UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2025

Commission File Number: 001-31811

 

 

Woori Financial Group Inc.

(Translation of registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, 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 ☐

 

 

 

Submission of Audit Reports of Woori Financial Group Inc.

On March 5, 2025, Woori Financial Group Inc. disclosed audit reports for the fiscal year 2024 based on the International Financial Reporting Standards as adopted by the Republic of Korea.

The financial statements accompanying such reports have not been approved by the shareholders of Woori Financial Group Inc. and remain subject to change.

Please refer to the audit reports and the consolidated and separate financial statements, which have been furnished as Exhibits 99.1 and 99.2 hereto, respectively.

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.

 

   

Woori Financial Group Inc.

   

(Registrant)

Date: March 5, 2025     By:  

/s/ Sung-Wook Lee

      (Signature)
     

Name: Sung-Wook Lee

      Title:  Deputy President

Exhibit 99.1

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

WOORI FINANCIAL GROUP INC.

 

     Page(s)  

Independent Auditor’s Report

      1-4  

Consolidated Financial Statements

      5  

Consolidated Statements of Financial Position

      6  

Consolidated Statements of Comprehensive Income

      7-8  

Consolidated Statements of Changes in Equity

      9  

Consolidated Statements of Cash Flows

      10-11  

Notes to the Consolidated Financial Statements

      12-190  

Independent Auditor’ Report on Internal Control over Financial Reporting for Consolidation Purposes

      191-192  

Operating Status Report of Internal Control over Financial Reporting

      193  

Independent Auditor’s Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders of

Woori Financial Group Inc.

Opinion

We have audited the consolidated financial statements of Woori Financial Group Inc. and its subsidiaries (“the Group”), which comprise the consolidated statements of financial position as of December 31, 2024 and 2023, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

We also have audited, in accordance with Korean Standards on Auditing (KSAs), the Group’s Internal Control over Financial Reporting (“ICFR”) for consolidation purposes as of December 31, 2024, based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea, and our report dated March 5, 2025 expressed an unmodified opinion on the effectiveness of the Group’s internal control over financial reporting for consolidation purposes.

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (KSAs). 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 that are relevant to our audit of the consolidated financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements as of and for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

 

- 1 -

Assessment of the allowance for credit losses for loans

As discussed in Note 10 to the consolidated financial statements, the Group recognized an allowance for credit losses using the expected credit loss (ECL) impairment model for loans at amortized cost amounting to KRW 3,357,625 million as of December 31, 2024. ECL allowances are measured at amounts equal to either (i) 12-month ECL; or (ii) lifetime ECL for those loans that have experienced a significant increase in credit risk (SICR) since initial recognition or are impaired. The Group measures ECL allowances on an individual basis for individually significant corporate loans which have had SICR or have become impaired. The allowance for credit losses for all other loans is measured on a collective basis. For these loans, the Group measures ECL by estimating the probability of default (PD), the loss given default (LGD) as well as the future economic forecast information. For the incorporation of future economic forecast information, the Group uses various information to select a model and this involves a high level of judgment by the Group. For corporate loans, the Group’s credit rating of the borrower is used in the determination of the PDs. The Group uses quantitative and qualitative factors to determine the credit rating of the borrower and the evaluation of the qualitative factors involves a high level of judgment by the Group.

We identified the following risk as a key audit matter, considering the likelihood of errors, the level of involvement of management judgement, and risk of material misstatement.

 

  -  

Risk that the allowance for credit losses which is measured on a collective basis is misstated due to error or fraud in the manner in which future economic forecast information is incorporated.

 

  -  

Risk that the allowance for credit losses which is measured on a collective basis is misstated due to error or fraud in the evaluation of the qualitative factors which is used for determining the internal credit ratings of corporate loans.

The following are the primary procedures we performed to address this key audit matter:

 

  -  

We evaluated the design and tested the operating effectiveness of certain internal controls related to: (i) the assessment of qualitative factors in the process of determining the Group’s credit rating of corporate loans; and (ii) the assessment of the appropriateness of the model selection process to incorporate future economic forecast information

 

  -  

We checked whether, for a sample of corporate loans with ECL measured on a collective basis, the Group’s policy was applied in the credit rating process

 

  -  

We involved credit risk professionals with specialized skills and knowledge, who assisted in: (i) using statistical methods to analyze the correlation between the future economic forecast information and PDs and LGDs; (ii) assessing the reasonableness of the rationale for the selection of the final model by checking the appropriateness and the reasonableness of the model selection criteria by statistically; and (iii) checking the accuracy of the PDs and LGDs which incorporated future economic forecast information by a recalculation.

Other Matter

The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and applied in other countries.

 

- 2 -

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 K-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, or has no realistic alternative but to do so.

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 KSAs 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 KSAs, 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 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 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 appropriate in the circumstances.

 

  •  

Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management.

 

  •  

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on 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 required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to 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 disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 

- 3 -

  •  

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partner on the audit resulting in this independent auditor’s report is Jae-Beom Choi.

 

/s/ KPMG Samjong Accounting Corp.
Seoul, Korea
March 5, 2025

 

This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between 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 the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

- 4 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

The accompanying consolidated financial statements including

all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

Main Office Address: (Address) 51, Sogong-ro, Jung-gu, Seoul

 (Phone Number)    02-2125-2000

 

- 5 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31,
2024		     December 31,
2023		  
     (Korean Won in millions)  

ASSETS

     

Cash and cash equivalents (Note 6)

      27,281,123       30,556,618  

Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12, 18 and 26)

      25,202,672       21,544,756  

Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12, and 18)

      43,797,745       37,891,495  

Securities at amortized cost (Notes 4, 9, 11, 12 and 18)

      19,203,177       23,996,172  

Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 41)

      398,471,816       373,148,148  

Investments in joint ventures and associates (Note 13)

      1,748,810       1,795,370  

Investment properties (Notes 14 and 18)

      450,788       472,768  

Premises and equipment (Notes 15 and 18)

      3,370,585       3,176,759  

Intangible assets (Note 16)

      1,091,402       996,842  

Assets held for sale (Note 17)

      73,989       20,345  

Net defined benefit asset (Note 24)

      146,109       240,260  

Current tax assets (Note 38)

      61,613       203,542  

Deferred tax assets (Note 38)

      72,937       93,366  

Derivative assets (Designated for hedging) (Notes 4,11,12 and 26)

      175,191       26,708  

Other assets (Notes 19 and 41)

      4,605,363       3,841,787  
  

 

 

    

 

 

  

Total assets

      525,753,320       498,004,936  
  

 

 

    

 

 

  

LIABILITIES

     

Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 12, 20 and 26)

      9,896,597       6,138,313  

Deposits due to customers (Notes 4,11,21 and 41)

      366,821,156       357,784,297  

Borrowings (Notes 4, 6, 11, 12 and 22)

      30,117,031       30,986,746  

Debentures (Notes 4, 6, 11 and 22)

      48,207,103       41,239,245  

Provisions (Notes 23, 40 and 41)

      611,428       806,031  

Net defined benefit liability (Note 24)

      5,424       6,939  

Current tax liabilities (Note 38)

      127,126       103,655  

Deferred tax liabilities (Note 38)

      858,822       470,311  

Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26)

      102,815       153,007  

Other financial liabilities (Notes 4, 6, 11, 12, 25 and 41)

      32,314,051       26,115,005  

Other liabilities (Notes 6, 25 and 41)

      796,498       803,897  
  

 

 

    

 

 

  

Total liabilities

      489,858,051       464,607,446  
  

 

 

    

 

 

  

EQUITY

     

Owners’ equity (Note 28)

     

Capital stock

      3,802,676       3,802,676  

Hybrid securities

      3,810,435       3,611,129  

Capital surplus

      934,100       935,563  

Other equity

      (1,400,885 )      (1,668,957 ) 

Retained earnings

      26,950,510       24,986,470  
  

 

 

    

 

 

  
     34,096,836       31,666,881  
  

 

 

    

 

 

  

Non-controlling interests

      1,798,433       1,730,609  
  

 

 

    

 

 

  

Total equity

      35,895,269       33,397,490  
  

 

 

    

 

 

  

Total liabilities and equity

      525,753,320       498,004,936  
  

 

 

    

 

 

  

The accompanying notes are part of these consolidated financial statements.

 

- 6 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

     2024     2023  
     (Korean Won in millions)  

Interest income

      22,013,341       20,641,554  

Financial assets at FVTPL

      236,793       192,094  

Financial assets at FVTOCI

      1,281,642       999,407  

Financial assets at amortized cost

      20,494,906       19,450,053  

Interest expense

      (13,127,005 )      (11,899,014 ) 
  

 

 

    

 

 

  

Net interest income (Notes 11, 30 and 41)

      8,886,336       8,742,540  

Fees and commissions income

      2,874,216       2,565,814  

Fees and commissions expense

      (788,046 )      (845,333 ) 
  

 

 

    

 

 

  

Net fees and commissions income (Notes 11, 31 and 41)

      2,086,170       1,720,481  

Dividend income (Notes 11, 32 and 41)

      310,320       240,293  

Net gain on financial instruments at FVTPL (Notes 11, 33 and 41)

      1,492,783       488,486  

Net gain (loss) on financial assets at FVTOCI (Notes 11 and 34)

      96,620       (37,641 ) 

Net gain arising on financial assets at amortized cost (Note 11)

      286,885       203,942  

Impairment losses due to credit loss (Notes 35 and 41)

      (1,716,295 )      (1,894,916 ) 

General and administrative expense (Notes 36 and 41)

      (4,468,973 )      (4,443,433 ) 

Other net operating expense (Notes 11, 26, 36 and 41)

      (2,718,656 )      (1,520,723 ) 
  

 

 

    

 

 

  

Operating income

      4,255,190       3,499,029  

Share of gain of joint ventures and associates (Note 13)

      76,265       109,831  

Other non-operating expense

      (108,608 )      (91,407 ) 
  

 

 

    

 

 

  

Non-operating income (expenses) (Note 37)

      (32,343 )      18,424  

Net income before income tax expense

      4,222,847       3,517,453  

Income tax expense (Note 38)

      (1,051,378 )      (890,559 ) 

Net income

      3,171,469       2,626,894  
  

 

 

    

 

 

  

Net gain (loss) on valuation of equity securities at FVTOCI

      (138,097 )      193,191  

Net gain on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

      1,348       —   

Changes in capital due to equity method

      (1,663 )      8,603  

Remeasurement loss related to defined benefit plan

      (61,929 )      (79,460 ) 
  

 

 

    

 

 

  

Items that will not be reclassified to profit or loss:

      (200,341 )      122,334  
  

 

 

    

 

 

  

Net gain on valuation of debt securities at FVTOCI

      172,155       532,334  

Changes in capital due to equity method

      (3,704 )      (5,638 ) 

Net gain on foreign currency translation of foreign operations

      522,845       45,080  

Net loss on valuation of hedges of net investments in foreign operations

      (114,827 )      (14,049 ) 

Net gain (loss) on valuation of cash flow hedge

      6,591       (16,524 ) 
  

 

 

    

 

 

  

Items that may be reclassified to profit or loss:

      583,060       541,203  

Other comprehensive income, net of tax

      382,719       663,537  

Total comprehensive income

      3,554,188       3,290,431  
  

 

 

    

 

 

  

(Continued)

 

- 7 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (CONTINUED)

 

     2024      2023  
     (Korean Won in millions)  

Net income attributable to:

      3,171,469        2,626,894  

Net income attributable to owners

      3,085,995        2,506,296  

Net income attributable to non-controlling interests

      85,474        120,598  

Total comprehensive income attributable to:

      3,554,188        3,290,431  

Comprehensive income attributable to owners

      3,454,620        3,164,464  

Comprehensive income attributable to non-controlling interests

      99,568        125,967  

Earnings per share (Note 39)

      

Basic and diluted earnings per share (Unit: In Korean Won)

      3,950        3,230  

The accompanying notes are part of these consolidated financial statements.

 

- 8 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

    Capital
Stock		     Hybrid
securities		     Capital
surplus		     Other
equity		     Retained
earnings		     Owners’
equity in
total		     Non-controlling
interests		     Total
equity		  
    (Korean Won in millions)  

January 1, 2023

     3,640,303       3,112,449       682,385       (2,423,392 )      23,750,152       28,761,897       2,865,445       31,627,342  

Total comprehensive income

                

Net income

     —        —        —        —        2,506,296       2,506,296       120,598       2,626,894  

Net gain on valuation of financial instruments at FVTOCI

     —        —        —        725,513       —        725,513       12       725,525  

Net gain (loss) due to disposal of equity securities at FVTOCI

     —        —        —        (86 )      86       —        —        —   

Changes in capital due to equity method

     —        —        —        2,996       (50 )      2,946       19       2,965  

Gain on foreign currency translation of foreign operations

     —        —        —        39,780       —        39,780       5,300       45,080  

Loss on valuation of hedges of net investments in foreign operations

     —        —        —        (14,049 )      —        (14,049 )      —        (14,049 ) 

Loss on valuation of cash flow hedge

     —        —        —        (16,524 )      —        (16,524 )      —        (16,524 ) 

Remeasurement gain related to defined benefit plan

     —        —        —        (79,498 )      —        (79,498 )      38       (79,460 ) 

Transactions with owners

                

Comprehensive stock exchange

     162,373       —        249,008       —        —        411,381       (414,015 )      (2,634 ) 

Dividends to common stocks

     —        —        —        —        (978,376 )      (978,376 )      (11,647 )      (990,023 ) 

Changes in treasury stocks

     —        —        1,128       (35,529 )      (100,000 )      (134,401 )      —        (134,401 ) 

Issuance of hybrid securities

     —        498,680       —        —        —        498,680       299,327       798,007  

Dividends to hybrid securities

     —        —        —        —        (131,148 )      (131,148 )      (95,637 )      (226,785 ) 

Redemption of hybrid securities

     —        —        —        (1,695 )      —        (1,695 )      (1,097,697 )      (1,099,392 ) 

Changes in subsidiaries’ capital

     —        —        (1,869 )      60,491       (60,490 )      (1,868 )      (1,927 )      (3,795 ) 

Changes in non-controlling interests related to business combinations

     —        —        —        —        —        —        138,478       138,478  

Others

     —        —        4,911       73,036       —        77,947       (77,685 )      262  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2023

     3,802,676       3,611,129       935,563       (1,668,957 )      24,986,470       31,666,881       1,730,609       33,397,490  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

January 1, 2024

     3,802,676       3,611,129       935,563       (1,668,957 )      24,986,470       31,666,881       1,730,609       33,397,490  

Total comprehensive income

                

Net income

     —        —        —        —        3,085,995       3,085,995       85,474       3,171,469  

Net gain (loss) on valuation of financial instruments at FVTOCI

     —        —        —        34,203       —        34,203       (145 )      34,058  

Net gain (loss) due to disposal of equity securities at FVTOCI

     —        —        —        (53,460 )      53,460       —        —        —   

Net gain on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

     —        —        —        1,348       —        1,348       —        1,348  

Changes in capital due to equity method

     —        —        —        (5,357 )      (10 )      (5,367 )      —        (5,367 ) 

Gain on foreign currency translation of foreign operations

     —        —        —        508,631       —        508,631       14,214       522,845  

Loss on valuation of hedges of net investments in foreign operations

     —        —        —        (114,827 )      —        (114,827 )      —        (114,827 ) 

Gain on valuation of cash flow hedge

     —        —        —        6,591       —        6,591       —        6,591  

Remeasurement gain related to defined benefit plan

     —        —        —        (61,954 )      —        (61,954 )      25       (61,929 ) 

Transactions with owners

                

Dividends to common stocks

     —        —        —        —        (878,330 )      (878,330 )      (3,829 )      (882,159 ) 

Changes in treasury stocks

     —        —        733       3,832       (136,688 )      (132,123 )      —        (132,123 ) 

Issuance of hybrid securities

     —        1,196,850       —        —        —        1,196,850       757,970       1,954,820  

Dividends to hybrid securities

     —        —        —        —        (158,682 )      (158,682 )      (76,249 )      (234,931 ) 

Redemption of hybrid securities

     —        (997,544 )      —        (52,199 )      —        (1,049,743 )      (658,470 )      (1,708,213 ) 

Changes in subsidiaries’ capital

     —        —        12,256       1,264       (1,693 )      11,827       (9,709 )      2,118  

Changes in non-controlling interests related to business combinations

     —        —        (1,148 )      —        —        (1,148 )      5,599       4,451  

Others

     —        —        (13,304 )      —        (12 )      (13,316 )      (47,056 )      (60,372 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2024

     3,802,676       3,810,435       934,100       (1,400,885 )      26,950,510       34,096,836       1,798,433       35,895,269  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The accompanying notes are part of these consolidated financial statements.

 

- 9 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

     2024     2023  
     (Korean Won in millions)  

Cash flows from operating activities:

     

Net income

      3,171,469       2,626,894  

Adjustments to net income:

     

Income tax expense

      1,051,378       890,559  

Interest income

      (22,013,341 )      (20,641,554 ) 

Interest expense

      13,127,005       11,899,014  

Dividend income

      (310,320 )      (240,293 ) 
  

 

 

    

 

 

  
     (8,145,278 )      (8,092,274 ) 
  

 

 

    

 

 

  

Additions of expenses not involving cash outflows:

     

Loss on financial assets at FVTOCI

      4,611       46,335  

Impairment loss due to credit loss

      1,716,295       1,894,916  

Loss on other provisions

      41,938       99,444  

Retirement benefit

      129,029       113,435  

Depreciation and amortization

      1,163,799       993,176  

Net loss on foreign currency translation

      1,177,859       366,026  

Loss on derivatives (designated for hedge)

      24,252       35,583  

Loss on fair value hedge

      64,571       72,601  

Loss on valuation of investments in joint ventures and associates

      19,911       22,710  

Loss on disposal of investments in joint ventures and associates

      532       588  

Loss on disposal of premises and equipment, intangible assets and other assets

      2,233       1,873  

Impairment loss on premises and equipment, intangible assets and other assets

      3,627       129  

Other loss

      10,887       —   

Other operating expenses

      9,509       —   
  

 

 

    

 

 

  
     4,369,053       3,646,816  
  

 

 

    

 

 

  

Deductions of income not involving cash inflows:

     

Gain on financial assets at FVTPL

      1,299,919       571,179  

Gain on financial assets at FVTOCI

      101,231       8,694  

Gain on other provisions

      10,026       19,781  

Gain on derivatives (designated for hedge)

      192,000       114,875  

Gain on fair value hedge

      25,469       8,986  

Gain on valuation of investments in joint ventures and associates

      96,176       132,541  

Gain on disposal of investments in joint ventures and associates

      19,642       33,123  

Gain on disposal of premises and equipment, intangible assets and other assets

      7,064       5,267  

Reversal of impairment loss on premises and equipment, intangible assets and other assets

      147       230  
  

 

 

    

 

 

  
     1,751,674       894,676  
  

 

 

    

 

 

  

Changes in operating assets and liabilities:

     

Financial instruments at FVTPL

      1,594,646       (1,715,646 ) 

Loans and other financial assets at amortized cost

      (21,703,969 )      (18,598,117 ) 

Other assets

      (1,254,513 )      (1,264,071 ) 

Deposits due to customers

      3,411,535       15,176,465  

Provisions

      (203,770 )      136,521  

Net defined benefit liability

      (120,782 )      (172,759 ) 

Other financial liabilities

      4,806,822       2,225,382  

Other liabilities

      (9,173 )      95,559  
  

 

 

    

 

 

  
     (13,479,204 )      (4,116,666 ) 
  

 

 

    

 

 

  

Interest income received

      22,304,745       20,416,107  

Interest expense paid

      (12,483,982 )      (10,626,911 ) 

Dividends received

      310,341       202,257  

Income tax paid

      (424,770 )      (1,539,605 ) 
  

 

 

    

 

 

  
     9,706,334       8,451,848  
  

 

 

    

 

 

  

Net cash inflow (outflow) from operating activities

      (6,129,300 )      1,621,942  
  

 

 

    

 

 

  

(Continued)

 

- 10 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (CONTINUED)

 

     2024     2023  
     (Korean Won in millions)  

Cash flows from investing activities:

     

Net cash out-flows from obtaining control

      2,008       (209,643 ) 

Net cash out-flows from losing control

      —        (464 ) 

Disposal of financial instruments at FVTPL

      11,659,750       10,487,513  

Acquisition of financial instruments at FVTPL

      (11,111,809 )      (12,167,823 ) 

Disposal of financial assets at FVTOCI

      26,921,313       20,648,897  

Acquisition of financial assets at FVTOCI

      (31,718,677 )      (24,211,531 ) 

Redemption of securities at amortized cost

      7,634,677       8,727,124  

Acquisition of securities at amortized cost

      (2,586,171 )      (4,244,256 ) 

Cash outflows from changes in subsidiaries

      (674,625 )      (619,726 ) 

Disposal of investments in joint ventures and associates

      1,253,301       101,051  

Acquisition of investments in joint ventures and associates

      (979,480 )      (310,239 ) 

Disposal of investment properties

      64,926       —   

Acquisition of investment properties

      —        (99,234 ) 

Disposal of premises and equipment

      10,730       19,001  

Acquisition of premises and equipment

      (221,856 )      (164,696 ) 

Disposal of intangible assets

      4,596       2,513  

Acquisition of intangible assets

      (190,126 )      (228,503 ) 

Disposal of assets held for sale

      23,909       7,156  

Net decrease of other assets

      (126,765 )      8,719  
  

 

 

    

 

 

  

Net cash outflow from investing activities

      (34,299 )      (2,254,141 ) 
  

 

 

    

 

 

  

Cash flows from financing activities:

     

Net cash in-flows (out-flows) from hedging activities

      (25,442 )      23,394  

Net increase (decrease) in borrowings

      (3,011,120 )      2,332,376  

Issuance of debentures

      41,067,565       31,101,841  

Redemption of debentures

      (35,473,345 )      (34,329,491 ) 

Redemption of lease liabilities

      (238,770 )      (160,673 ) 

Net increase (dcrease) of other liabilities

      (17,690 )      118  

Dividends paid

      (878,330 )      (978,376 ) 

Issuance of hybrid securities

      1,954,820       798,007  

Redemption of hybrid securities

      (1,726,936 )      (1,100,000 ) 

Dividends paid to hybrid securities

      (234,931 )      (226,785 ) 

Net increase in non-controlling equity liabilities

      6,589       6,620  

Dividends paid to non-controlling interest

      (3,829 )      (11,647 ) 

Changes in non-controlling interests

      (41,375 )      (180,514 ) 

Acquisition of treasury stocks

      (136,699 )      (158,165 ) 

Disposal of treasury stocks

      4,834       23,118  
  

 

 

    

 

 

  

Net cash inflow (outflow) from financing activities

      1,245,341       (2,860,177 ) 
  

 

 

    

 

 

  

Effects of exchange rate changes on cash and cash equivalents

      1,642,763       (170,154 ) 

Net decrease in cash and cash equivalents

      (3,275,495 )      (3,662,530 ) 

Cash and cash equivalents, beginning of the period

      30,556,618       34,219,148  
  

 

 

    

 

 

  

Cash and cash equivalents, end of the Period (Note 6)

      27,281,123       30,556,618  
  

 

 

    

 

 

  

The accompanying notes are part of these consolidated financial statements.

 

- 11 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

1.

GENERAL

 

(1)

Summary of the Parent company

Woori Financial Group, Inc. (hereinafter referred to as the “Parent company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to as the “Bank”), Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Parent company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital stock is 3,802,676 million Won. The Parent company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock transfer between the Parent company and subsidiaries as of Incorporation are as follows (Unit: Number of shares)

 

Stock transfer company

    Total number of
issued shares		      Exchange ratio
per share		      Number of Parent
company’s stocks		  

Woori Bank

      676,000,000        1.0000000        676,000,000  

Woori FIS Co., Ltd.

      4,900,000        0.2999708        1,469,857  

Woori Finance Research Institute Co., Ltd.

      600,000        0.1888165        113,289  

Woori Credit Information Co., Ltd.

      1,008,000        1.1037292        1,112,559  

Woori Fund Service Co., Ltd.

      2,000,000        0.4709031        941,806  

Woori Private Equity Asset Management Co., Ltd.

      6,000,000        0.0877992        526,795  

As of August 1, 2019, the Parent company acquired a 73% interest in Tongyang Asset Management Co., Ltd. and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Parent company gained 100% control of ABL Global Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the name to Woori Global Asset Management Co., Ltd. on December 6, 2019.

The Parent company paid 598,391 million Won in cash and 42,103,377 new shares of the Parent company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary, Woori Bank, on September 10, 2019. On the same date, the Parent company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million Won in cash.

As of December 30, 2019, the Parent company acquired a 67.2% interest (excluding treasury stocks, 51% interest including treasury stocks) in Woori Asset Trust Co., Ltd. (formerly Kukje Asset Trust Co., Ltd.) and added it as a consolidated subsidiary at the end of 2019. As of March 31, 2023, it acquired an additional 28.1% interests (excluding treasury stock, 21.3% in the case of including treasury stock).

The Parent company acquired 76.8% (excluding treasury stocks, 74.0% interest including treasury stocks) interest in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.) on December 10, 2020. In addition, as of April 15, 2021, the Parent company acquired 13.3% interests (excluding treasury stock, 12.9% when including treasury stock) in Woori Financial Capital Co., Ltd., and as of May 24, 2021, the Parent company additionally acquired treasury stock (3.6%) which Woori Financial Capital Co., Ltd. possessed.

The Parent company paid 113,238 million Won in cash to acquire 100% interest of Woori Savings Bank from its subsidiary, Woori Financial Capital Co., Ltd., on March 12, 2021.

As of August 10, 2021, the Parent company paid 5,792,866 new shares of the Parent company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary.

As of January 7, 2022, the Parent company established Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies (100% interest, 200 billion Won in stock payments) and included it as a subsidiary.

 

- 12 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

As of March 23, 2023, the Parent company acquired a 53.9% interest (excluding treasury stocks, 52.0% interest including treasury stocks) in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.), and added it as a consolidated subsidiary. As of May 30, 2023, the Parent company additionally acquired treasury stock (3.5%) which Woori Venture Partners Co., Ltd. possessed.

As of August 8, 2023, the Parent company paid 22,541,465 new shares of the Parent company to the shareholders of Woori Investment Bank Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (41.3%) of Woori Investment Bank Co., Ltd., to make it a wholly owned subsidiary. In addition, on the same day, the Parent company paid 9,933,246 new shares of the Parent company to the shareholders of Woori Venture Partners Co., Ltd. (excluding the Parent company) through comprehensive stock exchange and acquired residual interest (44.5%) of Woori Venture Partners Co., Ltd., to make it a wholly owned subsidiary.

On January 29, 2024, the Parent company’s percentage of ownership in Woori Asset Management Corp. after the merger between Woori Asset Management Corp. (the surviving company) and Woori Global Asset Management Co., Ltd. (the merged company) is 77.5%. On March 29, 2024, the Parent company acquired the remaining shares (22.5%) of Woori Asset Management Corp., pursuant to which Woori Asset Management Corp. became a wholly-owned subsidiary of the parent company.

On March 25, 2024, the Parent company participated in the capital increase amount and acquired the 1,062,045 shares (96.7% after acquiring shares, 79.4% including treasury shares) of Woori Asset Trust Co., Ltd. Additionally, on March 29, 2024, Woori Asset Trust Co., Ltd. conducted a complete retirement of its 738,000 treasury shares. In addition, as of April 8, 2024, the Parent company additionally acquired minority interests (2.0%) of Woori Asset Trust Co., Ltd. As of November 19, 2024, the Parent company additionally acquired minority interests (0.9%) of Woori Asset Trust Co., Ltd

On August 1, 2024, The Company owned 97.1% interest in merged securities firm as a result of merger between Korea Foss Securities (the surviving company) and Woori Investment Bank Co., Ltd. (dissolution company), and acquired an additional 2.3% out of the remaining interest. The merged securities company also changed its name to Woori Investment Securities Co., Ltd.

 

(2)

Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of December 31, 2024 and 2023 are as follows:

 

        Percentage of ownership
(%)		     Location     Financial
statements date		  

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Held by Woori Financial Group Inc.

          

Woori Bank

   Bank     100.0       100.0       Korea       December 31  

Woori Card Co., Ltd.

   Finance     100.0       100.0       Korea       December 31  

Woori Financial Capital Co., Ltd.

   Finance     100.0       100.0       Korea       December 31  

Woori Investment Securities Co., Ltd. (*11)

   Securities brokerage     99.5       100.0       Korea       December 31  

Woori Asset Trust Co., Ltd (*1)

   Real estate trust     99.6       95.3       Korea       December 31  

Woori Savings Bank

   Mutual saving bank     100.0       100.0       Korea       December 31  

Woori Financial F&I Co., Ltd.

   Finance     100.0       100.0       Korea       December 31  

Woori Asset Management Corp. (*1)

   Finance     100.0       73.0       Korea       December 31  

Woori Venture Partners

   Other financial services     100.0       100.0       Korea       December 31  

Woori Global Asset Management Co., Ltd. (*1)

   Finance     —        100.0       Korea       —   

Woori Private Equity Asset Management Co., Ltd.

   Finance     100.0       100.0       Korea       December 31  

Woori Credit Information Co., Ltd.

   Credit information     100.0       100.0       Korea       December 31  

Woori Fund Service Co., Ltd.

   Financial support service business     100.0       100.0       Korea       December 31  

Woori FIS Co., Ltd.

   System software development & maintenance     100.0       100.0       Korea       December 31  

Woori Finance Research Institute Co., Ltd.

   Other service business     100.0       100.0       Korea       December 31  

Held by Woori Bank

          

Woori America Bank

   Finance     100.0       100.0       America       December 31  

 

- 13 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Woori Global Markets Asia Limited

   Finance     100.0       100.0     Hong Kong   December 31

Woori Bank China Limited

   Finance     100.0       100.0     China   December 31

AO Woori Bank (*7)

   Finance     100.0       100.0     Russia   December 31

PT Bank Woori Saudara Indonesia 1906 Tbk

   Finance     90.8       84.2     Indonesia   December 31

Banco Woori Bank do Brasil S.A.

   Finance     100.0       100.0     Brazil   December 31

Korea BTL Infrastructure Fund

   Finance     99.9       99.9     Korea   December 31

Woori Finance Myanmar Co., Ltd.

   Finance     100.0       100.0     Myanmar   December 31

Wealth Development Bank

   Finance     51.0       51.0     Philippines   December 31

Woori Bank Vietnam Limited

   Finance     100.0       100.0     Vietnam   December 31

Woori Bank (Cambodia) PLC

   Finance     100.0       100.0     Cambodia   December 31

Woori Bank Europe

   Finance     100.0       100.0     Germany   December 31

KAMCO Value Recreation First Securitization Specialty Co., Ltd. (*2)

   Asset securitization     15.0       15.0     Korea   December 31

Jeonju Iwon Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Wonju I one Inc. (*2)

   Asset securitization     —        —      Korea   December 31

Heitz Third Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori hansoop 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori International First Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori QS 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Display 2nd Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori Dream 2nd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori K 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori S 1st Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori Display 3rd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

TY 1st Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Quantum Jump the 2nd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Gongdeok First Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori HW 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Dream 3rd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori SJS 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Steel 1st Co., Ltd (*2) (*5)

   Asset securitization     —        —      Korea   — 

SPG the 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori-HWC 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori HC 3rd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Park I 1st co., Ltd (*2)

   Asset securitization     —        —      Korea   December 31

Woori DS 1st co., Ltd (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori HC 4th Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori SKR 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori H chemical 1st Co.,Ltd (*2)

   Asset securitization     —        —      Korea   December 31

HE the 1st Co.,Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Hub The 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori K The 3rd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori KF 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

WooriI TS 1st Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori H Square 1st Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori L Yongsan 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori HC 5th Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Ladena 1st Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori HR 1st Co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori Lotte Dongtan 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori HC 6th Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori HO 1st Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori ESG 1st Co.,Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Osiria 1st Co.,Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Eco 2nd Co.,Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

 

- 14 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Gangnam Landmark 2nd Co., Ltd (*2)

   Asset securitization     —        —      Korea   December 31

Woori HP the 1st co.,Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori KF 2nd Co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori HD 1st co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori ST 1st co.,Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori High End 1st co., Ltd. (*2) (*5)

   Asset securitization     —        —      Korea   — 

Woori HW 2nd co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori Mirae 1st co., Ltd. (*2)

   Asset securitization     —        —      Korea   December 31

Woori HR 2nd Co., Ltd. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

Woori QS 2nd Co., Ltd. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

Woori Plasma 1st Co., Ltd. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

Woori EUGENE 1st Co.,Ltd (*2) (*10)

   Asset securitization     —        —      Korea   December 31

WOORIWON 1ST, CO,.LIMITED. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

WOORI ENERBILITY 1ST, CO,.LIMITED. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

WOORI HL 1ST, CO,.LIMITED. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

WOORI SEOUL STATION AREA 1ST, CO,.LTD. (*2) (*10)

   Asset securitization     —        —      Korea   December 31

Heungkuk Global Private Placement Investment Trust No. 1 (*3)

   Securities investment and others     98.8       98.8     Korea   December 31

AI Partners UK Water Supply Private Placement Investment Trust No.2 (*3)

   Securities investment and others     97.3       97.3     Korea   December 31

Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 (*3)

   Securities investment and others     99.0       99.0     Korea   December 31

IGIS Australia Investment Trust No. 209-1 (*3)

   Securities investment and others     99.4       99.4     Korea   December 31

Woori Global Secondary Private Placement Investment Trust No. 1 (*3)

   Securities investment and others     98.8       98.6     Korea   December 31

JB Airline Private Placement Investment Trust No.8 (*3)

   Securities investment and others     97.0       97.0     Korea   December 31

Kiwoom Harmony Private Placement Investment Trust No. 2 (*3)

   Securities investment and others     97.3       97.2     Korea   December 31

Kiwoom Harmony Private Placement Investment Trust No. 1 (*3)

   Securities investment and others     97.4       97.4     Korea   December 31

Kiwoom Harmony Private Placement Investment Trust No. 4 (*3)

   Securities investment and others     96.2       96.2     Korea   December 31

Principal Guaranteed Trust (*4)

   Trust     —        —      Korea   December 31

Principal and Interest Guaranteed Trust (*4)

   Trust     —        —      Korea   December 31

Held by Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 MAGI No.5 LuxCo S.a.r.l.

   Asset securitization     54.6       54.6     Luxembourg   December 31

Held by MAGI No.5 LuxCo S.a.r.l. ADP 16 Brussels

   Asset securitization     100.0       100.0     Belgium   December 31

Held by Woori ESG Infrastructure Development General Private Investment Trust No. 1:

          

 

- 15 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Woori Global Infrastructure Development Co., Ltd. (*10)

   Other financial services     100.0       —      Korea   December 31

Namyangju Resource Circulation Facility Development Co., Ltd. (*10)

   Other professional services     100.0       —      Korea   December 31

Held by Woori Card Co., Ltd.

          

TUTU Finance –WCI Myanmar Co., Ltd.

   Finance     100.0       100.0     Myanmar   December 31

PT Woori Finance Indonesia Tbk.

   Finance     84.5       84.5     Indonesia   December 31

Woori Card 2020-1 Asset Securitization Specialty Co., Ltd. (*2) (*5)

   Asset securitization     —        0.5     Korea   — 

Woori Card 2021-1 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     0.5       0.5     Korea   December 31

Woori Card 2022-1 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     0.5       0.5     Korea   December 31

Woori Card 2022-2 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     0.5       0.5     Korea   December 31

Woori Card 2023-1 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     0.5       0.5     Korea   December 31

Woori Card 2023-2 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     0.5       0.5     Korea   December 31

Woori Card 2024-1 Asset Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     0.5       —      Korea   December 31

Held by Woori Financial Capital Co., Ltd.

          

Specified Money Market Trust

   Trust     100.0       100.0     Korea   December 31

Held by Woori Investment Securities Co., Ltd.

          

Seari Second Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

Namjong 1st Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

Bukgeum First Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

Bukgeum Second Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WS1909 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WS2003 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WS2006 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WH2103 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WN2103 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WH2106 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

Held by Woori Asset Management Corp.

          

Woori China Convertible Bond Hedging feeder Investment Trust H (debt-oriented hybrid) (*3)

   Securities investment and others     89.5       84.7     Korea   December 31

Woori China Convertible Bond Master Fund (*3) (*8) (*10)

   Securities investment and others     63.3       —      Korea   December 31

 

- 16 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Woori Together TDF 2025 (*3) (*5)

   Securities investment and others     —        30.1     Korea   — 

Woori Together TDF 2035 (*3) (*5)

   Securities investment and others     —        48.0     Korea   — 

Woori Together TDF 2040 (*3)

   Securities investment and others     34.3       49.2     Korea   December 31

Woori Together TDF 2045 (*3)

   Securities investment and others     56.0       61.0     Korea   December 31

Woori Together TDF 2050 (*3)

   Securities investment and others     31.5       48.9     Korea   December 31

Woori K-New Opening Target Return Securities Investment Trust (Equity) (*3) (*5) (*10)

   Securities investment and others     —        —      Korea   — 

Woori Rooftop Solar Private Special Asset Investment Trust No.1 (*3) (*10)

   Securities investment and others     40.1       —      Korea   December 31

Woori Didim US Technology and Bio-Healthcare Feeder Investment Trust (*3) (*10)

   Securities investment and others     44.6       —      Korea   December 31

Woori Franklin Technology Master Fund (USD) (*3) (*5) (*8)

   Securities investment and others     —        67.3     Korea   — 

Woori Franklin Technology Feeder Fund (H) (*3) (*5)

   Securities investment and others     —        31.4     Korea   — 

Woori High Graded Bond Target Return Fund 1 (*3) (*5)

   Securities investment and others     —        87.4     Korea   — 

Woori Global Multi Asset Income Private Placement Investment Trust Class Cs (*3) (*5)

   Securities investment and others     —        37.7     Korea   — 

Held by Woori Financial F&I Co., Ltd.

          

WI2203 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WM2203 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WNI2206 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WI2209 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WN2212 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WK2212 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WH2306 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WN2306 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WNKN2309 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WB2309 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WI2311 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WSB2312 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WK2312 Asset Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WBS2312 Securitization Specialty Co., Ltd. (*2)

   Asset securitization     5.0       5.0     Korea   December 31

WK2403 Asset Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

WH2403 Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

WSB2406 Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

WK2406 Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

 

- 17 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

WI2406 Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

WKN2406 Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

WS2409 Asset Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

WSB2409 Asset Securitization Specialty Co., Ltd. (*2) (*10)

   Asset securitization     5.0       —      Korea   December 31

VOGO DL General Private Equity Investment Trust 1(*3)

   Securities investment and others     99.8       99.0     Korea   December 31

WFBS 1st Corporate Recovery Private Equity Fund (*10)

   Finance     96.2       —      Korea   December 31

Held by Woori Venture Partners Co., Ltd.

