995,000		—			1,117,589			2,112,589
KB Special Purpose Acquisition Company No.29	Hybrid bond with securities-like features		—		1,490,000		—			1,525,480			3,015,480
KB Special Purpose Acquisition Company No.30	Hybrid bond with securities-like features		—		1,390,000		—			1,445,135			2,835,135
KB Special Purpose Acquisition Company No.31	Hybrid bond with securities-like features		—		2,190,000		—			2,111,082			4,301,082
Others
Kookmin Bank	Deposits ^2^		367,980,199		—		—			125,572,198			493,552,397
	Borrowings		—		721,678,573		(721,678,573	)		—			—
KB Kookmin Card Co., Ltd.	Debt Securities		30,127,334		—		(30,127,334	)		—			—
Executives	Deposit Liabilities		635,217		283,283		(544,503	)		—			373,997
The Company
Employees	Loans to employees		12,587,095		16,252,859		(5,351,154	)		—			23,488,800

129

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

^1^	These companies are not related parties of the Company as at December 31, 2024.
^2^	Transactions such as settlement payments for business reasons and deposits that can be deposited and withdrawn<br>at any time between related parties are disclosed in net amounts.
:---	:---

In addition to the above, the balance of hybrid securities held by KB Financial Group Inc., issued by the Company as at December 31, 2025, is ~~W~~ 530,000 million (2024 : ~~W~~ 530,000 million), and the related dividend payment for the year ended December 31, 2025 is ~~W~~ 26,600 million (2024 : ~~W~~ 31,913 million).

And the dividend paid by the Company to KB Financial Group Inc., the parent company, through disposal of retained earnings in 2025 during the year ended December 31, 2025 is ~~W~~ 580,000 million (2024 : ~~W~~ 150,000 million).

Meanwhile, the above financial transactions do not include details of increases or decreases in deposits that occur for business reasons between related parties.

(d) Other transactions with related parties for the years ended December 31, 2025 and 2024, are as follows:

(In thousands of Korean won)	2025
	Contribution		Collection and others
Subsidiaries
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund 1		—		7,665,000
KB Securities ESG Value Enhancement Fund		1,000,000		—
Pacific US BlackRock Private Placement Real Estate Fund<br><br>Investment Trust No. 15		—		2,788,442
K-1 23th Yeoksam Real Estate Investment Trust Company ^2^		—		15,000,000
E&F Blacksapphire Private Equity Fund ^1^		—		40,000,000
PineStreet AIOFIII Infrastructure General Private Trust No.2		4,720,405		—
Samsung Vista Credit BDC Private Investment No.2		22,026,000		—
Mangrove Feeder Fund		—		3,971,100
Associates
KB Special Purpose Acquisition Company No.21 ^1^		—		10,000
KB Special Purpose Acquisition Company No.26 ^1^		—		5,000
KB Special Purpose Acquisition Company No.28 ^1^		—		5,000
KB Special Purpose Acquisition Company No.32		10,000		—
KB New Paradigm Agriculture Venture Fund		—		375,000
KB KONEX Market Vitalization Fund ^1^		—		540,000
KB-KDBC New Technology Business Investment Fund		—		1,500,000
KB-SJ Tourism Venture Fund		—		190,000
KB-Stonebridge Secondary Private Equity Fund		—		1,248,439
KB-SP Private Equity Fund IV ^1^		—		2,494,808
KB-NAU Special Situation Corporate Restructuring Private<br><br>Equity Fund		1,800,000		1,700,815
KB Digital Platform Fund		10,000,000		—
KB-SOLIDUS Healthcare Investment Fund		1,316,667		—
JS Private Equity Fund III		—		749,248
THE CHAEUL FUND NO.1 ^1^		—		1,000,000
POSITVE Sobujang Venture Fund #1 ^1^		—		879,121
KB-NP Green ESG New Technology Venture Capital<br>Fund		3,480,000		1,136,153
Hisstory 2022 Fintech Fund ^1^		—		2,000,000
KB Bio Private Equity Investment Fund IV ^1^		—		7,500,000

130

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(In thousands of Korean won)	2025
	Contribution		Collection and others
KB-SUSUNG 1st Investment Fund		—		946,000
Shinhan-Eco Venture Fund 2nd		25,000		190,000
2023 JB Newtech No.2 Fund 1		—		1,405,557
U-KB Credit No.1 Private Equity		11,953,489		—
AKK Robotech Valueup New Technology Investment Fund<br>1		—		1,000,000
IMM global Secondary 1-1 Equity Private Fund		756,186		162,251
NOVORSEC-SJG Consumer Secondary Fund 1		—		1,700,000
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership		10,215,000		—
KB-Cyrus Tourism Venture Fund		1,000,000		—
NICE DATA INTELLIGENCE VENTURE FUND 1		—		1,000,000
Pectus Hanwha Fund No.2 1		—		2,000,000
KB-IMM Newstar Real Estate Private Fund 1		19,386,033		—
KBLB Middle Market Enterprises Innovation Private Equity Fund		4,284,000		—
YG AI Industrial Automation Solutions FUND		2,000,000		—
KB-Novus Genesis Private Equity Fund		2,300,000		—
KB Special Purpose Acquisition Company No.33		160,000		—
ATP TP VC Fund No.1		2,000,000		—
AIM-KB-DOUBLE<br>Connected Future Investment Fund		1,000,000		—
KB-IMM Newstar Real Estate Private Fund 2		16,509,818		—
IMM Korea Beauty Co-Invest Private Equity Fund		50,000,000		—
KB-GVA Premier Mezzanine Investment Fund		500,000		—
KB-ANDA Deep Tech Venture Fund		1,249,500		—
Others
KB BMO Senior Loan Private Special Asset Fund 2		—		6,588,099
KB Overseas Investment Private Real Estate Investment Trust No. 22		4,016,340		—
KB Wisestar Private Real Estate Fund Investment Trust No. 1		—		2,414,882
KB North America Jefferies Private Special Asset Investment Trust No.1		4,683,542		1,346,657
KB North America Jefferies Private Special Asset Investment Trust No.2		262,750		89,659
KB Corporation Dollar MMF()		28,989,000		43,844,420
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1		22,857		10,442
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2		44,338		28,032
KB Apax Global Buyout Fund		1,912,740		—
KB Global Infra Private Special Asset Fund No.6		—		130,507
KB Overseas Investment Private Real Estate Investment Trust No. 35		50,606		—
KB Global Senior Loan Private Fund No.1()		18,489,479		5,808,597
KB Wisestar General Real Estate Fund 24		14,700,000		14,700,000
KB Global Platform Fund		—		2,880,000
KB New Deal Innovation Fund		—		1,000,000
Paramark KB Fund I		1,830,000		411,000
KB Secondary Plus Fund		—		1,676,310
KB Prime Digital Platform Fund		1,125,000		—
KB Scale-up Fund No.2		3,500,000		—
KB Global Platform Fund No.2		2,400,000		—
Startup Korea KB Secondary Fund		1,500,000		1,961
Timefolio The Time-Frontier Star Specialized Private Investment Trust		10,097,349		490,175
KB Wisestar General Real Estate Fund 21		8,899,000		230,400
KB ValueRise Blind Private Real Estate Fund No.1		10,684,210		—
PineStreet AIOFIII Infrastructure General Private Trust No.2		141,706		1,265
KB BX Europe Infra Private SpecialAsset Fund 1()		4,177,909		—
KB RISE Short-Term MSB ETF		71,909,225		71,909,111
KB Wisestar General Real Estate Fund 28		20,500,000		—