          

Woori Venture Partners US

   Other financial services     100.0       100.0     America   December 31

Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Private Equity Asset Management Co., Ltd. (*6)

          

Green ESG Growth No.1 Private Equity Fund (*3)

   Securities investment and others     34.8       30.3     Korea   December 31

Woori New Growth Credit Fund 1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori PE Secondary Fund 1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Held by Woori Financial Capital Co., Ltd., Woori Private Equity Asset Management Co., Ltd. and Woori Investment Securities Co., Ltd. (*6)

          

Japanese Hotel Real Estate Private Equity Fund 1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Securities Co., Ltd., Woori Savings Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

          

Woori Innovative Growth Professional Investment Type Private Investment Trust No.1 (*3)

   Securities investment and others     90.0       90.0     Korea   December 31

Held by Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Securities Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*6)

          

Woori Innovative Growth Professional Investment Type Private Investment Trust No.2 (*3)

   Securities investment and others     85.0       85.0     Korea   December 31

Woori Innovative Growth New Deal Private Investment Trust No.3 (*3)

   Securities investment and others     94.3       94.3     Korea   December 31

Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Investment Securities Co., Ltd. (*6)

          

Woori GP Commitment Loan General Type Private Investment Trust No.1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

 

- 18 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Woori Equity Bridge Loan General Type Private Investment Trust No.1 (*3)

   Securities investment and others     80.0       80.0     Korea   December 31

Woori GP Commitment Loan General Type Private Investment Trust No.2 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori GP Commitment Loan General Type Private Investment Trust No.3 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori Junior Equity General Type Private Investment Trust (*3) (*10)

   Securities investment and others     100.0       —      Korea   December 31

Held by Woori Bank, Woori Financial Capital Co., Ltd., and Woori Asset Management Corp. (*6)

          

Woori New Deal(Infrastructure) Policy Fund No.1(*3)

   Securities investment and others     70.0       70.0     Korea   December 31

Held by Woori bank and Woori Investment Securities Co., Ltd. (*6)

          

Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori NorthAmerica Infra Private Placement Investment Trust No. 1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori Infrastructure New Deal Specialized Investment Private Equity Investment Trust No. 1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori General Type Private Real Estate Investment Trust No.2 (*3)

   Securities investment and others     30.1       30.1     Korea   December 31

Woori ESG Infrastructure Development General Type Private Investment Trust No.1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Held by Woori bank (*6)

          

Woori WooriBank Partners General Type Private Investment Trust No.1 (*3)

   Securities investment and others     92.6       92.6     Korea   December 31

Woori General Type Private Real Estate Investment Trust No.1 (*3)

   Securities investment and others     84.9       84.3     Korea   December 31

Woori Global Mid-market Secondary General Type Private Investment Trust No.1 (*3)

   Securities investment and others     80.0       80.0     Korea   December 31

Woori Woori Bank Partners Professional Type Private Investment Trust No. 2 (*3)

   Securities investment and others     90.9       90.9     Korea   December 31

Woori General Type Private Real Estate Investment Trust No.5 (*3)

   Securities investment and others     87.0       87.0     Korea   December 31

Woori Senior Loan General Type Private Investment Trust No.2 (*3)

   Securities investment and others     50.0       50.0     Korea   December 31

Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-2 (*3)

   Securities investment and others     98.8       98.8     Korea   December 31

Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*3)

   Securities investment and others     99.9       99.9     Korea   December 31

 

- 19 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Woori Clean Energy General Type Private Investment Trust No.2 (*3)

   Securities investment and others     30.8       30.8     Korea   December 31

Woori Together Institutional USD MMF No.1 C-F (*3) (*5)

   Securities investment and others     —        63.4     Korea   — 

Woori ESG Infrastructure Development General Type Private Investment Trust No.2 (*3)

   Securities investment and others     50.0       50.0     Korea   December 31

Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust (*3)

   Securities investment and others     40.0       40.0     Korea   December 31

Woori Partners General Private Investment Trust No. 3 (*3) (*10)

   Securities investment and others     90.9       —      Korea   December 31

Woori Natixis Partnership Global Private Debt Fund No. 1-1(USD) (*3) (*10)

   Securities investment and others     80.0       —      Korea   December 31

Woori Natixis Partnership Global Private Debt Fund No. 1-2(EUR) (*3) (*10)

   Securities investment and others     80.0       —      Korea   December 31

Woori General Type Private Real Estate Investment Trust No.7 (*3)(*10)

   Securities investment and others     87.0       —      Korea   December 31

Woori Senior Loan General Type Private Investment Trust No.3 (*3)(*10)

   Securities investment and others     45.8       —      Korea   December 31

Woori General Private Equity Investment Trust 1 (*3) (*5) (*10)

   Securities investment and others     —        —      Korea   — 

Held by Woori Bank and Woori Financial Capital Co., Ltd. (*6)

          

Woori Renewable New Deal Fund No.1 (*3)

   Securities investment and others     60.0       60.0     Korea   December 31

Woori Equity Investment General Type Private Investment Trust No.1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori Fund Financing General Type Private Investment Trust (*3) (*10)

   Securities investment and others     99.7       —      Korea   December 31

Held by Woori Financial Capital Co., Ltd. (*6)

          

Woori Japan Private Placement Real Estate Feeder Investment Trust No.1-1 (*3)

   Securities investment and others     63.2       63.2     Korea   December 31

Held by Woori Bank and Woori Asset Management Corp. (*6)

          

Woori General Type Private Real Estate Investment Trust No.6 (*3)

   Securities investment and others     85.8       85.8     Korea   December 31

Woori Innovation Growth(Infrastructure) General Type Private Investment Trust No.2 (*3)

   Securities investment and others     46.4       46.4     Korea   December 31

Held by Woori bank, Woori Investment Securities Co., Ltd., and Woori Asset Management Corp. (*6)

          

Woori Real Estate Financial Stabilization General Private Investment Trust No. 1 (*3) (*10)

   Securities investment and others     100.0       —      Korea   December 31

 

- 20 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

        Percentage of ownership
(%)		    

Location

   Financial
statements date

Subsidiaries

  

Main business

   December 31,
2024		     December 31,
2023		  

Held by Woori Bank, Woori Card Co., Woori Investment Securities Co., Ltd. and Woori Financial Capital Co., Ltd. (*6)

          

Woori FG Digital Investment Fund 1st (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Woori Financial Dino Lab Investment Association No. 1 (*3) (*10)

   Securities investment and others     100.0       —      Korea   December 31

Held by Woori Japan Private Placement Real Estate Feeder Investment Trust No.1-1 and Woori Japan Investment Trust No. 1-2 (*6)

          

Woori Japan Private Placement Real Estate Master Investment Trust No.1 (*3) (*8)

   Securities investment and others     100.0       100.0     Korea   December 31

Held by Woori Financial Capital Co., Ltd. and Woori Investment Securities Co., Ltd. (*6)

          

Woori Japan Private Placement Real Estate Master Investment Trust No.2-1 (*3)

   Securities investment and others     100.0       100.0     Korea   December 31

Held by Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6)

          

Woori Corporate Turnaround No.1 Private Equity Fund (*3)

   Securities investment and others     36.4       36.4     Korea   December 31

Held by Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 and Woori Japan General Type Private Real Estate Feeder Investment Trust No.2-1 (*6)

          

Woori Japan Private Placement Real Estate Master Investment Trust No.2 (*3) (*8)

   Securities investment and others     100.0       100.0     Korea   December 31

Held by Woori Japan Private Placement Real Estate Master Investment Trust No.1

          

GK OK Chatan (*3)

   Other financial services     99.9       99.9     Japan   October 30 (*9)

Held by Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*6)

          

Woori Private Placement Investment Trust No. 3 (*3) (*8)

   Securities investment and others     76.5       76.5     Korea   December 31

Held by Woori Private Placement Investment Trust No. 3

          

GK Woorido (*3)

   Other financial services     100.0       100.0     Japan   September 30 (*9)

Held by Woori Infrastructure New Deal General Type Private Investment Trust (*6)

          

Woori Seoul- Chuncheon Highway Private Placement Special Asset Investment Trust No.1 (*3) (*5)

   Securities investment and others     —        48.0     Korea   — 

 

- 21 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(*1)

The Company acquired additional shares of Woori Asset Trust Co., Ltd. and Woori Asset Management Corp. during the year ended December 31, 2024. Additionally, Woori Asset Management Corp. merged with Woori Global Management Co., Ltd. through a business combination.

(*2)

The entity is a structured entity for the purpose of asset securitization. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*3)

The entity is a structured entity for the purpose of investment in securities. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*4)

The entity is a ‘money trust’ under the Financial Investment Services and Capital Markets Act. Although the Group is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.

(*5)

Companies are excluded from the consolidation as of December 31, 2024.

(*6)

Determined that the Group controls the investees, considering the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns, by two or more subsidiaries’ investment or operation.

(*7)

The Russia – Ukraine conflict has been escalated in February 2022, and international sanctions were imposed on Russia. Due to the sanctions, the Group may experience situations such as a decrease in value of financial assets or operating assets owned by the Group regarding the conflict, an increase in receivable payment terms, limitation to transfer funds, decrease in the profit. As of December 31, 2024, the Group expects such conflict and sanctions would have financial impacts on the business of AO Woori Bank, one of the subsidiaries, in the future. However, the Group cannot reasonably predict the financial impacts.

(*8)

As a master-feeder fund, it is the percentage of the feeder fund’s ownership in the master fund.

(*9)

As the financial statements for the end of the reporting period were not available, the most recent financial statements available from the date of settlement were used.

(*10)

Companies are included in the consolidation during the year ended December 31, 2024.

(*11)

The Group owned interest in Korea Foss Securities Co., Ltd. as a result of the merger between Korea Foss Securities Co., Ltd. (surviving company) and Woori Investment Bank Co., Ltd. (dissolution company) for the year ended December 31, 2024. The merged securities company also changed its name to Woori Investment Securities Co., Ltd.

 

(3)

The Group has not consolidated the following entities as of December 31, 2024 and 2023 despite having more than 50% ownership interest:

 

     As of December 31, 2024  

Subsidiaries

    Location      Main Business    Percentage of
ownership (%)		  

Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)

      Korea      Securities Investment      59.7  

Kiwoom Yonsei Private Equity Investment Trust (*1)

      Korea      Securities Investment      88.9  

IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)

      Korea      Securities Investment      97.8  

IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)

      Korea      Securities Investment      75.0  

IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)

      Korea      Securities Investment      75.0  

Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)

      Korea      Securities Investment      66.7  

Hangang Blue Water Private Placement Special Asset Investment Trust (*1)

      Korea      Securities Investment      55.6  

Korea Investment Pocheon-Hwado Highway Private Special Asset Trust 2 (*1)

      Korea      Securities Investment      55.2  

Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)

      Korea      Securities Investment      58.3  

Samsung Together Korea IPPF private securities investment trust 3 [Equity-FoFs] (*3)

      Korea      Securities Investment      100.0  

INMARK France Private Placement Investment Trust No. 18-1 (*1)

      Korea      Securities Investment      93.8  

Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2)

      Korea      Securities Investment      99.5  

KOTAM Global Infra Private Fund 1-4 (*2)

      Korea      Securities Investment      99.7  

UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1)

      Korea      Securities Investment      51.0  

Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1)

      Korea      Securities Investment      50.0  

Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)

      Korea      Securities Investment      77.4  

Consus Solar Energy Private Placement Investment Truns No.1(*1)

      Korea      Securities Investment      50.0  

Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2 (*1)

      Korea      Securities Investment      60.0  

NH-Amundi WSCP VIII Private Fund 2 (*1)

      Korea      Securities Investment      65.2  

AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2)

      Korea      Securities Investment      100.0  

Hangang new deal infra BTL fund 4 (HNBF4) (*1)

      Korea      Securities Investment      60.0  

IGIS Global Private Placement Real Estate Fund No. 316-1 (*2)

      Korea      Securities Investment      99.3  

INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2)

      Korea      Securities Investment      97.7  

 

- 22 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     As of December 31, 2024  

Subsidiaries

    Location      Main Business    Percentage of
ownership (%)		  

Woori Asset Global Partnership Fund No.5 (*4)

      Korea      Securities Investment      57.7  

Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)

      Korea      Securities Investment      76.9  

Project Chile PMGD Solar (*2)

      Korea      Securities Investment      75.2  

NH-Amundi BXD Private Fund 2[FoF] (*2)

      Korea      Securities Investment      77.8  

Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2)

      Korea      Securities Investment      55.0  

Hangang Green Environment Private Placement Special Asset Investment Trust (*1)

      Korea      Securities Investment      50.0  

 

(*1)

The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager’s delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*2)

The Group does not have power over the fund of funds because the Group cannot decide the relevant activities of the fund through the related contract. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest. The Group does not have the power over the fund’s activities even though the Group holds ownership interest.

(*3)

The Group does not have power over the stock market stabilization fund as the fund’s relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*4)

In this fund, one of the parties holds substantive removal rights and can remove the collective investment business operator without any cause. Consequently, the Group have no controls as it exercises decision-making rights as agent.

 

     As of December 31, 2023  

Subsidiaries

    Location      Main Business      Percentage of
ownership (%)		  

Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)

      Korea        Securities Investment        59.7  

Kiwoom Yonsei Private Equity Investment Trust (*1)

      Korea        Securities Investment        88.9  

IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)

      Korea        Securities Investment        97.9  

IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)

      Korea        Securities Investment        75.0  

IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)

      Korea        Securities Investment        75.0  

Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)

      Korea        Securities Investment        66.7  

Hangang Blue Water Private Placement Special Asset Investment Trust(*1)

      Korea        Securities Investment        55.6  

Korea Investment Pocheon-Hwado Highway Private Special Asset Trust 2 (*1)

      Korea        Securities Investment        55.1  

Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)

      Korea        Securities Investment        58.3  

Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3)

      Korea        Securities Investment        100.0  

INMARK France Private Placement Investment Trust No. 18-1 (*1)

      Korea        Securities Investment        93.8  

Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2)

      Korea        Securities Investment        99.5  

KOTAM Global Infra Private Fund 1-4 (*2)

      Korea        Securities Investment        99.7  

UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1)

      Korea        Securities Investment        51.0  

Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1)

      Korea        Securities Investment        50.0  

Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)

      Korea        Securities Investment        77.3  

Consus Solar Energy Private Placement Investment Trust No.1 (*1)

      Korea        Securities Investment        50.0  

IGIS ESG General Private Investment Trust No.1 (*1)

      Korea        Securities Investment        60.0  

Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2 (*1)

      Korea        Securities Investment        60.0  

NH-Amundi WSCP VIII Private Fund 2 (*1)

      Korea        Securities Investment        65.2  

AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2)

      Korea        Securities Investment        100.0  

Hangang new deal infra BTL fund 4 (HNBF4) (*1)

      Korea        Securities Investment        60.0  

IGIS Global Private Placement Real Estate Fund No. 316-1 (*2)

      Korea        Securities Investment        99.3  

INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2)

      Korea        Securities Investment        97.7  

Woori Asset Global Partnership Fund No.5 (*4)

      Korea        Securities Investment        57.7  

Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)

      Korea        Securities Investment        76.9  

Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2)

      Korea        Securities Investment        55.0  

 

(*1)

The Group does not have power over the discretionary fund because the fund manager has the sole authority to decide the relevant activities of the investee. The fund manager’s delegated power is exercised not only for the Group, but also for other investors as well. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

 

- 23 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(*2)

The Group does not have power over the fund of funds because the Group cannot decide the relevant activities of the fund through the related contract. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*3)

The Group does not have power over the stock market stabilization fund as the fund’s relevant activities are determined by the management committee, over which the Group does not have substantial control. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*4)

In this fund, one of the parties holds substantive removal rights and can remove the collective investment business operator without any cause. Consequently, the Group have no controls as it exercises decision-making rights as agent.

 

(4)

The summarized financial information of the major subsidiaries are as follows. The financial information of each subsidiary was prepared on the basis of consolidated financial statements. (Unit: Korean Won in millions):

 

     As of and for the year ended December 31, 2024  

Subsidiaries

    Assets      Liabilities      Operating
revenue		      Net income
(loss)
attributable to
owners		     Comprehensive
income (loss)
attributable to
owners		  

Woori Bank

      485,888,941        456,944,053        41,881,143        3,039,372       3,381,799  

Woori Card Co., Ltd.

      16,613,482        13,828,816        2,293,739        147,179       160,121  

Woori Financial Capital Co., Ltd.

      12,770,681        11,045,686        1,759,842        141,419       138,826  

Woori Investment Securities Co., Ltd.

      7,186,431        6,041,109        430,599        2,552       6,279  

Woori Asset Trust Co., Ltd.

      499,279        39,470        107,154        1,803       1,609  

Woori Savings Bank

      1,874,624        1,680,378        136,417        (85,879 )      (84,907 ) 

Woori Financial F&I Co., Ltd.

      1,251,854        914,388        90,373        13,306       13,199  

Woori Asset Management Corp.

      203,232        39,077        57,562        11,801       11,870  

Woori Venture Partners Co., Ltd.

      350,066        15,060        62,261        36,786       37,213  

Woori Private Equity Asset Management Co., Ltd.

      101,164        5,589        9,974        4,148       3,987  

Woori Credit Information Co., Ltd.

      43,985        6,555        42,796        1,614       1,252  

Woori Fund Service Co., Ltd.

      31,154        2,799        18,069        4,646       4,646  

Woori FIS Co., Ltd.

      58,868        12,094        175,624        (1,709 )      (1,485 ) 

Woori Finance Research Institute Co., Ltd.

      7,663        3,892        9,022        59       (70 ) 

 

     As of and for the year ended December 31, 2023  

Subsidiaries

    Assets      Liabilities      Operating
revenue		      Net income
(loss)
attributable to
owners		     Comprehensive
income (loss)
attributable to
owners		  

Woori Bank

      458,017,067        431,313,615        37,719,811        2,505,587       3,203,099  

Woori Card Co., Ltd.

      17,491,193        14,830,408        2,099,755        110,998       85,647  

Woori Financial Capital Co., Ltd.

      12,417,338        10,796,683        1,538,360        127,836       125,562  

Woori Investment Securities Co., Ltd.

      6,375,625        5,273,890        429,764        (53,374 )      (50,735 ) 

Woori Asset Trust Co., Ltd.

      337,976        79,747        129,982        32,297       31,849  

Woori Savings Bank

      1,938,948        1,759,489        133,872        (49,139 )      (48,974 ) 

Woori Financial F&I Co., Ltd.

      877,702        673,265        31,290        3,866       3,858  

Woori Asset Management Corp.

      161,868        32,780        41,311        6,408       6,267  

Woori Venture Partners Co., Ltd. (*)

      328,782        30,190        14,676        3,929       5,484  

Woori Global Asset Management Co., Ltd.

      37,512        13,526        13,857        (3,913 )      (3,913 ) 

Woori Private Equity Asset Management Co., Ltd.

      96,006        4,418        10,216        1,960       1,826  

Woori Credit Information Co., Ltd.

      45,662        7,981        43,774        5,014       4,626  

Woori Fund Service Co., Ltd.

      27,526        2,758        17,059        3,539       3,539  

Woori FIS Co., Ltd.

      80,563        32,304        339,163        (7,511 )      (9,214 ) 

Woori Finance Research Institute Co., Ltd.

      6,444        2,603        7,792        72       (11 ) 

 

(*)

Additional investment occurred and added it as a consolidated subsidiary during the year ended December 31, 2023.

 

- 24 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5)

The financial support that the Group provides to consolidated structured entities is as follows:

 

  •  

Structured entity for asset securitization

The structured entity which is established for the purpose of securitization of project financing loans, corporate bonds, and other financial assets. The Group is involved with the structured entity through provision of credit facility over asset-backed commercial papers issued by the entity, originating loans directly to the structured entity, or purchasing 100% of the subordinated debts issued by the structured entity.

 

  •  

Structured entity for the investments in securities

The structured entity is established for the purpose of investments in securities. The Group acquires beneficiary certificates through its contribution of funding to the structured entity by the Group, and it is exposed to the risk that it may not be able to recover its fund depending on the result of investment performance of asset managers of the structured entity.

 

  •  

Money trust under the Financial Investment Services and Capital Markets Act

The Group provides with financial guarantee of principal and interest or solely principal to some of its trust products. Due to the financial guarantees, the Group may be obliged when the principal and interest or principal of the trust product sold is short of the guaranteed amount depending on the result of investment performance of the trust product.

As of December 31, 2024 and 2023, the Group provides 2,166,871 million Won and 2,445,644 million Won of credit facilities, respectively, for the structured entities mentioned above. As of December 31, 2024 and 2023, the purchase commitment amounts to 2,817,626 million Won and 2,848,921 million Won, respectively.

 

(6)

The Group has entered into various agreements with structured entities such as asset securitization, structured finance, investment fund, and trust contract. The characteristics of interests and the nature of risks related to unconsolidated structured entities over which the Group does not have control in accordance with K-IFRS 1110 are as follows:

The interests in unconsolidated structured entities that the Group hold are classified into asset securitization, structured finance, investment fund and real-estate trust, based on the nature and the purpose of each structured entity.

Unconsolidated structured entities classified as ‘asset securitization’ are entities that issue asset-backed securities, pay the principal and interest or distributes dividends on asset-backed securities through borrowings or profits from the management, operation and sale of securitized assets. The Group has been purchasing commitments of asset-backed securities or issuing asset-backed securities through credit grants, and recognizes related interest or fee revenue. There are entities that provide additional funding and conditional debt acquisition commitments before the Group’s financial support, but the Group is still exposed to losses arising from the purchase of financial assets issued by the structured entities when it fails to renew the securities.

Unconsolidated structured entities classified as ‘structured finance’ include real estate project financing investment vehicle, social overhead capital companies, and special purpose companies for ship (aircraft) financing. Each entity is incorporated as a separate company with a limited purpose in order to efficiently pursue business goals and the fund is raised by equity investment or loans from financial institutions and participating institutions. ‘Structured financing’ is a financing method for large-scale risky business, with investments made based on feasibility of the specific business or project, instead of credit of business owner or physical collaterals. The investors receive profits from the operation of the business. The Group recognizes interest revenue, profit or loss from assessment or transactions of financial instruments, or dividend income. With regard to uncertainties involving structured financing, there are entities that provide financial support such as additional fund, guarantees and prioritized credit grants prior to the Group’s intervention, but the Group is exposed to possible losses due to loss of principal from reduction in investment value or irrecoverable loans arising from failure to collect scheduled cash flows and cessation of projects.

 

- 25 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of dividend income as an investor in the same way as ‘structured finance’, and may be exposed to losses due to reduction in investment value. Investments in MMF(Money Market Funds) as of December 31, 2024 and 2023 are 65,861 million Won and 1,451,874 million Won, respectively, and there is no additional commitments for MMF.

‘Real estate trust’ is to be entrusted the underlying property for the purpose of managing, disposing, operating or developing from the consignor who owns the property and distributes the proceeds achieved through the trust to the beneficiary. When the consignee does not fulfill his or her important obligations in the trust contract or it is, in fact, difficult to run the business, the Group may be exposed to the threat of compensating the loss.

The total assets of the unconsolidated structured entity held by the Group, the carrying amount of the items recognized in the consolidated financial statements, the maximum loss exposure, and the losses from the unconsolidated structured entity are as follows. The maximum loss exposure includes the amount of investment recognized in the consolidated financial statements and the amount that is likely to be confirmed in the future when satisfies certain conditions by contracts such as purchase commitments, credit offerings.

 

     (unit : Korean Won in millions))  
     December 31, 2024  
     Asset securitization      Structured Finance      Investment Fund      Real-estate trust  

Total asset of the unconsolidated structured entities

      9,725,385        130,281,870        268,076,078        2,541,640  

Assets recognized in the consolidated financial statements related to the unconsolidated structured entities

      6,941,360        5,512,070        7,694,857        183,036  

Financial assets at FVTPL

      10,923        20,898        6,787,853        12,644  

Financial assets at FVTOCI

      1,813,481        44,477        —         —   

Financial assets at amortized cost

      5,116,956        5,444,604        79,879        170,392  

Investments in joint ventures and associates

      —         —         824,536        —   

Derivative assets

      —         2,091        2,589        —   

Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities

      242        2,270        —         10,769  

Derivative liabilities

      —         421        —         —   

Other liabilities (provisions)

      242        1,849        —         10,769  

The maximum exposure to risks

      7,026,784        6,402,819        11,588,447        348,947  

Investment assets

      6,941,360        5,512,070        7,694,857        183,036  

Purchase commitment

      —         —         3,892,107        —   

Credit offerings and others

      85,424        890,749        1,483        165,911  

Loss recognized on unconsolidated structured entities

      —         84,962        200,672        79,152  

 

- 26 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     (unit : Korean Won in millions))  
     December 31, 2023  
     Asset securitization      Structured Finance      Investment Fund      Real-estate trust  

Total asset of the unconsolidated structured entities

      14,595,681        99,568,859        189,034,319        1,604,210  

Assets recognized in the consolidated financial statements related to the unconsolidated structured entities

      9,256,063        5,414,037        6,884,658        93,222  

Financial assets at FVTPL

      205,449        118,026        6,000,877        8,297  

Financial assets at FVTOCI

      2,802,592        43,696        —         —   

Financial assets at amortized cost

      6,248,022        5,252,191        66        84,925  

Investments in joint ventures and associates

      —         —         881,531        —   

Derivative assets

      —         124        2,184        —   

Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities

      248        3,251        2,006        28,838  

Derivative liabilities

      —         1,243        2,006        —   

Other liabilities (provisions)

      248        2,008        —         28,838  

The maximum exposure to risks

      9,333,448        6,444,559        11,069,599        206,651  

Investment assets

      9,256,063        5,414,037        6,884,658        93,222  

Purchase commitment

      —         —         4,181,631        —   

Credit offerings and others

      77,385        1,030,522        3,310        113,429  

Loss recognized on unconsolidated structured entities

      149        83,885        63,372        19,337  

 

(7)

As of December 31, 2024 and 2023, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests are significant are as follows: (Unit: Korean Won in millions):

1) Accumulated non-controlling interests at the end of the reporting period

 

     December 31, 2024      December 31, 2023  

Woori Bank (*1)

      1,645,947        1,546,447  

Woori Investment Securities Co., Ltd. (*2)

      5,571        —   

Woori Asset Trust Co., Ltd. (*3)

      1,901        12,517  

Woori Asset Management Corp (*4)

      —         35,638  

PT Bank Woori Saudara Indonesia 1906 Tbk

      104,023        103,176  

Wealth Development Bank

      23,975        21,142  

PT Woori Finance Indonesia Tbk.

      16,179        13,631  

 

(*1)

Hybrid securities issued by Woori Bank

(*2)

The non-controlling interests were recognized in accordance with merger with Korea Foss Securities Co., Ltd. during the year ended December 31, 2024.

(*3)

The non-controlling interests decreased in accordance with paid-in capital increase and stock retirement and additional acquisition of minority interests during the year ended December 31, 2024.

(*4)

The Group made the subsidiary a wholly-owned subsidiary through the merger with Woori Global Asset Management Co., Ltd. and acquisition of shares of Yuanta Securities Korea Co., Ltd. during the year period ended December 31, 2024.

 

- 27 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

2) Net income attributable to non-controlling interests

 

     For the years ended December 31  
     2024      2023  

Woori Bank (*)

      76,249        95,637  

Woori Investment Securities Co., Ltd.

      (16 )       5,687  

Woori Asset Trust Co., Ltd.

      276        5,720  

Woori Asset Management Corp

      530        1,603  

Woori Venture Partners Co., Ltd.

      —         1,391  

PT Bank Woori Saudara Indonesia 1906 Tbk

      6,764        9,521  

Wealth Development Bank

      764        (68 ) 

PT Woori Finance Indonesia Tbk.

      872        1,067  

 

(*)

Distribution of the hybrid securities issued by Woori Bank

3) Dividends to non-controlling interests

 

     For the years ended December 31  
     2024      2023  

Woori Bank (*)

      76,249        95,637  

Woori Investment Securities Co., Ltd.

      —         8,302  

Woori Asset Trust Co., Ltd

      —         365  

PT Bank Woori Saudara Indonesia 1906 Tbk

      3,450        2,802  

PT Woori Finance Indonesia Tbk.

      343        138  

Others

      37        40  

 

(*)

Distribution of the hybrid securities issued by Woori Bank

 

- 28 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

2.

BASIS OF Preparation and material Accounting Policies

(1) Basis of presentation

The Group 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 (K-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 K-IFRS. These are the standards, subsequent amendments and related interpretations issued by the International Accounting Standards Board (IASB) that have been adopted by the Republic of Korea.

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

The consolidated financial statements, as described in following paragraphs of accounting policy, are prepared at the end of each reporting period in historical cost basis, except for certain non-current assets and financial assets that are either revalued or measured in fair value. Historical cost is generally measured at the fair value of consideration given to acquire assets.

Meanwhile, the consolidated financial statements of the Group were initially approved by the Board of Directors on February 7, 2025, and the final approval will be made in the annual general shareholders’ meeting on March 26, 2025.

 

  1)

The standards and interpretations that are newly adopted by the Group during the current period, and the changes in accounting policies thereof are as follows:

i) Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the consolidated financial statements.

ii) Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The amendments do not have a significant impact on the consolidated financial statements.

 

- 29 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

iii) Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the consolidated financial statements.

iv) Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the consolidated financial statements.

 

  2)

The details of K-IFRSs that have been issued and published as of December 31, 2024 but have not yet reached the effective date, and which the Group have not been early adopted by the Group are as follows:

i) Amendments to Korean IFRS 1021 The Effects of Changes in Foreign Exchange Rates and 1101 First-time Adoption of International Financial Reporting Standards – Lack of Exchangeability

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Group does not expect the amendments to have a significant impact on the consolidated financial statements.

ii) Amendments to Korean IFRS 1109 Financial Instruments, Korean IFRS 1107 Financial Instruments: Disclosures

Korean IFRS 1109 Financial Instruments and Korean IFRS 1107 Financial Instruments: Disclosures have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Group does not expect the amendments to have a significant impact on the consolidated financial statements. These amendments:

 

  •  

clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

 

  •  

clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

 

  •  

add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term; and

 

  •  

update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

 

- 30 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

iii) Annual Improvements to Korean IFRS -Volume 11

Annual Improvements to Korean IFRS -Volume 11 should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Group does not expect the amendments to have a significant impact on the consolidated financial statements.

 

  •  

Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards: Hedge accounting by a first-time adopter

 

  •  

Korean IFRS 1107 Financial Instruments: Disclosures: Gain or loss on derecognition and implementation guidance

 

  •  

Korean IFRS 1109 Financial Instruments: Derecognition of lease liabilities and definition of transaction price

 

  •  

Korean IFRS 1110 Consolidated Financial Statements: Determination of a ‘de facto agent’

 

  •  

Korean IFRS 1007 Statement of Cash Flows: Cost method

The above enacted or amended standards will not have a significant impact on the Group.

(2) Basis of consolidated financial statement presentation

The consolidated financial statements consist of the financial statements of the parent company and the entities (including structured entities) controlled by the parent company (or its subsidiaries, which is the “Group”). Control is achieved where the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) able to use its power to affect its returns. The Group reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Group has less than most of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether the Group’s voting rights in an investee are enough to give it power, including:

 

  •  

The relative size of the Group’s holding of voting rights and dispersion of holdings of the other vote holders;

 

  •  

Potential voting rights held by the Group, other vote holders or other parties;

 

  •  

Rights arising from other contractual arrangements;

 

  •  

Any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary. The carrying amount of the non-controlling interest after the acquisition is the amount initially recognized plus the amount of proportionate interest of the non-controlling interest in the changes in equity since the acquisition. Total comprehensive income of subsidiaries is attributed to the owner of the Group and to the non-controlling interests even if this results in the non-controlling interests having a negative (-) balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.

 

- 31 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

All intra-group transactions and, related assets and liabilities, income and expenses are eliminated in full on consolidation.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owner of the parent company.

When the Group loses control of a subsidiary, a gain or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets (i.e. reclassified to profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting under K-IFRS 1109 Financial Instruments or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

(3) Business combinations

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured as the sum of the acquisition-date fair values of the assets transferred by the Group in exchange for control of the acquiree, liabilities assumed by the Group for the former owners of the acquiree and the equity interests issued by the Group. Acquisition-related costs are generally recognized in profit or loss as incurred.

At the acquisition date, the acquiree’s identifiable acquires assets, liabilities and contingent liabilities are recognized at their fair value, except for the followings:

 

  •  

Deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with K-IFRS 1012 Income Taxes and K-IFRS 1019 Employee Benefits, respectively;

 

  •  

Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with K-IFRS 1102 Share-based Payment at the acquisition date; and

 

  •  

Non-current assets (or disposal groups) that are classified as held for sale are measured in accordance with K-IFRS 1105 Non-current Assets Held for Sale and Discontinued Operations

Any excess of the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the Group’s previously held equity interest (if any) in the acquiree over the net of identifiable assets and liabilities assumed of the acquiree at the acquisition date is recognized as goodwill.

If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognized immediately in net income as a bargain purchase gain.

The subsidiary’s non-controlling interests are identified separately from the Group’s equity. If the element of the non-controlling interest in the acquiree is the current interest at the acquisition date and the holder is entitled to a proportional share of the entity’s net assets, the non-controlling interest can be measured in 1) fair value or 2) proportionate share of the current equity instrument of the amount recognized for the acquiree’s identifiable net assets at the acquisition date. The selection of these metrics is made for each acquisition transaction. All other non-controlling interests are measured at fair value at the acquisition date.

 

- 32 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

The carrying amount of the non-controlling interest after acquisition reflects the proportional interest of the non-controlling interest in changes in equity after acquisition in the initial recognition amount. Even if the non-controlling interest is a negative (-) balance, total comprehensive income is attributed to the non-controlling interest.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration other than the above is remeasured at subsequent reporting dates as appropriate, with the corresponding gain or loss being recognized in profit or loss.

When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured at fair value at the acquisition date (i.e., the date when the Group obtains control) and the resulting gain or loss, if any, is recognized in net income(or other comprehensive income, if applicable). Amounts arising from changes in value of interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized, identical to the treatment assuming interests are sold directly.

If the initial accounting for a business combination is not completed by the end of the reporting period in which the business combination occurred, the Group reports in consolidated financial statements the provisional amount of items that have not been accounted for. If there is new information about the facts and circumstances that existed as of the acquisition date during the measurement period (see above), the Group retrospectively adjusts the provisional amounts recognized at the acquisition date or recognizes additional assets and liabilities to reflect the information that would have affected the measurement of the amount recognized at the acquisition date if it had already known at the acquisition date.

(4) Investments in joint ventures and associates

An associate is an entity over which the Group has significant influence, and that is not a subsidiary or a joint venture. Significant influence is the power to participate in making decision on the financial and operating policy of the investee but is not control or joint control over those policies.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to net assets relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

The net income of current period and the assets and liabilities of the joint ventures and associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with K-IFRS 1105 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, an investment in the joint ventures and associates is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the Group’s share of the net assets of the joint ventures and associates and any impairment. When the Group’s share of losses of the joint ventures and associates exceeds the Group’s interest in the associate, the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint ventures and associates.

 

- 33 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Investment in joint ventures and associates are accounted for and applied with the equity method from the time the investee becomes an associate or a joint venture.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the joint ventures and associates recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition exists after the review, it is recognized immediately in net income.

The requirements of K-IFRS 1028 - Investments in Associates and Joint Ventures to determine whether there has been a loss event are applied to identify whether it is necessary to recognize any impairment loss with respect to the Group’s investment in the joint ventures and associates. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with K-IFRS 1036 - Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized is not allocated to any asset (including goodwill), which forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with K-IFRS 1036 to the extent that the recoverable amount of the investment subsequently increases.

The Group ceases to use the equity method from the time it fails meet the definition of an associate or a joint venture. Upon a loss of significant influence over the joint ventures and associates, the Group discontinues the use of the equity method and measures at fair value of any investment that the Group retains in the former joint ventures and associates from the date when the Group loses significant influence. The fair value of the investment is regarded as its fair value on initial recognition as a financial asset in accordance with K-IFRS 1109 Financial Instruments; Recognition and Measurement. The Group recognized differences between the carrying amount and fair value in net income and it is included in determination of the gain or loss on disposal of joint ventures and associates. The Group accounts for all amounts recognized in other comprehensive income in relation to that joint ventures and associates on the same basis as would be required if the joint ventures and associates had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by an associate or a joint venture would be reclassified to net income on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to net income as a reclassification adjustment.

When the Group’s ownership of interest in an associate or a joint venture decreases but the Group continues to maintain significant influence over an associate or a joint venture, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that decrease in ownership interest if the gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. Meanwhile, if interest on associate or joint venture meets the definition of non-current asset held for sale, it is accounted for in accordance with K-IFRS 1105.

The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests.

When the Group transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions with the associate or joint venture are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the Group.

The Group applies K-IFRS 1109 Financial Instruments, including the impairment requirements, to its long-term investment interests in associates and joint ventures that form part of its net investment without applying the equity method. In addition, when applying K-IFRS 1109 to long-term investments, the Group does not consider adjustments to the carrying amount required by K-IFRS 1028. Examples of such adjustments include an impairment assessment or an adjustment to the carrying amount of the long-term investment interest resulting from the allocation of losses to the investee in accordance with K-IFRS 1028.

 

- 34 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5) Investment in joint operation

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

When the Group operates as a joint operator, it recognizes in relation to its interest in a joint operation:

 

  •  

its assets, including its share of any assets held jointly;

 

  •  

its liabilities, including its share of any liabilities incurred jointly;

 

  •  

its revenue from the sale of its share of the output arising from the joint operation;

 

  •  

its share of the revenue from the sale of the output by the joint operation;

 

  •  

its expenses, including its share of any expenses incurred jointly.

The Group accounts for the assets, liabilities, revenues and expenses that correspond to its interest in a joint operation in accordance with the K-IFRSs applicable to the specific assets, liabilities, revenues and expenses.

When the Group enters into a transaction with a joint operation in which it is a joint operator, such as a sale or contribution of assets, it is conducting the transaction with the other parties to the joint operation and, as such, the Group recognizes gains and losses resulting from such a transaction only to the extent of the other parties’ interests in the joint operation.

When the Group enters a transaction with a joint operation in which it is a joint operator, such as a purchase of assets, it does not recognize proportional share of profit or loss until the asset is sold to a third party.

(6) Revenue recognition

K-IFRS 1115 requires the recognition of revenues based on transaction price allocated to the performance obligation when or as the Group performs that obligation to the customer. Revenues other than those from contracts with customers, such as interest revenue and loan origination fee (cost), are recognized through effective interest rate method.

 

  1)

Revenues from contracts with customers

The Group recognizes revenue when the Group satisfies a performance obligation by transferring a promised good or service to a customer. When a performance obligation is satisfied, the Group shall recognize as a revenue the amount of the transaction price that is allocated to that performance obligation. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

The Group is recognizing revenue by major sources as shown below:

 

  ①

Fees and commission received for brokerage

The fees and commission received for agency are the amount of consideration or fee expected to be entitled to receive in return for providing goods or services to the other parties with the Group acting as an agency, such as in the case of sales of bancassurance and beneficiary certificates. Most of these fees and commission received for brokerage are from the business activities relevant to Banking segment.

 

  ②

Fees and commission received related to credit

The fees and commission received related to credit mainly include the lending fees received from the loan activity and the fees received in the L/C transactions. Except for the fees and commission accounted for in calculating the effective interest rate, it is generally recognized when the performance obligation has been performed. Most of these fees and commission received related to credit are from the business activities relevant to Banking, Credit card and Investment banking segment.

 

- 35 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  ③

Fees and commission received for electronic finance

The fees and commission received for electronic finance include fees received in return for providing various kinds of electronic financial services through firm-banking and CMS. These fees are recognized as revenue immediately upon the completion of services. Most of these fees and commission received for electronic finance are from the business activities relevant to Banking and Investment banking segment.

 

  ④

Fees and commission received on foreign exchange handling

The fees and commission received on foreign exchange handling consist of various fees incurred when transferring foreign currency. The point of processing the customer’s request is the time when performance obligation is satisfied, and revenue is immediately recognized when fees and commission are received after requests are processed. The business activities relevant to these fees and commission received on foreign exchange handling are substantially attributable to Banking segment.

 

  ⑤

Fees and commission received on foreign exchange

The fees and commission received on foreign exchange consist of fees related to the issuance of various certificates, such as exchange, import and export performance certificates, purchase certificates, etc. The point of processing the customer’s request is the time when performance obligation is satisfied, and revenue is immediately recognized when fees and commission are received after requests are processed. The business activities relevant to these fees and commission received on foreign exchange are substantially attributable to Banking segment.

 

  ⑥

Fees and commission received for guarantee

The fees and commission received for guarantee include the fees received for the various warranties. The activities related to the warranty consist mainly of performance obligations satisfied over time and fees and commission are recognized over the guarantee period. The business activities relevant to these fees and commission received for guarantee are substantially attributable to Banking segment.

 

  ⑦

Fees and commission received on credit card

The fees and commission received on credit card consist mainly of merchant account fees and annual fees. The Group recognizes merchant account fees by multiplying agreed commission rate to the amount paid by using the credit card. The annual fees are performance obligation satisfied over time and are recognized over agreed periods after the annual fees are paid in advance. The business activities relevant to these fees and commission received on credit card are substantially attributable to Credit cards segment.

 

  ⑧

Fees and commission received on securities business

The fees and commission received on securities business consist mainly of fees and commission for the sale of beneficiary certificates, and these fees are recognized when the beneficiary certificates are sold to customers. The business activities relevant to these fees and commission received on securities business are substantially attributable to Banking and Investment banking segment.

 

- 36 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  ⑨

Fees and commission from trust management

The fees and commission from trust management consist of fees and commission received in return for the operation and management services for entrusted assets. These operation and management services are performance obligations satisfied over time, and revenue is recognized over the service period. Among the fees and commission from trust management, variable considerations such as profit commission that are affected by the value of entrusted assets and base return of the future periods are recognized as revenue when limitations to the estimates are lifted. Most of these fees and commission received for brokerage are from the business activities relevant to Banking segment.

 

  ⑩

Fees and commission received on credit Information

The fees and commission received on credit Information are composed of the fees and commission received by performing credit investigation and proxy collection services. Credit investigation fees and commission are the amount received in return for verifying the information requested by the customer and are recognized as revenue at the time the verification is completed. Proxy collection service fees are recognized by applying the applicable rate to the collected amount at the time when collection services are completed. Most of these fees and commission received for brokerage are from the business activities relevant to other segments.

 

  LOGO

Other fees

Other fees are usually fees related to remittances, but include fees related to various other services provided to customers by the Group. These fees are recognized when transactions occur at the customers’ request and services are provided, at the same time when commission are received. These other fees occur across all operating segments.

 

  2)

Revenues from sources other than contracts with customers

 

  ①

Interest income

Interest income on financial assets measured at FVTOCI and financial assets at amortized costs is measured using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating the interest income over the expected life of the asset. The effective interest rate is the rate that exactly discounts estimated future cash flows to the instrument’s initial unamortized cost over the expected period, or shorter if appropriate. Future cash flows include commissions and cost of reward points(limited to the primary component of effective interest rate) and other premiums or discounts that are paid or received between the contractual parties when calculating the effective interest rate, but does not include expected credit losses. All contractual terms of a financial instrument are considered when estimating future cash flows.

For purchased or originated credit-impaired financial assets, interest revenue is recognized by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition. Even if the financial asset is no longer impaired in the subsequent periods due to credit improvement, the basis of interest revenue calculation is not changed from amortized cost to unamortized cost of the financial assets.

 

  ②

Loan origination fees and costs

The commission fees earned on loans, which is part of the effective interest of loans, is accounted for as deferred origination fees. Incremental costs related to the origination of loans are accounted for as deferred origination fees and is being added or deducted to/from interest income on loans using effective interest rate method.

 

- 37 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  3)

Dividend income

Dividend income is recognized when the right to receive dividends as a shareholder is confirmed. Dividend income is recognized as an appropriate item of profit or loss in the statement of comprehensive income according to the classification of financial instruments.

(7) Accounting for foreign currencies

The Group’s consolidated financial statements are presented in Korean Won, which is the functional currency of the Group. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at its prevailing exchange rates at the date. The effective portion of the changes in fair value of a derivative that qualifies as a cash flow hedge and the foreign exchange differences on monetary items that form part of net investment in foreign operations are recognized in equity.

Assets and liabilities of the foreign operations subject to consolidation are translated into Korean Won at foreign exchange rates at the end of the reporting period. Except for situations in which it is required to use exchange rates at the date of transaction due to significant changes in exchange rates during the period, items that belong to profit or loss shall be measured by average exchange rate, with foreign exchange differences recognized as other comprehensive income and added to equity (allocated to non-controlling interests, if appropriate). When foreign operations are disposed, the controlling interest’s share of accumulated foreign exchange differences related to such foreign operations will be reclassified to profit or loss, while non-controlling interest’s corresponding share will not be reclassified.

Adjustments to fair value of identifiable assets and liabilities, and goodwill arising from the acquisition of foreign operations will be treated as assets and liabilities of the corresponding foreign operation, and translated using foreign exchange rates at the end of the period. The foreign exchange differences are recognized in other comprehensive income.

(8) Cash and cash equivalents

The Group is classifying cash on hand, demand deposits, interest-earning deposits with original maturities of up to three months on acquisition date, and highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value as cash and cash equivalents.

(9) Financial assets and financial liabilities

 

  1)

Financial assets

A regular way purchase or sale of financial assets is recognized or derecognized on the trade or settlement date. A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose term requires delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets at FVTOCI, and financial assets at amortized cost according to its business model and contractual cash flows.

 

  a)

Business model

The Group evaluates the way business is being managed, and the purpose of the business model for managing a financial asset best reflects the way information is provided to the management at its portfolio level. Such information considers the following:

 

  •  

The accounting policies and purpose specified for the portfolio, the actual operation of such policies. This includes strategy of the management focusing on the receipt of contractual interest revenue, maintaining a certain level of interest income, matching the duration of financial assets and the duration of corresponding liabilities to obtain the asset, and outflow or realization of expected cash flows from disposal of assets

 

- 38 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  •  

The way the performance of a financial asset held under the business model is evaluated, and the way such evaluation is being reported to the management

 

  •  

The risk affecting the performance of the business model (and financial assets held under the business model), and the way such risk is being managed

 

  •  

The compensation plan for the management (e.g. whether the management is being compensated based on the fair value of assets or based on contractual cash flows received)

 

  •  

Frequency, amount, timing and reason for sale of financial assets in the past, and forecast of future sale activities.