131

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

^1^	These companies are not related parties of the Company as at December 31, 2025.
^2^	These investments are reclassified from investments in subsidiaries to associates due to disposal in partially<br>for the year ended December 31, 2025.
:---	:---
(In thousands of Korean won)		2024
---	---	:---:	---	---	---	---
		Contribution			Collection and others
Subsidiaries
KB Pre-IPO 2nd (TCB) New Technology Business Investment<br>Fund			—			3,885,000
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15			933,277			7,677,053
Mangrove Feeder Fund			—			17,900,820
K-1 23th Yeoksam Real Estate Investment Trust<br>Company			—			15,000,000
KB Securities ESG Value Enhancement Fund			1,000,000			—
E&F Blacksapphire Private Equity Fund			40,000,000			—
Global One Professional Investment Type Private U.S. Real Estate Investment Trust No.<br>2(H)			1,476,026			—
Keppel Private Real Estate Investment Trust No.13			—			25,000,000
Associates
KB Special Purpose Acquisition Company No.22 ^1^			—			10,000
KB Special Purpose Acquisition Company No.28			5,000			—
KB Special Purpose Acquisition Company No.29			10,000			—
KB Special Purpose Acquisition Company No.30			10,000			—
KB Special Purpose Acquisition Company No.31			10,000			—
KB New Paradigm Agriculture Venture Fund			—			825,000
KB KONEX Market Vitalization Fund			—			75,000
KB-KDBC New Technology Business Investment Fund			—			300,000
KBTS Technology Venture Private Equity Fund			—			704,000
KB-SJ Tourism Venture Fund			—			4,030,000
KB-Stonebridge Secondary Private Equity Fund			—			190,539
KB-UTC Inno-Tech Venture Fund			—			112,500
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund			4,482,000			3,889,195
KB Material and Parts No. 1 PEF ^1^			—			3,400,000
KB Global Commerce Private Equity Investment Fund ^1^			—			7,000,000
KB-KTB Technology Venture Fund			2,000,000			—
KB Digital Platform Fund			10,000,000			—
KB-SOLIDUS Healthcare Investment Fund			1,300,000			—
KB-BridgePole Venture Investment Fund ^1^			—			136,000
KB-Kyobo New Mobility Power Fund ^1^			—			3,000,000
JS Private Equity Fund III			—			754,979
POSITVE Sobujang Venture Fund #1			—			1,120,879
KB-NP Green ESG New Technology Venture Capital<br>Fund			7,920,000			—
LAKEWOOD-AVES Fund No.1 ^1^			—			2,000,000
KB-SUSUNG 1st Investment Fund			—			924,000
Friend 55 New Technology Business Investment Fund ^1^			—			1,200,000
Bitgoeul Cheomdan Green 1st Co., Ltd.			152,000			—
DSIP-Pharos Bioenergy Fund ^1^			—			4,000,000
Shinhan-Eco Venture Fund 2^nd^			225,000			—
2023 JB Newtech No.2 Fund			—			394,443
U-KB Credit No.1 Private Equity			279,070			—
Timefolio Athleisure Investment Fund			4,000,000			—
COMPA Global Scale-Up Fund No.3			1,000,000			—
AKK Robotech Valueup New Technology Investment Fund			1,000,000			—
YG MCE PROJECT No.1 Fund			1,500,000			—
HI YG Win-win Fund No.2			2,000,000			—