 

  b)

Contractual cash flows

The principal is defined to be the fair value of a financial assets at initial recognition. Interest is not only composed of consideration for the time value of money, consideration for the credit risk related to remaining principal at a certain period of time, and consideration for other cost (e.g. liquidity risk and cost of operation) and fundamental risk associated with lending, but also profit.

When evaluating whether contractual cash flows are solely payments of principal and interests, the Group considers the contractual terms of the financial instrument. When a financial asset contains contractual conditions that modify the timing and amount of contractual cash flows, it is required to determine whether contractual cash flows that arise during the remaining life of the financial instrument due to such contractual condition are solely payments of principal and interest. The Group considers the following elements when evaluating the above:

 

  •  

Conditions that lead to modification of timing or amount of cash flows

 

  •  

Contractual terms that adjust contractual nominal interest, including floating rate features

 

  •  

Early payment features and maturity extension features

 

  •  

Contractual terms that limit the Group’s claim on cash flows arising from certain assets

 

  ①

Financial assets at FVTPL

The Group is classifying those financial assets that are not classified as either financial assets at amortized cost or financial assets at FVTOCI, and those designated to be measured at FVTPL, as financial assets at FVTPL. Financial assets at FVTPL are measured at fair value, and related profit or loss is recognized in net income. Transaction costs related to acquisition at initial recognition is recognized in net income immediately upon its occurrence.

It is possible to designate a financial asset as financial asset at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial asset at FVTPL; (b) the financial asset forms part of the Group’s financial instrument group (a group composed of a combination of financial asset or liability), is measured at fair value and is being evaluated for its performance, and such information is provided internally; and (c) the financial asset is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial asset at FVTPL is allowed under K-IFRS 1109 Financial Instruments. However, the designation is irrevocable.

 

  ②

Financial assets at FVTOCI

When financial assets are held under a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and when contractual cash flows from such financial assets are solely payments of principal and interest, the financial assets are classified as financial assets at FVTOCI. Also, for investments in equity instruments that are not held for short-term trade, an irrevocable election is available at initial recognition to present subsequent changes in fair value as other comprehensive income.

 

- 39 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

At initial recognition, financial assets at FVTOCI are measured at its fair value plus any direct transaction cost, and is subsequently measured in fair value. However, for equity instruments that do not have a quotation in an active market and in which fair value cannot be measured reliably, they are measured at cost. The income tax effects related to the changes in fair value except for profit or loss items such as impairment losses (reversals), interest revenue calculated by using effective interest method, and foreign exchange gain or loss about debt instrument are recognized as other comprehensive income until the asset’s disposal. Upon derecognition, the accumulated other comprehensive income is reclassified from equity to net income for FVTOCI (debt instrument), and reclassified within the equity for FVTOCI (equity instruments).

 

  ③

Financial assets at amortized cost

When financial assets are held under a business model whose objective is to hold financial assets in order to collect contractual cash flows, and when contractual cash flows from such financial assets are solely payments of principal and interest, the financial assets are classified as financial assets at amortized cost. At initial recognition, financial assets at amortized cost are recognized at fair value plus any direct transaction cost. Financial assets at amortized cost are presented at amortized cost using effective interest method, less any loss allowance.

 

  2)

Financial liabilities

At initial recognition, financial liabilities are classified into either financial liabilities at FVTPL or financial liabilities at amortized cost.

Financial liabilities are usually classified as financial liabilities at FVTPL when they are acquired with a purpose to repurchase them within a short period of time, when they are part of a certain financial instrument portfolio that is actually and recently being managed with a purpose of short-term profit and joint management by the Group at initial recognition, and when they are derivatives that do not qualify as hedging instruments. Financial liabilities at FVTPL are measured at fair value plus direct transaction cost at initial recognition, and are subsequently measured at fair value. Profit or loss arising from financial liabilities at FVTPL is recognized in net income when occurred.

It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial liability at FVTPL; (b) the financial asset forms part of the Group’s financial instrument group (a group composed of a combination of financial asset or liability) according to the Group’s documented risk management or investment strategy, is measured at fair value and is being evaluated for its performance, and such information is provided internally; and (c) the financial liability is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL is allowed under K-IFRS 1109 Financial Instruments.

Financial liabilities designated as at FVTPL are initially recognized at fair value, with any direct transaction cost recognized in profit or loss, and are subsequently measured at fair value. Any profit or loss from financial liabilities at FVTPL are recognized in profit or loss.

Financial liabilities not classified as financial liabilities at FVTPL are measured at amortized cost.

 

  3)

Reclassification

Financial assets are not reclassified after initial recognition unless the Group modifies the business model used to manage financial assets. When the Group modifies the business model used to manage financial assets, all affected financial assets are reclassified on the first day of the first reporting period after the modification.

 

- 40 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  4)

Derecognition

Financial assets are derecognized when contractual rights to cash flows from the financial assets are expired, or when substantially all of risk and reward for holding financial assets is transferred to another entity as a result of a sale of financial assets. If the Group does not have and does not transfer substantially all of the risk and reward of holding financial assets with control of the transferred financial assets retained, the Group recognizes financial assets to the extent of its continuing involvement. If the Group holds substantially all the risk and reward of holding a financial asset, it continues to recognize that asset and proceeds are accounted for as collateralized borrowings.

When a financial asset is fully derecognized, the difference between the carrying amount and the sum of proceeds and accumulated other comprehensive income is recognized as profit or loss in case of FVTOCI (debt instruments), and as retained earnings for FVTOCI (equity instruments).

In case when a financial asset is not fully derecognized, the Group allocates the carrying amount into amounts retained in the books and removed from the books, based on the relative fair value of each portion at the date of sale, and based on the degree of continuing involvement. For the derecognized portion of the financial assets, the difference between its carrying amount and the sum of proceeds and the portion of accumulated other comprehensive income attributable to that portion will be recognized in profit or loss in case of debt instruments and recognized in retained earnings in case of equity instruments. The accumulated other comprehensive income is distributed to the portion of carrying amount retained in the books, and to the portion of carrying amount removed from the books.

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 percent different from the discounted present value of the remaining cash flows of the original financial liability.

 

  5)

Fair value of financial instruments

Financial assets at FVTPL and financial assets at FVTOCI are measured and presented in consolidated financial statements at their fair values, and all derivatives are also subject to fair value measurement.

Fair value is defined as the price that would be received to exchange an asset or paid to transfer a liability in a recent transaction between independent parties that are reasonable and willing. Fair value is the transaction price of identical financial assets or financial liabilities generated in an active market. An active market is a market where trade volume is sufficient and objective price information is available due to the fact that bid and ask price differences are small.

When trade volume of a financial instrument is low, when transaction prices within the market show large differences among them, or when it cannot be concluded that a financial instrument is being traded within an active market due to disclosures being extremely shallow, fair value is measured using valuation techniques based on alternative market information or using internal valuation techniques based on general and observable information obtained from objective sources. Market information includes maturity and characteristics, duration, similar yield curve, and variability measurement of financial instruments of similar nature. Fair value amount contains unique assumptions on each entity (the Group concluded that it is using assumptions applied in valuing financial instruments in the market, or risk-adjusted assumptions in case marketability does not exist).

 

- 41 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

The market approach and income approach, which are valuation techniques used to estimate the fair value of financial instruments, both require significant judgment. Market approach measures fair value using either a recent transaction price that includes the financial instrument, or observable information on comparable firm or assets. Income approach measures fair value through discounting future cash flows with a discount rate reflecting market expectations, and revenue, operating income, depreciation, capital expenditures, income tax, working capital and estimated residual value of financial investments are being considered when deriving future cash flows. Valuation techniques such as the above include estimates based on the financial instruments’ complexity and usefulness of observable information in the market.

The valuation techniques used in the evaluation of financial instruments are explained below.

 

  a)

Financial assets at FVTPL and Financial assets at FVTOCI

The fair value of equity securities included in financial assets at FVTPL and financial assets at FVTOCI category is recognized in the statement of financial position at its available market price. Debt securities traded in the over-the-counter market are generally recognized at an amount computed by an independent appraiser. When the Group uses the fair value determined by independent appraisers, the Group usually obtains three values from three different appraisers for each financial instrument, and selects the minimum amount without making additional adjustments. For equity securities without marketability, the Group uses the amount determined by the independent appraiser. The Group verifies the prices obtained from appraisers in various ways, including the evaluation of independent appraisers’ competency, indirect verification through comparison between appraisers’ price and other available market information, and reperformed by employees who have knowledge of valuation models and assumptions that appraisers used.

 

  b)

Derivatives

The Group’s transactions involving derivatives such as futures and exchange traded options are measured at market value. For exchange traded derivatives classified as level 2 in the fair value hierarchy, the fair value is estimated using internal valuation techniques. If there are no publicly available market prices because they are traded over-the-counter, fair value is measured through internal valuation techniques. When using internal valuation techniques to derive fair value, the types of derivatives, base interest rate or characteristics of prices, or stock market indices are considered. When variables used in the internal valuation techniques are not observable information in the market, such variables may contain significant estimates.

 

  c)

Adjustment of valuation amount

The Group is exposed to credit risk when a counterparty to a derivative contract does not perform its contractual obligation, and the exposure amount is equal to the amount of derivative asset recognized in the statement of financial position. When the Group earns income through valuation of derivatives, such income is recognized as derivative asset in the statement of financial position. Some of the derivatives are traded in the market, but most of the derivatives are measured at estimated fair value derived from internal valuation models that use observable information in the market. As such, in order to estimate the fair value there should be an adjustment made to incorporate counterparty’s credit risk, and credit risk adjustment is being considered when valuing derivative assets such as over-the counter derivatives. The amount of financial liabilities is also adjusted by the Group’s own credit risk when valuing them.

The amount of adjustment is derived from counterparty’s probability of default and loss given default. This adjustment considers contractual matters that are designed to reduce the Group’s exposure to each counterparty’s credit risk. When derivatives are under master netting arrangement, the exposure used in the computation of credit risk adjustment is a net amount after adding/deducting cash collateral received (or paid) from loss(or gain) position derivatives with the same counterparty.

 

- 42 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  6)

Expected credit losses on financial assets

The Group recognizes loss allowance on expected credit losses for the following assets:

 

  •  

Financial assets at amortized cost

 

  •  

Debt instruments measured at FVTOCI

 

  •  

Contract assets as defined by K-IFRS 1115

Expected credit losses are weighted-average value of a range of possible results, considering the time value of money, and are measured by incorporating information on current conditions and forecasts of future economic conditions that are available without undue cost or effort.

The methods to measure expected credit losses are classified into following three categories in accordance with K-IFRS:

 

  •  

General approach: Financial assets that does not belong to below two models and unused loan commitments

 

  •  

Simplified approach: When financial assets are either trade receivables, contract assets or lease receivables

 

  •  

Credit impairment model: Purchased or originated credit-impaired financial assets

The measurement of loss allowance under general approach is differentiated depending on whether the credit risk has increased significantly after initial recognition. That is, loss allowance is measured based on 12-month expected credit loss when the credit risk has not increased significantly after initial recognition, while loss allowance is measured at lifetime expected credit loss when credit risk has increased significantly. Lifetime is the expected remaining life of the financial instrument up to the maturity date of the contract.

The measurement of loss allowance under simplified approach is always based on lifetime expected credit loss, and loss allowance under credit impairment model is measured as the cumulative change in lifetime expected credit loss since initial recognition.

 

  a)

Measurement of expected credit losses on financial asset at amortized cost

The expected credit losses on financial assets at amortized cost is measured by the difference between the contractual cash flows during the period and the present value of expected cash flows. Expected cash inflows are computed for individually significant financial assets in order to calculate expected credit losses. When financial assets that are not individually significant, they are included in a group of financial assets with similar credit risk characteristics and expected credit losses of the group are calculated collectively.

Expected credit losses are deducted through loss allowance account, and when the financial asset is determined to be uncollectible, the loss allowance is written off from the books along with the related financial asset.

 

  b)

Measurement of expected credit losses on financial asset at FVTOCI(Debt instruments)

The measurement method of expected credit loss is identical to financial asset at amortized cost, but changes in the loss allowance is recognized in other comprehensive income. When financial assets at FVTOCI is disposed or repaid, the related loss allowance is reclassified from accumulated other comprehensive income to net income.

 

- 43 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(10) Offsetting financial instruments

Financial assets and liabilities are presented as a net amount in the statements of financial position when the Group has an enforceable legal right and an intention to settle on a net basis or to realize an asset and settle the liability simultaneously.

(11) Investment properties

The Group classifies a property held to earn rentals and/or for capital appreciation as an investment property. Investment properties are measured initially at cost, including transaction costs, less subsequent depreciation and impairment.

Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset if it is probable that future economic benefits associated with the assets will flow into the Group and the cost of an asset can be measured reliably, and the carrying amount of a portion of an asset that are replaced by a subsequent expenditure is removed from the books. Routine maintenance and repairs are expensed as incurred.

While land is not depreciated, all other investment properties are depreciated based on the depreciation method and useful lives of premises and equipment. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, and when it is deemed appropriate to change them, the effect of any change is accounted for as a change in accounting estimates.

An investment property is derecognized from the consolidated financial statements on disposal or when it is permanently withdrawn from use and no future economic benefits are expected even from its disposal. The gain or loss on the derecognition of an investment property is calculated as the difference between the net disposal proceeds and the carrying amount of the property and is recognized in profit or loss in the period of the derecognition.

 

(12)

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of premises and equipment is expenditure directly attributable to their purchase or construction, which includes any cost 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. It also includes the initial estimate of costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are recognized in the carrying amount of an asset or as a separate asset (if appropriate) if it is probable that future economic benefit associated with the assets will flow into the Group and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred.

While land is not depreciated, for all other premises and equipment, depreciation is charged to net income on a straight-line basis by applying the following estimated economic useful lives on the amount of cost or revalued amount less residual value.

 

    

Useful life

Buildings used for business purpose    26 to 57 years
Structures in leased office    4 to 5 years
Properties for business purpose    4 to 7 years

The Group reassesses the depreciation method, the estimated useful lives and residual values of premises and equipment at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate. When there is an indicator of impairment and the carrying amount of a premises and equipment item exceeds the estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount.

 

- 44 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(13) Intangible assets and goodwill

The Group recognizes the acquisition cost of an intangible asset as the manufacturing cost or purchase cost plus additional incidental expenses. Development costs are the sum of expenditures incurred after the asset recognition requirements, such as technical feasibility and future economic benefits, are met. After the initial recognition, the carrying value is presented as the accumulated amortization and accumulated impairment losses deducted from the cost.

The Group’s intangible asset are amortized over the following economic lives using the straight-line method. However, for some intangible assets, the period of time that is expected to be available is not predictable, so the useful life of some intangible assets is assessed as indefinite and not depreciated.

The estimated useful life and amortization method of intangible assets with a finite useful life are reviewed at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate.

 

    

Useful life

Industrial property rights    5 to 10 years
Development costs    5 years
Software and others    1 to 10 years

In addition, when an indicator that intangible assets are impaired is noted, and the carrying amount of the asset exceeds the estimated recoverable amount of the asset, the carrying amount of the asset is reduced to its recoverable amount.

Goodwill acquired in a business combination is included in intangible assets. Goodwill is not amortized, but is subject to an impairment test at the cash-generating unit level every year, and whenever there is an indicator that goodwill is impaired.

Goodwill is allocated to each of the Group’s cash-generating unit (or groups of cash-generating units) that is expected to benefit from the synergies of the combination. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

(14) Impairment of non-monetary assets

Intangible assets with indefinite useful lives or intangible assets that are not yet available for use are tested for impairment annually, regardless of whether there is any indication of impairment. All other assets are tested for impairment by estimating the recoverable amount when there is an objective indication that the carrying amount may not be recoverable. Recoverable amount is the higher of value in use or net fair value, less costs to sell. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and such impairment loss is recognized immediately in net income.

(15) Leases

The Group determines whether the contract is a lease or includes a lease at the time of the contract agreement. In exchange for consideration in a contract, the contract is either a lease or includes a lease if the control over the use of the identified asset is transferred for a period of time. In determining whether a contract transfers control over the use of the asset to which it is identified, the Group uses the definition of lease in K-IFRS 1116.

 

- 45 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  ①

The Group as a lessee

The Group recognizes the right-of-use asset and the lease liability at the commencement date of the lease. The right-of-use asset is measured at cost, which comprises the amount of the initial measurement of the lease liability, lease payments made at or before the commencement date(less any lease incentives received), initial direct costs, and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located.

The right-of-use asset is subsequently depreciated on a straight-line basis from the commencement of the lease to the end of the lease term. However, if the lease transfers ownership of the underlying asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the lessee depreciates the right-of-use asset same as a fixed asset from the commencement date to the end of the useful life of the underlying asset. The right-of-use asset may be reduced by an impairment of the underlying asset or adjusted by remeasurement of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that cannot be readily determined, the Group uses its incremental borrowing rate. The Group generally uses the incremental borrowing rate.

The Group makes adjustments to reflect the terms of the lease and the characteristics of the lease asset in interest rates obtained from external financial information, and calculates the incremental borrowing rate.

The Group calculates the lease term by including the relevant period when it is quite certain that the lessee will exercise the extension option or the termination option. The Group calculates the enforceable period in consideration of the economic disadvantages of terminating the contract if the lessee and the lessor have the right to terminate it without the consent of the other parties.

The lease payments included in the measurement of the lease liability comprise the following:

 

  •  

Fixed payments (including in-substance fixed payments)

 

  •  

Variable lease payments that depend on an index(or a rate), initially measured using the index or a rate as at the commencement date

 

  •  

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, lease payments of the extended period if the lessee is reasonably certain to exercise extension option, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

The lease liability is subsequently increased be the interest expense recognized for the lease liability and decreased by reflecting the payment of the lease payments. The lease liability is remeasured if the future lease payments change depending on changes in the index(or a rate), changes in the expected amount to be paid under the residual value guarantee, and changes in the assessment of whether the purchase or extension option is reasonably certain to be exercised or not to exercise the terminate option.

When remeasuring a lease liability, the related right-of-use asset is adjusted and if the carrying amount of the right-of-use asset decreases to zero, the remeasurement amount is recognized in profit or loss.

The Group applies its judgment when determining the lease term for some lease contracts that include the extension option. The assessment of whether the Group is reasonably certain to exercise the option significantly affects the lease term and therefore has a significant impact on the amount of lease liabilities and the right-of-use asset.

 

- 46 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Because the Group can replace the asset without significant cost or business discontinuation, the option to extend the lease is not included in the lease liability in most offices and vehicle transport leases.

The Group reevaluates the lease term when the option is exercised (or not exercised) or the Group is liable to exercise (or not exercise) the option. Group will change its judgment only when significant events occur that affect the lessee’s control and the determination of the lease term, or there is a significant change in the circumstances.

Lease liabilities and right-of-use-asset increased by 7,373 million Won, reflecting the exercise impact of the extension and termination options during the current term.

In the statement of financial position, the Group classified the right-of-use assets that do not meet the definition of investment property as ‘premises and equipment’ and the lease liabilities as ‘other financial liabilities.’

The Group has chosen a practical expedient that does not recognize the right-of-use asset and lease liabilities for short-term leases with a lease term less than 12 months and leases for which the underlying asset is of low value. The Group recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term.

 

  ②

The Group as a lessor

At the date of the agreement or the effective date of the modification containing the lease element, the Group allocates the consideration of the contract to each lease element based on its relative stand-alone price.

As a lessor, the Group classifies its leases as either a finance lease or an operating lease at the commencement date.

The Group subsequently judges whether the lease transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset, otherwise a lease is classified as an operating lease.

If the agreement contains both lease and non-lease elements, the Group applies K-IFRS 1115 to allocate the consideration of the contract.

The Group applies the derecognition and impairment provisions of K-IFRS 1109 to its net investment in the lease. The Group also carries out regular review of the unguaranteed residual value used to calculate total lease investment.

The Group recognizes lease payments from operating lease as income on a straight-line basis.

The accounting policy that the Group has applied as a lessor is not different from K-IFRS 1116.

(16) Derivative instruments

Derivative instruments are classified as forwards, futures, options and swaps, depending on the types of transactions and are classified at the point of transaction as either trading or hedging based on its purpose.

Derivatives are initially recognized at fair value at the date of contract and are subsequently measured at fair value at the end of each reporting period. The resulting gain or loss is recognized in net income immediately unless the derivative is designated or effective as a hedging instrument. If derivatives have been designated as hedging instruments and if it is effective, the point of recognition of gain or loss depends on the characteristics of hedging relationship.

 

- 47 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Derivatives that have positive (+) fair values are recognized as financial assets and those that have negative (-) fair values are recognized as financial liabilities. Derivatives are not offset in the consolidated financial statements unless they have legally enforceable right to set off or are intended to set off.

 

  1)

Embedded derivatives

Embedded derivatives are components of a hybrid financial instrument that includes a non-derivative host contract. It has an effect of modifying part of cash flows of the hybrid financial instrument similar to an independent derivative.

Embedded derivatives that are part of a hybrid contract of which the host contract is a financial asset within the scope of K-IFRS 1109 are not separated. The classification is done by considering the hybrid contract as a whole, and subsequent measurement is either at amortized cost or fair value.

If embedded derivatives are part of a hybrid contract of which the host contract is not a financial asset within the scope of K-IFRS 1109 (e.g. financial liability), then these are treated as separate derivatives if embedded derivatives meet the definition of a derivative, characteristics & risk of the embedded derivatives are not closely related to that of host contract, and if the host contract is not measured at FVTPL.

 

  2)

Hedge accounting

The Group is applying K-IFRS 1109 in regard to hedge accounting. The Group is designating certain derivatives as hedging instrument against fair value changes in relation to the interest rate risk, foreign currency translation and interest rate risk, and foreign currency translation risk.

The Group is documenting the relationship between hedging instruments and hedged items at the commencement of hedging in accordance with their purpose and strategy. Also, the Group documents at the commencement and subsequent dates whether the hedging instrument effectively counters the changes in fair value of hedged items. A hedging instrument is effective only when it meets all the following criteria:

 

  •  

When there is an economic relationship between the hedged items and hedging instruments

 

  •  

When the effect of credit risk is not stronger than the change in value due to the economic relationship between the hedged items and hedging instruments

 

  •  

When the hedge ratio of hedging relationship is equal to the proportion of the number of items that the group actually hedges and the number of hedging instruments that the Group actually uses to hedge the number of hedged items

When a hedging relationship no longer meets the hedging effectiveness requirements related to hedge ratio, but when the purpose of risk management on designated hedging relationship is still maintained, the hedge ratio of the hedging relationship is adjusted so that hedging relationship may meet the requirements again (Hedge ratio readjustment).

The Group has designated derivatives as hedging instrument except for the portion on foreign currency basis spread. The fair value change due to foreign currency basis spread is recognized in other comprehensive income and is accumulated in equity. If the hedged item is related to transactions, the accumulated other comprehensive income is reclassified to profit or loss when the hedged item affects the profit or loss. However, when non-monetary items are subsequently recognized due to hedged items, the accumulated equity is removed from the equity directly, and is included in the initial carrying amount of the recognized non-monetary items. Such transfers does not affect other comprehensive income. But if part or all of accumulated equity is not expected to be recovered in the future periods, the amount not expected to be recovered is immediately reclassified to profit or loss. If the hedged item is time-related, then the foreign currency basis spread on the day the derivative is designated as a hedging instrument that is related to the hedged item is reclassified to profit or loss over the term of the hedge.

 

- 48 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  3)

Fair value hedge

Gain or loss arising from valid hedging instrument is recognized in profit or loss. However, when the hedging instrument mitigates risks on equity instruments designated as financial assets at FVTOCI, related gain or loss is recognized in other comprehensive income.

The carrying amount of hedged items that are not measured in fair value is adjusted by the changes in fair value arising from the hedged risk, with resulting gain or loss reflected in net income. In case of debt instruments measured at FVTOCI, carrying amount is an amount that is already adjusted to fair value and thus gain or loss arising from the hedged risk is recognized in profit or loss instead of other comprehensive income without adjustments in carrying amount. When the hedged item is equity instruments measured at FVTOCI, the gain or loss arising from hedged risk is retained at other comprehensive income in order to match the gain or loss with hedging instruments.

When gains or losses arising from the hedged risk are recognized in profit or loss of the current term, they are recognized as items related to the hedged items.

Hedge accounting ceases to apply only when hedging relationship (or part of it) does not meet the requirements of hedge accounting (even after hedging relationship readjustment, if applicable). This treatment holds in case of lapse, disposal, expiry and exercise of hedging instruments, and this cease of treatment applies prospectively. The fair value adjustments made to carrying amount of hedged item due to hedged risk is amortized from the date of discontinuance of hedge accounting and is recognized in profit or loss.

 

  4)

Cash flow hedge

The Group recognizes the effective portion of changes in the fair value of derivatives and other valid hedging instruments that are designated and qualified as cash flow hedges in other comprehensive income to the extent of cumulative fair value changes of the hedged item from the starting date of hedge accounting and it is cumulated in the cash flow hedge reserve. The gain or loss relating to the ineffective portion is recognized immediately in net income.

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to net income when the hedged item affects net income. However, when non-monetary assets or liabilities are subsequently recognized due to expected transactions involving hedged items, the valuation gain or loss accumulated in the equity as other comprehensive income is removed from the equity and included in the initial carrying amount of the recognized non-monetary assets or liabilities. Such transfers does not affect other comprehensive income. Also, if the cash flow hedge reserve is loss and accumulated other comprehensive income is a loss and part or all of the losses are not expected to be recovered in the future periods, the said amount is immediately reclassified to profit or loss.

Hedge accounting ceases to apply only when hedging relationship (or part of it) does not meet the requirements of hedge accounting (even after hedging relationship readjustment, if applicable). This treatment holds in case of lapse, disposal, expiry and exercise of hedging instruments, and this cease of treatment applies prospectively. At the point of cessation of cash flow hedge, the valuation gain or loss recognized as accumulated other comprehensive income continues to be recognized as equity, and is reclassified to profit or loss when the expected transaction is ultimately recognized as profit or loss. However, when transactions are no longer expected to occur, the valuation gain or loss of hedging instrument recognized as accumulated other comprehensive income is immediately reclassified to profit or loss.

(17) Assets (or disposal group) held for sale

The Group classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

 

- 49 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(18)

Provisions

Provisions are recognized if it has present or contractual obligations as a result of the past event, it is probable that an outflow of resources will be required to settle the obligation and the amount of the obligation is reliably estimated. A provision is not recognized for the future operating losses.

The Group recognizes provisions related to the payment guarantees, loan commitment and litigations. Under the terms of lease agreement, the cost incurred by the Group to recover the leased asset to its original state are recognized as provisions at the commencement of the lease or during a specific period in which the obligation is incurred as a result of the using the asset. The provisions are measured as the best estimate of the expenditure required to recover the asset, which is regularly reviewed and sated to the new situation.

Where there are a number of similar obligations, the probability that an outflow will be required in settlement is determined by considering the obligations as a whole. Although the likelihood of outflow for any one item may be small, if it is probable that some outflow of resources will be needed to settle the obligations as a whole, a provision is recognized.

At the end of each reporting period, the remaining provision balance is reviewed an assessed to determine if the current best estimate is being recognized.

(19) Equity instruments issued by the Group

 

  1)

Capital and compound financial instruments

The Group classifies a financial instrument that it issues as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The compound financial instruments are financial instruments where it is neither a financial liability nor an equity instrument because it was designed to contain both equity and debt elements.

If the Group reacquires its own equity instruments, the consideration paid including the direct transaction costs (net of tax expense) are presented as a deduction from total equity until such instruments are retired or reissued. When these instruments are reissued, the consideration received (net of direct transaction costs) is included in the shareholder’s equity.

 

  2)

Hybrid securities

The Group classifies hybrid securities that have the unconditional right to avoid contractual obligations, such as to deliver cash or other financial assets in relation to financial instruments into equity instruments and presents as part of equity. Meanwhile, hybrid securities issued by subsidiaries of the group are classified as non-controlling interests according to the criteria, and the distribution paid is treated as net profit attributable to non-controlling interests in the consolidated comprehensive income statement.

(20) Financial guarantee contracts

A financial guarantee contract is a contract where the issuer must pay a certain amount of money in order to compensate losses suffered by the creditor when debtor defaults on a debt instrument in accordance with original or modified contractual terms.

A financial guarantee is initially measured at fair value and is subsequently measured at the higher of the amounts below unless it is designated to be measured at FVTPL or when it arises from disposal of an asset.

 

  •  

Loss allowance in accordance with K-IFRS 1109

 

  •  

Initial carrying amount less accumulated profit measured in accordance with K-IFRS 1115

 

- 50 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(21)

Employee benefits and pensions

The Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by the employees. Also, the Group recognizes expenses and liabilities in the case of accumulating compensated absences when the employees render services that entitle their right to future compensated absences. Similarly, the Group recognizes expenses and liabilities for customary profit distribution or bonuses when the employees render services, even though the Group does not have legal obligation to do so because it can be construed as constructive obligation.

The Group is operating defined contribution plans and defined benefit plans. Contributions to defined contribution plans are recognized as an expense when employees have rendered services entitling them to receive the benefits. For defined benefit plans, the defined benefit liability is calculated through an actuarial assessment using the projected unit credit method every end of the reporting period, conducted by a professional actuaries. Remeasurement, comprising actuarial gains and losses, the return on plan assets (excluding the amount included in net interest from net defined benefit liability (asset)), and the effect of the changes to the asset ceiling is reflected immediately in the consolidated statement of financial position with a charge or credit recognized in other comprehensive income in the period in which they occur.

Remeasurement recognized in the consolidated statement of comprehensive income is not reclassified to profit or loss in the subsequent periods. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are composed of service cost (including current service cost and past service cost, as well as gains and losses on settlements), net interest expense (income) and remeasurement.

The Group presents the service cost and net interest expense (income) components in profit or loss, and the remeasurement component in other comprehensive income. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognized in the consolidated statement of financial position represents the actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is recognized as an asset limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Liabilities for termination benefits are recognized at the earlier of either the date when the Group is no longer able to cancel its proposal for termination benefits or the date when the Group has recognized the cost of restructuring that accompanies the payment of termination benefits.

(22) Income taxes

Income tax expense is composed of current tax and deferred tax. That is, income tax expense is composed of taxes payable or refundable during the period and deferred taxes calculated by applying asset-liability method to taxable and deductible temporary differences arising from operating loss and tax credit carryforwards. Temporary differences are the differences between the carrying values of assets and liabilities for financial reporting purposes and their tax bases. Deferred income tax benefit or expense is recognized for the change in deferred tax assets or liabilities. Deferred tax assets and liabilities are measured as of the reporting date using the enacted or substantively enacted tax rates expected to apply in the period in which the liability is settled or asset is realized. Deferred tax assets, including the carryforwards of unused tax losses, are recognized to the extent it is probable that the deferred tax assets will be realized.

Deferred income tax assets and liabilities are offset if, and only if, the Group has a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority or when the entity intends to settle current tax liabilities and assets on a net basis with different taxable entities.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

 

- 51 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Deferred liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. Deferred tax assets or liabilities are not recognized if they arise from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit(tax loss) nor the accounting profit.

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity or when it arises from business combination.

The tax uncertainty arises from the compensation claim filed by the Group, and refund litigation for the amount of tax levied by the tax authority due to differences in tax law analysis. In response, the Group paid taxes in accordance with K-IFRS 2123 due to the tax authority’s claim, but recognized as a corporate tax asset if it is highly probable of a refund in the future. In addition, the Group appropriately estimates and reflects the amount of corporate tax liabilities based on the analysis of corporate tax laws and the evaluation of many factors, including past experiences.

(23) Criteria of calculating earnings per share (“EPS”)

Basic EPS is a calculation of net income per each common stock. It is calculated by dividing net income attributable to ordinary shareholders by the weighted-average number of common shares outstanding. Diluted EPS is calculated by adjusting the earnings and number of shares for the effects of all dilutive potential common shares.

(24) Share-based payment

For cash-settled share-based payment transactions that provide cash in return for the goods or services received, the Group measures the goods or services received, and the corresponding liability at the fair value and recognizes as employee benefit expenses and liabilities during the vesting period. The fair value of the liability is remeasured at the end of each reporting period and the settlement date until the liability is settled, and changes in fair value are recognized as employee benefits.

 

- 52 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

3.

MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

Material accounting estimates and assumptions are continuously evaluated based on a number of factors, including historical experience and expectations of future events that are considered reasonably probable. Accounting estimates calculated based on these definitions may not match actual results. The accounting estimates and assumptions that include a significant risk of materially changing the carrying amounts of assets and liabilities currently recognized in the following accounting period are as follows.

 

1)

Income taxes

The Group has recognized current and deferred taxes based on best estimates of expected future income tax effect arising from the Group’s operations until the end of the current reporting period. However, actual tax payment may not be identical to the related assets/liabilities already recognized, and these differences may affect current taxes and deferred tax assets/liabilities at the time when income tax effects are finalized. Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized only to the extent that it is probable that future taxable profit will be available against which the tax losses carried forward and the deductible temporary differences can be utilized. In this case the Group’s evaluation considers various factors such as estimated future taxable profit based on forecasted operating results, which are based on historical financial performance. The Group is reviewing the carrying amount of deferred tax assets every end of the reporting period and in the event that the possibility of earning future taxable income changes, the deferred tax assets are adjusted up to taxable income sufficient to use deductible temporary differences.

 

2)

Valuation of financial instruments

Financial assets at FVTPL and FVTOCI are recognized in the consolidated financial statements at fair value. All derivatives are measured at fair value. Valuation techniques are required in order to determine fair values of financial instruments where observable market prices do not exist. Financial instruments that are not actively traded and have low price transparency will have less objective fair value and require broad judgment in liquidity, concentration, uncertainty in market factors and assumption in price determination and other risks.

As described in ‘2. Basis of Preparation and Material Accounting Policies (9) 5) Fair value of financial instruments’, when valuation techniques are used to determine the fair value of a financial instrument, various general and internally developed techniques are used, and various types of assumptions and variables are incorporated during the process.

 

3)

Impairment of financial instruments

The accuracy of the provision for credit losses is determined by the estimation of the expected cash flows for each borrower for estimating the individually assessed loan-loss allowance, and the assumptions and variables in the model used for estimating the collectively assessed loan-loss allowance payment, guarantee and unused commitment.

The Group has estimated the allowance for credit losses based on reasonable and supportable information that was available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

Information on measuring expected credit loss is described in 4. Risk Management (1) 2) Measurement of expected credit loss.

 

4)

Defined benefit plan

The Group operates a defined benefit pension plan. Defined benefit obligation is calculated at every end of the reporting period by performing actuarial valuation, and estimation of assumptions such as discount rate, expected wage growth rate and mortality rate is required to perform such actuarial valuation. The defined benefit plan, due to its long-term nature, contains significant uncertainties in its estimates.

 

- 53 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

5)

Impairment of goodwill

The recoverable amount of a cash generating unit (CGU) is determined based on value-in-use calculations.

 

4.

RISK MANAGEMENT

The Group is exposed to various risks that may arise from its operating activities and the main types of risks are credit risk, market risk, liquidity risk and etc. The Risk Management Organization analyzes and assesses the level of complex risks in order to manage the risks and the risk management standards such as policies, regulations, management systems and decision-making have been established and operated for sound management of the Group.

The risk management organization is operated by Board Risk Management Committee, Chief Risk Officer (CRO), and Risk Management Department. The Board of Directors operates a Board Risk Management Committee comprised of outside directors for professional risk management. The Board Risk Management Committee plays a role as the top decision-making body in risk management by establishing basic policies for risk management that are in line with the Group’s management strategy and determining the risk level that the Group is willing to take.

The Chief Risk Officer (CRO) assists the Board Risk Management Committee and operates a Group Risk Management Council comprised of risk management managers of subsidiaries to periodically check and improve the risk burden of external environments and the Group. The risk management department is independent and is in charge of risk management of the Group. It also supports reporting and decision-making of key risk-related issues.

 

(1)

Credit risk

Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Group’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

 

  1)

Credit risk management

To measure credit risk, the Group considers the possibility of failure in performing the obligation by the counterparties, credit exposure to the counterparty, the related default risk and the rate of default loss. The Group uses the credit rating model to assess the possibility of counterparty’s default risk; and when assessing the obligor’s credit rating, other than quantitative methods utilizing financial statements and others, and assessor’s judgement, the Group utilizes credit rating derived using statistical methods.

In order to manage credit risk limit, the Group establishes the appropriate credit line per obligor, company or industry by monitoring obligor’s credit line, total exposures and loan portfolios when approving the loan.

The Group mitigates credit risk resulting from the obligor’s credit condition by using financial and physical collateral, guarantees, netting agreements and purchase of credit derivatives that have low correlation with the obligor’s credit status. The Group has adopted the comprehensive method to mitigate its credit risk. Credit risk mitigation is reflected in qualifying financial collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The Group regularly performs a revaluation of collateral reflecting such credit risk mitigation.

 

- 54 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  2)

Measurement of expected credit loss

K-IFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, depending on the degree of increase in credit risk since their initial recognition.

 

Classification

   

Stage 1

   

Stage 2

    Stage 3
Definition    No significant increase in credit risk after initial recognition (*)    Significant increase in credit risk after initial recognition    Credit-
impaired

Loss

allowance

    12-month expected credit losses    Lifetime expected credit losses
   Expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date    Expected credit losses that result from all possible default events over the life of the financial instrument

 

(*)

If the financial instrument has low credit risk at the end of the reporting period, the Group may assume that the credit risk has not increased significantly since initial recognition.

At the end of each reporting period the Group assesses whether credit risk has significantly been increased since the date of initial recognition. The Group assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality level, early warning system, days past due and others. For financial assets whose contractual cash flows have been modified, the Group assesses whether there is a significant increase in credit risk on the same basis.

The Group performs the below assessment to both corporate and retail exposures, and indicators of significant increase in credit risk are as follows:

 

Corporate Exposures

   

Retail Exposures

Asset quality level ‘Precautionary’ or lower    Asset quality level ‘Precautionary’ or lower
More than 30 days past due    More than 30 days past due
‘Warning’ level in early warning system    Significant decrease in credit rating(*)

Debtor experiencing financial difficulties

(Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors)

    Deferment of repayment of principal and interest
Significant decrease in credit rating (*)    Deferment of interest
Deferment of repayment of principal and interest   
Deferment of interest   

 

(*)

The Group has applied the below indicators of significant decrease in credit rating since initial recognition as follows, and the estimation method is regularly being monitored

 

    

Credit rating

   

Significant increased indicator of the credit rating

Corporate    AAA ~ A+    More than or equal to 4 notches
   A- ~ BBB    More than or equal to 3 notches
   BBB- ~ BB+    More than or equal to 2 notches
   BB ~ BB-    More than or equal to 1 notch
Retail    1 ~ 3    More than or equal to 3 notches
   4 ~ 5    More than or equal to 2 notches
   6 ~ 9    More than or equal to 1 notch

The Group determined that there is no significant increase in credit risk after initial recognition for debt securities, etc. with a credit rating of A + or higher, which are deemed to have low credit risk at the end of the reporting period.

 

- 55 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

The Group concludes that credit is impaired when financial assets are under conditions stated below:

 

  •  

When principal and interest of loan is overdue for 90 days or longer due to significant deterioration in credit

 

  •  

For loans overdue for less than 90 days, when it is determined that not even a portion of the loan will be recovered unless claim actions such as disposal of collaterals are taken

 

  •  

When other objective indicators of impairment have been noted for the financial asset.

The Group also incorporates forward looking into the estimates of default rates and loss given default. Considering the potential for latent insolvency due to increased internal and external economic uncertainties, the Group adjusts the forward looking to additionally recognize expected credit loss allowance.

The Group has estimated the allowance for credit losses using an estimation model that additionally reflects the forward looking information based on the past experience loss rate data.

Loss allowance is calculated by applying PD (Probability of Default) and LGD (Loss Given Default) estimated for each financial asset in consideration of factors such as obligor type, credit rating and portfolio. The estimates are regularly being reviewed in order to reduce discrepancies with actual losses.

In measuring the expected credit losses, the Group is also using reasonable and supportable macroeconomic variables such as gross domestic product (real, original series) growth rate, consumer price index, apartment sales price index (KB, Seoul) and unemployment rate (original series) in order to forecast future economic conditions.

The Group applies a future economic situation estimation model as follows, and the results are reviewed regularly.

 

  •  

Development of estimation models through regression analysis of obligator (corporate, retail)/by-period and collateral (credit, collateral)/by-period recover rate in the event of default (1- Loss Given Default) and macroeconomic indicator data by year

 

Major macroeconomic indicators

   

Correlation between credit risk and macroeconomic indicators

Gross domestic product (real, original series) growth rate    Negative(-) Correlation
Average capacity utilization rate for manufacturing    Negative(-) Correlation
Unemployment rate (original series)    Positive(+) Correlation
Apartment sales price index (KB, Seoul)    Negative(-) Correlation
KOSPI    Negative(-) Correlation
Gross domestic income (GDI)    Negative(-) Correlation
Retail sales index    Negative(-) Correlation
Actual apartment sales price index (Seoul Metropolitan Area)    Negative(-) Correlation
KOSDAQ    Negative(-) Correlation

 

  •  

Calculation of estimated default rate and estimated default recovery rate by incorporating future economic outlook using utilizing economic variable forecasts derived from various methods: 1) Economic variable forecasts provided by institutions verified to be reliable such as the Bank of Korea (BOK), Korea Development Institute (KDI), and Korea Institute of Finance (KIF); 2) Forecasts derived from external institutions and regression analysis results; 3) Economic variable forecasts derived through time series trends, etc., to the estimation model developed as a result of modeling.

 

  •  

Forecast of macroeconomic variables

 

- 56 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  a)

Probability weight

As of December 31, 2024, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %):

 

     Normal
Scenario		      Good
Scenario		      Bad
Scenario		      Worst
Scenario		  

Probability weight

      47.44        4.60        27.96        20.00  

 

  b)

Economic forecast of each major macroeconomic variables by scenario (prospect period: 2025) As of December 31, 2024, the forecasts of major macroeconomic variables by scenario is as follows (Unit: Won, %)

 

Major economic indicators (*1) (*2)

    Normal
Scenario		      Good
Scenario		      Bad
Scenario		      Worst
Scenario		  

Gross domestic product (real, original series) growth rate

      1.97        5.74        (0.18 )       (5.11 ) 

Average capacity utilization rate for manufacturing

      71.50        78.12        67.74        57.38  

Unemployment rate (original series)

      2.83        1.90        3.36        6.30  

Apartment sales price index (KB, Seoul)

      93.48        106.74        85.95        78.42  

KOSPI

      2,575.69        3,110.75        2,036.57        1,817.42  

Gross domestic income (GDI)

      2,307,889.89        2,393,479.82        2,259,290.15        2,084,178.80  

Retail sales index

      110.99        117.19        107.47        96.02  

Actual apartment sales price index (Seoul Metropolitan Area)

      148.78        172.67        135.22        121.66  

KOSDAQ

      824.83        995.37        616.12        543.09  

 

(*1)

Considering the default forecast period, the Group reflected the future economic outlook.

(*2)

The forecast of macroeconomic variables is based on information from credible research institutions and historical data available at the time of estimation. It is estimated by the Group for the purpose of calculating expected credit losses, and it may differ from predictions made by other organizations.

 

  •  

The increase rate from the predicted default rate and predicted recovery rate is used as a forward looking adjustment coefficient and reflected to the applicable estimate for the current year.

 

- 57 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Considering internal and external uncertainties, The Group additionally applied the Worst scenario to the three macroeconomic variable scenarios: Normal, Good, and Bad. Assuming all other conditions remain the same, the sensitivity analysis the Group’s expected credit loss allowance, assuming a probability weighting of 100% for each scenario, are as follows (Unit: Korean Won in millions):

 

Scenario

    Applied probability weight     Assuming 100%      Difference from book value  

Good

      4.60 %      1,334,317        (753,242 ) 

Normal

      47.44 %      1,485,847        (601,712 ) 

Bad

      27.96 %      1,866,074        (221,484 ) 

Worst

      20.00 %      4,205,947        2,118,388  

3) Maximum exposure

The Group’s maximum exposure to credit risk shows the uncertainties related to the maximum possible variation of financial assets’ net value as a result of changes in the specific risk factors, prior to the consideration of collaterals that are recorded at net carrying amount after allowances and other credit enhancements. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees and unused amount of commitments for loan commitment.

The maximum exposure to credit risk as of December 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

          December 31,
2024		      December 31,
2023		  

Loans and other financial assets at amortized cost (*1)

    Korean treasury and government agencies      229,126        2,297,088  
  

Banks

      23,593,313        21,996,558  
  

Corporates

      179,986,851        159,343,530  
  

Consumers

      194,662,526        189,510,972  
     

 

 

     

 

 

  
  

Sub-total

      398,471,816        373,148,148  
     

 

 

     

 

 

  

Financial assets at FVTPL (*2)

    Deposits      73,951        39,241  
  

Debt securities

      6,801,288        6,307,238  
  

Loans

      104,177        782,716  
  

Derivative assets

      10,094,532        5,798,329  
  

Others

      2,671        2,585  
     

 

 

     

 

 

  
  

Sub-total

      17,076,619        12,930,109  
     

 

 

     

 

 

  

Financial assets at FVTOCI

    Debt securities      42,922,671        36,694,111  
     

 

 

     

 

 

  

Securities at amortized cost

    Debt securities      19,203,177        23,996,172  

Derivative assets

    Derivative assets (Designated for hedging)      175,191        26,708  

Off-balance accounts

    Payment guarantees (*3)      16,611,262        13,793,301  
  

Loan commitments

      133,863,588        126,829,192  
     

 

 

     

 

 

  
  

Sub-total

      150,474,850        140,622,493  
     

 

 

     

 

 

  
  

Total

      628,324,324        587,417,741  
     

 

 

     

 

 

  

 

(*1)

Cash and cash equivalents are not included.

(*2)

Puttable financial instruments are not included.

(*3)

As of December 31, 2024 and 2023, the financial guarantee amount of 4,156,790 million Won and 3,661,656 million Won are included, respectively.

 

- 58 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

a) Credit risk exposure by geographical areas

The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):

 

     December 31, 2024  
     Korea      China      USA      UK      Japan      Others (*)      Total  

Loans and other financial assets at amortized cost

      367,026,768        5,784,272        7,108,462        584,060        850,872        17,117,382        398,471,816  

Securities at amortized cost

      18,052,871        197,188        712,761        —         —         240,357        19,203,177  

Financial assets at FVTPL

      12,643,738        88        1,824,414        553,842        430,341        1,624,196        17,076,619  

Financial assets at FVTOCI

      37,746,319        589,277        3,157,655        190,801        22,112        1,216,507        42,922,671  

Derivative assets (Designated for hedging)

      165,089        —         3,216        —         6,886        —         175,191  

Off-balance accounts

      144,006,247        1,213,479        1,805,060        87,755        20,758        3,341,551        150,474,850  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      579,641,032        7,784,304        14,611,568        1,416,458        1,330,969        23,539,993        628,324,324  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries.

 

     December 31, 2023  
     Korea      China      USA      UK      Japan      Others (*)      Total  

Loans and other financial assets at amortized cost

      345,748,021        5,068,801        5,527,208        260,834        617,188        15,926,096        373,148,148  

Securities at amortized cost

      22,529,414        111,832        1,049,669        —         —         305,257        23,996,172  

Financial assets at FVTPL

      10,103,182        519        1,507,518        355,478        143,229        820,183        12,930,109  

Financial assets at FVTOCI

      32,422,652        724,786        2,367,997        7        32,194        1,146,475        36,694,111  

Derivative assets (Designated for hedging)

      26,010        —         —         —         698        —         26,708  

Off-balance accounts

      136,287,485        921,904        745,832        20,045        26,351        2,620,876        140,622,493  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      547,116,764        6,827,842        11,198,224        636,364        819,660        20,818,887        587,417,741  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries.

 

- 59 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

b) Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of December 31, 2024 and 2023 (Unit: Korean Won in millions):

 

     December 31, 2024  
     Service      Manufacturing      Finance and
insurance		      Construction      Individuals      Others      Total  

Loans and other financial assets at amortized cost

      92,018,694        47,835,603        33,986,585        6,219,603        190,902,940        27,508,391        398,471,816  

Securities at amortized cost

      169,352        —         10,248,257        59,866        —         8,725,702        19,203,177  

Financial assets at FVTPL

      287,401        539,092        10,833,850        31,527        123,339        5,261,410        17,076,619  

Financial assets at FVTOCI

      331,590        474,837        29,935,898        194,940        —         11,985,406        42,922,671  

Derivative assets (Designated for hedging)

      —         —         175,191        —         —         —         175,191  

Off-balance accounts

      22,460,440        28,514,078        14,147,757        3,192,714        73,212,057        8,947,804        150,474,850  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      115,267,477        77,363,610        99,327,538        9,698,650        264,238,336        62,428,713        628,324,324  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Service      Manufacturing      Finance and
insurance		      Construction      Individuals      Others      Total  

Loans and other financial assets at amortized cost

      84,704,246        44,591,685        30,388,823        5,583,281        185,083,452        22,796,661        373,148,148  

Securities at amortized cost

      189,193        —         14,151,799        69,720        —         9,585,460        23,996,172  

Financial assets at FVTPL

      330,193        233,528        7,184,371        81,731        2,600        5,097,686        12,930,109  

Financial assets at FVTOCI

      453,694        408,377        25,832,327        290,856        —         9,708,857        36,694,111  

Derivative assets (Designated for hedging)

      —         —         26,708        —         —         —         26,708  

Off-balance accounts

      22,561,220        22,897,412        13,804,163        2,826,738        73,042,394        5,490,566        140,622,493  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      108,238,546        68,131,002        91,388,191        8,852,326        258,128,446        52,679,230        587,417,741  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

- 60 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  4)

Credit risk exposure

 

  a)

Financial assets

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and derivative asset (designated for hedging) as of December 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

    December 31, 2024  
    Stage 1     Stage 2                    
    Above
appropriate
credit rating
(*1)		     Less than a
limited credit
rating
(*2)		     Above
appropriate
credit rating
(*1)		     Less than a
limited credit
rating
(*2)		     Stage 3     Credit
impairment
model		     Total     Loss
allowance		     Total, net  

Loans and other financial assets at amortized cost

     343,186,708       27,086,126       13,280,849       14,344,066       3,003,886       1,147,147       402,048,782       (3,576,966 )      398,471,816  

Korean treasury and government agencies

     229,733       22       —        —        —        —        229,755       (629 )      229,126  

Banks

     23,375,096       115,721       88,306       —        36,143       —        23,615,266       (21,953 )      23,593,313  

Corporates

     150,732,338       19,561,385       3,130,814       6,264,461       1,416,152       1,147,147       182,252,297       (2,265,446 )      179,986,851  

General business

     103,495,951       11,071,283       2,507,705       4,093,868       807,545       —        121,976,352       (1,409,387 )      120,566,965  

Small- and medium-sized enterprise

     35,450,353       7,731,142       500,934       1,870,087       357,881       —        45,910,397       (586,059 )      45,324,338  

Project financing and others

     11,786,034       758,960       122,175       300,506       250,726       1,147,147       14,365,548       (270,000 )      14,095,548  

Consumers

     168,849,541       7,408,998       10,061,729       8,079,605       1,551,591       —        195,951,464       (1,288,938 )      194,662,526  

Securities at amortized cost

     19,213,940       —        —        —        —        —        19,213,940       (10,763 )      19,203,177  

Financial assets at FVTOCI (*3)

     42,766,477       156,194       —        —        —        —        42,922,671       (29,084 )      42,922,671  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     405,167,125       27,242,320       13,280,849       14,344,066       3,003,886       1,147,147       464,185,393       (3,616,813 )      460,597,664  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     December 31, 2024  
     Collateral value  
     Stage1      Stage2      Stage3      Credit impairment
model		      Total  

Loans and other financial assets at amortized cost

      241,378,580        22,815,602        1,070,209        1,137,097        266,401,488  

Korean treasury and government agencies

      55,775        —         —         —         55,775  

Banks

      2,474,302        —         —         —         2,474,302  

Corporates

      101,666,963        7,536,068        645,842        1,137,097        110,985,970  

General business

      59,099,372        5,578,709        328,802        —         65,006,883  

Small- and medium-sized enterprise

      34,401,736        1,729,820        243,513        —         36,375,069  

Project financing and others

      8,165,855        227,539        73,527        1,137,097        9,604,018  

Consumers

      137,181,540        15,279,534        424,367        —         152,885,441  

Securities at amortized cost

      —         —         —         —         —   

Financial assets at FVTOCI (*3)

      —         —         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      241,378,580        22,815,602        1,070,209        1,137,097        266,401,488  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3)

Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

 

- 61 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

    December 31, 2023  
    Stage 1     Stage 2                          
    Above
appropriate
credit rating
(*1)		     Less than a
limited credit
rating
(*2)		     Above
appropriate
credit rating
(*1)		     Less than a
limited credit
rating
(*2)		     Stage 3     Credit
impairment
model		     Total     Loss
allowance		     Total, net  

Loans and other financial assets at amortized cost

     321,115,435       26,073,686       12,728,437       13,702,855       1,906,434       768,487       376,295,334       (3,147,186 )      373,148,148  

Korean treasury and government agencies

     2,299,323       21       —        —        —        —        2,299,344       (2,256 )      2,297,088  

Banks

     21,880,151       122,383       21,771       —        15,295       —        22,039,600       (43,042 )      21,996,558  

Corporates

     132,702,723       18,890,349       2,630,918       5,411,611       882,459       768,487       161,286,547       (1,943,017 )      159,343,530  

General business

     87,551,345       10,147,028       1,773,713       3,150,829       548,169       —        103,171,084       (1,161,824 )      102,009,260  

Small- and medium-sized enterprise

     36,220,660       8,182,558       753,275       1,587,473       225,463       —        46,969,429       (508,736 )      46,460,693  

Project financing and others

     8,930,718       560,763       103,930       673,309       108,827       768,487       11,146,034       (272,457 )      10,873,577  

Consumers

     164,233,238       7,060,933       10,075,748       8,291,244       1,008,680       —        190,669,843       (1,158,871 )      189,510,972  

Securities at amortized cost

     24,010,113       —        —        —        —        —        24,010,113       (13,941 )      23,996,172  

Financial assets at FVTOCI (*3)

     36,481,028       213,083       —        —        —        —        36,694,111       (27,379 )      36,694,111  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     381,606,576       26,286,769       12,728,437       13,702,855       1,906,434       768,487       436,999,558       (3,188,506 )      433,838,431  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     December 31, 2023  
     Collateral value  
     Stage1      Stage2      Stage3      Credit impairment
model		      Total  

Loans and other financial assets at amortized cost

      224,611,919        21,235,346        767,731        768,275        247,383,271  

Korean treasury and government agencies

      39,199        —         —         —         39,199  

Banks

      2,136,530        —         —         —         2,136,530  

Corporates

      92,544,712        5,915,710        382,605        768,275        99,611,302  

General business

      52,951,331        4,058,593        169,855        —         57,179,779  

Small- and medium-sized enterprise

      33,580,230        1,590,947        112,117        —         35,283,294  

Project financing and others

      6,013,151        266,170        100,633        768,275        7,148,229  

Consumers

      129,891,478        15,319,636        385,126        —         145,596,240  

Securities at amortized cost

      —         —         —         —         —   

Financial assets at FVTOCI (*3)

      —         —         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      224,611,919        21,235,346        767,731        768,275        247,383,271  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3)

Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

 

- 62 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  b)

Payment guarantees and commitments

The credit quality of the payment guarantees and loan commitments as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  

Financial assets

    Stage 1      Stage 2      Stage3      Total  
   Above
appropriate
credit rating
(*1)		      Less than a
limited
credit rating
(*2)		      Above
appropriate
credit rating
(*1)		      Less than a
limited
credit rating
(*2)		  

Off-balance accounts:

                  

Payment guarantees

      15,679,374        808,182        41,866        59,688        22,152        16,611,262  

Loan commitments

      127,622,889        3,402,602        2,298,056        502,070        37,971        133,863,588  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      143,302,263        4,210,784        2,339,922        561,758        60,123        150,474,850  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

 

     December 31, 2023  

Financial assets

    Stage 1      Stage 2      Stage3      Total  
   Above
appropriate
credit rating
(*1)		      Less than a
limited credit
rating
(*2)		      Above
appropriate
credit rating
(*1)		      Less than a
limited
credit rating
(*2)		  

Off-balance accounts:

                  

Payment guarantees

      12,515,536        1,150,185        73,192        40,890        13,498        13,793,301  

Loan commitments

      120,623,982        3,512,099        2,166,380        496,824        29,907        126,829,192  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      133,139,518        4,662,284        2,239,572        537,714        43,405        140,622,493  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)

Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

 

  5)

Collateral and other credit enhancements

For the years ended December 31, 2024 and 2023, there have been no significant changes in the value of collateral or other credit enhancements held by the Group and there have been no significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group.

 

  6)

Among financial assets that measured loss allowance at lifetime expected credit losses, amortized costs before changes in contractual cash flows as of December 31, 2024 and 2023 are 153,361 million Won and 161,893 million Won, respectively, with net losses recognized along with the changes 15,335 million Won and 5,107 million Won, respectively.

 

  7)

The Group determines which loan is subject to write-off in accordance with internal guidelines and writes off loan receivables when it is determined that the loans are practically irrecoverable. For example, loans are practically irrecoverable when application is made for rehabilitation under the Debtor Rehabilitation and Bankruptcy Act and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation, or when it is impossible to recover the loan amount through legal means such as auctioning of debtor’s assets or through any other means of recovery available.

As the Group manages receivables that have not lost the right of claim to the debtor for the grounds of incomplete statute limitation and uncollected receivables under the related laws as receivable charge-offs, the balance as of December 31, 2024 and 2023 are 9,018,290 million Won and 10,089,739 million Won. In addition, the contractual non-recoverable amount of financial assets amortized for the year ended December 31, 2024, but still in the process of recovery is 1,462,267 million Won.

 

- 63 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates.

 

  1)

Market risk management

Market risk management refers to the process of making and implementing decisions for the avoidance, acceptance or mitigation of risks by identifying the underlying source of the risks, measuring its level, and evaluating the appropriateness of the level of accepted market risks for both trading and non-trading activities.

 

  a)

Trading activities

The Group uses the standard approach and internal model approach (Woori Bank) in measuring market risk for trading positions, and allocates market risk capital through the Board Risk Management Committee. Risk management departments of the Group and its subsidiaries manage limits in detail including those on risk and loss with their management result regularly reported to the Board Risk Management Committee.

Subsidiaries such as Woori Bank manage market internal capital limits using the Basel III standard approach, and other subsidiaries manage market risks by applying the simple method.

The Basel III standard approach consists of a sensitivity method that measures linear and nonlinear losses that may occur due to unfavorable fluctuations in market risk factors, bankruptcy risks that may occur due to sudden bankruptcy, and residual risk-bearing equity capital for other losses.

Woori Bank, a major subsidiary subject to Basel III standard approach of market risk management, has the following equity capital required for market risk.(Unit : Korean Won in millions)

 

    

Risk Group

    December 31, 2024      December 31, 2023  

Sensitivity-based risk

    General interest rate risk      29,029        37,832  
   Equity risk      3,006        9,376  
   Commodity risk      51        12  
   Foreign exchange risk      114,174        249,044  
   Non-securitization credit spread risk      18,258        27,371  
   Securitization (excluding CTP (Correlation Trading Portfolio)) credit spread risk      —         —   
   CTP credit spread risk      —         —   

Default risk

    Non-Securitization bankruptcy risk      8,604        —   
   Securitization (excluding CTP) default risk      —         —   
   CTP default risk      —         —   

Residual risk

    Residual risk      1,182        692  
     

 

 

     

 

 

  

Total

         174,304        324,327  
     

 

 

     

 

 

  

 

- 64 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  b)

Non-trading activities

From the end of 2019 for the Bank and the beginning of 2021 for non-banking subsidiaries, the Bank and its subsidiaries manage and measure interest risk for non-trading activities through ΔNII(Change in Net Interest Income) and ΔEVE(Change in Economic Value of Equity) in accordance with IRRBB(Interest Rate Risk in the Banking Book).

ΔNII represents a change in net interest income that may occur over a certain period (e.g. one year) due to changes in interest rates, and ΔEVE indicates the economic value changes in equity capital that could be caused by changes in interest rates affecting the present value of asset, liabilities, and off-balance accounts.

ΔEVE and ΔNII calculated on interest risk in banking book(IRRBB) basis for assets and liabilities by subsidiary as of December 31, 2024 and 2023 are as follows(Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  
     ΔEVE (*1)      ΔNII (*2)      ΔEVE (*1)      ΔNII (*2)  

Woori Bank

      952,830        668,290        683,660        743,489  

Woori Card Co., Ltd.

      120,153        79,515        80,720        76,846  

Woori Financial Capital Co., Ltd.

      67,877        16,151        48,523        17,585  

Woori Investment Securities Co., Ltd.

      29,325        24,911        4,464        15,303  

Woori Asset Trust Co., Ltd.

      1,817        12,802        1,210        7,018  

Woori Asset Management Corp.

      504        1,682        832        2,154  

Woori Savings Bank

      15,117        4,537        7,347        11,077  

Woori Private Equity Asset Management Co., Ltd.

      17        338        80        775  

Woori Global Asset Management Co., Ltd.

      —         —         536        269  

Woori Financial F&I Co., Ltd.

      97,936        6,858        63,852        3,961  

Woori Venture Partners Co., Ltd.(*3)

      705        3,231        340        2,782  

 

(*1)

ΔEVE: change in Economic Value of Equity

(*2)

ΔNII: change in Net Interest Income

(*3)

Additional investment occurred and added it as a consolidated subsidiary during the year ended December 31, 2023.

 

- 65 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

At the interest rate re-pricing date, cash flows (both principal and interest) of interest bearing assets and liabilities, which is the basis of non-trading position interest rate risk management are as follows: (Unit: Korean Won in millions):

 

     December 31, 2024  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Asset:

                     

Loans and other financial assets at amortized cost

      241,742,497        53,994,860        25,504,549        17,099,875        78,442,115        5,000,982        421,784,878  

Financial assets at FVTPL

      297,653        38,474        9,993        5,420        42,433        51        394,024  

Financial assets at FVTOCI

      7,276,254        4,996,536        2,350,787        2,570,750        26,459,375        1,421,185        45,074,887  

Securities at amortized cost

      1,318,853        1,651,266        1,856,726        629,079        12,972,012        1,862,090        20,290,026  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      250,635,257        60,681,136        29,722,055        20,305,124        117,915,935        8,284,308        487,543,815  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liability:

                     

Deposits due to customers

      166,841,875        55,267,332        44,234,044        42,203,933        62,625,304        34,751        371,207,239  

Borrowings

      19,153,362        4,676,893        1,587,119        1,542,868        3,131,674        513,870        30,605,786  

Debentures

      5,189,563        5,370,343        4,438,800        3,168,918        30,963,968        2,673,453        51,805,045  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      191,184,800        65,314,568        50,259,963        46,915,719        96,720,946        3,222,074        453,618,070  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     December 31, 2023  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Asset:

                     

Loans and other financial assets at amortized cost

      245,179,685        55,105,699        17,928,072        12,101,395        55,840,540        3,594,287        389,749,678  

Financial assets at FVTPL

      2,155,339        178,206        37,672        22,719        52,341        90        2,446,367  

Financial assets at FVTOCI

      5,976,531        3,489,341        2,425,700        3,008,905        22,852,783        756,272        38,509,532  

Securities at amortized cost

      1,451,409        1,230,486        3,335,565        1,416,082        15,907,380        2,171,914        25,512,836  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      254,762,964        60,003,732        23,727,009        16,549,101        94,653,044        6,522,563        456,218,413  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liability:

                     

Deposits due to customers

      169,127,109        52,395,270        32,948,424        47,030,448        60,621,757        34,406        362,157,414  

Borrowings

      20,147,327        5,157,330        1,933,137        2,575,993        4,112,788        437,839        34,364,414  

Debentures

      7,741,466        5,188,081        4,104,309        5,168,597        18,443,853        3,223,255        43,869,561  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      197,015,902        62,740,681        38,985,870        54,775,038        83,178,398        3,695,500        440,391,389  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  2)

Currency risk

Currency risk arises from the financial instruments denominated in foreign currencies other than the functional currency. Therefore, no currency risk arises from non-monetary items or financial instruments denominated in the functional currency.

 

- 66 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Financial instruments in foreign currencies exposed to currency risk as of December 31, 2024 and 2023 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):

 

     December 31, 2024  
     USD      JPY      CNY      EUR      Others      Total  
   Foreign
currency		      Korean Won
equivalent		      Foreign
currency		      Korean
Won
equivalent		      Foreign
currency		      Korean
Won
equivalent		      Foreign
currency		      Korean
Won
equivalent		      Korean
Won
equivalent		      Korean Won
equivalent		  

Asset

    Cash and cash equivalents      8,258        12,139,283        80,851        757,154        1,331        267,802        223        341,326        1,123,728        14,629,293  
  

Loans and other financial assets at amortized cost

      21,637        31,775,374        104,585        979,422        26,856        5,405,371        2,211        3,380,628        7,584,236        49,125,031  
  

Financial assets at FVTPL

      887        1,304,438        1,836        17,190        16        3,318        149        227,858        20,087        1,572,891  
  

Financial assets at FVTOCI

      3,588        5,274,144        —         —         2,910        585,622        37        55,853        847,518        6,763,137  
  

Securities at amortized cost

      767        1,127,313        —         —         980        197,188        36        55,074        175,895        1,555,470  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  

  Total

      35,137        51,620,552        187,272        1,753,766        32,093        6,459,301        2,656        4,060,739        9,751,464        73,645,822  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liability

    Financial liabilities at FVTPL      112        164,400        36        334        —         —         1        1,766        751        167,251  
  

Deposits due to customers

      23,607        34,702,743        250,528        2,346,146        27,301        5,494,893        2,024        3,094,378        5,348,009        50,986,169  
  

Borrowings

      8,302        12,203,906        56,465        528,785        110        22,235        545        832,661        3,334,191        16,921,778  
  

Debentures

      4,549        6,687,333        —         —         —         —         195        297,766        446,349        7,431,448  
  

Other financial liabilities

      2,123        3,120,355        20,684        193,701        4,120        829,197        244        373,203        493,198        5,009,654  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  

  Total

      38,693        56,878,737        327,713        3,068,966        31,531        6,346,325        3,009        4,599,774        9,622,498        80,516,300  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Off-balance accounts

      9,109        13,390,339        23,905        223,864        1,702        342,576        841        1,286,110        1,506,643        16,749,532  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     USD      JPY      CNY      EUR      Others      Total  
   Foreign
currency		      Korean Won
equivalent		      Foreign
currency		      Korean
Won
equivalent		      Foreign
currency		      Korean
Won
equivalent		      Foreign
currency		      Korean
Won
equivalent		      Korean
Won
equivalent		      Korean Won
equivalent		  

Asset

    Cash and cash equivalents      8,540        11,011,576        108,421        989,519        1,377        248,965        641        914,960        1,145,464        14,310,484  
  

Loans and other financial assets at amortized cost

      24,463        31,542,764        138,242        1,261,674        30,536        5,522,075        1,791        2,554,897        4,585,588        45,466,998  
  

Financial assets at FVTPL

      884        1,140,110        49,640        453,047        —         —         280        399,828        72,351        2,065,336  
  

Financial assets at FVTOCI

      3,136        4,044,155        —         —         3,882        701,938        6        8,549        738,710        5,493,352  
  

Securities at amortized cost

      1,223        1,576,690        —         —         618        111,839        68        97,393        184,938        1,970,860  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  

  Total

      38,246        49,315,295        296,303        2,704,240        36,413        6,584,817        2,786        3,975,627        6,727,051        69,307,030  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liability

    Financial liabilities at FVTPL      350        451,700        23,806        217,266        —         —         209        297,521        98,885        1,065,372  
  

Deposits due to customers

      23,962        30,896,247        279,377        2,549,759        23,162        4,188,690        2,122        3,027,521        5,531,242        46,193,459  
  

Borrowings

      9,339        12,041,139        70,741        645,621        1,658        299,748        225        321,529        2,632,379        15,940,416  
  

Debentures

      4,811        6,202,675        —         —         —         —         195        277,871        —         6,480,546  
  

Other financial liabilities

      3,448        4,446,194        26,977        246,206        7,752        1,401,956        99        141,404        387,310        6,623,070  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  

  Total

      41,910        54,037,955        400,901        3,658,852        32,572        5,890,394        2,850        4,065,846        8,649,816        76,302,863  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Off-balance accounts

      7,748        9,990,349        30,143        275,101        2,043        369,483        796        1,135,845        568,935        12,339,713  
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

- 67 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its financial liabilities.

 

  1)

Liquidity risk management

Liquidity risk management is to prevent potential cash shortages as a result of mismatching maturity of assets and liabilities or unexpected cash outflows. The consolidated financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period.

Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in accordance with the characteristics of the account. The Group manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.), while maintaining the gap ratio at or below the target limit.

The information on early repayment related to asset securitization is described in Note 40. Contingent Liabilities and Commitments (4) 3).

 

  2)

Maturity analysis of non-derivative financial liabilities

 

  a)

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over
5 years		      Total  

Financial liabilities at FVTPL

      74,205        —         69,534        112,944        —         —         256,683  

Deposits due to customers

      237,078,927        41,568,072        33,229,547        43,680,907        16,991,574        1,441,654        373,990,681  

Borrowings

      11,589,854        6,676,926        4,781,377        3,676,310        3,561,696        563,870        30,850,033  

Debentures

      4,635,557        5,525,191        4,442,376        3,572,533        30,967,974        2,673,592        51,817,223  

Lease liabilities

      60,099        49,069        45,534        40,375        317,971        50,341        563,389  

Other financial liabilities

      19,417,326        108,361        30,995        27,093        1,118,751        4,287,489        24,990,015  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      272,855,968        53,927,619        42,599,363        51,110,162        52,957,966        9,016,946        482,468,024  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over
5 years		      Total  

Financial liabilities at FVTPL

      39,524        89,287        —         —         10,256        56,221        195,288  

Deposits due to customers

      236,125,560        39,103,357        22,776,074        50,089,672        16,898,791        1,549,490        366,542,944  

Borrowings

      11,415,214        6,626,722        4,345,143        4,579,032        4,331,196        437,839        31,735,146  

Debentures

      5,510,096        5,328,382        5,383,741        6,035,590        18,439,577        3,223,255        43,920,641  

Lease liabilities

      74,228        42,106        58,241        33,679        151,127        25,172        384,553  

Other financial liabilities

      15,059,935        233,081        21,356        26,403        1,025,252        4,195,930        20,561,957  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      268,224,557        51,422,935        32,584,555        60,764,376        40,856,199        9,487,907        463,340,529  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

- 68 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  b)

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Financial liabilities at FVTPL

      74,205        —         69,534        112,944        —         —         256,683  

Deposits due to customers

      242,795,510        43,419,738        32,989,627        38,822,980        14,857,886        491,918        373,377,659  

Borrowings

      11,592,268        6,678,053        4,782,453        3,678,378        3,555,011        563,870        30,850,033  

Debentures

      4,635,557        5,525,191        4,442,376        3,572,533        30,967,974        2,673,592        51,817,223  

Lease liabilities

      60,092        50,205        46,727        41,569        322,272        50,341        571,206  

Other financial liabilities

      19,418,010        108,690        31,315        27,708        1,116,803        4,287,489        24,990,015  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      278,575,642        55,781,877        42,362,032        46,256,112        50,819,946        8,067,210        481,862,819  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Financial liabilities at FVTPL

      39,524        89,287        —         —         10,256        56,221        195,288  

Deposits due to customers

      241,935,362        41,132,677        23,468,344        44,082,420        14,717,842        505,146        365,841,791  

Borrowings

      11,419,501        6,630,868        4,346,740        4,579,314        4,331,196        437,839        31,745,458  

Debentures

      5,512,545        5,330,733        5,386,014        6,037,688        18,443,853        3,223,255        43,934,088  

Lease liabilities

      74,228        43,350        59,604        35,057        162,874        25,834        400,947  

Other financial liabilities

      15,059,935        233,081        21,356        26,403        1,025,252        4,195,930        20,561,957  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      274,041,095        53,459,996        33,282,058        54,760,882        38,691,273        8,444,225        462,679,529  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  3)

Maturity analysis of derivative financial liabilities

Derivatives held for trading purpose are not managed in accordance with their contractual maturity, since the Group holds such financial instruments with the purpose of disposing or redemption before their maturity. As such, those derivatives are incorporated as “within 3 months” in the table below. Derivatives designated for hedging purpose are estimated by offsetting cash inflows and cash outflows.

The cash flow by the maturity of derivative financial liabilities as of December 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

          Remaining maturity  
          Within 3
months		     4 to 6
months		     7 to 9
months		     10 to 12
months		     1 to 5
years		      Over 5
years		     Total  

December 31, 2024

    Cash flow risk hedge      (219 )      193       31       62       207        —        274  
   Fair value risk hedge      (6,816 )      46,231       (11,740 )      44,950       35,764        (5,834 )      102,555  
   Trading purpose      9,092,008       90       —        —        —         —        9,092,098  

December 31, 2023

    Cash flow risk hedge      (1,223 )      (875 )      (590 )      (302 )      13,689        —        10,699  
   Fair value risk hedge      29,176       34,370       157       35,272       30,241        —        129,216  
   Trading purpose      5,943,024       —        —        —        —         —        5,943,024  

 

- 69 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  4)

Maturity analysis of off-balance accounts (Payment guarantees, commitments, and etc.)

A payment guarantee represents an irrevocable undertaking that the Group should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Loan commitments include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for payment guarantees, such as financial guarantees for debentures issued or loans, unused loan commitments, and other credits. However, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Payment guarantees

      16,611,262        13,793,301  

Loan commitments

      133,863,588        126,829,192  

Other commitments

      4,572,323        4,854,099  

 

(4)

Operational risk

The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate internal process, labor work and systematic problem or external factors.

 

  1)

Operational risk management

The Group has established and operated a group operational risk management system to cope with new Basel III global regulations, which is implemented since 2023, and the management of operational risks follows the procedures for risk recognition, evaluation, measurement, monitoring and reporting, risk control and mitigation.

 

  2)

Operational risk measurement

The Group measures operational risk capital using the Basel III standardized approach. This approach calculates the required operational risk capital by multiplying the Business Indicator Component (BIC), which represents the scale of operations, with the Internal Loss Multiplier (ILM), which reflects the magnitude of actual historical internal losses relative to the scale of operations.

Operational risk limits are set with the approval of the Board Risk Management Committee. The Group regularly calculates the operational risk capital and reports any limit breaches to the management and the Board Risk Management Committee.

Since a reduction in the size of internal loss events leads to a decrease in operational risk capital, it is important to prevent loss events in advance. Accordingly, the Group conducts operational risk management activities using tools such as Risk Control Self-Assessment (RCSA), Key Risk Indicators (KRI), and loss data. Additionally, to ensure continuity of operations in emergency situations such as disasters, the Bank has established a Business Continuity Plan (BCP) and conducts annual simulation drills.

 

- 70 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5)

Capital management

The Group complies with the standard of capital adequacy provided by financial regulatory authorities. The capital adequacy standard is based on Basel III published by Basel Committee on Banking Supervision in Bank for International Settlement and was implemented in Korea in December 2013. The capital adequacy ratio is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the consolidated financial statements of the Group.

According to the above regulations, the Group is required to meet the following minimum requirements: Tier 1 common capital ratio of 9.0% and 8.0%, a Tier 1 capital ratio of 10.5% and 9.5%, and a total capital ratio of 12.5% and 11.5% as of December 31, 2024 and 2023, respectively.

Details of the Group’s capital adequacy ratio as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

Details    December 31, 2024(*)     December 31, 2023  

Tier 1 capital

      28,522,910       26,343,941  

Other Tier 1 capital

      4,869,567       4,596,584  

Tier 2 capital

      3,535,362       3,815,920  
  

 

 

    

 

 

  

Total risk-adjusted capital

      36,927,839       34,756,445  
  

 

 

    

 

 

  

Risk-weighted assets for credit risk

      210,365,462       195,490,941  

Risk-weighted assets for market risk

      3,125,478       4,697,055  

Risk-weighted assets for operational risk

      21,609,530       19,603,749  
  

 

 

    

 

 

  

Total risk-weighted assets

      235,100,470       219,791,745  
  

 

 

    

 

 

  

Common Equity Tier 1 ratio

      12.13 %      11.99 % 
  

 

 

    

 

 

  

Tier 1 capital ratio

      14.20 %      14.08 % 
  

 

 

    

 

 

  

Total capital ratio

      15.71 %      15.81 % 
  

 

 

    

 

 

  

 

(*)

The capital ratio at the end of the current period is provisional

 

- 71 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

5.

OPERATING SEGMENTS

In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (“CODM”) utilizes the method of disclosing the financial information of the segments based on the organization of the Group. This financial information of the segments in this note is regularly reviewed by the CODM.

 

(1)

Segment by type of organization

The Group’s reporting segments consist of banking, credit card, capital, investment securities and other sectors, and the composition of such reporting segments was divided based on internal report data periodically reviewed by the management to evaluate the performance of the segment and make decisions on the resources to be distributed.

 

    

Operational scope

Banking    Loans/deposits and relevant services for customers of Woori Bank
Credit card    Credit card, cash services, card loans and accompanying business of Woori Card Co., Ltd.
Capital    Installments, loans including lease financing, and accompanying business of Woori Financial Capital Co., Ltd.
Investment securities    Securities operation, sale of financial instruments, project financing and other related activities for investment securities of Woori Investment Securities Co., Ltd.
Others    Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Asset Management Corp., Ltd., Woori Financial F&I Co., Ltd., Woori Savings Bank., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute, Woori Venture Partners Co., Ltd.

 

- 72 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

The composition of each organization’s sectors for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Banking(*1)     Credit card     Capital     Investment
securities		     Others (*2)     Sub-total     Other
adjustments
(*3)		     Internal
adjustments
(*4)		     Consolidated
Adjustments
(*5)		     Total  

Net interest income

      6,542,449       706,130       231,596       106,558       129,900       7,716,633       126,600       1,042,561       542       8,886,336  

Non-interest income(expense)

      1,944,528       192,194       144,097       51,629       1,578,890       3,911,338       70,545       (769,593 )      (1,658,168 )      1,554,122  

Impairment losses due to credit loss

      (670,753 )      (403,805 )      (84,017 )      (91,351 )      (176,511 )      (1,426,437 )      (13,884 )      (273,889 )      (2,085 )      (1,716,295 ) 

General and administrative expense

      (3,746,916 )      (302,067 )      (103,870 )      (74,191 )      (420,370 )      (4,647,414 )      (1,104 )      —        179,545       (4,468,973 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net operating income(expense)

      4,069,308       192,452       187,806       (7,355 )      1,111,909       5,554,120       182,157       (921 )      (1,480,166 )      4,255,190  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share of gain (loss) of associates

      44,067       —        (1,262 )      215       5,316       48,336       (4 )      —        27,933       76,265  

Other non-operating income(expense)

      (104,388 )      (4,053 )      (2,579 )      7,476       10,440       (93,104 )      8,535       921       (24,960 )      (108,608 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating income(expense)

      (60,321 )      (4,053 )      (3,841 )      7,691       15,756       (44,768 )      8,531       921       2,973       (32,343 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income(expense) before tax

      4,008,987       188,399       183,965       336       1,127,665       5,509,352       190,688       —        (1,477,193 )      4,222,847  

Tax expense

      (962,051 )      (40,349 )      (42,547 )      2,216       (17,756 )      (1,060,487 )      —        —        9,109       (1,051,378 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income(loss)

      3,046,936       148,050       141,418       2,552       1,109,909       4,448,865       190,688       —        (1,468,084 )      3,171,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

      485,888,941       16,613,482       12,770,681       7,186,431       30,774,925       553,234,460       3,565,728       —        (31,046,868 )      525,753,320  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment in associate

      1,067,880       —        32,207       3,297       24,475,044       25,578,428       7,347       —        (23,836,965 )      1,748,810  

Other assets

      484,821,061       16,613,482       12,738,474       7,183,134       6,299,881       527,656,032       3,558,381       —        (7,209,903 )      524,004,510  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      456,944,053       13,828,816       11,045,686       6,041,109       4,919,608       492,779,272       73,587       —        (2,994,808 )      489,858,051  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*1)

The banking sector includes banks and their consolidated subsidiaries (such as overseas subsidiaries).

(*2)

Other segments includes Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute and Woori Venture Partners Co., Ltd.

(*3)

Other adjustments includes the funds subject to Group’s consolidation not included in the reporting segment.

(*4)

Internal adjustments includes the adjustment of deposit insurance premiums of 509,832 million Won and fund contribution fees of 533,335 million Won from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards.

(*5)

Consolidation adjustments include the elimination of 175,437 million Won of internal transactions between Woori FIS Co., Ltd., the group’s IT service agency, and affiliates, and the removal of 1,208,522 million Won of dividends received by the holding company from its subsidiaries.

 

- 73 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Banking     Credit card     Capital     Investment
banking		     Others (*1)     Sub-total     Other
adjustments
(*2)		     Internal
adjustments
(*3)		     Consolidated
Adjustments
(*4)		     Total  

Net interest income

      6,535,929       667,053       324,013       100,041       115,089       7,742,125       79,401       917,949       3,065       8,742,540  

Non-interest income(expense)

      1,475,139       121,593       129,347       44,595       2,011,486       3,782,160       14,475       (740,918 )      (1,960,879 )      1,094,838  

Impairment losses due to credit loss

      (894,827 )      (355,879 )      (188,682 )      (160,182 )      (119,684 )      (1,719,254 )      —        (177,384 )      1,722       (1,894,916 ) 

General and administrative expense

      (3,799,282 )      (285,308 )      (96,469 )      (51,496 )      (556,427 )      (4,788,982 )      (823 )      —        346,372       (4,443,433 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net operating income(expense)

      3,316,959       147,459       168,209       (67,042 )      1,450,464       5,016,049       93,053       (353 )      (1,609,720 )      3,499,029  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Share of gain of associates

      88,788       —        395       236       3,373       92,792       (143 )      —        17,182       109,831  

Other non-operating expense

      (76,312 )      (4,163 )      (2,106 )      (990 )      (972 )      (84,543 )      3,153       353       (10,370 )      (91,407 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating income(expense)

      12,476       (4,163 )      (1,711 )      (754 )      2,401       8,249       3,010       353       6,812       18,424  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income(expense) before tax

      3,329,435       143,296       166,498       (67,796 )      1,452,865       5,024,298       96,063       —        (1,602,908 )      3,517,453  

Tax expense

      (814,354 )      (31,232 )      (38,662 )      14,423       (31,833 )      (901,658 )      —        —        11,099       (890,559 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income(loss)

      2,515,081       112,064       127,836       (53,373 )      1,421,032       4,122,640       96,063       —        (1,591,809 )      2,626,894  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

      458,017,067       17,491,193       12,417,338       6,375,625       29,725,013       524,026,236       2,846,897       —        (28,868,197 )      498,004,936  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment in associate

      1,029,697       —        34,613       4,783       23,882,409       24,951,502       26,302       —        (23,182,434 )      1,795,370  

Other assets

      456,987,370       17,491,193       12,382,725       6,370,842       5,842,604       499,074,734       2,820,595       —        (5,685,763 )      496,209,566  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      431,313,615       14,830,408       10,796,683       5,273,890       4,424,086       466,638,682       118,442       —        (2,149,678 )      464,607,446  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*1)

Other segments includes gains and losses from Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute and Woori Venture Partners Co., Ltd.

(*2)

Other segments includes the funds subject to Group’s consolidation not included in the reporting segment.

(*3)

Internal reconciliation includes the adjustment of deposit insurance premiums of 464,213 million Won and fund contribution fees of 453,805 million Won from net interest income expenses to non-interest income expenses in order to present the profit and loss adjustment between reporting divisions in accordance with management accounting standards as profit and loss in accordance with accounting standards

(*4)

Consolidation adjustments include the elimination of 343,810 million Won of internal transactions between Woori FIS Co., Ltd., the group’s IT service agency, and affiliates, and the removal of 1,482,956 million Won of dividends received by the holding company from its subsidiaries.

 

- 74 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Operating profit or loss from external customers for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
Details    2024      2023  

Domestic

      3,767,897        3,055,926  

Foreign

      487,293        443,103  
  

 

 

     

 

 

  

Total

      4,255,190        3,499,029  
  

 

 

     

 

 

  

 

(4)

Major non-current assets as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

Details (*)    December 31, 2024      December 31, 2023  

Domestic

      6,068,817        5,804,919  

Foreign

      592,768        636,820  
  

 

 

     

 

 

  

Total

      6,661,585        6,441,739  
  

 

 

     

 

 

  

 

(*)

Major non-current assets included joint ventures and related business investments, investment properties, premises and equipment, and intangible assets.

 

(5)

Information about major customers

The Group does not have any single customer that generates 10% or more of the Group’s total revenue for the years ended December 31, 2024 and 2023.

 

- 75 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

6.