132

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(In thousands of Korean won)	2024
	Contribution		Collection and others
KB-CJ Venture Fund 1st		1,800,000		—
Elohim-Bilanx aerospace No.1 Fund		2,000,000		—
KB-SUSUNG 1st Investment Fund		2,000,000		—
IMM global Secondary 1-1 Equity Private Fund		2,819,038		—
LIB Material Investment Fund		4,098,144		—
NOVORSEC-SJG Consumer Secondary Fund		1,700,000		—
KBSBI Global High-tech Strategic Private Equity Investment<br>Limited Partnership		5,059,098		—
KB-Cyrus Tourism Venture Fund		1,000,000		—
IBKS Design Fund		2,000,000		—
NICE DATA INTELLIGENCE VENTURE FUND		1,000,000		—
Pectus Hanwha Fund No.2		2,000,000		—
KB-IMM Newstar Real Estate Private Fund 1		20,897,275		—
Others
KB BMO Senior Loan Private Special Asset Fund 2		—		5,119,216
KB Overseas Investment Private Real Estate Investment Trust No. 22		2,728,938		853,778
KB Global Platform Fund		—		2,540,000
Paramark KB Fund I		2,710,000		—
KB Prime Digital Platform Fund		900,000		—
KB Scale-up Fund No.2		1,500,000		—
KB Global Platform Fund No.2		3,600,000		—
KB Overseas Investment Private Real Estate Investment Trust No. 35		50,535		—
KB North America Jefferies Private Special Asset Investment Trust No.2		38,129		—
KB KBSTAR Money Market Active		10,090,203		81,692,923
KB KBSTAR US Short-Term IG Corporate Bond ETF		—		30,915,000
KB Wise star General Real Estate Fund 22		—		96,145,931
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1		372,857		—
KB BXC GREEN CREDIT Infra General Private Special Asset Fund 2		64,458		—
KB Apax Global Buyout Fund		2,669,708		—
KB Global Infra Private Special Asset Fund No.6		2,006,602		—
KB Global Senior Loan Private Fund No.1()		5,996,748		—
Startup Korea KB Secondary Fund		1,500,000		—

All values are in US Dollars.

^1^	These companies are not related parties of the Company as at December 31, 2024.

133

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(e) Details of payment guarantees and other similar contracts with related parties as at December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)	Description	Amounts
		2025		2024
KB Securities Vietnam Joint Stock Company	Payment guarantees		—		76,440,000
KB Securities Hong Kong Ltd.	Payment guarantees		172,188,000		173,460,000
Able Gwonseon 1st Co., Ltd.	Credit line		18,000,000		18,000,000
Able Gongpyeong 3rd Co.,Ltd	Credit line		46,000,000		76,000,000
Able Sewoon Co., Ltd.	Private placement bonds purchase agreement		—		22,600,000
Zitaress 1st Co., Ltd.	Private placement bonds purchase agreement		13,070,000		19,950,000
Able Beomeo-one Co., Ltd. ^1^	Private placement bonds purchase agreement		—		30,000,000
KB Mapo 2nd Co.,Ltd.	Private placement bonds purchase agreement		10,000,000		10,000,000
KB MyeongJi 1st Co.,Ltd.	Private placement bonds purchase agreement		11,055,236		16,300,000
Newstar Gimpo 4th Co.,Ltd.	Private placement bonds purchase agreement		7,000,000		7,000,000
Newstar Wave 1st Co., Ltd.	Credit line		34,344,444		36,477,778
Able Dosan 1st Co., Ltd ^1^	Private placement bonds purchase agreement		—		2,555,024
Able Maseok 1st Co., Ltd.	Private placement bonds purchase agreement		4,000,000		16,800,000
TW Seocho 2nd Co., Ltd. ^1^	Private placement bonds purchase agreement		—		30,000,000
TW Seocho 1st Co., Ltd. ^1^	Credit line		—		220,000,000
Powerplay 1st Co., Ltd.	Private placement bonds purchase agreement		15,000,000		15,000,000
Able Next 1st Co., Ltd	Private placement bonds purchase agreement		21,000,000		21,000,000
YSMC 1st Co., Ltd.	Private placement bonds purchase agreement		49,500,000		49,500,000
Gyeongsan Logis 1st Co., Ltd ^1^	Credit line		—		18,000,000
Newstar Seongnam 1st Co.,Ltd	Credit line		16,000,000		16,000,000
KPS Sihwa 1st Co., Ltd.	Credit line		—		266,000,000
Newstar NRB First Co., Ltd. ^1^	Private placement bonds purchase agreement		—		19,048,545
Able alpha Co., Ltd.	Credit line		2,288,000		31,000,000
Able Eunhwasam 2nd Co., Ltd. ^1^	Private placement bonds purchase agreement		—		40,000,000
Newstar Sina 2nd Co., Ltd. ^1^	Private placement bonds purchase agreement		—		56,900,000
Newstar Gimpo 7th Co.,Ltd.	Private placement bonds purchase agreement		93,600,000		93,600,000
NewStar Yui the 1st ^1^	Private placement bonds purchase agreement		—		70,000,000
able hi position 1st	Credit line		100,000,000		100,000,000
Graha 2nd Co., Ltd. ^1^	Private placement bonds purchase agreement		—		20,000,000
Breeze Air Primary Co.,Ltd. ^1^	Private placement bonds purchase agreement		—		100,000,000
TRUE HOUSE FIRST CO., LTD.	Private placement bonds purchase agreement		15,000,000		30,000,000
ABLE GUNPO 1ST CO.,LTD. ^1^	Credit line		—		40,000,000

134

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(in thousands of Korean won)		Description	Amounts
			2025		2024
Able Yongin Wonsam 2nd Co., Ltd.		Private placement bonds purchase agreement		50,000,000		50,000,000
NEWSTAR EXPER 1ST CO., LTD. ^1^		Private placement bonds purchase agreement		—		588,000,000
NEW STAR L CARD 1ST CO., LTD.		Private placement bonds purchase agreement		117,000,000		148,500,000
THE APOGEE THE FIRST CO., LTD. ^1^		Private placement bonds purchase agreement		—		39,000,000
Able Civic 4th Co., Ltd. ^1^		Credit line		—		150,000,000
Olivia 1st Co.,Ltd.		Credit line		14,000,000		73,000,000
EULJI NAIN 1ST CO., LTD. ^1^		Credit line		—		120,000,000
New Star Sinar Third Co., Ltd		Private placement bonds purchase agreement		29,230,000		—
HJ GALAXY No.4 Co.,ltd		Private placement bonds purchase agreement		80,200,000		—
NetFabric Suncheon First Co., Ltd.		Private placement bonds purchase agreement		67,000,000		—
KB Infra 4th Co., Ltd.		Credit line		8,322,420		—
newstarwoncle 1st. Co. ltd		Private placement bonds purchase agreement		28,500,000		—
Hyosung Vina Second Co., Ltd		Private placement bonds purchase agreement		78,410,000		—
PAV Co., Ltd		Credit line		30,300,000		—
Newstar Doan first Co., Ltd		Credit line		156,000,000		—
Newstar Next 2nd Co., ltd.		Private placement bonds purchase agreement		25,000,000		—
Newstar Next 1st Co., ltd.		Private placement bonds purchase agreement		55,000,000		—
New Star KM First Co., Ltd		Private placement bonds purchase agreement		40,000,000		—
Next Yeongjong First Co., Ltd.		Private placement bonds purchase agreement		100,000,000		—
Newstar Cine 1st Co., ltd.		Credit line		210,000,000		—
New Star REITs First Co., Ltd		Private placement bonds purchase agreement		85,000,000		—
New Star SJ First Co., Ltd		Private placement bonds purchase agreement		30,000,000		—
Newstar Songam 1st Co.,ltd.		Private placement bonds purchase agreement		30,000,000		—
KB Star Galaxy Towers REIT ^1^		Funding supplement agreement B		—		40,000,000
^1^	These companies are not related parties of the Company as at December 31, 2025.
:---	:---