STATEMENTS OF CASH FLOWS

 

(1)

Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Cash

      1,661,517        1,464,606  

Foreign currencies

      812,026        715,495  

Demand deposits

      24,634,075        28,248,420  

Fixed deposits

      173,505        128,097  
  

 

 

     

 

 

  

Total

      27,281,123        30,556,618  
  

 

 

     

 

 

  

 

(2)

Details of restricted cash and cash equivalents are as follows (Unit: Korean Won in millions)

 

     Counterparty      December 31, 2024      Reason of restriction  

Due from banks in local currency:

         

Due from BOK

      BOK        9,712,194       

 Reserve deposits

under the BOK Act

  

 

     

 

 

     

Due from banks in foreign currencies:

 

   

Due from banks on demand

      BOK and others        2,954,868        Reserve deposits, etc.  
     

 

 

     

Total

 

      12,667,062     
     

 

 

     

 

     Counterparty      December 31, 2023      Reason of restriction  

Due from banks in local currency:

         

Due from BOK

      BOK        13,420,310       

 Reserve deposits

under the BOK Act

  

 

     

 

 

     

Due from banks in foreign currencies:

 

   

Due from banks on demand

     
 Bank of Japan and
others		  
 		      957,627        Reserve deposits, etc.  
     

 

 

     

Total

 

      14,377,937     
     

 

 

     

 

(3)

Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Changes in other comprehensive income related to valuation of financial assets at FVTOCI

      34,058        725,525  

Changes in other comprehensive income related to valuation of assets of associate

      (5,367 )       2,965  

Changes in other comprehensive income related to valuation profit or loss on cash flow hedge

      6,591        (16,524 ) 

Changes in financial assets measure at FVTOCI due to debt-for-equity swap

      18,536        206  

Changes in the premises and equipment due to the transfer of assets held-for-sale

      (38,423 )       (2,504 ) 

Transfer of investment properties to premises and equipment

      (42,344 )       2,098  

Changes in account payables related to intangible assets

      24,134        11,121  

Changes in right-of-use assets and lease liabilities

      427,926        219,531  

Changes in other comprehensive income related to foreign operation translation

      522,845        45,080  

 

- 76 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Adjustments of liabilities from financing activities in current and prior year are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning
balance		      Cash flow     Not involving cash inflows and outflows      Ending
balance		  
    Foreign
Exchange		      Variation of
gain(loss) on
valuation of
hedged items		      Business
Combination		      Others (*)  

Borrowings

      30,986,746        (3,011,120 )      2,113,979        —         —         27,426        30,117,031  

Debentures

      41,239,245        5,594,220       870,846        39,102        —         463,690        48,207,103  

Lease liabilities

      334,456        (238,770 )      13,555        —         —         417,849        527,090  

Other liabilities

      28,147        (17,690 )      —         —         —         16,169        26,626  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      72,588,594        2,326,640       2,998,380        39,102        —         925,134        78,877,850  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

The change in lease liabilities due to the new contract includes 366,340 million Won.

 

     For the year ended December 31, 2023  
     Beginning
balance		      Cash flow     Not involving cash inflows and outflows      Ending
balance		  
    Foreign
Exchange		      Variation of
gain(loss) on
valuation of
hedged items		      Business
Combination		      Others (*)  

Borrowings

      28,429,603        2,332,376       191,250        —         —         33,517        30,986,746  

Debentures

      44,198,486        (3,227,650 )      82,210        63,615        —         122,584        41,239,245  

Lease liabilities

      319,161        (160,673 )      1,130        —         —         174,838        334,456  

Other liabilities

      27,384        118       —         —         4        641        28,147  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      72,974,634        (1,055,829 )      274,590        63,615        4        331,580        72,588,594  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

The change in lease liabilities due to the new contract includes 210,810 million Won.

 

- 77 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

7.

FINANCIAL ASSETS AT FVTPL

 

(1)

Details of financial assets at FVTPL as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Financial assets at fair value through profit or loss measured at fair value

      25,202,672        21,544,756  

 

(2)

Financial assets at fair value through profit or loss measured at fair value as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Deposits:

      

Gold banking asset

      73,951        39,241  

Securities:

      

Debt securities

      

Korean treasury and government agencies

      5,053,592        4,310,612  

Financial institutions

      1,193,809        778,832  

Corporates

      348,929        433,488  

Securities loaned

      12,361        625,398  

Others

      192,597        158,908  

Equity securities

      421,313        421,989  

Capital contributions

      2,857,698        2,459,646  

Beneficiary certificates

      4,563,102        5,509,915  

Others

      236,595        181,691  
  

 

 

     

 

 

  

Sub-total

      14,879,996        14,880,479  
  

 

 

     

 

 

  

Loans

      104,177        782,716  

Derivatives assets

      10,094,532        5,798,329  

Other financial assets

      50,016        43,991  
  

 

 

     

 

 

  

Total

      25,202,672        21,544,756  
  

 

 

     

 

 

  

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of December 31, 2024 and 2023.

 

- 78 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

8.

FINANCIAL ASSETS AT FVTOCI

 

(1)

Details of financial assets at FVTOCI as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Debt securities:

      

Korean treasury and government agencies

      7,787,052        5,728,241  

Financial institutions

      25,339,937        20,885,924  

Corporates

      3,032,609        3,994,432  

Bond denominated in foreign currencies

      6,763,073        5,493,295  

Securities loaned

      —         592,219  
  

 

 

     

 

 

  

Sub-total

      42,922,671        36,694,111  
  

 

 

     

 

 

  

Equity securities

      875,074        1,197,384  
  

 

 

     

 

 

  

Total

      43,797,745        37,891,495  
  

 

 

     

 

 

  

 

(2)

Details of equity securities designated as financial assets at FVTOCI as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

Purpose of acquisition

    December 31,
2024		      December 31,
2023		      Remarks  

Investment for strategic business partnership purpose

      766,900        1,039,203     

Debt-equity swap

      108,168        158,175     

Others

      6        6       
 Insurance for mutual aid
association, etc.		  
 
  

 

 

     

 

 

     

Total

      875,074        1,197,384     
  

 

 

     

 

 

     

 

(3)

Changes in the loss allowance and gross carrying amount of financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

 

  1)

Allowance for credit losses

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (27,379 )       —         —         (27,379 ) 

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Net provision of loss allowance

      (8,868 )       —         —         (8,868 ) 

Disposal

      6,788        —         —         6,788  

Others (*)

      375        —         —         375  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (29,084 )       —         —         (29,084 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Others consist of foreign currencies translation, etc.

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (11,805 )       —         —         (11,805 ) 

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Net provision of loss allowance

      (16,542 )       —         —         (16,542 ) 

Disposal

      1,519        —         —         1,519  

Others (*)

      (551 )       —         —         (551 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (27,379 )       —         —         (27,379 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Others consist of foreign currencies translation, etc.

 

- 79 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  2)

Gross carrying amount

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      36,694,111        —         —         36,694,111  

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Acquisition

      31,921,268        —         —         31,921,268  

Disposal / Recovery

      (26,868,486 )       —         —         (26,868,486 ) 

Gain on valuation

      224,898        —         —         224,898  

Amortization based on effective interest method

      134,553        —         —         134,553  

Others (*)

      816,327        —         —         816,327  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      42,922,671        —         —         42,922,671  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Others consist of foreign currencies translation, etc.

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      32,145,758        —         —         32,145,758  

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Acquisition

      24,350,759        —         —         24,350,759  

Disposal / Recovery

      (20,823,293 )       —         —         (20,823,293 ) 

Gain on valuation

      707,739        —         —         707,739  

Amortization based on effective interest method

      166,401        —         —         166,401  

Others (*)

      146,747        —         —         146,747  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      36,694,111        —         —         36,694,111  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Others consist of foreign currencies translation, etc.

 

(4)

During the years ended December 31, 2024 and 2023, the Group sold its equity securities., designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 155,868 million Won and 3,194 million Won, respectively and cumulative gains and losses at disposal dates were 72,975 million Won in gain and 118 million Won in gain, respectively.

 

- 80 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

9.

SECURITIES AT AMORTIZED COST

 

(1)

Details of securities at amortized cost as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Korean treasury and government agencies

      7,646,463        8,143,585  

Financial institutions

      4,004,011        6,660,465  

Corporates

      5,997,996        7,235,202  

Bond denominated in foreign currencies

      1,555,470        1,970,861  

Others

      10,000        —   

Allowance for credit losses

      (10,763 )       (13,941 ) 
  

 

 

     

 

 

  

Total

      19,203,177        23,996,172  
  

 

 

     

 

 

  

 

(2)

Changes in the loss allowance and gross carrying amount of securities at amortized cost are as follows (Unit: Korean Won in millions):

 

  1)

Loss allowance

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (13,941 )       —         —         (13,941 ) 

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Net reversal of loss allowance

      3,287        —         —         3,287  

Others (*)

      (109 )       —         —         (109 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (10,763 )       —         —         (10,763 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (8,385 )       —         —         (8,385 ) 

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Net provision of loss allowance

      (5,549 )       —         —         (5,549 ) 

Others (*)

      (7 )       —         —         (7 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (13,941 )       —         —         (13,941 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

- 81 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  2)

Gross carrying amount

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      24,010,113        —         —         24,010,113  

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Acquisition

      2,586,171        —         —         2,586,171  

Disposal / Recovery

      (7,634,677 )       —         —         (7,634,677 ) 

Amortization based on effective interest method

      93,318        —         —         93,318  

Changes due to business combinations

      10,000              10,000  

Others (*)

      149,015        —         —         149,015  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      19,213,940        —         —         19,213,940  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      28,276,901        —         —         28,276,901  

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Acquisition

      4,244,256        —         —         4,244,256  

Disposal / Recovery

      (8,727,124 )       —         —         (8,727,124 ) 

Amortization based on effective interest method

      167,219        —         —         167,219  

Others (*)

      48,861        —         —         48,861  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      24,010,113        —         —         24,010,113  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

- 82 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

 

(1)

Details of loans and other financial assets at amortized cost as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Due from banks

      2,630,604        1,950,573  

Loans

      386,069,294        358,577,179  

Other financial assets

      9,771,918        12,620,396  
  

 

 

     

 

 

  

Total

      398,471,816        373,148,148  
  

 

 

     

 

 

  

 

(2)

Details of due from banks are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Due from banks in local currency:

      

Due from depository banks

      200,366        108,344  

Due from non-depository institutions

      152        136  

Due from the Korea Exchange

      239,222        68  

Others

      72,314        135,390  

Loss allowance

      (4 )       (59 ) 
  

 

 

     

 

 

  

Sub-total

      512,050        243,879  
  

 

 

     

 

 

  

Due from banks in foreign currencies:

      

Due from banks on demand

      177,886        221,292  

Due from banks on time

      193,654        366,117  

Others

      1,753,337        1,135,072  

Loss allowance

      (6,323 )       (15,787 ) 
  

 

 

     

 

 

  

Sub-total

      2,118,554        1,706,694  
  

 

 

     

 

 

  

Total

      2,630,604        1,950,573  
  

 

 

     

 

 

  

 

(3)

Details of restricted due from banks are as follows (Unit: Korean Won in millions):

 

    

Counterparty

    December 31, 2024     

Reason of restriction

Due from banks in local currency:

         

Others

    Korea Federation of Savings Bank and others      77,835      Reserve deposits

Securities trading

   

Korea Securities Finance Corporation

      238,445      Customer deposit refund reserve and futures trading margin and others
     

 

 

     
  

Sub-total

      316,280     
     

 

 

     

Due from banks in foreign currencies:

      

Due from banks on demand

   

National Bank of Cambodia and others

      169,064     

Reserve deposits and others

Due from banks on time

   

National Bank of Cambodia

      284     

Usage deposits for fund settlement system and others

Others

   

BNP-PARIBAS, PAR and others

      1,093,853     

CSA collateral and others

     

 

 

     
  

Sub-total

      1,263,201     
     

 

 

     
  

Total

      1,579,481     
     

 

 

     

 

- 83 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

    

Counterparty

    December 31, 2023     

Reason of restriction

Due from banks in local currency:

         

Due from KSFC

   

KB Securities Co., Ltd. and SI SECURITIES CORPORATION

      68     

Futures margin

Others

   

Korea Federation of Savings Bank and others

      129,974     

Domestic currency exchange and collateral related to promissory notes and others

     

 

 

     

Sub-total

         130,042     
     

 

 

     

Due from banks in foreign currencies:

      

Due from banks on demand

   

National Bank of Cambodia and others

      216,147     

Reserve deposits and others

Due from banks on time

   

National Bank of Cambodia

      321     

Usage deposits for fund settlement system

Others

   

People’s Bank of China and others

      1,062,130     

Reserve deposits and others

     

 

 

     

Sub-total

         1,278,598     
     

 

 

     

Total

         1,408,640     
     

 

 

     

 

(4)

Changes in the loss allowance and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

 

  1)

Allowance for credit losses

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (15,846 )       —         —         (15,846 ) 

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Reversal for allowance for credit loss

      9,874        —         —         9,874  

Others (*)

      (355 )       —         —         (355 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (6,327 )       —         —         (6,327 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (12,317 )       —         —         (12,317 ) 

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Provision for allowance for credit loss

      (5,254 )       —         —         (5,254 ) 

Others (*)

      1,725        —         —         1,725  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (15,846 )       —         —         (15,846 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

- 84 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  2)

Gross carrying amount

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      1,966,419        —         —         1,966,419  

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Net decrease

      390,154        —         —         390,154  

Changes due to business combinations

      165,476        —         —         165,476  

Others (*)

      114,882        —         —         114,882  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      2,636,931        —         —         2,636,931  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      3,006,989        —         —         3,006,989  

Transfer to 12-month expected credit losses

      —         —         —         —   

Transfer to lifetime expected credit losses

      —         —         —         —   

Transfer to credit-impaired financial assets

      —         —         —         —   

Net decrease

      (1,154,265 )       —         —         (1,154,265 ) 

Changes due to business combinations

      113,000        —         —         113,000  

Others (*)

      695        —         —         695  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      1,966,419        —         —         1,966,419  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Changes due to foreign currencies translation, etc.

 

(5)

Details of loans are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Loans in local currency

      315,597,374        298,157,823  

Loans in foreign currencies

      33,166,984        28,585,389  

Domestic banker’s usance

      2,803,761        2,726,633  

Credit card accounts

      12,488,523        12,531,620  

Bills bought in foreign currencies

      4,328,404        4,215,956  

Bills bought in local currency

      224,835        496,148  

Factoring receivables

      5,994        8,712  

Advances for customers on guarantees

      9,814        9,996  

Private placement bonds

      444,900        688,437  

Securitized loans

      3,300,876        3,203,135  

Call loans

      1,847,376        2,719,546  

Bonds purchased under resale agreements

      10,551,018        3,356,392  

Financial lease receivables

      1,106,912        1,362,279  

Installment financial bond

      2,620,534        2,635,720  

Others

      —         119  

Loan origination costs and fees

      938,886        865,694  

Discounted present value

      (9,272 )       (11,360 ) 

Allowance for credit losses

      (3,357,625 )       (2,975,060 ) 
  

 

 

     

 

 

  

Total

      386,069,294        358,577,179  
  

 

 

     

 

 

  

 

- 85 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(6)

Changes in the loss allowance of loans are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model
  

Beginning balance

      (196,845 )      (134,002 )      (220,845 )      (947,688 )      (762,644 )      (363,703 )      (89 ) 

Transfer to 12-month expected credit losses

      (27,467 )      25,983       1,484       (76,352 )      75,186       1,166       —   

Transfer to lifetime expected credit losses

      14,659       (17,333 )      2,674       60,633       (63,280 )      2,647       —   

Transfer to credit-impaired financial assets

      7,714       18,054       (25,768 )      128,228       162,162       (290,390 )      —   

Net provision of allowance for credit losses

      (28,741 )      (43,686 )      (378,285 )      (107,916 )      (121,901 )      (582,211 )      (7,663 ) 

Recovery

      —        —        (61,554 )      —        —        (36,318 )      —   

Charge-off

      —        —        262,651       —        —        329,506       622  

Disposal

      1,442       2,032       75,603       23       6,675       297,533       837  

Interest income from impaired loans

      —        —        14,629       —        —        30,185       —   

Others

      908       637       49,286       (28,427 )      4,156       (14,336 )      (1,002 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      (228,330 )      (148,315 )      (280,125 )      (971,499 )      (699,646 )      (625,921 )      (7,295 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the year ended December 31, 2024  
     Credit card accounts     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      (97,734 )      (118,112 )      (133,398 )      (1,242,267 )      (1,014,758 )      (717,946 )      (89 ) 

Transfer to 12-month expected credit losses

      (30,968 )      30,740       228       (134,787 )      131,909       2,878       —   

Transfer to lifetime expected credit losses

      8,951       (9,609 )      658       84,243       (90,222 )      5,979       —   

Transfer to credit-impaired financial assets

      1,196       2,400       (3,596 )      137,138       182,616       (319,754 )      —   

Net provision of allowance for credit losses

      (4,742 )      (20,449 )      (379,984 )      (141,399 )      (186,036 )      (1,340,480 )      (7,663 ) 

Recovery

      —        —        (24,021 )      —        —        (121,893 )      —   

Charge-off

      —        —        290,321       —        —        882,478       622  

Disposal

      —        —        91,625       1,465       8,707       464,761       837  

Interest income from impaired loans

      —        —        —        —        —        44,814       —   

Others

      —        —        —        (27,519 )      4,793       34,950       (1,002 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      (123,297 )      (115,030 )      (158,167 )      (1,323,126 )      (962,991 )      (1,064,213 )      (7,295 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- 86 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      (147,876 )      (128,089 )      (241,942 )      (453,621 )      (818,234 )      (241,465 )      (27 ) 

Transfer to 12-month expected credit losses

      (25,553 )      22,750       2,803       (190,665 )      190,047       618       —   

Transfer to lifetime expected credit losses

      10,881       (12,892 )      2,011       28,452       (36,229 )      7,777       —   

Transfer to credit-impaired financial assets

      7,085       24,577       (31,662 )      17,959       33,272       (51,231 )      —   

Net provision of allowance for credit losses

      (41,029 )      (41,105 )      (340,607 )      (361,735 )      (153,392 )      (515,711 )      (1,011 ) 

Recovery

      —        —        (65,639 )      —        —        (44,043 )      —   

Charge-off

      —        —        301,995       —        —        298,665       —   

Disposal

      18       419       114,643       266       512       172,519       949  

Interest income from impaired loans

      —        —        15,553       —        —        19,341       —   

Others

      (371 )      338       22,000       11,656       21,380       (10,173 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      (196,845 )      (134,002 )      (220,845 )      (947,688 )      (762,644 )      (363,703 )      (89 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the year ended December 31, 2023  
     Credit card accounts     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      (71,139 )      (127,814 )      (103,946 )      (672,636 )      (1,074,137 )      (587,353 )      (27 ) 

Transfer to 12-month expected credit losses

      (30,312 )      30,198       114       (246,530 )      242,995       3,535       —   

Transfer to lifetime expected credit losses

      6,894       (7,420 )      526       46,227       (56,541 )      10,314       —   

Transfer to credit-impaired financial assets

      748       2,381       (3,129 )      25,792       60,230       (86,022 )      —   

Net provision of allowance for credit losses

      (3,864 )      (15,457 )      (338,618 )      (406,628 )      (209,954 )      (1,194,936 )      (1,011 ) 

Recovery

      —        —        (33,710 )      —        —        (143,392 )      —   

Charge-off

      —        —        306,005       —        —        906,665       —   

Disposal

      —        —        39,360       284       931       326,522       949  

Interest income from impaired loans

      —        —        —        —        —        34,894       —   

Others

      (61 )      —        —        11,224       21,718       11,827       —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      (97,734 )      (118,112 )      (133,398 )      (1,242,267 )      (1,014,758 )      (717,946 )      (89 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- 87 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(7)

Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      132,812,981       14,714,396       642,086       188,612,028       10,621,387       856,844       768,487  

Transfer to 12-month expected credit losses

      4,575,673       (4,560,653 )      (15,020 )      2,276,379       (2,273,396 )      (2,983 )      —   

Transfer to lifetime expected credit losses

      (6,411,510 )      6,439,154       (27,644 )      (5,689,553 )      5,698,302       (8,749 )      —   

Transfer to credit-impaired financial assets

      (301,556 )      (236,753 )      538,309       (904,171 )      (752,177 )      1,656,348       —   

Charge-off

      —        —        (262,651 )      —        —        (329,506 )      (622 ) 

Disposal

      (43,168 )      (45,410 )      (329,255 )      (134 )      (72,244 )      (951,160 )      (351,530 ) 

Net increase(decrease)

      10,371,126       (1,246,832 )      236,043       21,730,474       (1,796,231 )      271,022       730,812  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      141,003,546       15,063,902       781,868       206,025,023       11,425,641       1,491,816       1,147,147  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the year ended December 31, 2024  
     Credit card accounts     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      11,287,068       983,611       253,351       332,712,077       26,319,394       1,752,281       768,487  

Transfer to 12-month expected credit losses

      336,985       (336,651 )      (334 )      7,189,037       (7,170,700 )      (18,337 )      —   

Transfer to lifetime expected credit losses

      (539,512 )      540,471       (959 )      (12,640,575 )      12,677,927       (37,352 )      —   

Transfer to credit-impaired financial assets

      (57,937 )      (21,408 )      79,345       (1,263,664 )      (1,010,338 )      2,274,002       —   

Charge-off

      —        —        (290,321 )      —        —        (882,478 )      (622 ) 

Disposal

      —        —        (147,812 )      (43,302 )      (117,654 )      (1,428,227 )      (351,530 ) 

Net increase(decrease)

      145,281       (129,905 )      386,703       32,246,881       (3,172,968 )      893,768       730,812  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      11,171,885       1,036,118       279,973       358,200,454       27,525,661       2,553,657       1,147,147  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- 88 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Consumers     Corporates  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      131,328,377       14,020,582       564,057       179,552,435       9,486,297       625,998       313,717  

Transfer to 12-month expected credit losses

      4,038,074       (4,024,039 )      (14,035 )      2,214,045       (2,209,035 )      (5,010 )      —   

Transfer to lifetime expected credit losses

      (6,406,254 )      6,422,979       (16,725 )      (4,944,087 )      4,971,596       (27,509 )      —   

Transfer to credit-impaired financial assets

      (263,965 )      (173,536 )      437,501       (582,131 )      (242,382 )      824,513       —   

Charge-off

      —        —        (301,995 )      —        —        (298,665 )      —   

Disposal

      (63 )      (491 )      (218,965 )      (18,149 )      (719 )      (404,876 )      (152,024 ) 

Net increase(decrease)

      4,115,668       (1,531,099 )      192,248       12,389,915       (1,384,370 )      142,393       606,794  

Changes due to business combinations

      1,144       —        —        —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      132,812,981       14,714,396       642,086       188,612,028       10,621,387       856,844       768,487  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the year ended December 31, 2023  
     Credit card accounts     Total  
     Stage 1     Stage 2     Stage 3     Stage 1     Stage 2     Stage 3     Credit
impairment
model		  

Beginning balance

      9,115,460       1,066,380       179,410       319,996,272       24,573,259       1,369,465       313,717  

Transfer to 12-month expected credit losses

      343,929       (343,765 )      (164 )      6,596,048       (6,576,839 )      (19,209 )      —   

Transfer to lifetime expected credit losses

      (411,467 )      412,222       (755 )      (11,761,808 )      11,806,797       (44,989 )      —   

Transfer to credit-impaired financial assets

      (40,236 )      (20,039 )      60,275       (886,332 )      (435,957 )      1,322,289       —   

Charge-off

      —        —        (306,005 )      —        —        (906,665 )      —   

Disposal

      —        —        (73,107 )      (18,212 )      (1,210 )      (696,948 )      (152,024 ) 

Net increase(decrease)

      2,279,382       (131,187 )      393,697       18,784,965       (3,046,656 )      728,338       606,794  

Changes due to business combinations

      —        —        —        1,144       —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      11,287,068       983,611       253,351       332,712,077       26,319,394       1,752,281       768,487  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- 89 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(8)

Details of other financial assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Cash Management Account asset (CMA asset)

      120,000        91,000  

Receivables

      6,411,884        9,061,936  

Accrued income

      1,779,310        1,972,330  

Telex and telephone subscription rights and refundable deposits

      778,986        793,510  

Domestic exchange settlement debit

      441,992        446,570  

Other assets

      452,760        411,330  

Allowance for credit losses

      (213,014 )       (156,280 ) 
  

 

 

     

 

 

  

Total

      9,771,918        12,620,396  
  

 

 

     

 

 

  

 

(9)

Changes in the allowances for credit losses on other financial assets are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (9,019 )       (17,062 )       (130,199 )       (156,280 ) 

Transfer to 12-month expected credit losses

      (557 )       493        64        —   

Transfer to lifetime expected credit losses

      372        (429 )       57        —   

Transfer to credit-impaired financial assets

      1,202        5,355        (6,557 )       —   

Provision of loss allowance

      (7,662 )       (10,372 )       (31,336 )       (49,370 ) 

Charge-off

      1,224        —         5,275        6,499  

Disposal

      —         4        2,538        2,542  

Others

      (6,494 )       (9 )       (9,902 )       (16,405 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (20,934 )       (22,020 )       (170,060 )       (213,014 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (4,178 )       (9,133 )       (125,869 )       (139,180 ) 

Transfer to 12-month expected credit losses

      (388 )       285        103        —   

Transfer to lifetime expected credit losses

      223        (246 )       23        —   

Transfer to credit-impaired financial assets

      50        266        (316 )       —   

Provision of loss allowance

      (3,141 )       (8,235 )       (10,829 )       (22,205 ) 

Charge-off

      —         —         4,341        4,341  

Disposal

      —         —         2,597        2,597  

Others

      (1,585 )       1        (249 )       (1,833 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (9,019 )       (17,062 )       (130,199 )       (156,280 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

- 90 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(10)

Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      12,510,625        111,898        154,153        12,776,676  

Transfer to 12-month expected credit losses

      22,084        (19,273 )       (2,811 )       —   

Transfer to lifetime expected credit losses

      (38,819 )       38,881        (62 )       —   

Transfer to credit-impaired financial assets

      (12,265 )       (15,695 )       27,960        —   

Charge-off

      (1,224 )       —         (5,275 )       (6,499 ) 

Disposal

      —         (7 )       (3,034 )       (3,041 ) 

Net increase (decrease)

      (3,048,051 )       (16,550 )       279,298        (2,785,303 ) 

Changes due to business combinations

      3,099        —         —         3,099  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      9,435,449        99,254        450,229        9,984,932  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      8,886,721        21,454        78,502        8,986,677  

Transfer to 12-month expected credit losses

      14,252        (14,143 )       (109 )       —   

Transfer to lifetime expected credit losses

      (30,528 )       30,559        (31 )       —   

Transfer to credit-impaired financial assets

      (7,299 )       (1,498 )       8,797        —   

Charge-off

      —         —         (4,341 )       (4,341 ) 

Disposal

      —         —         (3,318 )       (3,318 ) 

Net increase (decrease)

      3,634,239        75,526        74,653        3,784,418  

Changes due to business combinations

      13,240        —         —         13,240  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      12,510,625        111,898        154,153        12,776,676  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

- 91 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

11.

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

 

(1)

The fair value hierarchy

The fair value hierarchy for financial instruments is determined by the amount of observable market data. The specific financial instruments characteristics and market condition such as the existence of the transactions among market participants and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Group maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Group’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

 

  •  

Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

 

  •  

Level 2 - fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

 

  •  

Level 3 - fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

 

- 92 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Level 1 (*)      Level 2 (*)      Level 3      Total  

Financial assets:

            

Financial assets at FVTPL

            

Deposits

      73,951        —         —         73,951  

Debt securities

      4,304,048        2,489,883        7,357        6,801,288  

Equity securities

      22,414        —         398,899        421,313  

Capital contributions

      —         4,185        2,853,513        2,857,698  

Beneficiary certificates

      156,898        2,301,044        2,105,160        4,563,102  

Loans

      —         69,401        34,776        104,177  

Derivative assets

      —         10,093,344        1,188        10,094,532  

Other financial assets in foreign currency

      —         —         48,345        48,345  

Others

      —         —         238,266        238,266  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      4,557,311        14,957,857        5,687,504        25,202,672  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial assets at FVTOCI

            

Debt securities

      14,117,592        28,805,079        —         42,922,671  

Equity securities

      315,640        —         559,434        875,074  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      14,433,232        28,805,079        559,434        43,797,745  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative assets (designated for hedging)

      —         175,191        —         175,191  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      18,990,543        43,938,127        6,246,938        69,175,608  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial liabilities:

            

Financial liabilities at FVTPL

            

Deposits due to customers

      74,205        —         —         74,205  

Derivative liabilities

      —         9,090,696        1,402        9,092,098  

Securities sold

      182,478        —         —         182,478  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      256,683        9,090,696        1,402        9,348,781  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial instruments designated to be measured at FVTPL

            

Deposits due to customers

      —         547,816        —         547,816  

Derivative liabilities (designated for hedging)

      —         102,815        —         102,815  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      256,683        9,741,327        1,402        9,999,412  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

 

- 93 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Level 1 (*)      Level 2 (*)      Level 3      Total  

Financial assets:

            

Financial assets at FVTPL

            

Deposits

      39,241        —         —         39,241  

Debt securities

      4,414,956        1,888,052        4,230        6,307,238  

Equity securities

      68,691        19        353,279        421,989  

Capital contributions

      —         —         2,459,646        2,459,646  

Beneficiary certificates

      169,012        3,634,938        1,705,965        5,509,915  

Loans

      —         726,714        56,002        782,716  

Derivative assets

      113        5,669,078        129,138        5,798,329  

Other financial assets in foreign currency

      —         —         42,408        42,408  

Others

      —         —         183,274        183,274  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      4,692,013        11,918,801        4,933,942        21,544,756  
  

 

 

     

 

 

     

 

 

     

 

 

  

Financial assets at FVTOCI

            

Debt securities

      12,392,117        24,301,994        —         36,694,111  

Equity securities

      649,220        —         548,164        1,197,384  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      13,041,337        24,301,994        548,164        37,891,495  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative assets (designated for hedging)

      —         26,708        —         26,708  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      17,733,350        36,247,503        5,482,106        59,462,959  
  

 

 

     

 

 

     

 

 

     

 

 

  
           

Financial liabilities:

            

Financial liabilities at FVTPL

            

Deposits due to customers

      39,524        —         —         39,524  

Derivative liabilities

      8,303        5,932,727        1,994        5,943,024  

Securities sold

      155,765        —         —         155,765  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      203,592        5,932,727        1,994        6,138,313  
  

 

 

     

 

 

     

 

 

     

 

 

  

Derivative liabilities (designated for hedging)

      —         153,007        —         153,007  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      203,592        6,085,734        1,994        6,291,320  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

There were no transfers between Level 2 and Level 1 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

 

- 94 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Financial assets and liabilities at FVTPL, financial liabilities at FVTPL designated as upon initial recognition, financial assets at FVTOCI, and derivative assets and liabilities are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Group determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows:

 

  1)

Valuation methods and input variables for each type of financial instrument classified into level 2 as of December 31, 2024 and 2023 are as follows:

 

    

Valuation methods

   

Input variables

Debt securities   

Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread or applying the market interest rate applied to entities with similar creditworthiness to the issuer of debt securities.

    Risk-free market rate, credit spread
Equity securities and beneficiary certificates   

Fair value is measured by using the net asset value method, FCFE(Free Cash Flow to Equity Mode), Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, LSMC(Least-Squares Monte Carlo), and Hull-White model.

   

Values of underlying assets such as bond, risk-free market rate, market risk premium, corporate Beta, discount rate originated from credit grade, volatility of stocks , volatility of interest rate

Derivatives   

Fair value is measured by models such as option model.

    Discount rate, volatility, exchange rate, stock prices, fair value originated from forward price etc.
Loans   

The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor.

    Risk-free market rate and credit spread
Deposits due to customers    Fair value is measured by Hull-White model.    Swaption Volume etc.

 

  2)

Valuation methods and input variables for each type of financial instrument classified into level 3 as of December 31, 2024 and 2023 are as follows:

 

    

Valuation methods

   

Input variables

Loans   

Fair value is measured by using the DCF model (Discounted Cash Flow Model) and risk-adjusted discount rate method (Tsiveriotis-Fernandes).

   

Discount rate, volatility of stock, risk-free market rate, credit spread

Stocks, capital contributions and beneficiary certificates

   

Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, LSMC, Binomial Tree Model, Hull-White and Precedent Transactions model, one or more methods are used given the characteristic of the subject of fair value measurement.

   

Risk-free market rate, market risk premium, corporate Beta, stock prices, volatility of underlying asset, discount rate originated from credit grade, volatility of interest rate, volatility of real estate value, terminal growth rate, PBR, PSR etc.

Derivatives   

Fair value is measured by models such as option model.

   

Correlation coefficient, stock price, volatility etc.

Others   

The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the binomial tree, which is commonly used valuation techniques in the market.

   

Stock price, volatility of underlying assets, etc.

 

- 95 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

 

              

December 31, 2024

     Fair value
measurement
technique		    Type   

Significant

unobservable inputs

    Range   

Impact of changes in significant
unobservable inputs on fair value
measurement

Debt securities

    LSMC(Hull-White)      

Volatility

    28.09%~88.35%   

Variation of fair value increases as volatility increases.

Loans

    DCF model      

Discount rate

    4.17%~5.98%   

Fair value increases as discount rate decreases.

Derivatives

    Option valuation
model and others		    Equity related   

Correlation coefficient

    0.29~0.65   

Variation of fair value increases as correlation coefficient increases.

        

Stock prices, Volatility of underlying asset

    25.71%   

Variation of fair value increases as volatility and stock price increases.

        

Discount rate

    3.94%~19.62%   

Fair value increases as discount rate decreases.

        

Terminal growth rate

    0.00%   

Fair value increases as terminal growth rate increases.

Stocks, capital contributions, and beneficiary certificates

    Binomial Tree      

Stock prices, Volatility of underlying asset

    18.76%~36.37%   

Variation of fair value increases as volatility of underlying asset and stock price increases.

   DCF model and
others		      

Discount rate

    4.76%~19.84%   

Fair value increases as discount rate decreases.

        

Terminal growth rate

    0.00%~1.00%   

Fair value increases as terminal growth rate increases.

        

Liquidation value

    -1.00%~1.00%   

Fair value increases as liquidation value increases.

   LMSC(Hull-White)      

Volatility of stock

    29.30%   

Variation of fair value increases as volatility increases.

        

Discount rate

    6.45%~15.56%   

Fair value increases as discount rate decreases.

Others

    Binomial Tree      

Stock prices, Volatility of underlying asset

    18.36%~36.90%   

Variation of fair value increases as volatility of underlying asset and stock price increases.

 

- 96 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

              

December 31, 2023

     Fair value
measurement
technique		    Type   

Significant

unobservable inputs

    Range(%)   

Impact of changes in significant
unobservable inputs on fair value
measurement

Loans

    DCF model and
others		      

Discount rate

    4.05%~6.58%   

Fair value increases as discount rate decreases.

   LSMC(Hull-White)      

Volatility of stock

    0.19%~0.24%   

Fair value increases as volatility of stock increases.

        

Volatility of interest rate

    0.47%~0.91%   

Fair value increases as volatility of interest rate increases.

        

Discount rate

    13.78%~21.92%   

Fair value increases as discount rate decreases.

Derivative assets

    Option valuation
model and others		    Equity related   

Correlation coefficient

    0.32~0.68   

Variation of fair value increases as correlation coefficient increases.

Derivative liabilities

    Option valuation
model and others		    Equity related   

Correlation coefficient

    0.32~0.68   

Variation of fair value increases as correlation coefficient increases.

Equity securities, capital contributions, and beneficiary certificates

    Binomial Tree      

Discount rate

    3.58%   

Fair value increases as discount rate decreases.

        

Stock prices, Volatility of underlying asset, Volatility of stocks

    27.34%~76.22%   

Variation of fair value increases as volatility of underlying asset and stock price increases.

   Risk-adjusted
discount rate
method
(Tsiveriotis-
Fernandes)		      

Discount rate

    6.98%   

Fair value increases as discount rate decreases.

        

Volatility of stock

    34.60%   

Variation of fair value increases as volatility of stock increases.

   DCF model and
others		      

Discount rate

    5.08%~19.90%   

Fair value increases as discount rate decreases.

        

Terminal growth rate

    0.00%, 1.00%   

Fair value increases as terminal growth rate increases.

        

Liquidation value

    -1.00%~1.00%   

Fair value increases as liquidation value increases.

   LSMC(Hull-White)      

Discount rate

    5.06%~6.86%   

Fair value increases as discount rate decreases.

Others

    Binomial Tree      

Stock prices, Volatility of underlying asset

    15.48%~76.22%   

Variation of fair value increases as volatility of underlying asset and stock price increases.

        

Discount rate

    10.42%   

Fair value increases as discount rate decreases.

        

Growth rate

    0.00%   

Fair value increases as terminal growth rate increases

Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

 

- 97 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Beginning
balance		      Net income
(loss) (*1)		     Other
comprehensive
income		      Purchases/
issuances		      Disposals /
settlements		     Transfer to
or out of
Level 3 (*2)		     Ending
balance		  

Financial assets:

                  

Financial assets at FVTPL

                  

Debt securities

      4,230        727       —         5,000        (2,600 )      —        7,357  

Equity securities

      353,279        (3,909 )      —         72,230        (24,648 )      1,947       398,899  

Capital contributions

      2,459,646        89,418       —         565,396        (254,369 )      (6,578 )      2,853,513  

Beneficiary certificates

      1,705,965        58,640       —         403,439        (62,632 )      (252 )      2,105,160  

Loans

      56,002        754       —         326,516        (348,496 )      —        34,776  

Derivative assets

      129,138        (1,169 )      —         327        (127,108 )      —        1,188  

Other foreign currency financial assets

      42,408        5,937       —         —         —        —        48,345  

Others

      183,274        13,336       —         58,813        (17,157 )      —        238,266  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Sub-total

      4,933,942        163,734       —         1,431,721        (837,010 )      (4,883 )      5,687,504  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Financial assets at FVTOCI

                  

Equity securities

      548,164        —        10,920        2,841        (5,954 )      3,463       559,434  

Loans

      —         —        —         202,916        (202,916 )      —        —   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Sub-total

      548,164        —        10,920        205,757        (208,870 )      3,463       559,434  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total

      5,482,106        163,734       10,920        1,637,478        (1,045,880 )      (1,420 )      6,246,938  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Financial liabilities:

                  

Financial liabilities at FVTPL

                  

Derivative liabilities

      1,994        1,115       —         —         (1,707 )      —        1,402  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total

      1,994        1,115       —         —         (1,707 )      —        1,402  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounts to 204,822 million Won for the year ended December 31, 2024, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)

The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

 

- 98 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Beginning
balance		      Business
combination		      Net income
(loss) (*1)		      Other
comprehensive
income		     Purchases/
issuances		      Disposals /
settlements		     Transfer to
or out of
Level 3 (*2)		     Ending
balance		  

Financial assets:

                     

Financial assets at FVTPL

                     

Debt securities

      1,078        —         152        —        4,000        (1,000 )      —        4,230  

Equity securities

      307,851        10,628        10,632        —        62,638        (32,630 )      (5,840 )      353,279  

Capital contributions

      1,976,474        10,977        65,437        —        655,921        (249,163 )      —        2,459,646  

Beneficiary certificates

      1,458,776        —         3,534        —        280,435        (36,780 )      —        1,705,965  

Loans

      104,505        —         483        —        577,296        (626,282 )      —        56,002  

Derivative assets

      93,970        —         41,620        —        2,273        (8,725 )      —        129,138  

Other foreign currency financial assets

      41,679        —         729        —        —         —        —        42,408  

Others

      144,840        —         9,015        —        32,214        (2,795 )      —        183,274  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Sub-total

      4,129,173        21,605        131,602        —        1,614,777        (957,375 )      (5,840 )      4,933,942  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Financial assets at FVTOCI

                     

Equity securities

      557,065        —         —         (6,564 )      343        (2,657 )      (23 )      548,164  

Loans

      —         —         —         —        139,567        (139,567 )      —        —   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Sub-total

      557,065        —         —         (6,564 )      139,910        (142,224 )      (23 )      548,164  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total

      4,686,238        21,605        131,602        (6,564 )      1,754,687        (1,099,599 )      (5,863 )      5,482,106  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Financial liabilities:

                     

Financial liabilities at FVTPL

                     

Derivative liabilities

      9,449        —         1,994        —        —         (9,449 )      —        1,994  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total

      9,449        —         1,994        —        —         (9,449 )      —        1,994  
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The gain amounts to 171,095 million Won for the year ended December 31, 2023, which is from financial assets and liabilities that the Group holds as at the end of the year.

(*2)

The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

 

- 99 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 6,248,340 million Won and 5,484,098 million Won as of December 31, 2024 and 2023, respectively, equity instruments of 5,655,401 million Won and 4,704,747 million Won whose carrying amount is considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

The sensitivity on fluctuation of input variables by financial instruments as of December 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Net income (loss)     Other comprehensive
income (loss)		  
     Favorable      Unfavorable     Favorable      Unfavorable  

Financial assets:

           

Financial assets at FVTPL

           

Derivative assets (*1)

      50        (51 )      —         —   

Loans (*2)

      155        (152 )      —         —   

Debt securities (*3)

      469        (435 )      —         —   

Equity securities (*2) (*4) (*5)

      19,824        (14,380 )      —         —   

Beneficiary certificates (*6)

      706        (705 )      —         —   

Others (*4) (*6)

      2,554        (2,402 )      —         —   

Financial assets at FVTOCI

           

Equity securities (*5)(*6)(*7)

      —         —        47,087        (32,879 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

      23,758        (18,125 )      47,087        (32,879 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Financial liabilities:

           

Financial liabilities at FVTPL

           

Derivative liabilities (*1)

      —         —        —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

      —         —        —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

(*1)

Fair value changes of equity related derivatives assets and liabilities are calculated by increasing or decreasing correlation or volatility, which are major unobservable variables, by 10% each, respectively.

(*2)

Fair value changes are calculated by increasing or decreasing growth rate (0%~1%) and discount rate or liquidation value (-1%~1%), which are major unobservable variables.

(*3)

Fair value changes are calculated by increasing or decreasing stock price volatility by 10%, which are major unobservable variables.

(*4)

Fair value changes of equity securities are calculated by increasing or decreasing stock price (-10%~10%) and volatility (-10%p~10%p), which are major unobservable variables.

(*5)

Fair value changes of equity securities are calculated by increasing or decreasing growth rate (-1%p~1%p) and discount rate (-1%p~1%p) or liquidation value (-1%p~1%p), which are major unobservable variables.

(*6)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates among equity securities is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which are underlying assets and discount rate by 1%p.

(*7)

Fair value changes of equity securities are calculated by increasing or decreasing correlation between growth rate and discount rate, which are unobservable variables.

 

- 100 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Net income (loss)     Other comprehensive
income (loss)		  
     Favorable      Unfavorable     Favorable      Unfavorable  

Financial assets:

           

Financial assets at FVTPL

           

Derivative assets (*1)

      88        (95 )      —         —   

Loans (*2)

      202        (199 )      —         —   

Debt securities(*3)

      21        (22 )      —         —   

Equity securities (*2) (*3)

      11,562        (8,953 )      —         —   

Beneficiary certificates (*4)

      722        (722 )      —         —   

Others (*2)

      4,098        (3,921 )      —         —   

Financial assets at FVTOCI

           

Equity securities (*3) (*4)

      —         —        28,020        (22,302 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

      16,693        (13,912 )      28,020        (22,302 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Financial liabilities:

           

Financial liabilities at FVTPL

           

Derivative liabilities (*1)

      10        (7 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

      10        (7 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

(*1)

Fair value changes of equity related derivatives assets and liabilities are calculated by increasing or decreasing correlation, which are major unobservable variables, by 10%, respectively.

(*2)

Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and volatility (-10%p~10%p). The stock prices and volatility are major unobservable variables.

(*3)

Fair value changes of equity securities are calculated by increasing or decreasing growth rate (-1%p~1%p) and discount rate (-1%p~1%p) or liquidation value (-1%p~1%p). The growth rate, discount rate, and liquidation value are major unobservable variables.

(*4)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.

 

- 101 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  (5)

Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Fair value      Carrying
amount		  
     Level 1      Level 2      Level 3      Total  

Financial assets:

               

Securities at amortized cost

      3,242,384        15,894,576        9,991        19,146,951        19,203,177  

Loans and other financial assets at amortized cost

      —         7,149,151        393,995,021        401,144,172        398,471,816  

Financial liabilities:

               

Deposits due to customers

      —         367,128,451        —         367,128,451        366,821,156  

Borrowings

      —         29,622,705        432,561        30,055,266        30,117,031  

Debentures

      —         48,273,103        —         48,273,103        48,207,103  

Other financial liabilities (*)

      —         30,201,229        809,007        31,010,236        31,786,960  

 

(*)

Lease liabilities are excluded as of December 31, 2024.

 

     December 31, 2023  
     Fair value      Carrying
amount		  
     Level 1      Level 2      Level 3      Total  

Financial assets:

               

Securities at amortized cost

      2,361,627        21,303,099        —         23,664,726        23,996,172  

Loans and other financial assets at amortized cost

      —         9,905,518        364,211,207        374,116,725        373,148,148  

Financial liabilities:

               

Deposits due to customers

      —         360,186,521        —         360,186,521        357,784,297  

Borrowings

      —         31,065,237        87,342        31,152,579        30,986,746  

Debentures

      —         40,504,019        —         40,504,019        41,239,245  

Other financial liabilities (*)

      —         24,584,447        609,620        25,194,067        25,780,550  

 

(*)

Lease liabilities are excluded as of December 31, 2023.

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Group determines the fair value by using valuation methods. Valuation methods and input variables for financial assets and liabilities that are measured at amortized cost are given as follows:

 

    

Valuation methods

   

Input variables

Securities at amortized cost

   

The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread.

   

Risk-free market rate and credit spread

Loans and other financial assets at amortized cost

   

The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.

   

Risk-free market rate, credit spread and prepayment rate

Deposits due to customers, borrowings, debentures and other financial liabilities

   

The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group.

   

Risk-free market rate and credit spread

 

- 102 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  (6)

Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
Financial assets    Financial
assets at
FVTPL		      Financial assets
at FVTOCI		      Financial assets
at amortized cost		      Derivatives
assets
(designated for
hedging)		      Total  

Deposits

      73,951        —         2,630,604        —         2,704,555  

Securities

      14,879,996        43,797,745        19,203,177        —         77,880,918  

Loans

      104,177        —         386,069,294        —         386,173,471  

Derivative assets

      10,094,532        —         —         175,191        10,269,723  

Other financial assets

      50,016        —         9,771,918        —         9,821,934  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      25,202,672        43,797,745        417,674,993        175,191        486,850,601  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2024  
Financial liabilities    Financial
liabilities at
FVTPL		      Financial liabilities
designated to be
measured at FVTPL		      Financial
liabilities at
amortized cost		      Derivatives
liabilities
(designated for
hedging)		      Total  

Deposits due to customers

      74,205        547,816        366,821,156        —         367,443,177  

Borrowings

      182,478        —         30,117,031        —         30,299,509  

Debentures

      —         —         48,207,103        —         48,207,103  

Derivative liabilities

      9,092,098        —         —         102,815        9,194,913  

Other financial liabilities (*)

      —         —         31,786,960        —         31,786,960  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      9,348,781        547,816        476,932,250        102,815        486,931,662  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Lease liabilities are excluded as of December 31, 2024.

 

     December 31, 2023  
Financial assets    Financial
assets at
FVTPL		      Financial assets
at FVTOCI		      Financial
assets at
amortized cost		      Derivatives
assets
(designated for
hedging)		      Total  

Deposits

      39,241        —         1,950,573        —         1,989,814  

Securities

      14,880,479        37,891,495        23,996,172        —         76,768,146  

Loans

      782,716        —         358,577,179        —         359,359,895  

Derivative assets

      5,798,329        —         —         26,708        5,825,037  

Other financial assets

      43,991        —         12,620,396        —         12,664,387  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      21,544,756        37,891,495        397,144,320        26,708        456,607,279  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
Financial liabilities    Financial
liabilities at
FVTPL		      Financial
liabilities at
amortized cost		      Derivatives
liabilities
(designated for
hedging)		      Total  

Deposits due to customers

      39,524        357,784,297        —         357,823,821  

Borrowings

      155,765        30,986,746        —         31,142,511  

Debentures

      —         41,239,245        —         41,239,245  

Derivative liabilities

      5,943,024        —         153,007        6,096,031  

Other financial liabilities (*)

      —         25,780,550        —         25,780,550  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      6,138,313        455,790,838        153,007        462,082,158  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Lease liabilities are excluded as of December 31, 2023.

 

- 103 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  (7)

Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Interest income
(expense)		     Fees and
commissions
income
(expense)		      Reversal
(provision) of
credit loss		     Gain or loss
on
transactions
and valuation		     Dividends,
etc.		      Total  

Financial instruments at FVTPL

      236,793       1,174        —        1,512,430       291,123        2,041,520  

Financial instruments designated to be measured at FVTPL (*)

      —        —         —        (19,647 )      —         (19,647 ) 

Financial assets at FVTOCI

      1,281,642       951        (8,868 )      96,620       19,198        1,389,543  

Securities at amortized cost

      643,056       —         3,287       —        —         646,343  

Loans and other financial assets at amortized cost

      19,851,850       566,911        (1,715,074 )      286,885       —         18,990,572  

Financial liabilities at amortized cost

      (13,108,310 )      56        —        —        —         (13,108,254 ) 

Net derivatives (designated for hedging)

      —        —         —        128,646       —         128,646  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

      8,905,031       569,092        (1,720,655 )      2,004,934       310,321        10,068,723  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

 

(*)

The amounts recognized in other comprehensive income related to financial liabilities designated to be measured at FVTPL are 1,831 million Won during the year ended December 31, 2024.

 

     For the year ended December 31, 2023  
     Interest income
(expense)		     Fees and
commissions
income
(expense)		      Reversal
(provision) of
credit loss		     Gain or loss
on
transactions
and valuation		     Dividends,
etc.		      Total  

Financial assets at FVTPL

      192,094       514        —        488,486       222,357        903,451  

Financial assets at FVTOCI

      999,407       1,621        (16,542 )      (37,641 )      17,936        964,781  

Securities at amortized cost

      782,513       —         (5,549 )      —        —         776,964  

Loans and other financial assets at amortized cost

      18,667,540       578,387        (1,839,987 )      203,942       —         17,609,882  

Financial liabilities at amortized cost

      (11,887,127 )      1,247        —        —        —         (11,885,880 ) 

Net derivatives (designated for hedging)

      —        —         —        15,678       —         15,678  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

      8,754,427       581,769        (1,862,078 )      670,465       240,293        8,384,876  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

 

- 104 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

12.   DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS

 

(1)

Derecognition of financial instruments

Transferred financial assets that do not meet the condition of derecognition in their entirety.

 

  1)

Bonds sold under repurchase agreements

The financial instruments that were disposed but the Group agreed to repurchase at the fixed amounts at the same time, so that they did not meet the conditions of derecognition, are as follows (Unit: Korean Won in millions):

 

     December 31,
2024		      December 31,
2023		  

Assets transferred

    Financial assets at FVTPL      1,271,304        238,461  
   Financial assets at FVTOCI      248,394        556,583  
   Securities at amortized cost      41,442        48,368  
     

 

 

     

 

 

  

Total

      1,561,140        843,412  
     

 

 

     

 

 

  

Related liabilities

    Bonds sold under repurchase agreements      1,530,767        757,691  
     

 

 

     

 

 

  

 

  2)

Securities loaned

When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred; however, they should be returned at the end of lending period. Therefore, the Group does not derecognize them from the consolidated financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amount of the securities loaned are as follows (Unit: Korean Won in millions):

 

     December 31,
2024		      December 31,
2023		     

Loaned to

Financial assets at FVTPL

    Korean treasury and government bonds, etc.      12,361        625,398     

The Korea Securities

Finance Corporation

Financial assets at FVTOCI

    Korean treasury and government bonds, etc.      —         592,218      Korea Securities Depository and others

 

  3)

Liquidity of financial assets

As of December 31, 2024 and 2023, the consolidated structured companies issued asset-backed securities with loans and corporate bonds held by the Group as liquid assets, and the Group bear related risks through the purchase agreements or credit contributions. The transaction details of the transfer of the financial instrument are as follows:

 

          December 31, 2024      December 31, 2023  
          Carrying amount (*)      Carrying amount (*)  

Assets transferred

    Loans at amortized cost      5,205,022        5,098,217  
   Asset-backed borrowings      2,153,730        2,434,900  

Related liabilities

    Asset-backed bonds      1,830,672        1,487,895  

(*) The carrying amount is the amount before the allowance for bad debts.

On the other hand, the details of transferred financial assets that have not been removed, such as bonds sold under the repurchase agreement and loan securities, are also described in Note 18. The Group does not have financial instruments that are continuously involved.

 

- 105 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

The offset of financial assets and liabilities

The Group possesses both the uncollected domestic exchange receivables and the unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS 1032. Therefore, the total number of uncollected domestic exchange receivables has been offset with a part of unpaid domestic exchange payables, and they have been disclosed in loans at amortized cost and other financial assets and other financial liabilities of the Group’s statements of financial position, respectively.

The Group possesses the derivative assets, derivative liabilities, receivable spot exchange and payable spot exchange that do not satisfy the offsetting criteria of K-IFRS 1032, but provide the Group under the circumstances of the trading party’s default, insolvency or bankruptcy, with the right of offsetting. Items such as cash collateral cannot satisfy the offsetting criteria of K-IFRS 1032, but in accordance with the collateral arrangements and under the circumstances of the trading party’s default, insolvency or bankruptcy, the net amount of derivative assets and derivative liabilities, receivable spot exchange and payable spot exchange can be offset.

The Group has entered into a sale and repurchase agreement and accounted it as a collateralized borrowing. The Group has also entered into a purchase and resale agreement and accounted it as a secured loans. The Group under the repurchase agreements has an offsetting right only upon the counterparty’s default, insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement, which does not satisfy the offsetting criteria of K-IFRS 1032. The Group disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loan at amortized cost and other financial assets. In securities lending transactions, offsetting agreements are similarly executed through analogous arrangements, and the amounts of borrowed securities presented in the consolidated financial statements as of December 31, 2024 and 2023, are 182,478 million Won and 155,765 million Won, respectively. These amounts may be offset against bonds provided as collateral.

As of December 31, 2024 and 2023, the financial instruments to be offset and may be covered by master netting agreements and similar agreements are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Gross
amounts of
recognized
financial
assets		      Gross
amounts of
recognized
financial
assets setoff		      Net
amounts of
consolidated
financial
assets
presented		      Related amounts not setoff
in the consolidated
statement of financial
position		      Net
amounts		  
     Netting
agreements
and others		      Cash
collateral
received
and others		  

Financial assets:

                  

Derivative assets (*1)

      10,333,766        —         10,333,766        12,149,475        235,654        3,533,764  

Receivable spot exchange (*2)

      5,585,127        —         5,585,127  

Bonds purchased under resale agreements (*2)

      10,098,618        —         10,098,618        10,098,618        —         —   

Uncollected domestic exchange settlement debits (*2) (*5)

      33,375,126        32,933,133        441,993        —         —         441,993  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      59,392,637        32,933,133        26,459,504        22,248,093        235,654        3,975,757  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Financial liabilities:

                  

Derivative liabilities (*1)

      9,256,251        —         9,256,251        11,899,555        533,052        2,408,916  

Payable spot exchange (*3)

      5,585,272        —         5,585,272  

Bonds sold under repurchase agreements (*4)

      1,530,767        —         1,530,767        1,530,767        —         —   

Unpaid domestic exchange settlement credits (*3) (*5)

      40,525,606        32,933,133        7,592,473        7,590,328        —         2,145  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      56,897,896        32,933,133        23,964,763        21,020,650        533,052        2,411,061  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

The items include derivative assets and liabilities held for trading and designated for hedging.

(*2)

The items are included in loan at amortized cost and other financial assets.

(*3)

The items are included in other financial liabilities.

(*4)

The items are included in borrowings.

(*5)

Certain financial assets and liabilities are presented as net amounts.

(*6)

The items are included in financial liabilities at FVTPL.

 

- 106 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Gross
amounts of
recognized
financial
assets		      Gross
amounts of
recognized
financial
assets setoff		      Net
amounts of
consolidated
financial
assets
presented		      Related amounts not setoff
in the consolidated
statement of financial
position		      Net
amounts		  
     Netting
agreements
and others		      Cash
collateral
received
and others		  

Financial assets:

                  

Derivative assets (*1)

      5,200,277        —         5,200,277        11,328,147        424,466        1,089,011  

Receivable spot exchange (*2)

      7,641,347        —         7,641,347  

Bonds purchased under resale agreements (*2)

      3,256,392        —         3,256,392        3,256,392        —         —   

Domestic exchange settlement debits (*2) (*5)

      49,034,521        48,587,951        446,570        —         —         446,570  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      65,132,537        48,587,951        16,544,586        14,584,539        424,466        1,535,581  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Financial liabilities:

                  

Derivative liabilities (*1)

      5,126,697        —         5,126,697        11,425,925        139,143        1,203,575  

Payable spot exchange (*3)

      7,641,946        —         7,641,946  

Bonds sold under repurchase agreements (*4)

      1,119,991        —         1,119,991        1,119,991        —         —   

Domestic exchange settlement credits (*3) (*5)

      49,974,648        48,587,951        1,386,697        1,367,709        —         18,988  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      63,863,282        48,587,951        15,275,331        13,913,625        139,143        1,222,563  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

The items include derivative assets and liabilities held for trading and designated for hedging.

(*2)

The items are included in loan at amortized cost and other financial assets.

(*3)

The items are included in other financial liabilities.

(*4)

The items are included in borrowings.

(*5)

Certain financial assets and liabilities are presented as net amounts.

 

- 107 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

13.

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES

 

(1)

Investments in associates accounted for using the equity method of accounting are as follows:

 

            Percentage of ownership (%)                

Joint ventures and associates

    Main business      December 31,
2024		      December 31,
2023		      Location      Financial
statements as of		  

Woori Bank

               

W Service Networks Co., Ltd. (*1)(*4)

     
 Freight & staffing
services		  
 		      4.9        4.9        Korea        2024-11-30  

Korea Credit Bureau Co., Ltd. (*2)

      Credit information        9.9        9.9        Korea        2024-12-31  

Korea Finance Security Co., Ltd. (*2) (*4)

      Security service        15.0        15.0        Korea        2024-11-30  

Wongwang Co., Ltd. (*3)

     
 Wholesale and real
estate		  
 		      29.0        29.0        Korea        —   

Sejin Construction Co., Ltd. (*3)

      Construction        29.6        29.6        Korea        —   

ARES-TECH Co., Ltd. (*3)

     

 Electronic
component
manufacturing		  
 
 		      23.4        23.4        Korea        —   

Beomgyo.,Ltd. (*3)

     

 Telecommunication
equipment retail
sales		  
 
 		      23.1        23.1        Korea        —   

NK Eng Co., Ltd. (*3)

      Manufacturing        23.1        23.1        Korea        —   

K BANK Co., Ltd. (*2)(*4)

      Finance        12.0        12.6        Korea        2024-11-30  

Partner One Value Up I Private Equity Fund

     
 Other financial
services		  
 		      23.3        23.3        Korea        2024-12-31  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

     
 Other financial
services		  
 		      20.0        20.0        Korea        2024-12-31  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

     
 Other financial
services		  
 		      25.0        25.0        Korea        2024-12-31  

LOTTE CARD Co., Ltd. (*4)

     

 Credit card and
installment
financing		  
 
 		      20.0        20.0        Korea        2024-09-30  

Union Technology Finance Investment Association

     
 Other financial
services		  
 		      29.7        29.7        Korea        2024-12-31  

Dicustody Co., Ltd.(*2)(*7)

     


 Other information
technology and
computer operation
related services		  
 
 
 		      —         1.0        Korea        —   

Orient Shipyard Co., Ltd. (*3)(*4)

     
 Manufacture of
sections for ships		  
 		      22.7        22.7        Korea        2024-09-30  

Joongang Network Solution Co.,Ltd. (*3)(*7)

     


 Other information
technology and
computer operation
related services		  
 
 
 		      —         25.3        Korea        —   

Win Mortgage Co.,Ltd. (*1)(*4)

     
 Other financial
services		  
 		      4.5        4.5        Korea        2024-09-30  

Samsung Together Korea IPPF private securities investment trust 3 [Equity-FoFs]

     
 Other financial
services		  
 		      100.0        100.0        Korea        2024-12-31  

BTS 2nd Private Equity Fund

     
 Other financial
services		  
 		      20.0        20.0        Korea        2024-12-31  

STASSETS FUND III

     
 Other financial
services		  
 		      28.3        28.3        Korea        2024-12-31  

SF CREDIT PARTNERS, LLC(*2)

     
 Other financial
services		  
 		      10.0        10.0       
 United
States		  
 		      2024-12-31  

Dongwoo C & C Co., Ltd. (*3)

      Construction        23.2        24.5        Korea        —   

G2 Collection Co., Ltd. (*3)

     
 Wholesale and
retail sales		  
 		      28.9        29.2        Korea        —   

 

- 108 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

            Percentage of ownership (%)                

Joint ventures and associates

    Main business      December 31,
2024		      December 31,
2023		      Location      Financial
statements as of		  

Woori Bank (*5)

               

Japanese Hotel Real Estate Private Equity Fund No.2

     
 Other financial
services		  
 		      19.9        19.9        Korea        2024-12-31  

Woori Seoul Beltway Private Special Asset Fund No.1

     
 Trust and collective
investment		  
 		      25.0        25.0        Korea        2024-12-31  

Woori General Private Securities Investment Trust(Bond) No.1 (*7)

     
 Collective
investment business		  
 		      —         25.0        Korea        —   

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F(*7)

     
 Collective
investment business		  
 		      —         15.0        Korea        —   

Woori Safe Plus General Type Private Investment Trust S-8(Bond) (*7)

     
 Collective
investment business		  
 		      —         9.1        Korea        —   

Woori General Private Securities Investment Trust(Bond) No.2 (*7)

     
 Collective
investment business		  
 		      —         27.3        Korea        —   

Woori Smart General Private Equity Investment Trust 1(Bond)

     
 Collective
investment business		  
 		      28.6        28.6        Korea        2024-12-31  

Woori General Private Securities Investment Trust(Bond) No.3 (*7)

     
 Collective
investment business		  
 		      —         27.8        Korea        —   

Woori Asset Global Partnership Fund No. 5

     
 Collective
investment business		  
 		      57.7        57.7        Korea        2024-12-31  

Woori Short Term Government and Special Bank Bond Active ETF(*7)

     
 Collective
investment business		  
 		      —         20.8        Korea        —   

Woori 25-09 Corporate Bond(AA- or higher) Active ETF(*7)

     
 Collective
investment business		  
 		      —         29.3        Korea        —   

Woori General Private Securities Investment Trust No. 5 (Bond) (*11)

     
 Collective
investment business		  
 		      28.6        —         Korea        2024-12-31  

Woori Big Satisfaction General Private Securities Investment Trust No. 3 (Bond) (*11)

     
 Collective
investment business		  
 		      9.1        —         Korea        2024-12-31  

Woori General Private Securities Investment Trust No. 6 (Bond) (*11)

     
 Collective
investment business		  
 		      28.6        —         Korea        2024-12-31  

Woori Big Satisfaction Corporation MMF No. 1 (Government Bond) (*7) (*11)

     
 Collective
investment business		  
 		      —         —         Korea        —   

Woori General Private Securities Investment Trust No. 7 (Bond) (*11)

     
 Collective
investment business		  
 		      28.6        —         Korea        2024-12-31  

Woori Smart General Private Equity Investment Trust No.1(bond) (*11)

     
 Collective
investment business		  
 		      28.4        —         Korea        2024-12-31  

Woori Future Energy Private Special Asset Investment Trust(General) No.1 (*11)

     
 Collective
investment business		  
 		      16.0        —         Korea        2024-12-31  

Woori Financial Capital Co., Ltd.

               

WOORI TAERIM 1st Fund

     
 Other financial
services		  
 		      25.6        25.6        Korea        2024-12-31  

Portone-Cape Fund No.1

     
 Other financial
services		  
 		      20.0        20.0        Korea        2024-12-31  

DeepDive WOORI 2021-1 Financial Investment Fund (*6) (*7)

     
 Other financial
services		  
 		      —         11.9        Korea        —   

 

- 109 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

          Percentage of ownership (%)                

Joint ventures and associates

    Main business    December 31,
2024		      December 31,
2023		      Location      Financial
statements as of		  

Darwin Green Packaging Private Equity Fund

    Other financial
services		      20.4        20.4        Korea        2024-12-31  

Koreawide partners 2nd Private Equity Fund

    Other financial
services		      26.7        26.7        Korea        2024-12-31  

Woori Investment Securities Co., Ltd. (*5)

               

Woori FirstValue Private Real Estate Fund No.2

    Real estate business      12.0        12.0        Korea        2024-12-31  

Woori Real Infrastructure Blind General Type Private Placement Investment Trust (*7)

    Investment trust and
discretionary
investment business		      —         0.1        Korea        —   

Woori Asset Management Co. Ltd.

               

Woori Together TDF 2025 (*11)

    Collective investment
business		      24.7        —         Korea        2024-12-31  

Woori Together TDF 2030

    Collective investment
business		      22.2        28.0        Korea        2024-12-31  

Woori Together OCIO Target Return Feeder fund (Balance Bond) (*7)

    Collective investment
business		      —         20.4        Korea        —   

Woori USD Treasury Target Return Bond FoF (*11)

    Collective investment
business		      23.9        —         Korea        2024-12-31  

Woori Together TDF 2035 (*11)

    Collective investment
business		      22.5        —         Korea        2024-12-31  

Woori Private Equity Asset Management Co., Ltd.

               

Australia Green Energy 1st PEF (*2)

    Other financial
services		      4.0        4.0        Korea        2024-12-31  

Aarden Woori Apparel 1st Private Equity Fund (*2)

    Other financial
services		      0.5        0.5        Korea        2024-12-31  

Woori Dyno 1st Private Equity Fund (*2)

    Other financial
services		      19.6        19.6        Korea        2024-12-31  

NH Woori Dino Co-Investment NO.2 Private Equity Fund (*2) (*11)

    Other financial
services		      5.1        —         Korea        2024-12-31  

Woori Financial F&I Co., Ltd.

               

KCLAVIS NPL Investment Trust NO 1-2 (*11)

    Collective investment
business		      35.9        —         Korea        2024-12-31  

Woori Venture Partners Co., Ltd.

               

KTB-KORUS FUND (*8)

    Asset Management      37.5        37.5        Korea        2024-12-31  

KTB China Platform Fund (*7) (*10)

    Asset Management      —         18.7        Korea        —   

KTBN Venture Fund No.7 (*7) (*9)

    Asset Management      —         20.1        Korea        —   

KTBN Venture Fund No.8 (*9)

    Asset Management      21.7        21.7        Korea        2024-12-31  

KTBN Digital Contents Korea Fund No.9 (*9)

    Asset Management      30.0        30.0        Korea        2024-12-31  

KTBN Media Contents Fund (*10)

    Asset Management      15.0        15.0        Korea        2024-12-31  

KTB China Synergy Fund (*10)

    Asset Management      15.1        15.1        Korea        2024-12-31  

NAVER-KTB Audio Contents Fund (*10)

    Asset Management      1.0        1.0        Korea        2024-12-31  

KTBN Venture Fund No.13 (*10)

    Asset Management      19.6        19.6        Korea        2024-12-31  

KTBN Future Contents Fund (*10)

    Asset Management      13.3        13.3        Korea        2024-12-31  

KTBN Venture Fund No.16 (*10)

    Asset Management      10.3        10.3        Korea        2024-12-31  

 

- 110 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

          Percentage of ownership (%)                

Joint ventures and associates

    Main business    December 31,
2024		      December 31,
2023		      Location      Financial
statements as of		  

KTBN Venture Fund No.18 (*10)

    Asset Management      10.1        10.1        Korea        2024-12-31  

KB-KTB Technology Venture Fund (*10)

    Asset Management      18.2        18.2        Korea        2024-12-31  

Woori 2022 Scaleup Venture Fund

    Asset Management      20.0        20.0        Korea        2024-12-31  

Woori 2022 Start-up Venture Fund

    Asset Management      30.1        30.1        Korea        2024-12-31  

KTB-NHN China Private Equity Fund (*7)

    Asset Management      —         33.3        Korea        —   

KTBN GI Private Equity Fund (*10)

    Asset Management      5.0        5.0        Korea        2024-12-31  

Chirochem (*4)

    Medical material
Manufacturing		      28.6        28.6        Korea        2023-12-31  

Daishin Balance No.18 Special Purpose Acquisition Company (*7) (*11)

    Other financial
services		      —         —         Korea        —   

Japanese Hotel Real Estate Private Equity Fund 1

               

Godo Kaisha Oceanos 1 (*4)

    Other financial
services		      47.8        47.8        Japan        2024-10-31  

Woori Japan Private Placement Real Estate Master Investment Trust No.2

               

Woori Zip 1 (*7)

    Other financial
services		      —         62.4        Japan        —   

Woori Zip 2 (*7)

    Other financial
services		      —         62.8        Japan        —   

Woori bank and Woori card Co., Ltd. (*5)

               

SJCO Co., Ltd. (*3)

    Aggregate
transportation and
wholesale		      29.8        29.8        Korea        —   

KG Fashion Co., Ltd. (*3) (*4)

    Manufacturing      20.8        20.8        Korea        2024-11-30  

Kyesan Engineering Co., Ltd. (*3)

    Construction      23.3        23.3        Korea        —   

Good Software Lap Co., Ltd. (*3)

    Service      29.4        29.4        Korea        —   

DAEA SNC Co., Ltd. (*3)

    Wholesale and
retail sales		      25.5        25.5        Korea        —   

PREXCO Co., Ltd. (*3)

    Manufacturing      28.1        28.1        Korea        —   

JiWon Plating Co., Ltd. (*3)

    Plating      20.8        20.8        Korea        —   

Youngdong Sea Food Co., Ltd. (*3)

    Processed sea food
manufacturing		      24.5        24.5        Korea        —   

KUM HWA Co., Ltd. (*3)

    Telecommunication
equipment retail
sales		      20.1        20.1        Korea        2024-12-31  

Jinmyung Plus Co., Ltd. (*3) (*4)

    Manufacturing      21.3        21.3        Korea        2024-09-30  

Rea Company (*3)

    Manufacturing      26.1        24.5        Korea        —   

ARAM CMC Co.,Ltd. (*3)

    Manufacturing      20.1        20.0        Korea        —   

MARKET&FARM CO.,LTD. (*3)(*11)

    Wholesale and

commodity
brokerage

      23.7        —         Korea        2024-12-31  

SAMJI TEXTILE CO.,LTD. (*3)(*11)

    Wholesale and

commodity
brokerage

      29.8        —         Korea        —   

Woori bank and Woori Financial Capital Co., Ltd. (*5)

               

JC Assurance No.2 Private Equity Fund

    Other financial
services		      23.4        23.5        Korea        2024-12-31  

 

- 111 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

          Percentage of ownership (%)                

Joint ventures and associates

    Main business    December 31,
2024		      December 31,
2023		      Location      Financial
statements as of		  

Dream Company Growth no.1 PEF (*7)

    Other financial
services		      —         27.8        Korea        —   

HMS-Oriens 1st Fund

    Other financial
services		      22.8        22.8        Korea        2024-12-31  

Woori Senior Loan Private Placement Investment Trust No.1

    Collective investment
business		      21.7        21.7        Korea        2024-12-31  

Genesis Eco No.1 Private Equity Fund

    Other financial
services		      29.0        29.0        Korea        2024-12-31  

Paratus Woori Material Component Equipment joint venture company

    Other financial
services		      29.9        29.9        Korea        2024-12-31  

Midas No. 8 Private Equity Joint Venture Company

    Other financial
services		      28.5        28.5        Korea        2024-12-31  

Orchestra Private Equity Fund IV

    Other financial
services		      28.2        28.2        Korea        2024-12-31  

Synaptic Green No.1 PEF

    Other financial
services		      21.1        21.1        Korea        2024-12-31  

IGEN2022No. 1 Private Equity Fund

    Other financial
services		      24.8        24.8        Korea        2024-12-31  

PCC-Woori LP Secondary Fund

    Other financial
services		      38.9        38.9        Korea        2024-12-31  

Synaptic Future Growth Private Equity Fund 1

    Other financial
investment		      23.8        23.8        Korea        2024-12-31  

Woori Bank and Woori Asset Management Co. Ltd. (*5)

               

Woori BIG2 Plus Securities Investment Trust(Balanced Bond) (*7)

    Collective investment
business		      —         14.1        Korea        —   

Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks) (*7) (*11)

    Collective investment
business		      —         —         Korea        —   

Woorinara Short-Term Bond Securities Investment Trust (Bond) (*7) (*11)

    Collective investment
business		      —         —         Korea        —   

Woori Investment Securities Co., Ltd. and Woori Asset Management Co., Ltd. (*5)

               

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2 (*11)

    Collective investment
business		      2.3        —         Korea        2024-12-31  

Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*5)

               

Woori-Q Corporate Restructuring Private Equity Fund(*12)

    Other financial
services		      34.6        32.4        Korea        2024-12-31  

Woori Financial Capital Co., Ltd., Woori Private Equity Asset Management Co., Ltd. (*5)

               

NH Woori New deal Co-Investment No.1 Private Equity Fund (*11)

    Other financial
services		      19.5        —         Korea        2024-12-31  

Woori Venture Partners Co., Ltd., Woori Asset Management Corp. (*5)

               

 

- 112 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

          Percentage of ownership (%)                

Joint ventures and associates

    Main business    December 31,
2024		      December 31,
2023		      Location      Financial
statements as of		  

Woori BIG SATISFACTION SHINJONG MMF 3RD (*11)

    Collective investment
business		      2.3        —         Korea        2024-12-31  

Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Securities Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*5)

               

Woori-Shinyoung Growth-Cap Private Equity Fund I

    Other financial
services		      35.0        35.0        Korea        2024-12-31  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

    Other financial
services		      32.9        32.7        Korea        2024-12-31  

Woori Bank, Woori card Co., Ltd., Woori Investment Securities Co., Ltd. and Woori Asset Management Corp. (*5)

               

Woori Real Estate Investment No. 1 Limited Liability Company (*11)

    Collective investment
business		      19.9        —         Korea        2024-12-31  

 

(*1)

Most of the significant business transactions of associates are with the Group as of December 31, 2024 and 2023.

(*2)

The Group can participate in decision-making body and exercise significant influence over financial policies and operational policies decision making of the associates.

(*3)

There is no investment balance as of December 31, 2024 and 2023.

(*4)

The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of the reporting period and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected.

(*5)

Two or more subsidiaries may invest or operate to exert significant influence on the decision-making process for activities related to the investee.

(*6)

The Group can participate as a co-operator to exert significant influence.

(*7)

It was excluded from associates in current year.

(*8)

It has been liquidating as of December 31, 2024.

(*9)

It was excluded from associates during the year.

(*10)

The Group classified it as an associate because it has significant influence as a general partner of the investment association.

(*11)

It was added to associates in current period.

(*12)

It was classified as an associate due to holding of voting rights according to the initial investment agreement ratio.

 

- 113 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

Changes in the carrying value of investments in associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Acquisition
cost		      January 1,
2024		      Share of
profits(losses)
and others		     Acquisition      Disposal/
Reclassification		     Dividends     Change in
capital and
others		     December 31,
2024		  

W Service Networks Co., Ltd.

      108        216        (7 )      —         —        (5 )      —        204  

Korea Credit Bureau Co., Ltd.

      3,313        6,433        2,658       —         —        (90 )      —        9,001  

Korea Finance Security Co., Ltd.

      3,267        3,285        331       —         —        —        —        3,616  

K BANK Co., Ltd.

      224,657        260,052        13,747       —         (13,029 )      —        1,480       262,250  

Partner One Value Up I Private Equity Fund

      5,039        3,230        (1,107 )      —         —        —        —        2,123  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      —         8,247        (784 )      —         (4,356 )      (844 )      —        2,263  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      4,532        4,437        —        95        —        —        —        4,532  

LOTTE CARD Co.,Ltd.

      346,810        587,392        17,861       —         —        (15,591 )      (14,082 )      575,580  

Union Technology Finance Investment Association

      13,449        12,270        (500 )      —         —        —        —        11,770  

Dicustody Co., Ltd.

      —         1        —        —         (1 )      —        —        —   

Orient Shipyard Co., Ltd.(*)

      —         —         —        —         —        —        —        —   

Joongang Network Solution Co.,Ltd.

      —         88        100       —         (101 )      —        (87 )      —   

Win Mortgage Co.,Ltd.

      23        105        32       —         —        (2 )      —        135  

Samsung Together Korea IPPF private securities investment trust 3 [Equity-FoFs]

      10,000        10,540        307       —         —        —        —        10,847  

BTS 2nd Private Equity Fund

      8,146        4,838        41       2,920        —        —        —        7,799  

STASSETS FUND III

      12,000        8,406        (228 )      3,000        —        —        —        11,178  

SF CREDIT PARTNERS, LLC

      13,059        12,845        1,326       —         —        —        1,829       16,000  

Japanese Hotel Real Estate Private Equity Fund No.2

      3,168        2,688        226       —         (5 )      (176 )      72       2,805  

Woori Seoul Beltway Private Special Asset Fund No.1

      15,926        12,590        558       3,487        —        (559 )      —        16,076  

Woori General Private Securities Investment Trust(Bond) No.1

      —         51,686        586       —         (50,102 )      (2,170 )      —        —   

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

      —         105,564        1,864       50,000        (153,226 )      (4,202 )      —        —   

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

      —         10,330        102       —         (10,003 )      (429 )      —        —   

Woori General Private Securities Investment Trust(Bond) No.2

      —         30,829        370       —         (31,199 )      —        —        —   

Woori Smart General Private Equity Investment Trust 1(bond)

      40,000        41,135        2,443       —         —        (1,795 )      —        41,783  

Woori General Private Securities Investment Trust(Bond) No.3

      —         51,205        625       —         (51,830 )      —        —        —   

Woori Asset Global Partnership Fund No.5

      52,500        22,071        2,906       30,000        —        —        —        54,977  

WOORI TAERIM 1st Fund

      1,100        988        —        —         —        —        —        988  

Portone-Cape Fund No.1

      340        445        (285 )      —         —        —        —        160  

DeepDive WOORI 2021-1 Financial Investment Fund

      —         1,236        (543 )      —         (226 )      (467 )      —        —   

Darwin Green Packaging Private Equity Fund

      4,000        3,957        (53 )      —         —        —        —        3,904  

Koreawide partners 2nd Private Equity Fund

      20,000        19,235        —        —         —        —        —        19,235  

Woori FirstValue Private Real Estate Fund No.2

      9,000        560        7       —         —        —        —        567  

Woori Real Infrastructure Blind General Type Private Placement Investment Trust

      —         55        —        —         (55 )      —        —        —   

Woori Together TDF 2025

      3,000        —         332       —         3,245       —        —        3,577  

Woori Together TDF 2030

      3,000        3,324        400       —         —        —        —        3,724  

 

- 114 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2024  
     Acquisition
cost		      January 1,
2024		      Share of
profits(losses)
and others		     Acquisition      Disposal/
Reclassification		     Dividends     Change in
capital and
others		     December 31,
2024		  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

      —         10,376        —        —         (10,376 )      —        —        —   

Woori USD Treasury Target Return Bond FoF

      200        —         1       —         219       —        —        220  

Woori Together TDF 2035

      3,000        —         42       —         3,406       —        —        3,448  

Australia Green Energy 1st PEF

      4,913        4,811        453       —         —        —        —        5,264  

Aarden Woori Apparel 1st Private Equity Fund

      100        133        (38 )      —         —        —        —        95  

Woori Dyno 1st Private Equity Fund

      2,000        2,358        491       —         —        —        —        2,849  

NH Woori Dino Co-Investment NO.2 Private Equity Fund

      2,000        —         (4 )      2,000        —        —        —        1,996  

KTB-KORUS FUND

      337        3,359        (1,149 )      —         —        (421 )      —        1,789  

KTB China Platform Fund

      —         16,059        (2,164 )      —         —        (13,895 )      —        —   

KTBN Venture Fund No.7

      —         16,044        (2,641 )      —         —        (13,403 )      —        —   

KTBN Venture Fund No.8

      195        2,511        (413 )      —         —        (569 )      —        1,529  

KTBN Digital Contents Korea Fund No.9

      7,020        5,597        (591 )      —         —        —        —        5,006  

KTBN Media Contents Fund

      —         283        (129 )      —         —        —        —        154  

KTB China Synergy Fund

      12,400        20,405        1,840       —         —        (3,296 )      —        18,949  

NAVER-KTB Audio Contents Fund

      300        288        (40 )      —         —        —        —        248  

KTBN Venture Fund No.13

      4,400        14,158        5,302       —         —        (3,801 )      —        15,659  

KTBN Future Contents Fund

      4,000        4,561        (368 )      —         —        —        —        4,193  

KTBN Venture Fund No.16

      12,200        18,561        1,492       —         —        (4,200 )      —        15,853  

KTBN Venture Fund No.18

      27,075        26,970        (39 )      —         —        (1,425 )      —        25,506  

KB-KTB Technology Venture Fund

      10,000        7,600        (250 )      2,000        —        —        —        9,350  

WOORI 2022 Scaleup Venture Fund

      20,944        13,578        (2,545 )      6,776        —        —        —        17,809  

WOORI 2022 Start-up Venture Fund

      13,100        2,433        (140 )      10,480        —        —        —        12,773  

KTB-NHN China Private Equity Fund

      —         3        (1 )      —         —        (2 )      —        —   

KTBN GI Private Equity Fund

      —         617        143       —         —        (718 )      (37 )      5  

Chirochem

      250        102        2       —         —        —        —        104  

Daishin Balance No.18 Special Purpose Acquisition Company

      —         —         —        —         —        —        —        —   

Godo Kaisha Oceanos 1

      10,800        7,978        63       —         —        (622 )      (72 )      7,347  

Woori Zip 1

      —         7,629        (57 )      —         (7,655 )      —        83       —   

Woori Zip 2

      —         10,695        (9 )      —         (10,814 )      —        128       —   

KG Fashion Co., Ltd.(*)

      —         —         —        —         —        —        —        —   

KUM HWA Co., Ltd. (*)

      —         —         —        —         —        —        —        —   

Jinmyung Plus Co., Ltd.

      —         14        (5 )      —         —        —        —        9  

JC Assurance No.2 Private Equity Fund (*)

      29,349        —         —        —         —        —        —        —   

Dream Company Growth no.1 PEF

      —         7,809        —        —         (7,552 )      (257 )      —        —   

HMS-Oriens 1st Fund

      12,000        14,030        850       —         —        —        —        14,880  

Woori Senior Loan Private Placement Investment Trust No.1

      17,595        75,590        1,966       —         (57,785 )      (2,254 )      —        17,517  

Genesis Eco No.1 Private Equity Fund

      12,000        10,942        (95 )      —         —        —        —        10,847  

Paratus Woori Material Component Equipment joint venture company

      17,700        16,979        (265 )      —         —        —        —        16,714  

Midas No. 8 Private Equity Joint Venture Company

      18,419        18,465        272       —         —        (530 )      —        18,207  

Orchestra Private Equity Fund IV

      9,700        9,555        55       —         —        —        —        9,610  

Synaptic Green No.1 PEF

      8,000        7,611        (112 )      —         —        —        —        7,499  

IGEN2022No. 1 Private Equity Fund

      7,422        7,983        140       —         —        (151 )      —        7,972  

PCC-Woori LP Secondary Fund

      10,435        10,530        (1,882 )      —         —        —        —        8,648  

Synaptic Future Growth Private Equity Fund

      6,760        7,069        4,848       2,262        (2,627 )      (3,867 )      —        7,685  

 

- 115 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2024  
     Acquisition
cost		      January 1,
2024		      Share of
profits(losses)
and others		     Acquisition      Disposal/
Reclassification		     Dividends     Change in
capital and
others		     December 31,
2024		  

Woori-Q Corporate Restructuring Private Equity Fund

      29,627        20,283        1,539       12,185        —        —        —        34,007  

Woori-Shinyoung Growth-Cap Private Equity Fund I

      16,806        33,481        (3,589 )      —         —        (196 )      —        29,696  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      49,289        32,987        18,151       21,636        (5,925 )      (11,310 )      —        55,539  

Woori Real Estate Investment No. 1 Limited Liability Company

      34,200        —         (281 )      34,200        —        —        —        33,919  

Woori BIG2 Plus Securities Investment Trust (Balanced Bond)

      —         2,543        (276 )      1,000        (3,197 )      (70 )      —        —   

Woori Short Term Government and Special Bank Bond Active ETF

      —         12,286        118       —         (12,404 )      —        —        —   

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

      —         29,821        1,148       —         (30,969 )      —        —        —   

Woori General Private Securities Investment Trust No. 5 (Bond)

      60,000        —         3,099       60,000        —        (3,075 )      —        60,024  

Woori Big Satisfaction General Private Securities Investment Trust No. 3 (Bond)

      10,000        —         493       10,000        —        —        —        10,493  

Woori General Private Securities Investment Trust No. 6 (Bond)

      40,000        —         2,090       40,000        —        —        —        42,090  

Woori Big Satisfaction Corporation MMF No. 1 (Government Bond)

      —         —         2,261       500,000        (502,261 )      —        —        —   

Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks)

      —         —         31       1,000        (1,031 )      —        —        —   

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

      3,849        —         215       2,356        1,443       (3 )      —        4,011  

Woorinara Short-Term Bond Securities Investment Trust (Bond)

      —         —         339       50,000        (50,339 )      —        —        —   

Woori General Private Securities Investment Trust No. 7 (Bond)

      40,000        —         1,116       40,000        —        —        —        41,116  

Woori Smart General Private Equity Investment Trust No.1(bond)

      40,000        —         477       40,000        —        —        —        40,477  

Woori Future Energy Private Special Asset Investment Trust(General) No.1

      —         —         —        —         —        —        —        —   

Woori BIG SATISFACTION SHINJONG MMF 3RD

      39,002        —         317       34,083        7,584       —        —        41,984  

NH Woori New deal Co-Investment No.1 Private Equity Fund

      5,000        —         204       5,000        —        —        —        5,204  

KCLAVIS NPL Investment Trust NO 1-2

      15,000        —         422       15,000        —        —        —        15,422  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
     1,463,824        1,795,370        76,212       979,480        (1,001,171 )      (90,395 )      (10,686 )      1,748,810  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

The amount for which no loss was recognized for associates due to discontinuation of the equity method was 19 million Won for Orient Shipyard Co.,Ltd., 39 million Won in KG FASHION CO., LTD., 295 million Won in JC Assurance No.2 Private Equity Fund and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 47 million Won for Orient Shipyard Co.,Ltd., 159 million Won in KG FASHION CO., LTD., 666 million Won in JC Assurance No.2 Private Equity Fund.