As at December 31, 2025, the Company recognizes financial guarantee liability amounting to ~~W~~ 62,218 million (~~W~~ 80,493 million in 2024) in conjunction with the above.

135

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Details of assets pledged as collateral to related parties as at December 31, 2025 and 2024 are as follows:

(a) Assets provided as collateral

(in thousands of Korean won)	Details of<br><br>assets pledged	2025				2024
		Carrying<br>amount		Collateralized<br>amount		Carrying<br>amount		Collateralized<br>amount
Other relative parties
Kookmin Bank	Time deposits and others		173,000,000		167,000,000		173,000,000		167,000,000
	Bonds denominated in Korean won		100,962,906		105,126,000		19,197,211		20,000,000
KB Insurance Co., Ltd.	Bonds denominated in Korean won		—		—		92,936,186		91,962,000

(b) Assets received as collateral

(in thousands of Korean won)	Details of<br><br>assets pledged	2025		2024
		Collateralized amount		Collateralized amount
Subsidiaries
Newstar L Chemi 1st	Stocks denominated in Korean won		239,775,000		—
Other relative parties
Kookmin Bank	Bonds denominated in Korean won		585,760,000		108,891,000
KB Insurance Co., Ltd.	Bonds denominated in Korean won		277,790,000		10,000,000
KB Life Insurance<br><br>Co., Ltd.	Bonds denominated in Korean won		143,738,832		—

As at December 31, 2025, the Company has ~~W~~ 140,000 million (~~W~~ 140,000 million in 2024) of credit line such as loan agreement. And the company has entered into a CLS (Foreign Exchange Simultaneous Settlement) third-party service agreement with Kookmin Bank Co., Ltd., and according to the related agreement, it can receive intraday liquidity of USD 500 million on the condition of repayment on the settlement date.

136

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(f) Details of unused loan commitments provided to the related parties as at December 31, 2025 and 2024, are as follows:

(In thousands of Korean won)	Details	Amounts
		2025		2024
KB BMO Senior Loan Private Special Asset Fund 2	Purchase agreements of securities		22,076		22,616
KB Global Infra Private Special Asset Fund No.6	Purchase agreements of securities		2,993,171		2,993,171
KB-NAU Special Situation Corporate Restructuring Private<br>Equity Fund	Purchase agreements of securities		462,000		2,262,000
Paramark KB Fund I	Purchase agreements of securities		290,000		2,120,000
KB-SOLIDUS Healthcare Investment Fund 1	Purchase agreements of securities		—		1,316,667
KB Digital Platform Fund	Purchase agreements of securities		12,000,000		22,000,000
KB-NP Green ESG New Technology Venture Capital<br>Fund	Purchase agreements of securities		420,000		3,900,000
KB Prime Digital Platform Fund	Purchase agreements of securities		—		1,125,000
KB Scale-up Fund No.2	Purchase agreements of securities		2,000,000		5,500,000
KB Overseas Investment Private Real Estate Investment Trust No. 22	Purchase agreements of securities		3,530,738		7,709,267
KB Global Platform Fund No.2	Purchase agreements of securities		5,400,000		7,800,000
KB North America Jefferies Private Special Asset Investment Trust No.1	Purchase agreements of securities		1,570,513		6,416,289
KB North America Jefferies Private Special Asset Investment Trust No.2	Purchase agreements of securities		82,659		337,699
KB Securities ESG Value Enhancement Fund	Purchase agreements of securities		—		1,000,000
Mirae Asset ESG Infrastructure General Investors Private Equity Fund No. 1	Purchase agreements of securities		604,238		727,095
U-KB Credit No.1 Private Equity	Purchase agreements of securities		12,953,488		24,906,977
KB Wisestar Private Real Estate Fund Investment Trust No. 1	Purchase agreements of securities		—		19,000
Shinhan-Eco Venture Fund 2nd	Purchase agreements of securities		425,000		450,000
Pacific US BlackRock Private Placement Real Estate Fund Investment Trust No. 15	Purchase agreements of securities		5,124,472		5,249,825
KB Apax Global Buyout Fund	Purchase agreements of securities		12,158,512		13,069,562
KB-CJ Venture Fund 1st	Purchase agreements of securities		4,200,000		4,200,000
KB-Cyrus Tourism Venture Fund	Purchase agreements of securities		3,000,000		4,000,000
KB Global Senior Loan Private Fund No.1()	Purchase agreements of securities		18,420,801		38,119,931
KB Overseas Investment Private Real Estate Investment Trust No. 35	Purchase agreements of securities		184,387		241,039
KB Development Blind General Private Real Estate Investment Trust No.2	Purchase agreements of securities		—		360,000
Startup Korea KB Secondary Fund	Purchase agreements of securities		7,000,000		8,500,000
IMM global Secondary 1-1 Equity Private Fund	Purchase agreements of securities		10,847,438		11,814,216
PineStreet Global Corporate FoF 28-2(AOP II)	Purchase agreements of securities		143,227		200,526

All values are in US Dollars.

137

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

(In thousands of Korean won)	Details	Amounts
		2025		2024
KBSBI Global High-tech Strategic Private Equity Investment Limited Partnership	Purchase agreements of securities		14,725,902		24,940,902
KB-IMM Newstar Real Estate Private Fund 1	Purchase agreements of securities		8,716,692		28,102,725
KBLB Middle Market Enterprises Innovation Private Equity Fund	Purchase agreements of securities		15,716,000		—
KB ValueRise Blind Private Real Estate Fund No.1	Purchase agreements of securities		1,815,790		—
KB BX Europe Infra Private SpecialAsset Fund 1()	Purchase agreements of securities		4,136,158		—
KB-IMM Newstar Real Estate Private Fund 2	Purchase agreements of securities		25,490,182		—
KB Wisestar General Real Estate Fund 21	Purchase agreements of securities		11,101,000		—
KB-ANDA Deep Tech Venture Fund	Purchase agreements of securities		6,250,500		—
PineStreet AIOFIII Infrastructure General Private Trust No.2	Purchase agreements of securities		9,715,495		—

All values are in Euros.

The Company received credit card commitment amounting to ~~W~~ 30,000 million and ~~W~~ 23,000 million from Kookmin Card Co., Ltd. as at December 31, 2025 and 2024.

(g) Debt instruments purchased or sold via the Company by the related party for the years ended December 31, 2025 and 2024, are as follows.

(in thousands of Korean won)		2025
		Sale			Purchase ^1^
KB Financial Group Inc.			—			210,000,000
Kookmin Bank			10,734,429,024			10,324,889,295
KB Insurance Co., Ltd			1,405,912,442			189,055,117
KB Life Insurance Co., Ltd.			832,968,613			335,653,115
KB Capital Co., Ltd.			—			120,000,000
KB Kookmin Card Co., Ltd.			—			90,000,000
^1^	Debt instruments issued by the related party and purchased by the Company for the year ended December 31,<br>2025, are included.
:---	:---
(in thousands of Korean won)		2024
---	---	:---:	---	---	---	---
		Sale			Purchase ^1^
KB Financial Group Inc.			—			20,000,000
Kookmin Bank			8,981,924,390			8,213,942,162
KB Insurance Co., Ltd			969,601,763			395,133,652
KB Life Insurance Co., Ltd.			538,960,937			431,117,063
KB Capital Co., Ltd.			—			220,000,000
KB Kookmin Card Co., Ltd.			—			130,000,000
^1^	Debt instruments issued by the related party and purchased by the Company for the year ended December 31,<br>2024, are included.
:---	:---

(h) The key management includes directors, members of BOD, CFO, person in charge for internal audit and their compensation for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)
Salaries	26,372,671	17,868,966
Post-employment benefits	857,002	845,549
Share-based payment	29,144,965	24,598,629

	56,374,638	43,313,144

138

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

43. Supplemental Cash Flow Information

Adjustments for non-cash items of cash flows from operating activities for the years ended December 31, 2025 and 2024, consist of the following:

(in thousands of Korean won)
Interest income	(1,579,483,450	)	(1,610,651,942	)
Interest expenses	1,021,196,099		1,065,865,475
Dividend income and distribution income	(134,358,230	)	(117,286,518	)
Tax expenses	206,765,219		159,145,243
Gains on valuation of financial assets (liabilities) required to be mandatorily measured at<br>FVTPL	(1,840,770,656	)	(586,972,662	)
Losses on valuation of financial assets (liabilities) required to be mandatorily measured at<br>FVTPL	749,321,220		502,170,251
Gains on valuation of financial assets (liabilities) designated at FVTPL	(49,800,640	)	(138,878,158	)
Losses on valuation of financial assets (liabilities) designated at FVTPL	236,511,091		187,567,451
Gains on valuation of derivative financial assets (liabilities)	(2,196,947,751	)	(1,225,232,700	)
Losses on valuation of derivative financial assets (liabilities)	2,476,511,514		1,421,399,514
Gains or losses on disposal of financial assets at FVOCI	(24,531,551	)	(12,705,258	)
Foreign currency translations	(66,911,741	)	(134,091,544	)
Provision for allowances for loan losses	43,797,985		30,747,326
Gains on disposal of investments in associates and subsidiaries	(5,609,819	)	(1,514,967	)
Losses on disposal of investments in associates and subsidiaries	1,035,526		4,100,665
Impairment loss on investments in associates and subsidiaries	90,486,320		33,504,383
Depreciation	50,254,913		46,840,067
Amortization	58,163,647		54,188,259
Others	179,164,497		109,629,978

	(785,205,807	)	(212,175,137	)

Changes in operating assets and liabilities of cash flows for the years ended December 31, 2025 and 2024, consist of the following:

(in thousands of Korean won)
Deposits in financial institutions	(764,485,214	)	(297,268,056	)
Financial assets required to be mandatorily measured at FVTPL	(4,179,298,997	)	(1,153,991,254	)
Derivative financial instruments/liabilities (net)	(330,574,628	)	(348,273,848	)
Loans measured at amortised cost	(550,095,952	)	(104,166,385	)
Other assets	(3,288,943,267	)	1,233,845,865
Deposit liabilities	4,308,032,490		422,169,426
Financial liabilities required to be mandatorily measured at FVTPL	11,909,296		(185,579,133	)
Financial liabilities designated at FVTPL	(205,049,772	)	(21,982,796	)
Defined benefit obligation	(25,374,844	)	(22,582,524	)
Securities sold under repurchase agreements	791,868,208		325,265,250
Other liabilities	3,383,688,179		(1,703,393,747	)

	(848,324,501	)	(1,855,957,202	)

139

KB SECURITIES Co., Ltd.