 

- 116 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Acquisition
cost		      January 1,
2024		      Share of
profits(losses)
and others		     Acquisition      Business
combination		      Disposal/
Reclassification		     Dividends     Change in
capital		     December 31,
2024		  

W Service Networks Co., Ltd.

      108        208        13       —         —         —        (5 )      —        216  

Korea Credit Bureau Co., Ltd.

      3,313        5,709        814       —         —         —        (90 )      —        6,433  

Korea Finance Security Co., Ltd.

      3,267        2,374        (99 )      —         —         —        —        1,010       3,285  

Woori Growth Partnerships New Technology Private Equity Fund

      —         10,889        (51 )      —         —         (10,838 )      —        —        —   

2016KIF-IMM Woori Bank Technology Venture Fund

      —         9,474        539       —         —         (10,013 )      —        —        —   

K BANK Co., Ltd.

      236,232        247,789        5,327       —         —         —        —        6,936       260,052  

Woori Bank-Company K Korea Movie Asset Fund

      —         239        52       —         —         (103 )      (188 )      —        —   

Partner One Value Up I Private Equity Fund

      5,039        4,278        (1,048 )      —         —         —        —        —        3,230  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      4,356        10,285        1,162       —         —         (3,200 )      —        —        8,247  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      4,436        4,355        —        82        —         —        —        —        4,437  

LOTTE CARD Co.,Ltd.

      346,810        514,131        91,533       —         —         —        (13,199 )      (5,073 )      587,392  

Union Technology Finance Investment Association

      13,449        14,462        (1,004 )      —         —         (1,188 )      —        —        12,270  

Dicustody Co., Ltd.

      1        1        —        —         —         —        —        —        1  

Orient Shipyard Co., Ltd.(*)

      —         —         —        —         —         —        —        —        —   

Joongang Network Solution Co.,Ltd.

      —         —         1       —         —         —        —        87       88  

Win Mortgage Co.,Ltd.

      23        —         84       23        —         —        (2 )      —        105  

Together-Korea Government Private Pool Private Securities Investment Trust No.3

      10,000        10,243        297       —         —         —        —        —        10,540  

BTS 2nd Private Equity Fund

      5,226        2,881        (243 )      2,200        —         —        —        —        4,838  

STASSETS FUND III

      9,000        1,230        (324 )      7,500        —         —        —        —        8,406  

SF CREDIT PARTNERS, LLC

      13,059        —         99       13,059        —         —        —        (313 )      12,845  

Japanese Hotel Real Estate Private Equity Fund No.2

      3,174        2,855        86       —         —         —        (133 )      (120 )      2,688  

Woori Seoul Beltway Private Special Asset Fund No.1

      12,464        9,874        451       2,709        —         —        (444 )      —        12,590  

Woori General Private Securities Investment Trust(Bond) No.1

      50,000        —         1,686       50,000        —         —        —        —        51,686  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

      100,000        112,025        7,670       —         —         (10,352 )      (3,779 )      —        105,564  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

      10,000        10,182        507       —         —         —        (359 )      —        10,330  

Woori General Private Securities Investment Trust(Bond) No.2

      30,000        —         829       30,000        —         —        —        —        30,829  

Woori Smart General Private Equity Investment Trust 1(bond)

      40,000        —         1,135       40,000        —         —        —        —        41,135  

Woori General Private Securities Investment Trust(Bond) No.3

      50,000        —         1,205       50,000        —         —        —        —        51,205  

Woori Asset Global Partnership Fund No.5

      22,500        —         (429 )      22,500        —         —        —        —        22,071  

WOORI TAERIM 1st Fund

      1,100        988        —        —         —         —        —        —        988  

Portone-Cape Fund No.1

      340        464        (19 )      —         —         —        —        —        445  

KIWOOM WOORI Financial 1st Fund

      —         953        (10 )      —         —         (943 )      —        —        —   

DeepDive WOORI 2021-1 Financial Investment Fund

      222        878        1,128       —         —         (678 )      (92 )      —        1,236  

Darwin Green Packaging Private Equity Fund

      4,000        3,945        92       —         —         —        (80 )      —        3,957  

DS Power Semicon Private Equity Fund

      —         2,976        495       —         —         (2,971 )      (500 )      —        —   

Koreawide partners 2nd Private Equity Fund

      20,000        20,000        (765 )      —         —         —        —        —        19,235  

Woori FirstValue Private Real Estate Fund No.2

      9,000        558        2       —         —         —        —        —        560  

 

- 117 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Acquisition
cost		      January 1,
2024		      Share of
profits(losses)
and others		     Acquisition      Business
combination		      Disposal/
Reclassification		     Dividends     Change
in
capital		     December 31,
2024		  

Woori Real Infrastructure Blind General Type Private Placement Investment Trust

      52        102        4       —         —         (47 )      (4 )      —        55  

Woori Star50 feeder fund(H)

      —         126        (12 )      —         —         (114 )      —        —        —   

Woori Together TDF 2025

      —         1,990        116       —         —         (2,106 )      —        —        —   

Woori Together TDF 2030

      3,000        2,033        291       1,000        —         —        —        —        3,324  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

      10,000        —         348       —         —         10,028       —        —        10,376  

Australia Green Energy 1st PEF

      4,913        4,858        (47 )      —         —         —        —        —        4,811  

Aarden Woori Apparel 1st Private Equity Fund

      100        97        36       —         —         —        —        —        133  

Woori Dyno 1st Private Equity Fund

      2,000        1,994        364       —         —         —        —        —        2,358  

KTB-KORUS FUND

      3,626        —         (267 )      —         3,626        —        —        —        3,359  

KTB China Platform Fund

      17,023        —         (964 )      —         17,023        —        —        —        16,059  

KTBN Venture Fund No.7

      16,972        —         (225 )      —         16,972        —        (703 )      —        16,044  

KTBN Venture Fund No.8

      3,325        —         (814 )      —         3,325        —        —        —        2,511  

KTBN Digital Contents Korea Fund No.9

      5,329        —         268       —         5,329        —        —        —        5,597  

KTBN Media Contents Fund

      330        —         (20 )      —         330        —        (27 )      —        283  

KTB China Synergy Fund

      21,629        —         (1,224 )      —         21,629        —        —        —        20,405  

NAVER-KTB Audio Contents Fund

      284        —         4       —         284        —        —        —        288  

KTBN Venture Fund No.13

      13,279        —         3,407       —         13,279        —        (2,528 )      —        14,158  

KTBN Future Contents Fund

      3,892        —         669       —         3,892        —        —        —        4,561  

KTBN Venture Fund No.16

      17,546        —         1,015       —         17,546        —        —        —        18,561  

KTBN Venture Fund No.18

      26,308        —         662       2,850        23,458        —        —        —        26,970  

KB-KTB Technology Venture Fund

      7,755        —         (155 )      2,000        5,755        —        —        —        7,600  

WOORI 2022 Scaleup Venture Fund

      14,000        —         (414 )      13,645        355        —        (8 )      —        13,578  

WOORI 2022 Start-up Venture Fund

      2,564        —         (131 )      —         2,564        —        —        —        2,433  

KTB-NHN China Private Equity Fund

      1,272        —         (103 )      —         1,272        —        (1,024 )      (142 )      3  

KTBN GI Private Equity Fund

      189        —         392       —         189        —        —        36       617  

Chirochem

      102        —         —        —         102        —        —        —        102  

Godo Kaisha Oceanos 1

      10,800        8,788        92       —         —         —        (748 )      (154 )      7,978  

Woori Zip 1

      8,706        8,690        (127 )      —         —         (548 )      —        (386 )      7,629  

Woori Zip 2

      8,411        12,180        (107 )      —         —         (844 )      —        (534 )      10,695  

KG Fashion Co., Ltd.(*)

      —         —         —        —         —         —        —        —        —   

KUM HWA Co., Ltd. (*)

      —         —         —        —         —         —        —        —        —   

Jinmyung Plus Co., Ltd.

      —         10        4       —         —         —        —        —        14  

JC Assurance No.2 Private Equity Fund (*)

      29,349        —         —        —         —         —        —        —        —   

Dream Company Growth no.1 PEF

      7,153        7,861        362       —         —         —        (414 )      —        7,809  

HMS-Oriens 1st Fund

      12,000        13,252        778       —         —         —        —        —        14,030  

Woori Senior Loan Private Placement Investment Trust No.1

      75,114        81,861        3,341       —         —         (5,975 )      (3,637 )      —        75,590  

Genesis Eco No.1 Private Equity Fund

      12,000        11,216        (274 )      —         —         —        —        —        10,942  

Paratus Woori Material Component Equipment joint venture company

      17,700        17,250        (271 )      —         —         —        —        —        16,979  

Midas No. 8 Private Equity Joint Venture Company

      18,537        18,713        282       —         —         —        (530 )      —        18,465  

Orchestra Private Equity Fund IV

      9,700        9,698        457       —         —         (178 )      (422 )      —        9,555  

Synaptic Green No.1 PEF

      8,000        7,793        (182 )      —         —         —        —        —        7,611  

IGEN2022No. 1 Private Equity Fund

      7,422        8,010        336       —         —         —        (363 )      —        7,983  

PCC-Woori LP Secondary Fund

      10,435        12,984        (2,450 )      —         —         (4 )      —        —        10,530  

Synaptic Future Growth Private Equity Fund

      7,295        —         (226 )      7,295        —         —        —        —        7,069  

Woori-Q Corporate Restructuring Private Equity Fund

      17,441        27,536        2,708       369        —         (10,330 )      —        —        20,283  

 

- 118 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Acquisition
cost		      January 1,
2024		      Share of
profits(losses)
and others		     Acquisition      Business
combination		      Disposal/
Reclassification		     Dividends     Change in
capital		      December 31,
2024		  

Woori-Shinyoung Growth-Cap Private Equity Fund I

      17,018        43,274        (9,793 )      —         —         —        —        —         33,481  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      34,006        —         (1,019 )      34,006        —         —        —        —         32,987  

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

      2,200        1,074        543       2,000        —         (1,074 )      —        —         2,543  

Woori Short Term Government and Special Bank Bond Active ETF

      12,008        —         103       —         —         12,183       —        —         12,286  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

      29,001        —         820       29,001        —         —        —        —         29,821  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  
     1,536,905        1,305,636        109,792       310,239        136,930        (39,295 )      (29,279 )      1,347        1,795,370  
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

 

(*)

The amount for which no loss was recognized for associates due to discontinuation of the equity method was 2 million Won for KUM HWA Co., Ltd., 28 million Won for Orient Shipyard Co.,Ltd., 120 million Won in KG FASHION CO., LTD., 371 million Won in JC Assurance No.2 Private Equity Fund and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 28 million Won for Orient Shipyard Co.,Ltd., 120 million Won in KG FASHION CO., LTD., 371 million Won in JC Assurance No.2 Private Equity Fund.

 

- 119 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Summary financial information relating to investments in associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Assets      Liabilities      Operating
revenue		     Net
income
(loss)		     Other
comprehensive
income
(loss)		     Total
comprehensive
income
(loss)		  

W Service Networks Co., Ltd.

      6,621        2,475        16,788       738       —        738  

Korea Credit Bureau Co., Ltd.

      150,657        62,343        175,338       26,589       —        26,589  

Korea Finance Security Co., Ltd.

      36,797        12,692        42,640       1,695       —        1,695  

K BANK Co., Ltd.

      29,314,529        27,293,765        1,043,436       149,922       3,695       153,617  

Partner One Value Up I Private Equity Fund

      9,810        682        (4,358 )      (4,758 )      —        (4,758 ) 

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      11,474        165        (3,108 )      (3,887 )      —        (3,887 ) 

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      15,745        100        1       (388 )      —        (388 ) 

LOTTE CARD Co.,Ltd. (*1)

      24,416,416        20,937,932        2,103,130       100,468       (20,494 )      79,974  

Union Technology Finance Investment Association

      40,269        641        19       (646 )      —        (646 ) 

Orient Shipyard Co., Ltd.

      7,025        23,626        —        (76 )      —        (76 ) 

Win Mortgage Co.,Ltd.

      6,053        3,073        16,435       1,044       —        1,044  

Samsung Together Korea IPPF private securities investment trust 3 [Equity-FoFs]

      10,849        1        306       300       —        300  

BTS 2nd Private Equity Fund

      39,431        432        628       (468 )      —        (468 ) 

STASSETS FUND III

      39,694        197        40       (802 )      —        (802 ) 

SF CREDIT PARTNERS, LLC

      185,463        30,752        35,820       14,319       18,291       32,610  

ARAM CMC Co.,Ltd.

      541        453        717       (31 )      —        (31 ) 

Japanese Hotel Real Estate Private Equity Fund No.2

      14,135        13        1,246       1,129       —        1,129  

Woori Seoul Beltway Private Special Asset Fund No.1

      64,308        3        2,298       2,233       —        2,233  

Woori Smart General Private Equity Investment Trust 1

      312,490        166,250        13,404       8,549       —        8,549  

Woori Asset Global Partnership Fund No.5

      95,548        254        6,479       5,038       —        5,038  

WOORI TAERIM 1st Fund

      4,045        183        —        —        —        —   

Portone-Cape Fund No.1

      1,000        200        —        (103 )      —        (103 ) 

Darwin Green Packaging Private Equity Fund

      19,128        —         —        (262 )      —        (262 ) 

Koreawide partners 2nd Private Equity Fund

      75,002        2,870        —        —        —        —   

Woori FirstValue Private Real Estate Fund No.2

      67,081        62,357        62       57       —        57  

Woori Together TDF 2025

      14,500        30        1,232       1,206       —        1,206  

Woori Together TDF 2030

      16,849        41        1,574       1,544       —        1,544  

Woori USD Treasury Target Return Bond FoF

      921        —         164       144       —        144  

Woori Together TDF 2035

      15,537        241        1,031       1,011       —        1,011  

Australia Green Energy 1st PEF

      132,878        24        13,121       11,424       —        11,424  

Aarden Woori Apparel 1st Private Equity Fund

      20,083        89        —        (8,136 )      —        (8,136 ) 

Woori Dyno 1st Private Equity Fund

      14,575        43        2,712       2,545       —        2,545  

NH Woori Dino Co-Investment NO.2 Private Equity Fund

      39,368        2        6       (83 )      —        (83 ) 

KTB-KORUS FUND

      4,772        —         691       (3,062 )      —        (3,062 ) 

KTBN Venture Fund No.8

      7,032        —         98       (1,902 )      —        (1,902 ) 

KTBN Digital Contents Korea Fund No.9

      18,343        1,656        937       (1,971 )      —        (1,971 ) 

KTBN Media Contents Fund

      1,029        —         60       (858 )      —        (858 ) 

KTB China Synergy Fund

      135,892        10,073        23,354       12,215       —        12,215  

NAVER-KTB Audio Contents Fund

      25,443        648        466       (3,972 )      —        (3,972 ) 

KTBN Venture Fund No.13

      80,487        625        38,903       27,039       —        27,039  

KTBN Future Contents Fund

      31,882        434        725       (2,763 )      —        (2,763 ) 

KTBN Venture Fund No.16

      156,157        1,592        31,459       14,540       —        14,540  

KTBN Venture Fund No.18

      254,010        2,532        31,976       (383 )      —        (383 ) 

KB-KTB Technology Venture Fund

      52,125        701        3,802       (1,377 )      —        (1,377 ) 

WOORI 2022 Scaleup Venture Fund

      89,006        76        926       (12,705 )      —        (12,705 ) 

 

- 120 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2024  
     Assets      Liabilities      Operating
revenue		      Net
income
(loss)		     Other
comprehensive
income
(loss)		     Total
comprehensive
income
(loss)		  

WOORI 2022 Start-up Venture Fund

      42,418        3        162        (466 )      —        (466 ) 

KTBN GI Private Equity Fund

      104        12        3,444        2,832       (732 )      2,100  

Chirochem

      556        190        451        8       —        8  

Godo Kaisha Oceanos 1

      60,513        45,145        2,605        132       —        132  

KG Fashion Co., Ltd.

      2,201        2,850        544        (197 )      —        (197 ) 

KUM HWA Co., Ltd.

      4        167        —         —        —        —   

Jinmyung Plus Co., Ltd.

      499        459        96        (32 )      —        (32 ) 

JC Assurance No.2 Private Equity Fund

      121,539        989        —         (642 )      —        (642 ) 

HMS-Oriens 1st Fund

      65,227        7        —         3,723       —        3,723  

Woori Senior Loan Private Placement Investment Trust No.1

      80,919        5        9,664        9,101       —        9,101  

Genesis Eco No.1 Private Equity Fund

      38,043        622        —         (634 )      —        (634 ) 

Paratus Woori Material Component Equipment joint venture company

      58,285        2,380        —         (884 )      —        (884 ) 

Midas No. 8 Private Equity Joint Venture Company

      64,156        241        1,916        963       —        963  

Orchestra Private Equity Fund IV

      34,113        —         700        194       —        194  

Synaptic Green No.1 PEF

      35,623        5        2        703       —        703  

IGEN2022No. 1 Private Equity Fund

      32,215        126        1,056        565       —        565  

PCC-Woori LP Secondary Fund

      22,863        600        2,549        (4,767 )      —        (4,767 ) 

Synaptic Future Growth Private Equity Fund

      32,638        295        19,412        18,240       —        18,240  

Woori-Q Corporate Restructuring Private Equity Fund

      101,315        1,362        1,278        164       —        164  

Woori-Shinyoung Growth-Cap Private Equity Fund I

      84,775        419        4,422        (10,824 )      —        (10,824 ) 

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      164,574        762        40,639        38,093       —        38,093  

Woori Real Estate Investment No. 1 Limited Liability Company

      405,845        235,058        6        (1,412 )      —        (1,412 ) 

Woori General Private Securities Investment Trust No. 5

      456,448        246,365        15,926        10,847       —        10,847  

Woori Big Satisfaction General Private Securities Investment Trust No. 3

      170,856        55,432        6,755        5,425       —        5,425  

Woori General Private Securities Investment Trust No. 6

      398,460        251,145        12,650        7,315       —        7,315  

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

      171,980        —         8,579        8,539       —        8,539  

Woori General Private Securities Investment Trust No. 7 (Bond)

      424,652        280,745        6,743        3,907       —        3,907  

Woori Smart General Private Equity Investment Trust No.1(bond)

      244,268        101,784        3,038        2,484       —        2,484  

Woori Future Energy Private Special Asset Investment Trust(General) No.1

      —         —         —         —        —        —   

Woori Big Satisfaction Corporation MMF No. 3

      1,860,868        29        56,309        56,153       —        56,153  

NH Woori New deal Co-Investment No.1 Private Equity Fund

      29,382        254        3,682        3,428       —        3,428  

KCLAVIS NPL Investment Trust NO 1-2

      43,057        80        1,176        1,176       —        1,176  

MARKET&FARM CO.,LTD.

      954        902        4,933        (125 )      —        (125 ) 

 

(*1)

The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

 

- 121 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Assets      Liabilities      Operating
revenue		     Net
income
(loss)		     Other
comprehensive
income (loss)		     Total
comprehensive
income (loss)		  

W Service Networks Co., Ltd.

      6,887        2,496        19,350       1,069       —        1,069  

Korea Credit Bureau Co., Ltd.

      131,164        68,756        163,707       8,012       —        8,012  

Korea Finance Security Co., Ltd.

      36,185        14,287        44,709       (464 )      6,730       6,266  

K BANK Co., Ltd.

      20,799,599        18,903,298        826,894       49,853       47,885       97,738  

Partner One Value Up I Private Equity Fund

      14,182        293        (4,107 )      (4,505 )      —        (4,505 ) 

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      41,533        305        6,501       5,823       —        5,823  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      15,754        100        2       (388 )      —        (388 ) 

LOTTE CARD Co., Ltd. (*1)

      22,329,308        19,191,007        1,937,383       363,673       (19,888 )      343,785  

Union Technology Finance Investment Association

      41,543        233        2,261       (838 )      —        (838 ) 

Dicustody Co., Ltd.

      92        —         —        (3 )      —        (3 ) 

Orient Shipyard Co., Ltd.

      10,708        27,225        —        (124 )      —        (124 ) 

Joongang Network Solution Co.,Ltd.

      1,505        3,156        5,758       5       —        5  

Win Mortgage Co.,Ltd.

      3,518        1,197        9,309       378       —        378  

Together-Korea Government Private Pool Private Securities Investment Trust No. 3

      10,543        1        227       222       —        222  

BTS 2nd Private Equity Fund

      25,030        837        4       (1,213 )      —        (1,213 ) 

STASSETS FUND III

      30,014        312        95       (1,145 )      —        (1,145 ) 

SF CREDIT PARTNERS, LLC

      149,157        25,996        7,618       (4,610 )      (2,819 )      (7,429 ) 

Rea Company

      2,248        3,736        802       (694 )      —        (694 ) 

ARAM CMC Co.,Ltd.

      669        485        1,005       (254 )      —        (254 ) 

Japanese Hotel Real Estate Private Equity Fund No.2

      13,541        12        54       46       (602 )      (556 ) 

Woori Seoul Beltway Private Special Asset Fund No.1

      50,362        2        1,858       1,805       —        1,805  

Woori General Private Securities Investment Trust(Bond) No.1

      414,760        208,014        12,617       6,746       —        6,746  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

      828,793        126,879        34,607       31,283       —        31,283  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

      113,413        6        4,774       4,542       —        4,542  

Woori General Private Securities Investment Trust(Bond) No.2

      224,205        111,165        5,767       3,040       —        3,040  

Woori Smart General Private Equity Investment Trust 1(bond)

      289,553        145,580        7,373       3,973       —        3,973  

Woori General Private Securities Investment Trust(Bond) No.3

      532,139        347,809        9,304       4,342       —        4,342  

Woori Asset Global Partnership Fund No.5

      38,537        281        —        (744 )      —        (744 ) 

WOORI TAERIM 1st Fund

      4,045        183        —        —        —        —   

Portone-Cape Fund No.1

      2,324        100        —        (103 )      —        (103 ) 

DeepDive WOORI 2021-1 Financial Investment Fund

      10,400        19        9,607       9,467       —        9,467  

Darwin Green Packaging Private Equity Fund

      19,390        —         759       451       —        451  

Koreawide partners 2nd Private Equity Fund

      75,064        2,931        —        (2,831 )      —        (2,831 ) 

Woori FirstValue Private Real Estate Fund No.2

      67,024        62,357        32       18       —        18  

Woori Real Infrastructure Blind General Type Private Placement Investment Trust

      114,909        92        6,053       4,892       —        4,892  

Woori Together TDF 2030

      11,944        61        2,528       1,017       —        1,017  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

      50,831        1        2,446       2,444       —        2,444  

Australia Green Energy 1st PEF

      121,454        24        508       (1,189 )      —        (1,189 ) 

Aarden Woori Apparel 1st Private Equity Fund

      28,219        90        1       (332 )      —        (332 ) 

Woori Dyno 1st Private Equity Fund

      12,068        43        2,053       1,886       —        1,886  

KTB-KORUS FUND

      8,957        1        127       (712 )      —        (712 ) 

KTB China Platform Fund

      85,909        13        2,411       (5,160 )      —        (5,160 ) 

KTBN Venture Fund No.7

      79,871        —         6,420       508       —        508  

 

- 122 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Assets      Liabilities      Operating
revenue		     Net
income
(loss)		     Other
comprehensive
income(loss)		     Total
comprehensive
income(loss)		  

KTBN Venture Fund No.8

      11,758        207        2,359       (4,559 )      —        (4,559 ) 

KTBN Digital Contents Korea Fund No.9

      20,257        1,599        3,030       (1,142 )      —        (1,142 ) 

KTBN Media Contents Fund

      1,887        —         199       (35 )      —        (35 ) 

KTB China Synergy Fund

      145,464        9,977        23,055       (8,686 )      —        (8,686 ) 

NAVER-KTB Audio Contents Fund

      29,419        652        1,017       237       —        237  

KTBN Venture Fund No.13

      72,943        737        21,662       18,507       —        18,507  

KTBN Future Contents Fund

      34,696        486        7,394       4,776       —        4,776  

KTBN Venture Fund No.16

      182,850        1,875        40,201       11,133       —        11,133  

KTBN Venture Fund No.18

      268,437        2,526        31,543       8,036       —        8,036  

KB-KTB Technology Venture Fund

      42,046        246        2,055       (1,076 )      —        (1,076 ) 

WOORI 2022 Scaleup Venture Fund

      68,626        826        504       (2,758 )      —        (2,758 ) 

WOORI 2022 Start-up Venture Fund

      8,237        156        42       (576 )      —        (576 ) 

KTB-NHN China Private Equity Fund

      16        7        946       (315 )      (319 )      (634 ) 

KTBN GI Private Equity Fund

      12,391        45        —        7,146       712       7,858  

Chirochem

      732        375        4,215       148       —        148  

Godo Kaisha Oceanos 1

      62,021        45,334        2,765       192       —        192  

Woori Zip 1

      44,448        31,702        2,066       (198 )      —        (198 ) 

Woori Zip 2

      62,642        45,012        3,023       (167 )      —        (167 ) 

KG Fashion Co., Ltd.

      2,559        3,022        943       (569 )      —        (569 ) 

KUM HWA Co., Ltd.

      4        167        —        —        —        —   

Jinmyung Plus Co., Ltd.

      519        454        146       (3 )      —        (3 ) 

JC Assurance No.2 Private Equity Fund

      121,596        8        —        (628 )      —        (628 ) 

Dream Company Growth no.1 PEF

      28,366        255        1,490       1,300       —        1,300  

HMS-Oriens 1st Fund

      61,498        1        3,957       3,408       —        3,408  

Woori Senior Loan Private Placement Investment Trust No.1

      349,154        22        17,759       16,726       —        16,726  

Genesis Eco No.1 Private Equity Fund

      38,064        314        —        (947 )      —        (947 ) 

Paratus Woori Material Component Equipment joint venture company

      58,298        1,510        —        (906 )      —        (906 ) 

Midas No. 8 Private Equity Joint Venture Company

      65,063        242        1,956       1,002       —        1,002  

Orchestra Private Equity Fund IV

      34,041        122        1,680       1,172       —        1,172  

Synaptic Green No.1 PEF

      36,325        175        4       (867 )      —        (867 ) 

IGEN2022No. 1 Private Equity Fund

      32,255        124        1,847       1,350       —        1,350  

PCC-Woori LP Secondary Fund

      27,773        668        908       (6,350 )      —        (6,350 ) 

Synaptic Future Growth Private Equity Fund 1

      30,049        301        2       (951 )      —        (951 ) 

Woori-Q Corporate Restructuring Private Equity Fund

      63,265        456        4,945       3,018       —        3,018  

Woori-Shinyoung Growth-Cap Private Equity Fund I

      97,265        1,522        (26,435 )      (27,768 )      —        (27,768 ) 

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      100,215        1,588        2       (3,605 )      —        (3,605 ) 

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

      16,630        5        1,383       1,383       —        1,383  

Woori 25-09 Corporate Bond(AA- or higher) Active ETF

      133,729        32,028        3,006       2,831       —        2,831  

Woori Short Term Government and Special Bank Bond Active ETF

      62,185        3,212        1,222       978       —        978  

 

(*1)

The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

 

- 123 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

The entities that the Group has not applied equity method of accounting although the Group’s ownership interest is more than 20% as of December 31, 2024 and 2023 are as follows:

 

     December 31, 2024  

Associate (*)

    Number of shares owned      Ownership (%)  

CL Tech Co., Ltd.

      10,191        28.6  

TH International Co.,Ltd.

      6,802        21.5  

WORK-LIFE BALANCE CO.,LTD

      209        21.3  

 

(*)

Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.

 

     December 31, 2024  

Associate (*)

    Number of shares owned      Ownership (%)  

CL Tech Co., Ltd.

      10,191        28.6  

 

(*)

Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.

 

- 124 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5)

As of December 31, 2024 and 2023, the reconciliations from the net assets of the associates to the carrying amount of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership):

 

     December 31, 2024  
     Total net
asset		     Ownership
(%)		      Ownership
portion of
net assets		     Basis
difference		      Impairment      Intercompany
transaction		     Book
value		  

W Service Networks Co., Ltd.

      4,146       4.9        204       —         —         —        204  

Korea Credit Bureau Co., Ltd.

      88,314       9.9        8,755       246        —         —        9,001  

Korea Finance Security Co., Ltd.

      24,105       15.0        3,616       —         —         —        3,616  

K BANK Co., Ltd. (*)

      2,018,704       12.0        241,429       20,821        —         —        262,250  

Partner One Value Up I Private Equity Fund

      9,128       23.3        2,123       —         —         —        2,123  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      11,309       20.0        2,263       —         —         —        2,263  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      15,645       25.0        3,911       —         —         621       4,532  

LOTTE CARD Co., Ltd. (*)

      2,877,907       20.0        575,580       —         —         —        575,580  

Union Technology Finance Investment Association

      39,628       29.7        11,770       —         —         —        11,770  

Orient Shipyard Co., Ltd.

      (16,601 )      22.7        (3,773 )      —         —         3,773       —   

Win Mortgage Co.,Ltd.

      2,980       4.5        135       —         —         —        135  

Samsung Together Korea IPPF private securities investment trust 3 [Equity-FoFs]

      10,848       100.0        10,847       —         —         —        10,847  

BTS 2nd Private Equity Fund

      38,999       20.0        7,799       —         —         —        7,799  

STASSETS FUND III

      39,497       28.3        11,178       —         —         —        11,178  

SF CREDIT PARTNERS, LLC

      154,711       10.0        15,470       —         —         530       16,000  

ARAM CMC Co.,Ltd.

      88       20.1        18       —         —         (18 )      —   

Japanese Hotel Real Estate Private Equity Fund No.2

      14,122       19.9        2,810       —         —         (5 )      2,805  

Woori Seoul Beltway Private Special Asset Fund No.1

      64,305       25.0        16,076       —         —         —        16,076  

Woori Smart General Private Equity Investment Trust 1(bond)

      146,240       28.6        41,825       —         —         (42 )      41,783  

Woori Asset Global Partnership Fund No.5

      95,294       57.7        54,985       —         —         (8 )      54,977  

WOORI TAERIM 1st Fund

      3,862       25.6        988       —         —         —        988  

Portone-Cape Fund No.1

      800       20.0        160       —         —         —        160  

Darwin Green Packaging Private Equity Fund

      19,128       20.4        3,904       —         —         —        3,904  

Koreawide partners 2nd Private Equity Fund

      72,132       26.7        19,235       —         —         —        19,235  

Woori FirstValue Private Real Estate Fund No.2

      4,724       12.0        567       —         —         —        567  

Woori Together TDF 2025

      14,470       24.7        3,577       —         —         —        3,577  

Woori Together TDF 2030

      16,808       22.2        3,724       —         —         —        3,724  

Woori USD Treasury Target Return Bond FoF

      921       23.9        220       —         —         —        220  

Woori Together TDF 2035

      15,296       22.5        3,448       —         —         —        3,448  

Australia Green Energy 1st PEF

      132,854       4.0        5,264       —         —         —        5,264  

Aarden Woori Apparel 1st Private Equity Fund

      19,994       0.5        95       —         —         —        95  

Woori Dyno 1st Private Equity Fund

      14,532       19.6        2,849       —         —         —        2,849  

 

- 125 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2024  
     Total net
asset		     Ownership
(%)		      Ownership
portion of
net assets		     Basis
difference		      Impairment     Intercompany
transaction		     Book
value		  

NH Woori Dino Co-Investment NO.2 Private Equity Fund

      39,366       5.1        1,996       —         —        —        1,996  

KTB-KORUS FUND

      4,772       37.5        1,789       —         —        —        1,789  

KTBN Venture Fund No.8

      7,032       21.7        1,529       —         —        —        1,529  

KTBN Digital Contents Korea Fund No.9

      16,687       30.0        5,006       —         —        —        5,006  

KTBN Media Contents Fund

      1,029       15.0        154       —         —        —        154  

KTB China Synergy Fund

      125,819       15.1        18,949       —         —        —        18,949  

NAVER-KTB Audio Contents Fund

      24,795       1.0        248       —         —        —        248  

KTBN Venture Fund No.13

      79,862       19.6        15,659       —         —        —        15,659  

KTBN Future Contents Fund

      31,448       13.3        4,193       —         —        —        4,193  

KTBN Venture Fund No.16

      154,565       10.3        15,853       —         —        —        15,853  

KTBN Venture Fund No.18

      251,478       10.1        25,506       —         —        —        25,506  

KB-KTB Technology Venture Fund

      51,424       18.2        9,350       —         —        —        9,350  

WOORI 2022 Scaleup Venture Fund

      88,930       20.0        17,809       —         —        —        17,809  

WOORI 2022 Start-up Venture Fund

      42,415       30.1        12,773       —         —        —        12,773  

KTBN GI Private Equity Fund

      92       5.0        5       —         —        —        5  

Chirochem

      366       28.6        104       —         —        —        104  

Godo Kaisha Oceanos 1

      15,368       47.8        7,347       —         —        —        7,347  

KG Fashion Co., Ltd.

      (649 )      20.8        (135 )      —         —        135       —   

KUM HWA Co., Ltd.

      (163 )      20.1        (33 )      —         —        33       —   

Jinmyung Plus Co., Ltd.

      40       21.3        9       —         —        —        9  

JC Assurance No.2 Private Equity Fund

      120,550       23.4        28,246       —         (28,246 )      —        —   

HMS-Oriens 1st Fund

      65,220       22.8        14,880       —         —        —        14,880  

Woori Senior Loan Private Placement Investment Trust No.1

      80,914       21.7        17,517       —         —        —        17,517  

Genesis Eco No.1 Private Equity Fund

      37,421       29.0        10,847       —         —        —        10,847  

Paratus Woori Material Component Equipment joint venture company

      55,905       29.9        16,714       —         —        —        16,714  

Midas No. 8 Private Equity Joint Venture Company

      63,915       28.5        18,207       —         —        —        18,207  

Orchestra Private Equity Fund IV

      34,113       28.2        9,610       —         —        —        9,610  

Synaptic Green No.1 PEF

      35,618       21.1        7,499       —         —        —        7,499  

IGEN2022No. 1 Private Equity Fund

      32,089       24.8        7,972       —         —        —        7,972  

PCC-Woori LP Secondary Fund

      22,263       38.9        8,648       —         —        —        8,648  

Synaptic Future Growth Private Equity Fund 1

      32,343       23.8        7,685       —         —        —        7,685  

Woori-Q Corporate Restructuring Private Equity Fund

      99,953       34.6        34,619       —         —        (612 )      34,007  

Woori-Shinyoung Growth-Cap Private Equity Fund I

      84,356       35.0        29,499       —         —        197       29,696  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      163,812       32.9        53,948       —         —        1,591       55,539  

Woori Real Estate Investment No. 1 Limited Liability Company

      170,787       19.9        33,919       —         —        —        33,919  

 

- 126 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2024  
     Total net
asset		      Ownership
(%)		      Ownership
portion of
net assets		      Basis
difference		      Impairment      Intercompany
transaction		     Book
value		  

Woori General Private Securities Investment Trust No. 5

      210,083        28.6        60,024        —         —         —        60,024  

Woori Big Satisfaction General Private Securities Investment Trust No. 3

      115,424        9.1        10,493        —         —         —        10,493  

Woori General Private Securities Investment Trust No. 6

      147,315        28.6        42,090        —         —         —        42,090  

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

      171,980        2.3        4,019        —         —         (8 )      4,011  

Woori General Private Securities Investment Trust No. 7 (Bond)

      143,907        28.6        41,116        —         —         —        41,116  

Woori Smart General Private Equity Investment Trust No.1(bond)

      142,484        28.4        40,477        —         —         —        40,477  

Woori Future Energy Private Special Asset Investment Trust(General) No.1

      —         16.0        —         —         —         —        —   

Woori Big Satisfaction Corporation MMF No. 3

      1,860,839        2.3        42,038        —         —         (54 )      41,984  

NH Woori New deal Co-Investment No.1 Private Equity Fund

      29,128        19.5        5,680        —         —         (476 )      5,204  

KCLAVIS NPL Investment Trust NO 1-2

      42,977        35.9        15,422        —         —         —        15,422  

MARKET&FARM CO.,LTD.

      52        23.7        12        —         —         (12 )      —   

 

(*)

The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

 

- 127 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Total net
asset		     Ownership
(%)		      Ownership
portion of
net assets		     Basis
difference		      Impairment      Intercompany
transaction		     Book
value		  

W Service Networks Co., Ltd.

      4,391       4.9        216       —         —         —        216  

Korea Credit Bureau Co., Ltd.

      62,408       9.9        6,186       247        —         —        6,433  

Korea Finance Security Co., Ltd.

      21,898       15.0        3,285       —         —         —        3,285  

K BANK Co., Ltd. (*)

      1,893,785       12.6        238,158       21,894        —         —        260,052  

Partner One Value Up I Private Equity Fund

      13,889       23.3        3,230       —         —         —        3,230  

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      41,228       20.0        8,247       —         —         —        8,247  

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      15,654       25.0        3,914       —         —         523       4,437  

LOTTE CARD Co., Ltd. (*)

      2,936,964       20.0        587,392       —         —         —        587,392  

Union Technology Finance Investment Association

      41,310       29.7        12,270       —         —         —        12,270  

Dicustody Co., Ltd.

      92       1.0        1       —         —         —        1  

Orient Shipyard Co., Ltd.

      (16,517 )      22.7        (3,754 )      —         —         3,754       —   

Joongang Network Solution Co.,Ltd.

      (1,651 )      25.3        (419 )      —         —         507       88  

Win Mortgage Co.,Ltd.

      2,321       4.5        105       —         —         —        105  

Together-Korea Government Private Pool Private Securities Investment Trust No. 3

      10,542       100.0        10,540       —         —         —        10,540  

BTS 2nd Private Equity Fund

      24,193       20.0        4,838       —         —         —        4,838  

STASSETS FUND III

      29,702       28.3        8,406       —         —         —        8,406  

SF CREDIT PARTNERS, LLC

      123,161       10.0        12,316       —         —         529       12,845  

Rea Company

      (1,488 )      24.5        (365 )      —         —         365       —   

ARAM CMC Co.,Ltd.

      184       20.0        37       —         —         (37 )      —   

Japanese Hotel Real Estate Private Equity Fund No.2

      13,529       19.9        2,688       —         —         —        2,688  

Woori Seoul Beltway Private Special Asset Fund No.1

      50,360       25.0        12,590       —         —         —        12,590  

Woori General Private Securities Investment Trust(Bond) No.1

      206,746       25.0        51,686       —         —         —        51,686  

Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F

      701,914       15.0        105,564       —         —         —        105,564  

Woori Safe Plus General Type Private Investment Trust S-8(Bond)

      113,407       9.1        10,330       —         —         —        10,330  

Woori General Private Securities Investment Trust(Bond) No.2

      113,040       27.3        30,829       —         —         —        30,829  

Woori Smart General Private Equity Investment Trust 1(bond)

      143,973       28.6        41,135       —         —         —        41,135  

Woori General Private Securities Investment Trust(Bond) No.3

      184,330       27.8        51,205       —         —         —        51,205  

Woori Asset Global Partnership Fund No.5

      38,256       57.7        22,071       —         —         —        22,071  

WOORI TAERIM 1st Fund

      3,862       25.6        988       —         —         —        988  

Portone-Cape Fund No.1

      2,224       20.0        445       —         —         —        445  

DeepDive WOORI 2021-1 Financial Investment Fund

      10,381       11.9        1,236       —         —         —        1,236  

 

- 128 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Total net
asset		     Ownership
(%)		      Ownership
portion of
net assets		     Basis
difference		      Impairment     Intercompany
transaction		      Book
value		  

Darwin Green Packaging Private Equity Fund

      19,390       20.4        3,957       —         —        —         3,957  

Koreawide partners 2nd Private Equity Fund

      72,133       26.7        19,235       —         —        —         19,235  

Woori FirstValue Private Real Estate Fund No.2

      4,667       12.0        560       —         —        —         560  

Woori Real Infrastructure Blind General Type Private Placement Investment Trust

      114,817       0.1        55       —         —        —         55  

Woori Together TDF 2030

      11,894       28.0        3,324       —         —        —         3,324  

Woori Together OCIO Target Return Feeder fund (Balance Bond)

      50,837       20.4        10,376       —         —        —         10,376  

Australia Green Energy 1st PEF

      121,430       4.0        4,811       —         —        —         4,811  

Aarden Woori Apparel 1st Private Equity Fund

      28,129       0.5        133       —         —        —         133  

Woori Dyno 1st Private Equity Fund

      12,025       19.6        2,358       —         —        —         2,358  

KTB-KORUS FUND

      8,956       37.5        3,359       —         —        —         3,359  

KTB China Platform Fund

      85,895       18.7        16,059       —         —        —         16,059  

KTBN Venture Fund No.7

      79,871       20.1        16,044       —         —        —         16,044  

KTBN Venture Fund No.8

      11,551       21.7        2,511       —         —        —         2,511  

KTBN Digital Contents Korea Fund No.9

      18,658       30.0        5,597       —         —        —         5,597  

KTBN Media Contents Fund

      1,887       15.0        283       —         —        —         283  

KTB China Synergy Fund

      135,487       15.1        20,405       —         —        —         20,405  

NAVER-KTB Audio Contents Fund

      28,767       1.0        288       —         —        —         288  

KTBN Venture Fund No.13

      72,206       19.6        14,158       —         —        —         14,158  

KTBN Future Contents Fund

      34,210       13.3        4,561       —         —        —         4,561  

KTBN Venture Fund No.16

      180,975       10.3        18,561       —         —        —         18,561  

KTBN Venture Fund No.18

      265,911       10.1        26,970       —         —        —         26,970  

KB-KTB Technology Venture Fund

      41,800       18.2        7,600       —         —        —         7,600  

WOORI 2022 Scaleup Venture Fund

      67,800       20.0        13,578       —         —        —         13,578  

WOORI 2022 Start-up Venture Fund

      8,081       30.1        2,433       —         —        —         2,433  

KTB-NHN China Private Equity Fund

      9       33.3        3       —         —        —         3  

KTBN GI Private Equity Fund

      12,346       5.0        617       —         —        —         617  

Chirochem

      357       28.6        102       —         —        —         102  

Godo Kaisha Oceanos 1

      16,687       47.8        7,978       —         —        —         7,978  

Woori Zip 1

      12,746       62.4        7,629       —         —        —         7,629  

Woori Zip 2

      17,630       62.8        10,695       —         —        —         10,695  

KG Fashion Co., Ltd.