Notes to the Separate Financial Statements

December 31, 2025 and 2024

Changes in liabilities of cash flows from financing activities for the years ended December 31, 2025 and 2024, consist of the following:

		2025
(in thousands of Korean won)		Borrowings			Debentures			Guarantee<br>deposits			Lease<br>liabilities			Other<br><br>liabilities			Total
Beginning balance (net)			21,151,901,526			3,455,411,468			8,486,957			100,240,625			1,359,608			24,717,400,184
Cash Transactions			3,103,317,184			1,170,000,000			140,692			(35,884,676	)		—			4,237,573,200
Non-cash transactions			471,310			(11,640,473	)		221,855			18,915,296			—			7,967,988

Ending balance(net)			24,255,690,020			4,613,770,995			8,849,504			83,271,245			1,359,608			28,962,941,372

		2024
---	---	:---:	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands of Korean won)		Borrowings			Debentures			Guarantee<br>deposits			Lease<br>liabilities			Other<br><br>liabilities			Total
Beginning balance (net)			19,302,611,398			2,512,458,951			8,274,358			97,681,939			6,947,805			21,927,974,451
Cash Transactions			1,848,040,494			890,000,000			50,069			(34,529,149	)		—			2,703,561,414
Non-cash transactions			1,249,634			52,952,517			162,530			37,087,835			(5,588,197	)		85,864,319

Ending balance(net)			21,151,901,526			3,455,411,468			8,486,957			100,240,625			1,359,608			24,717,400,184

44. Non-cash Transactions

Significant non-cash transactions from investing activities and financing activities which are not included in the separate statements of cash flows for the years ended December 31, 2025 and 2024, are as follows:

(in thousands of Korean won)		2025			2024
Increase due to gains on valuation of financial assets at FVOCI			42,340,168			7,960,792

140

LOGO

Report on Independent Auditor’s Review of Internal Control over Financial Reporting

(English Translation of a Report Originally Issued in Korean)

To the Board of Directors and Shareholders of KB Securities Co.,Ltd.

We have reviewed the accompanying management’s report on the effectiveness of Internal Control over Financial Reporting (“ICFR”) of KB Securities Co.,Ltd. (the “Company”) as of December 31, 2025. The Company’s management is responsible for designing and operating ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review the management’s report on the effectiveness of ICFR and issue a report based on our review. The management’s report on the effectiveness of ICFR of the Company states that “Based on the assessment results, Chief Executive Officer and ICFR Officer believe that the Company’s ICFR, as at December 31, 2025, is designed and operating effectively, in all material respects, in accordance with Conceptual Framework for Designing and Operating Internal Control over Financial Reporting”

Our review was conducted in accordance with ICFR review standards established by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform, in all material respects, the review of the management’s report on the effectiveness of ICFR to obtain a lower level of assurance than an audit. A review is to obtain an understanding of a company’s ICFR and consists principally of inquiries of management and, when deemed necessary, a limited inspection of underlying documents, which is substantially less in scope than an audit.

An entity’s ICFR 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 ICFR 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, ICFR 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.

Based on our review, nothing has come to our attention that causes us to believe that the management’s report on the effectiveness of ICFR, referred to above, is not presented fairly, in all material respects, in accordance with the Best Practice Guideline for Evaluating and Reporting of Internal Control over Financial Reporting .

141

Our review is based on the Company’s ICFR as of December 31, 2025, and we did not review management’s assessment of its ICFR subsequent to December 31, 2025. This report has been prepared pursuant to the Acts on External Audit for Stock Companies, etc. in Korea and may not be appropriate for other purposes or for other users.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

March 05, 2026

This report is effective as at March 05, 2026, the review report date. Certain subsequent events or circumstances, which may occur between the review 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 review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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Report on the Effectiveness of Internal Control over Financial Reporting

(English Translation of a Report Originally Issued in Korean)

To the Shareholders, Board of Directors and Audit Committee of

KB Securities Co., Ltd.

We, as the Chief Executive Officer (“CEO”) and the Internal Control over Financial Reporting (“ICFR”) Officer of KB Securities Co., Ltd. (the “Company”), assessed the effectiveness of the design and operation of the Company’s Internal Control over Financial Reporting for the year ended December 31, 2025.

The Company’s management, including ourselves, is responsible for designing and operating ICFR. We assessed the design and operating effectiveness of ICFR in the prevention and detection of an error or fraud which may cause material misstatements in the preparation and disclosure of reliable financial statements.

We designed and operated ICFR in accordance with ‘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”). And we conducted an evaluation of ICFR based on ‘Best Practice Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ in Appendix 6 of ‘Detailed Enforcement Rules of the Regulation on External Audit and Accounting, Etc.’.

Based on the assessment results, we believe that the Company’s ICFR, as at December 31, 2025, is designed and operated effectively, in all material respects, in conformity with ‘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 statement which cause material misunderstandings, and we have reviewed and verified this report with sufficient due care.

Attachment : Internal control activities conducted by the company to respond to financial fraud risks such as embezzlement

February 20, 2026
Kang, Jin Doo, Chief Executive Officer
Roh, Jong Kap, Internal Accounting Controller Officer

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Attachment : Internal control activities conducted by the company to respond to financial fraud risks such as embezzlement

KB Securities Co., Ltd. designs and operates an internal accounting management system, including asset protection and fraud prevention programs, to ensure the reliability of financial statements in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

The control activities managed by the company summarize the “key control activities directly related to preventing or detecting embezzlement and other fraud risks” within the internal accounting management system design are as follows.

	Control activities performed by the<br>company	Result on inspection of Design and<br>operation status<br>(performing<br>department, performance period, etc.)
Entity Level Control	- Compliance and inspection of the code of ethics<br><br>The company’s code of ethics and code of conduct are posted on<br>its website, and the Compliance Promotion Department operates a system to identify and monitor violations of laws, regulations, and codes of conduct by executives and employees.	- Test Results: No ‘Material Weakness’ Found<br><br>Compliance Department (June 2025, November 2025)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, December 2025)
	- Risk Assessment and inspection<br><br>The Company review the implementation of risk factors and control<br>procedures within each unit to identify potential issues and make Improvement and supplementation for them. To achieve this, the risk management department and others^1^ implement procedures such as<br>‘integrated self-assessment of internal control and operational risks’ and risk assessment of internal accounting management system.<br><br>^1^ Accounting Department, Risk Management<br>Department	- Test Results: No ‘Material Weakness’ Found<br><br>Accounting Department, Risk Management Department (June 2025,<br>January 2026)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, January 2026)
	- Internal Whistleblower System<br><br>The Compliance Department operates an internal whistleblower system<br>for internal control and accounting irregularities, and manages reporting channels to ensure confidentiality and prevent disadvantages or discrimination for whistleblowers.	- Test Results: No ‘Material Weakness’ Found<br><br>Compliance Department (June 2025, November 2025, January 2026)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, December 2025, January 2026)
	- Internal Audit<br><br>The Audit Committee oversees internal audit operations and ensures<br>that the internal audit department^1^ operates independently within the organization. The internal audit department^1^ is responsible for<br>developing and executing internal audit plans, evaluating results, taking follow-up measures, and suggesting improvement measures.<br><br>^1^ Audit Department	- Test Results: No ‘Material Weakness’ Found<br><br>Audit Department (June 2025, November 2025, January 2026)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, December 2025, January 2026)
	- Continuous Monitoring<br><br>The Compliance Department establishes and operates a compliance<br>monitoring system in accordance with internal control standards and compliance support regulations, and continuously monitors for abnormal transaction activities or patterns.	- Test Results: No ‘Material Weakness’ Found<br><br>Compliance Department (June 2025, January 2026)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, January 2026)

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	- Division of Work and Segregation of Duties<br><br>The Strategic Planning Department manages division of work and<br>segregation of duties by clearly defining duties and responsibilities in accordance with organizational regulations.	- Test Results: No ‘Material Weakness’ Found<br><br>Strategic Planning Department (June 2025, January 2026)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, January 2026)
	- Vacation Order<br><br>The company operates a vacation order system for employees subject<br>to leave to prevent financial accidents and facilitate the early detection of suspicious transactions. The Compliance Department conducts related inspections.	- Test Results: No ‘Material Weakness’ Found<br><br>Compliance Department (June 2025, January 2026)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, January 2026)
	- Work Rotation<br><br>The Human Resources Department systematically manages positions and<br>personnel with a high risk of financial accidents and conducts monitoring to prevent accidents.	- Test Results: No ‘Material Weakness’ Found<br><br>Human Resources Department (June 2025, January 2026)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, January 2026)
Treasury Control	- Daily Closing Review<br><br>Each branch<br>manager^1^ conducts a daily closing procedure for cash receipts, checking balances between the business and accounting systems to ensure consistency. This process, in turn, requires approval from<br>the appropriate authority^2^, preventing and managing fraud and overdrafts.<br><br>^1^ Each branch, Settlement Department, etc.<br><br>^2^ Each branch team leader and assistant branch<br>manager	- Test Results: No ‘Material Weakness’ Found<br><br>Each Branch, Treasury Department, etc. (June 2025, November<br>2025)<br><br>Accounting Department, Financial Reporting Internal<br>Control Team (July 2025, December 2025)
	- Approval of Changes to Business Partner Information<br><br>The Compliance when registering or changing business partner<br>information, the Manager in treasury department verifies the consistency between the official document and the computerized registration details and approves the change.	- Test Results: No ‘Material Weakness’ Found<br><br>Treasury Department (June 2025, November 2025)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, December 2025)
	- Account Management<br><br>When opening or closing a deposit/withdrawal account, ensure<br>consistency between the seal stamp book and account registration screen, verify compatibility with external documentation. After reviewing whether to separate the unique account, approval is then obtained from the Treasury Team Leader.	- Test Results: No ‘Material Weakness’ Found<br><br>Each Branch, Treasury Department, etc. (June 2025, November 2025,<br>January 2026)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025, January 2026)
	- Seal Stamp Use Control<br><br>The person in<br>charge^1^ reviews the seal stamp application details and confirms approval according to the approval regulations^2^.<br><br>^1^ Treasury department, General Affairs<br>Department<br><br>^2^ Each branch team leader	- Test Results: No ‘Material Weakness’ Found<br><br>Treasury department, General Affairs Department (June 2025, November<br>2025)<br><br>Accounting Department, Financial Reporting Internal<br>Control Team (July 2025, December 2025)
	- Funding Review and Approval<br><br>Funding applications are reviewed and approved by the appropriate<br>authority^1^ after reviewing the applications and related documents.<br><br>^1^ Treasury Department Leader, Head of Division and<br>CEO	- Test Results: No ‘Material Weakness’ Found<br><br>Treasury Department, REIT Department, etc.(June 2025, November<br>2025)<br><br>Accounting Department, Financial Reporting Internal<br>Control Team (July 2025, December 2025)

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	- Verification of Principal and Interest Repayment Related to Funding<br><br>The person in<br>charge^1^ verifies the repayment details and external institution details for the repayment of principal and interest related to funding, and obtains approval from the responsible party.<br><br>^1^ Treasury Department, Debt Management Division<br>1		- Test Results: No ‘Material Weakness’ Found<br><br>Treasury Department, Bond Management Division 1 (June 2025,<br>November 2025)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025)
	- Approval of Fund Expenditures<br><br>Each person in charge conducts<br>pre- and post-disbursement inspections to ensure consistency between expenditure information and all documents, including contracts, and obtains verification and approval from the authorized party.<br><br>^1^ person in charge of Treasury Department or<br>Settlement Department<br><br>^2^ Team Leader, Department<br>Leader		- Test Results: No ‘Material Weakness’ Found<br><br>Treasury Department, Settlement Department, etc. (June 2025,<br>November 2025)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025)
	- Approval of Deposit Transaction<br><br>For deposit transactions such as new accounts, cancellations,<br>deposits, and withdrawals, the person in charge reviews the application details, related documents, and the suitability of the counterparty before obtaining approval from the branch manager or other appropriate authority^1^.<br><br>^1^ Customer Service Team Leader, Branch<br>manager		- Test Results: No ‘Material Weakness’ Found<br><br>Each Branch, Customer Service Center, etc, (June 2025, November<br>2025)<br><br>Accounting Department, Financial Reporting Internal<br>Control Team (July 2025, December 2025)
	- Approval for Loan<br><br>Access to the computer system is managed and differentiated based on<br>job responsibilities related to the loan approval process. Loan approval is processed after verifying the consistency of loan amount, maturity, and interest rates with the loan agreement and the appropriateness of all documents, and obtaining<br>approval from each department head.<br><br>^1^ Each Department Leader, Person in charge of Settlement department		- Test Results: No ‘Material Weakness’ Found<br><br>Each Branch, SF Division 1, etc, (June 2025, November 2025)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, December 2025)
	- Execution of Loan<br><br>Execution of loan is processed after verifying the consistency<br>between the pre-approved details and the agreement, and obtaining approval from the relevant department leader^1^ and person in charge of Settlement<br>department through the computer system.<br><br>^1^ Credit Lending Department, Structured Finance Division 1		- Test Results: No ‘Material Weakness’ Found<br><br>Credit Lending Department, Structured Finance Division 1, etc. (June<br>2025, November 2025)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025)
	- Restrictions on Unfair Transactions<br><br>For new transactions and limit change transactions, the person in<br>charge verifies the authenticity of all documents and whether they are subject to issuance restrictions. Risk management is achieved through approval from each branch manager.		- Test Results: No ‘Material Weakness’ Found<br><br>Each Branch (June 2025, November 2025)<br><br>Accounting Department, Financial Reporting Internal Control Team<br>(July 2025, December 2025)
	- Monitoring for Loan<br><br>The Corporate Finance Review Department and Alternative Investment<br>Review Department receive monitoring data on investment status (balance status / profit and loss status) and asset quality (including business feasibility assessment results) by product. They monitor investment assets and obtain department<br>leader’s review and approval for asset quality classification status.		- Test Results: No ‘Material Weakness’ Found<br><br>Corporate Finance Review Department, Alternative Investment Review<br>Department (June 2025, November 2025)<br><br>Accounting Department,<br>Financial Reporting Internal Control Team (July 2025, December 2025)

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	- Verification for Loan Principal and Interest<br><br>- Loan principal and interest<br>repayment amounts are automatically calculated by the system and processed on a repayment slip. Manual changes are prohibited.		- Test Results: No ‘Material Weakness’ Found<br><br>Credit Lending Department, Accounting Department (June 2025,<br>November 2025)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025)
	- Approval of Acquisition of Financial Products, Including Securities and<br>Derivatives<br><br>Acquisition of financial products, including<br>securities and derivatives, is subject to multiple approval procedures based on the separation of duties (Front-Middle-Back Office). Transaction details are verified for legitimacy through reconciliation and verification procedures.<br><br>^1^ Passive Sales Division 2, Settlement Department,<br>etc.		- Test Results: No ‘Material Weakness’ Found<br><br>Passive Sales Division 2, Settlement Department, etc. (June 2025,<br>November 2025)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025)
	- Physical management of financial products, including securities and derivatives.<br><br>Securities are stored in a controlled environment, and<br>leader of the Settlement department conducts regular inspections to verify their authenticity and ensure consistency between the computerized ledger and balances.		- Test Results: No ‘Material Weakness’ Found<br><br>Settlement Department, Legal Support Department (June 2025, November<br>2025)<br><br>Accounting Department, Financial Reporting Internal<br>Control Team (July 2025, December 2025)
	- Monitoring for Financial Products, Including Securities and Derivatives<br><br>The appropriateness of the operation of financial products such as<br>securities and derivatives is managed through monitoring by each business department^1^. Balances are verified through reconciliation between the company’s computerized ledger and the<br>custodian, and then approved by the approval authority^2^.<br><br>^1^ Bond Product Department, Global Derivatives Sales<br>Department<br><br>^2^ Team Leader, Department<br>Leader		- Test Results: No ‘Material Weakness’ Found<br><br>Settlement Department, Fund Product Department (June 2025, November<br>2025)<br><br>Accounting Department, Financial Reporting Internal<br>Control Team (July 2025, December 2025)
	- Management of Disposal and Revenue Recognition of Financial Products, Including<br>Securities and Derivatives<br><br>Disposal of financial products,<br>including securities and derivatives, and revenues, such as interest and dividends, are managed through a system. After verifying accuracy through documentation review and so on, approval is obtained from the relevant department leader^1^.<br><br>^1^ Financial Product Business Development Department,<br>Equity Derivatives Sales Department, etc.		- Test Results: No ‘Material Weakness’ Found<br><br>Financial Product Business Development Department, Equity<br>Derivatives Sales Department, etc. (June 2025, November 2025)<br><br>Accounting Department, Financial Reporting Internal Control Team (July 2025, December 2025)
	- Review of Sales Commission Collection<br><br>Commissions generated from sales activities are processed after<br>review and approval by the relevant department leader^1^ and the payment department manager.<br><br>^1^ ECM Division 1, Corporate Finance Division 1,<br>etc.		- Test Results: No ‘Material Weakness’ Found<br><br>ECM Division 1, Corporate Finance Division 1, etc. (June 2025,<br>November 2025)<br><br>Accounting Department, Financial Reporting<br>Internal Control Team (July 2025, December 2025)

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The results of the company’s control activities, design, and operational status inspections are based on the department names in the “ Regulations on job duties “ as of December 31, 2025.

For the controls designed and operated by each department, evaluators from the same department, excluding the relevant control performer, are designated to conduct inspections of the design and operational status of each department’s controls. Furthermore, the results of each department’s inspections are independently reviewed by the company’s competent department of internal accounting management system, ensuring the objectivity and reliability of the evaluations.

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KB 6-K