      (463 )      20.8        (96 )      —         —        96        —   

KUM HWA Co., Ltd.

      (163 )      20.1        (33 )      —         —        33        —   

Jinmyung Plus Co., Ltd.

      65       21.3        14       —         —        —         14  

JC Assurance No.2 Private Equity Fund

      121,588       23.5        28,610       —         (28,610 )      —         —   

Dream Company Growth no.1 PEF

      28,111       27.8        7,809       —         —        —         7,809  

HMS-Oriens 1st Fund

      61,497       22.8        14,030       —         —        —         14,030  

Woori Senior Loan Private Placement Investment Trust No.1

      349,132       21.7        75,590       —         —        —         75,590  

Genesis Eco No.1 Private Equity Fund

      37,750       29.0        10,942       —         —        —         10,942  

 

- 129 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Total net
asset		      Ownership
(%)		      Ownership
portion of
net assets		      Basis
difference		      Impairment      Intercompany
transaction		      Book
value		  

Paratus Woori Material Component Equipment joint venture company

      56,788        29.9        16,979        —         —         —         16,979  

Midas No. 8 Private Equity Joint Venture Company

      64,821        28.5        18,465        —         —         —         18,465  

Orchestra Private Equity Fund IV

      33,919        28.2        9,555        —         —         —         9,555  

Synaptic Green No.1 PEF

      36,150        21.1        7,611        —         —         —         7,611  

IGEN2022No. 1 Private Equity Fund

      32,131        24.8        7,983        —         —         —         7,983  

PCC-Woori LP Secondary Fund

      27,105        38.9        10,530        —         —         —         10,530  

Synaptic Future Growth Private Equity Fund 1

      29,748        23.8        7,069        —         —         —         7,069  

Woori-Q Corporate Restructuring Private Equity Fund

      62,809        32.4        20,283        —         —         —         20,283  

Woori-Shinyoung Growth-Cap Private Equity Fund I

      95,743        35.0        33,481        —         —         —         33,481  

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      98,627        32.7        32,987        —         —         —         32,987  

Woori BIG2 Plus Securities Investment Trust(Balanced Bond)

      16,625        14.1        2,543        —         —         —         2,543  

Woori 25-09 Corporate Bond (AA- or higher) Active ETF

      101,701        29.3        29,821        —         —         —         29,821  

Woori Short Term Government and Special Bank Bond Active ETF

      58,973        20.8        12,286        —         —         —         12,286  

 

(*)

The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

 

- 130 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

14.

INVESTMENT PROPERTIES

 

(1)

Details of investment properties are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Acquisition cost

      497,787        510,990  

Accumulated depreciation

      (46,913 )       (38,136 ) 

Accumulated impairment losses

      (86 )       (86 ) 
  

 

 

     

 

 

  

Net carrying value

      450,788        472,768  
  

 

 

     

 

 

  

 

(2)

Changes in investment properties are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Beginning balance

      472,768        387,707  

Acquisition

      —         99,234  

Disposal

      (62,467 )       —   

Depreciation

      (8,216 )       (5,398 ) 

Transfer

      42,344        (2,098 ) 

Foreign currencies translation adjustments

      6,409        (6,677 ) 

Others

      (50 )       —   
  

 

 

     

 

 

  

Ending balance

      450,788        472,768  
  

 

 

     

 

 

  

 

(3)

Fair value of investment properties amounted to 795,216 million won and 802,109 million won as of December 31, 2024 and 2023, respectively. The fair value of investment properties has been assessed on the basis of recent similar real estate market price and officially assessed land price in the area of the investment properties, is classified as level 3 on the fair value hierarchy.

 

(4)

Rental fee earned from investment properties is amounting to 23,307 million won and 26,477 million won for the years ended December 31, 2024 and 2023, respectively. Operating expenses directly related to the investment properties where rental fee was earned is amounting to 8,414 million won and 5,568 million won.

 

(5)

The lease payments expected to be received in the future under lease contracts relating to investment properties as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Lease payments:

      

Within a year

      13,702        14,784  

More than 1 year and within 2 years

      9,414        8,214  

More than 2 years and within 3 years

      7,667        3,744  

More than 3 years and within 4 years

      4,362        3,172  

More than 4 years and within 5 years

      3,438        2,994  

More than 5 years

      3,441        2,944  
  

 

 

     

 

 

  

Total

      42,024        35,852  
  

 

 

     

 

 

  

 

- 131 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

15.

PREMISES AND EQUIPMENT

 

(1)

Details of premises and equipment as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Land      Building      Equipment
and
vehicles		      Leasehold
improvement		      Construction
in progress		      Structures      Total  

Premises and equipment (owned)

      1,662,448        683,221        305,581        71,952        68,440        —         2,791,642  

Right-of-use asset

      —         557,049        21,894        —         —         —         578,943  

Carrying value

      1,662,448        1,240,270        327,475        71,952        68,440        —         3,370,585  

 

     December 31, 2023  
     Land      Building      Equipment
and
vehicles		      Leasehold
improvement		      Construction
in progress		      Structures      Total  

Premises and equipment (owned)

      1,709,712        719,738        265,064        61,369        37,194        —         2,793,077  

Right-of-use asset

      —         362,702        20,980        —         —         —         383,682  

Carrying value

      1,709,712        1,082,440        286,044        61,369        37,194        —         3,176,759  

 

(2)

Details of premises and equipment (owned) as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Land     Building     Equipment
and vehicles		     Leasehold
improvement		     Construction
in progress		      Structures     Total  

Acquisition cost

      1,663,108       1,087,536       1,305,020       505,417       68,440        20       4,629,541  

Accumulated depreciation

      —        (404,315 )      (999,439 )      (433,465 )      —         (20 )      (1,837,239 ) 

Accumulated impairment losses

      (660 )      —        —        —        —         —        (660 ) 

Net carrying value

      1,662,448       683,221       305,581       71,952       68,440        —        2,791,642  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

     December 31, 2023  
     Land     Building     Equipment
and vehicles		     Leasehold
improvement		     Construction
in progress		      Structures     Total  

Acquisition cost

      1,710,372       1,098,682       1,229,740       486,763       37,194        20       4,562,771  

Accumulated depreciation

      —        (378,944 )      (964,676 )      (425,394 )      —         (20 )      (1,769,034 ) 

Accumulated impairment losses

      (660 )      —        —        —        —         —        (660 ) 

Net carrying value

      1,709,712       719,738       265,064       61,369       37,194        —        2,793,077  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

- 132 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Land     Building     Equipment
and
vehicles		     Leasehold
improvement		     Construction
in progress		     Structures      Total  

Beginning balance

      1,709,712       719,738       265,064       61,369       37,194       —         2,793,077  

Acquisitions

      215       27,919       125,793       29,714       38,215       —         221,856  

Disposals

      (7,602 )      —        (2,358 )      (1,556 )      —        —         (11,516 ) 

Depreciation

      —        (33,905 )      (99,634 )      (22,304 )      —        —         (155,843 ) 

Classification of assets held for sale

      (26,007 )      (12,416 )      —        —        —        —         (38,423 ) 

Transfer

      (22,991 )      (19,353 )      6,440       853       (7,293 )      —         (42,344 ) 

Foreign currencies translation adjustments

      1,876       726       4,409       3,061       333       —         10,405  

Business combination

      —        —        1,283       —        —        —         1,283  

Others

      7,245       512       4,584       815       (9 )      —         13,147  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Ending balance

      1,662,448       683,221       305,581       71,952       68,440       —         2,791,642  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Land     Building     Equipment
and
vehicles		     Leasehold
improvement		     Construction
in progress		     Structures      Total  

Beginning balance

      1,695,357       730,676       261,278       58,352       32,184       —         2,777,847  

Acquisitions

      43       18,107       112,908       24,874       8,790       —         164,722  

Disposals

      (367 )      (530 )      (13,630 )      (1,017 )      (3,600 )      —         (19,144 ) 

Depreciation

      —        (33,318 )      (96,684 )      (21,062 )      —        —         (151,064 ) 

Classification of assets held for sale

      (936 )      (1,568 )      —        —        —        —         (2,504 ) 

Transfer

      5,445       (3,347 )      —        —        —        —         2,098  

Foreign currencies translation adjustments

      638       322       296       186       (68 )      —         1,374  

Business combination

      9,530       9,530       318       —        —        —         19,378  

Others

      2       (134 )      578       36       (112 )      —         370  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Ending balance

      1,709,712       719,738       265,064       61,369       37,194       —         2,793,077  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

(4)

Details of right-of-use assets as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Building      Equipment and vehicles      Total  

Acquisition cost

      1,031,511        39,113        1,070,624  

Accumulated depreciation

      (474,462 )       (17,219 )       (491,681 ) 
  

 

 

     

 

 

     

 

 

  

Net carrying value

      557,049        21,894        578,943  
  

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Building      Equipment and vehicles      Total  

Acquisition cost

      735,396        40,389        775,785  

Accumulated depreciation

      (372,694 )       (19,409 )       (392,103 ) 
  

 

 

     

 

 

     

 

 

  

Net carrying value

      362,702        20,980        383,682  
  

 

 

     

 

 

     

 

 

  

 

- 133 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5)

Details of changes in right-of-use assets for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Building      Equipment and vehicles      Total  

Beginning balance

      362,702        20,980        383,682  

New contracts

      353,531        12,809        366,340  

Changes in contract

      80,622        78        80,700  

Termination

      (17,579 )       (1,535 )       (19,114 ) 

Depreciation

      (230,345 )       (12,962 )       (243,307 ) 

Business combination

      1,129        73        1,202  

Others

      6,989        2,451        9,440  
  

 

 

     

 

 

     

 

 

  

Ending balance

      557,049        21,894        578,943  
  

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Building      Equipment and vehicles      Total  

Beginning balance

      349,494        15,589        365,083  

New contracts

      192,111        18,699        210,810  

Changes in contract

      25,570        138        25,708  

Termination

      (15,340 )       (1,647 )       (16,987 ) 

Depreciation

      (201,232 )       (12,133 )       (213,365 ) 

Business combination

      675        271        946  

Others

      11,424        63        11,487  
  

 

 

     

 

 

     

 

 

  

Ending balance

      362,702        20,980        383,682  
  

 

 

     

 

 

     

 

 

  

 

- 134 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

16.

INTANGIBLE ASSETS

 

(1)

Details of intangible assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Goodwill      Industrial
property rights		     Development
cost		     Other
intangible
assets		     Membership
deposit		     Construction
in progress		      Total  

Acquisition cost

      482,707        2,419       965,131       1,511,286       55,444       6,598        3,023,585  

Accumulated amortization

      —         (1,971 )      (689,440 )      (1,204,181 )      —        —         (1,895,592 ) 

Accumulated impairment losses

      —         —        —        (33,552 )      (3,039 )      —         (36,591 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net carrying value

      482,707        448       275,691       273,553       52,405       6,598        1,091,402  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

     December 31, 2023  
     Goodwill      Industrial
property rights		     Development
cost		     Other
intangible
assets		     Membership
deposit		     Construction
in progress		      Total  

Acquisition cost

      445,093        2,292       859,678       1,388,397       50,857       8,142        2,754,459  

Accumulated amortization

      —         (1,783 )      (617,587 )      (1,101,688 )      —        —         (1,721,058 ) 

Accumulated impairment losses

      —         —        —        (33,553 )      (3,006 )      —         (36,559 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net carrying value

      445,093        509       242,091       253,156       47,851       8,142        996,842  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

(2)

Details of changes in intangible assets are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Goodwill      Industrial
property rights		     Development
cost		     Other
intangible
assets		     Membership
deposit		     Construction
in progress		     Total  

Beginning balance

      445,093        509       242,091       253,156       47,851       8,142       996,842  

Acquisitions

      —         18       96,140       94,047       6,988       25,376       222,569  

Disposal

      —         —        (113 )      (1,794 )      (2,665 )      —        (4,572 ) 

Amortization (*)

      —         (188 )      (75,417 )      (93,679 )      —        —        (169,284 ) 

Reversal of impairment losses

      —         —        —        —        (296 )      (575 )      (871 ) 

Transfer

      —         109       12,990       11,067       (77 )      (24,089 )      —   

Business combination

      15,139        —        —        6,117       756       —        22,012  

Foreign currencies translation adjustments

      22,475        —        —        4,502       345       586       27,908  

Others

      —         —        —        137       (497 )      (2,842 )      (3,202 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      482,707        448       275,691       273,553       52,405       6,598       1,091,402  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

Amortization of other intangible assets amounting to 28,509 million won is included in other operating expenses.

 

     For the year ended December 31, 2023  
     Goodwill      Industrial
property rights		     Development
cost		     Other
intangible
assets		     Membership
deposit		     Construction
in progress		     Total  

Beginning balance

      397,527        643       212,627       192,373       42,917       3,027       849,114  

Acquisitions

      —         72       105,596       125,509       4,000       7,612       242,789  

Disposal

      —         —        —        (1,028 )      (1,290 )      —        (2,318 ) 

Amortization (*)

      —         (206 )      (76,192 )      (84,556 )      —        —        (160,954 ) 

Impairment losses

      —         —        —        —        37       —        37  

Transfer

      —         —        61       650       (392 )      (350 )      (31 ) 

Business combination

      41,527        —        —        18,882       2,565       —        62,974  

Foreign currencies translation adjustments

      6,039        —        (1 )      854       4       (28 )      6,868  

Others

      —         —        —        472       10       (2,119 )      (1,637 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

      445,093        509       242,091       253,156       47,851       8,142       996,842  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

Amortization of other intangible assets amounting to 22,349 million won is included in other operating expenses.

 

- 135 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Goodwill

 

  1)

Details of allocated goodwill based on each cash-generating unit as of December 31, 2024 and 2023 are as follows (Unit: Korean won in million):

 

Cash-generating unit (*1)

    December 31, 2024      December 31, 2023  

Woori Asset Management Corp.

      45,066        43,036  

Woori Global Asset Management Co., Ltd.(*2)

      —         2,030  

Woori Asset Trust Co., Ltd.

      141,780        141,780  

Woori Venture Partners Co., Ltd.

      41,527        41,527  

Woori Investment Securities Co., Ltd.

      15,139        —   

PT Bank Woori Saudara Indonesia 1906 Tbk (*3)

      109,262        100,267  

WOORI BANK (CAMBODIA) PLC (*4)

      64,584        56,513  

PT Woori Finance Indonesia Tbk.(*5)

      57,861        53,097  

Others

      7,488        6,843  
  

 

 

     

 

 

  

Total

      482,707        445,093  
  

 

 

     

 

 

  

 

(*1)

Allocated to the cash-generating unit that will benefit from the synergy effect of the business combination, and the cash-generating unit is generally comprised of the operating segment or sub-sectors.

(*2)

Woori Asset Management Corp. merged with Woori Global Management Co., Ltd. through a business combination.

(*3)

The Group has acquired Saudara Bank to expand retail sales in Indonesia, and recognized the goodwill as it is expected to strengthen the competitiveness by securing a local sales network in Indonesia.

(*4)

The Group has acquired VisionFund Cambodia to expand retail sales in Cambodia, and recognized goodwill based on the economies of scale and acquired customer base.

(*5)

The company acquired PT Batavia Prosperindo Finance Tbk to expand its installment financing operations in Indonesia. Goodwill was recognized due to the anticipated enhancement of competitiveness through securing a network in the Indonesian used car market and strengthening existing customer relationships.

 

  2)

Impairment test

The recoverable amount of the cash-generating unit is measured at larger amount between the fair value less costs to sell and the value to use.

The net fair value is calculated by deducting costs of disposal from the amount received from the sale of the cash-generating unit in an arm’s length transaction between the parties with reasonable judgment and willingness to negotiate. In case of difficulty in measuring this amount, the sale amount of a similar cash-generating unit in the past market is calculated by reflecting the characteristics of the cash-generating unit. If reliable information related to fair value less costs to sell is not available, value in use is considered as recoverable amount. Value in use is the present value of future cash flows expected to be generated by the cash-generating unit. Future cash flows are estimated based on the latest financial budget approved by the management, with an estimated period of up to five years. The Group applied 1.0% growth rate to estimate future cash flow for the period over five years. The main assumptions used to estimate cash flows are about the size of the market and the share of the group. The appropriate discount rate for discounting future cash flows is the pre-tax discount rate, including assumptions about risk-free interest rates, market risk premium, and systemic risk of cash-generating units. The impairment test, which compares the carrying amount and recoverable amount of the cash-generating unit to which goodwill has been allocated, is conducted every year and every time an impairment sign occurs.

 

Category    Woori
Investment
Securities
Co., Ltd.		      Woori
Asset Trust
Co., Ltd.		      Woori Asset
Management
Corp.		      Woori Venture
Partners Co.,
Ltd.		      PT Bank Woori
Saudara
Indonesia 1906
Tbk		      WOORI BANK
(CAMBODIA)
PLC		      PT Woori
Finance
IndonesiaTbk		  

Discount rate (%)

      11.47        12.65        20.47        12.98        16.70        14.08        13.59  

Terminal growth rate (%)

      1.00        1.00        1.00        1.00        1.00        1.00        1.00  

Recoverable amount

      1,751,457        719,560        253,573        204,415        1,159,909        611,920        144,221  

Carrying amount

      1,171,779        612,513        208,862        185,565        1,157,185        608,181        143,312  

As a result of the impairment test on goodwill, it is determined that the carrying amount of the cash-generating unit to which the goodwill has been allocated will not exceed the recoverable amount.

 

- 136 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  3)

Sensitivity analysis

The sensitivity of the fair value measurement to changes in significant but unobservable inputs used in measuring fair value is as follows (Unit: Korean Won in millions):

 

Category    Woori
Investment
Securities
Co., Ltd.		     Woori
Asset Trust
Co., Ltd.		     Woori Asset
Management
Corp.		     Woori Venture
Partners Co.,
Ltd.		     PT Bank
Woori Saudara
Indonesia 1906
Tbk		     WOORI
BANK
(CAMBODIA)
PLC		     PT Woori
Finance
Indonesia Tbk		  

Discount rate (%)

    Increase by
1.0% point		      (158,579 )      (44,826 )      (7,872 )      (29,201 )      (94,117 )      (57,636 )      (11,494 ) 
   Decrease by
1.0% point		      204,651       55,470       9,010       36,971       110,818       69,745       13,521  

Terminal growth rate (%)

    Increase by
1.0% point		      141,716       34,519       4,508       25,817       35,178       23,170       8,899  
   Decrease by
1.0% point		      (110,941 )      (27,902 )      (3,964 )      (20,569 )      (32,488 )      (21,101 )      (7,589 ) 

 

17.

ASSETS HELD FOR SALE

Assets held for sale are as follows (Unit: Korean Won in millions):

 

Assets (*)

    December 31, 2024      December 31, 2023  

Premises and equipment

      31,266        11,573  

Others

      42,723        8,772  
  

 

 

     

 

 

  

Total

      73,989        20,345  
  

 

 

     

 

 

  

 

(*)

The Group classifies assets as held for sale that are highly likely to be sold within one year from December 31, 2024 and 2023.

The Group measured assets held for sale at the lower of their net fair value or carrying amount.

The Group has decided to sell some of the Premises and Equipment through internal consultation during the current year and classified the property as non-current assets held for sale. The assets are expected to be sold within 12 months, and those that were scheduled to be sold at the end of the prior year have been sold and removed. On the other hand, other assets that are expected to be sold as of the end of the current year are classified as assets that are expected to be sold within one year due to the possibility of being sold as buildings and land acquired through auction.

 

- 137 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

18.

ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES

 

(1)

Assets subjected to lien are as follows (Unit: Korean Won in millions):

 

         

December 31, 2024

         

Collateral given to

    Amount     

Reason for collateral

Financial assets at FVTPL

   

Korean treasury and government bonds, etc.

   

Shinhan Bank, etc.

      1,271,304     

Related to bonds sold under repurchase agreements (*1)

  

Korean treasury and government bonds, etc.

   

Korea Securities Depository

      240,005     

Securities borrowing collateral

  

Korean treasury and government bonds, etc.

   

SHINHAN SECURITIES CO, etc.

      11,134     

Future trading collateral

  

Korean financial institutions’ debt securities, etc.

   

DBS BANK LTD, SEL, etc.

      698,231     

Variable margin deposit for CSA, etc.

  

Korean capital contributions, etc.

   

Korea Software Financial Cooperative

      109     

Bid guarantee, etc.

Financial assets at FVTOCI

   

Korean financial institutions’ debt securities, etc.

   

CITIBANK, LONDON, etc.

      74,143     

Related to bonds sold under repurchase agreements (*1)

  

Korean treasury and government bonds

   

Industrial Bank of Korea

      10,115     

Related to bonds sold under repurchase agreements (*1)

  

Korean financial institutions’ debt securities, etc.

   

The BOK, etc.

      8,863,286     

Settlement risk, etc.

  

Debt securities in

foreign currencies

   

Central Bank of Brazil, etc.

      164,136     

Related to bonds sold under repurchase agreements (*1)

  

Debt securities in

foreign currencies

   

RJF

      110,530     

Related to the borrowing limit

  

Debt securities in

foreign currencies

   

SOCIETE GENERALE, PAR, etc.

      358,781     

Variable margin deposit for CSA, etc.

Securities at amortized cost

   

Korean treasury and government bonds

   

The BOK, etc.

      11,526,197     

Settlement risk, etc.

  

Debt securities in

foreign currencies

   

NATIXIS

      41,442     

Related to bonds sold under repurchase agreements (*1)

  

Debt securities in

foreign currencies

   

RJF, etc.

      34,508     

Related to the borrowing limit

Loan at amortized cost and other financial assets

   

Due from banks in local currency

   

KEB Hana Bank Co., Ltd., etc.

      6,431     

Collateral for difference settlement

  

Other due from banks in local currency

   

Korea Exchange Co.,Ltd.

      3     

Korean Won CCP margin

  

Other due from banks in foreign currency

   

BNP-PARIBAS, PAR, etc.

      647,782     

Variable margin deposit for CSA, etc.

  

Mortgage loan

   

Public offering

      1,790,810     

Related to covered bonds

Premises and Equipment

   

Land and building

   

Gakorea Co., Ltd , etc.

      1,808     

Right to collateral and others (*2)

Investment properties

   

Land and building

   

Gakorea Co., Ltd.

      5,211     

Right to collateral (*2)

        

 

 

     

Total

      25,855,966     
        

 

 

     

 

(*1)

The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.

(*2)

The maximum pledge amount is 339 million Won.

 

- 138 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

         

December 31, 2023

         

Collateral given to

    Amount     

Reason for collateral

Financial assets at FVTPL

   

Korean treasury and government bonds, etc.

   

Mirae Asset Global Investments Co., Ltd., etc.

      238,461     

Related to bonds sold under repurchase agreements (*1)

  

Korean treasury and government bonds, etc.

   

Korea Securities Depository

      675,815     

Securities borrowing collateral

  

Korean treasury and government bonds, etc.

   

SHINHAN SECURITIES CO, etc.

      6,534     

Future trading collateral

  

Korean financial institutions’ debt securities, etc.

   

Korea Exchange Co., Ltd etc.

      385,394     

Variable margin deposit for CSA, etc.

  

Korean capital contributions, etc.

   

Korea Software Financial Cooperative

      107     

Bid guarantee, etc.

Financial assets at FVTOCI

   

Korean treasury and government bonds

   

Korea Securities Depository

      73,846     

Related to bonds sold under repurchase agreements (*1)

  

Korean financial institutions’ debt securities, etc.

   

The BOK, etc.

      8,182,907     

Settlement risk, etc.

  

Debt securities in

foreign currencies

   

Korea Investment &

Securities, etc.

      955,126     

Substitute securities, etc.

  

Debt securities in

foreign currencies

   

Postal Savings Bank of China

      482,737     

Related to bonds sold under repurchase agreements (*1)

Securities at amortized cost

   

Korean treasury and government bonds

   

The BOK, etc.

      10,380,306     

Settlement risk, etc.

  

Debt securities in

foreign currencies

   

NATIXIS

      48,368     

Related to bonds sold under repurchase agreements (*1)

  

Debt securities in

foreign currencies

   

FEDERAL RESERVE BANK

      23,180     

Related to the borrowing limit

Loan at amortized cost and other financial assets

   

Other due from banks in local currency

   

MORGAN STANLEY BANK INTL, SEL, etc.

      26,854     

Variable margin deposit for CSA, etc.

  

Other due from banks in foreign currency

   

Korea Investment &

Securities, etc.

      765,330     

Overseas futures option deposit, etc.

  

Mortgage loan

   

Public offering

      1,242,963     

Related to covered bonds

Premises and Equipment

   

Land and building

   

Gakorea Co., Ltd , etc.

      1,808     

Right to collateral and others (*2)

Investment properties

   

Land and building

   

Gakorea Co., Ltd.

      5,211     

Right to collateral (*2)

        

 

 

     

Total

      23,494,947     
        

 

 

     

 

(*1)

The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee. Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.

(*2)

The maximum pledge amount is 339 million Won.

 

- 139 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

As of December 31, 2024 and 2023 there is no asset acquired through foreclosures.

 

     December 31, 2024      December 31, 2023  

Investment properties

      

Land

      6,463        6,404  

Building

      23        148  

Sub-total

      6,486        6,552  

Other assets

      

Land for non-business use

      38,627        30,950  

Building for non-business use (*1)

      7,591        5,174  

Movables for non-business use (*2)

      110        111  

Real estate assessment provision for non-business use

      (1,898 )       (1,611 ) 

Sub-total

      44,430        34,624  

Assets held for sale

      

Land

      2,215        2,393  

Building

      1,780        1,853  

Sub-total

      3,995        4,246  
  

 

 

     

 

 

  

Total

      54,911        45,422  
  

 

 

     

 

 

  

 

(*1)

The cumulative depreciation amount as of December 31, 2024 and 2023 is 2,357 million Won and 1,471 million Won, respectively.

(*2)

The cumulative depreciation amount as of December 31, 2024 and 2023 is 387 million Won and 886 million Won, respectively.

 

(3)

Securities loaned are as follows (Unit: Korean Won in millions):

 

          December 31,
2024		      December 31,
2023		     

Loaned to

Financial assets at FVTPL

   

Korean treasury and government bonds, etc.

      12,361        625,398     

Korea Securities Finance Corporation

Financial assets at FVTOCI

   

Korean treasury and government bonds, etc.

      —         592,218     

Korea Securities Depository and others

Securities loaned are lending of specific securities to borrowers who agree to return the same amount of the same security at the end of lending period. As the Group does not derecognize these securities.

 

(4)

Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties

Fair values of collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Fair values of collaterals      Fair values of collaterals
were disposed or
re-subjected to lien		  

Securities

      10,640,153        —   
     December 31, 2023  
     Fair values of collaterals      Fair values of collaterals
were disposed or
re-subjected to lien		  

Securities

      3,443,822        —   

 

- 140 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

19.

OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Lease assets

      3,965,839        3,306,464  

Prepaid expenses

      359,638        345,202  

Advance payments

      194,881        95,025  

Non-operational assets

      44,430        34,625  

Others

      40,575        60,471  
  

 

 

     

 

 

  

Total

      4,605,363        3,841,787  
  

 

 

     

 

 

  

 

20.

FINANCIAL LIABILITIES AT FVTPL

 

(1)

Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Financial instruments at fair value through profit or loss

      9,348,781        6,138,313  

Financial liabilities designated to be measured at FVTPL

      547,816        —   
  

 

 

     

 

 

  

Total

      9,896,597        6,138,313  
  

 

 

     

 

 

  

 

(2)

Financial liabilities at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Deposits

      

Gold banking liabilities

      74,205        39,524  

Borrowings

      

Securities sold

      182,478        155,765  

Derivative liabilities

      9,092,098        5,943,024  
  

 

 

     

 

 

  

Total

      9,348,781        6,138,313  
  

 

 

     

 

 

  

 

(3)

Financial liabilities designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Deposits due to customers

      

Time deposits

      547,816        —   

In accordance with documented risk management or investment strategies, the group manages a portfolio of financial instruments on a fair value basis and evaluates their performance. Therefore, under K-IFRS 1109 Financial Instrument, financial liabilities are designated to be measured at FVTPL as this provides more relevant information.

 

- 141 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Changes in fair value due to change in credit risk reflected in financial liabilities designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Financial liabilities designated to be measured at FVTPL at the end of each period

      547,816        —   

Changes in fair value due to change in credit risk (*)

      (1,831 )       —   

Accumulated change in fair value due to change in credit risk (*)

      (1,831 )       —   

 

(*)

The amounts recognized in other comprehensive income related to financial liabilities designated to be measured at FVTPL are 1,831 million Won during the year ended December 31, 2024, with an accumulated profit of 1,831 million Won.

The adjustment to reflect the Group’s credit risk is considered in measuring the fair value of deposits due to customers. The Group’s credit risk is determined by adjusting credit spread observed in credit rating of the Group.

 

(5)

The difference between carrying amount and nominal amount at maturity of financial liabilities designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Carrying amount

      547,816        —   

Nominal amount at maturity

      530,000        —   

Difference

      17,816        —   

 

21.

DEPOSITS DUE TO CUSTOMERS

Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Deposits in local currency:

      

Deposits on demand

      7,880,603        8,803,962  

Deposits at termination

      290,908,040        282,846,971  

Mutual installment

      19,901        21,602  

Deposits on notes payables

      4,000,894        4,119,801  

Deposits on CMA

      120,666        95,237  

Certificate of deposits

      11,742,425        14,767,307  

Other deposits

      1,037,811        1,117,673  
  

 

 

     

 

 

  

Sub-total

      315,710,340        311,772,553  
  

 

 

     

 

 

  

Deposits in foreign currencies:

      

Deposits in foreign currencies

      50,988,673        46,196,650  

Present value discount

      (144,359 )       (184,906 ) 
  

 

 

     

 

 

  

Customers’ deposits for beneficiary

      266,502        —   
  

 

 

     

 

 

  

Total

      366,821,156        357,784,297  
  

 

 

     

 

 

  

 

- 142 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

22.

BORROWINGS AND DEBENTURES

 

(1)

Details of borrowings are as follows (Unit: Korean Won in millions):

 

    

December 31, 2024

  
    

Lenders

    Interest rate (%)      Amount  

Borrowings in local currency:

         

Borrowings from the BOK

   

The BOK

      1.5        1,981,928  

Borrowings from government funds

   

Small Enterprise and Market Service and others

      0.0 ~ 3.5        2,165,257  

Others

   

The Korea Development Bank and others

      0.0 ~ 5.6        7,955,941  
        

 

 

  

Sub-total

            12,103,126  

Borrowings in foreign currencies:

         

Borrowings in foreign currencies

   

The Export-Import Bank of Korea and others

      0.0 ~ 12.0        15,081,035  

Bills sold

   

Others

      0.0 ~ 2.7        3,690  

Call money

   

Bank and others

      1.7 ~ 4.9        1,402,780  

Bonds sold under repurchase agreements

   

Other financial institutions

      1.0 ~ 12.2        1,530,767  

Present value discount

            (4,367 ) 
        

 

 

  

Total

            30,117,031  
        

 

 

  

 

    

December 31, 2023

  
    

Lenders

    Interest rate (%)      Amount  

Borrowings in local currency:

         

Borrowings from The BOK

   

The BOK

      2.0        1,565,444  

Borrowings from government funds

   

Small Enterprise and Market Service and others

      0.0 ~ 3.4        1,996,579  

Others

   

The Korea Development Bank and others

      0.0 ~ 6.7        11,206,471  
        

 

 

  

Sub-total

            14,768,494  

Borrowings in foreign currencies:

         

Borrowings in foreign currencies

   

The Export-Import Bank of Korea and others

      0.0 ~ 10.0        14,006,644  

Bills sold

   

Others

      0.0 ~ 2.7        6,325  

Call money

   

Bank and others

      4.1 ~ 6.6        1,115,923  

Bonds sold under repurchase agreements

   

Other financial institutions

      1.0 ~ 11.7        1,119,991  

Present value discount

            (30,631 ) 
        

 

 

  

Total

            30,986,746  
        

 

 

  

 

(2)

Details of debentures are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  
     Interest rate (%)      Amount      Interest rate (%)      Amount  

Face value of bond (*):

            

Ordinary bonds

      0.8 ~ 7.5        41,665,997        0.8 ~ 7.5        34,393,418  

Subordinated bonds

      1.9 ~ 5.1        4,421,380        1.9 ~ 5.1        5,241,848  

Other bonds

      1.6 ~ 17.0        2,250,672        1.6 ~ 17.0        1,667,895  
     

 

 

        

 

 

  

Sub-total

         48,338,049           41,303,161  
     

 

 

        

 

 

  

Discounts on bonds

         (130,946 )          (63,916 ) 
     

 

 

        

 

 

  

Total

         48,207,103           41,239,245  
     

 

 

        

 

 

  

 

(*)

Included debentures under fair value hedge amounting to 3,952,047 million won and 3,943,224 million won as of December 31, 2024 and 2023 respectively. Also, debentures under cash flow hedge amounting to 1,860,100 million won and 932,392 million won are included as of December 31, 2024 and 2023 respectively.

 

- 143 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

23.

PROVISIONS

 

(1)

Details of provisions are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Asset retirement obligation

      97,772        95,179  

Provisions for guarantees (*1)

      71,470        80,703  

Provisions for unused loan commitments

      137,562        135,335  

Other provisions (*2)

      304,624        494,814  
  

 

 

     

 

 

  

Total

      611,428        806,031  
  

 

 

     

 

 

  

 

(*1)

Provisions for guarantees includes provision for financial guarantee of 48,785 million won and 50,125 million won as of December 31, 2024 and 2023, respectively.

(*2)

Other provisions consist of provision for litigation, loss compensation and others.

 

(2)

Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions):

 

  1)

Provisions for guarantees

 

     For the year ended December 31, 2024  
     Stage1      Stage2      Stage3      Total  

Beginning balance

      70,678        2,800        7,225        80,703  

Transfer to 12-month expected credit loss

      317        (317 )       —         —   

Transfer to expected credit loss for the entire period

      (230 )       230        —         —   

Transfer to credit-impaired financial assets

      (100 )       (90 )       190        —   

Net provision (reversal) of unused amount

      (9,352 )       (108 )       4,211        (5,249 ) 

Others (*)

      (4,004 )       19        1        (3,984 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      57,309        2,534        11,627        71,470  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Recognized as a result of changes in financial guarantee liabilities.

 

     For the year ended December 31, 2023  
     Stage1      Stage2      Stage3      Total  

Beginning balance

      44,496        24,327        7,685        76,508  

Transfer to 12-month expected credit loss

      20,503        (20,503 )       —         —   

Transfer to expected credit loss for the entire period

      (453 )       453        —         —   

Transfer to credit-impaired financial assets

      (4 )       (3 )       7        —   

Net provision (reversal) of unused amount

      5,492        (1,470 )       (467 )       3,555  

Others (*)

      644        (4 )       —         640  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      70,678        2,800        7,225        80,703  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

Recognized as a result of new financial guarantee contract valued at initial fair value.

 

- 144 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  2)

Provisions for unused loan commitment

 

     For the year ended December 31, 2024  
     Stage1      Stage2      Stage3      Total  

Beginning balance

      108,775        26,328        232        135,335  

Transfer to 12-month expected credit loss

      9,966        (9,945 )       (21 )       —   

Transfer to expected credit loss for the entire period

      (3,485 )       3,491        (6 )       —   

Transfer to credit-impaired financial assets

      (277 )       (321 )       598        —   

Net provision (reversal) of unused amount

      (7,731 )       5,209        3,412        890  

Others

      970        134        233        1,337  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      108,218        24,896        4,448        137,562  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage1      Stage2      Stage3      Total  

Beginning balance

      67,640        38,188        205        106,033  

Transfer to 12-month expected credit loss

      19,492        (19,458 )       (34 )       —   

Transfer to expected credit loss for the entire period

      (3,631 )       3,670        (39 )       —   

Transfer to credit-impaired financial assets

      (183 )       (263 )       446        —   

Net provision (reversal) of unused amount

      25,438        4,191        (346 )       29,283  

Others

      19        —         —         19  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      108,775        26,328        232        135,335  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(3)

Changes in asset retirement obligation for the years ended December 31, 2024 and 2023, are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Beginning balance

      95,179        82,717  

Provisions provided

      5,790        6,979  

Provisions used

      (5,467 )       (1,542 ) 

Reversal of provisions unused

      (957 )       (1,202 ) 

Changes due to merger

      218        —   

Amortization

      1,551        2,412  

Increase in restoration costs and others

      1,458        5,815  
  

 

 

     

 

 

  

Ending balance

      97,772        95,179  
  

 

 

     

 

 

  

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased property as of December 31, 2024, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each property’s lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.

 

- 145 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Changes in other provisions for the years ended December 31, 2024 and 2023, are as follows (Unit: Korean Won in millions):

 

     For the years ended
December 31		  
     2024      2023  

Beginning balance

      494,814        280,607  

Provisions provided

      31,028        265,574  

Provisions used

      (186,343 )       (30,974 ) 

Reversal of provisions unused

      (9,069 )       (18,579 ) 

Foreign currencies translation adjustments

      209        (1,844 ) 

Transfer

      (21,343 )       —   

Others

      (4,672 )       30  
  

 

 

     

 

 

  

Ending balance

      304,624        494,814  
  

 

 

     

 

 

  

 

(5)

Others

 

  1)

The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfill its current obligations at the end of the period.

 

  2)

The Group recognized provisions for estimated compensation amounts related to the prepayment arising from the delay in the redemption of funds before the prior fiscal year and the dispute settlement as the best estimate of the expenditure amounting to 246,422 million won. In addition, The Group recognized provision amounting to 781 million won for estimated compensation of expected customer loss related to equity-linked securities during the current period.

 

- 146 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

24.

NET DEFINED BENEFIT LIABILITY(ASSET)

The Group’s pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

 

Volatility of asset

    The defined benefit obligation was estimated with an interest rate calculated based on the return on high quality corporate bond. A deficit may occur if the rate of return of plan assets falls short of the interest rate.

Decrease in the return on high quality corporate bond

    A decrease in the return on high quality corporate bond will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation

    Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

 

(1)

Details of net defined benefit liability(asset) are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Present value of defined benefit obligation

      1,751,605        1,574,087  

Fair value of plan assets

      (1,892,290 )       (1,807,408 ) 
  

 

 

     

 

 

  

Net defined benefit liabilities(assets)

     (140,685 )       (233,321 ) 
  

 

 

     

 

 

  

 

(2)

Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Beginning balance

      1,574,087        1,377,545  

Current service cost

      143,051        132,302  

Interest cost

      70,959        72,683  

Remeasurements

   Financial assumption      88,078        70,284  
  Demographic assumptions      (264 )       —   
  Experience adjustments      (18,547 )       13,926  

Retirement benefit paid

      (101,008 )       (92,146 ) 

Foreign currencies translation adjustments

      401        80  

Others

      (5,152 )       (587 ) 
    

 

 

     

 

 

  

Ending balance

      1,751,605        1,574,087  
    

 

 

     

 

 

  

 

- 147 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Changes in the plan assets are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Beginning balance

      1,807,408        1,661,623  

Interest income

      84,981        91,550  

Remeasurements

      (15,323 )       (23,752 ) 

Employer’s contributions

      115,159        175,220  

Retirement benefit paid

      (94,940 )       (94,607 ) 

Others

      (4,995 )       (2,626 ) 
  

 

 

     

 

 

  

Ending balance

      1,892,290        1,807,408  
  

 

 

     

 

 

  

 

(4)

The fair value of the plan assets by composition is as follows as of December 31, 2024 and 2023.

 

     December 31, 2024      December 31, 2023  

Cash and due from banks and others

      1,892,290        1,807,408  

Meanwhile, among plan assets, realized returns on plan assets amount to 69,658 million won and 67,798 million won for the years ended December 31, 2024 and 2023, respectively. The contribution expected to be paid in the next accounting year amounts to 147,237 million won.

 

(5)

Amounts related to the defined benefit plan that are recognized in the consolidated statements of comprehensive income are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Current service cost

      143,051        132,302  

Net interest expense

      (14,022 )       (18,867 ) 
  

 

 

     

 

 

  

Cost recognized in net income

      129,029        113,435  
  

 

 

     

 

 

  

Remeasurements (*)

      84,590        107,962  
  

 

 

     

 

 

  

Cost recognized in total comprehensive income

      213,619        221,397  
  

 

 

     

 

 

  

 

(*)

Amount before tax

Retirement benefits related to defined contribution plans recognized as expenses are 5,470 million won, and 6,217 million won for the years ended December 31, 2024 and 2023, respectively.

 

(6)

Key actuarial assumptions used in net defined benefit liability(asset) measurement are as follows:

 

    

December 31, 2024

   

December 31, 2023

Discount rate

    3.68% ~ 4.62%    4.25% ~ 5.15%

Future wage growth rate

    2.4% ~ 6.01%    2.24% ~ 5.79%

Mortality rate

   

Issued by Korea Insurance

Development Institute

   

Issued by Korea Insurance

Development Institute

Retirement rate

   

Experience rate for each

employment classification

   

Experience rate for each

employment classification

The weighted average maturity of defined benefit liability is a minimum of 3.87 to a maximum 10.67 years.

 

- 148 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(7)

The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows (Unit: Korean Won in millions):

 

         December 31, 2024      December 31, 2023  

Discount rate

   Increase by 1% point      (182,522 )       (137,355 ) 
  Decrease by 1% point      213,568        158,691  

Future wage growth rate

   Increase by 1% point      214,942        160,663  
  Decrease by 1% point      (185,974 )       (141,355 ) 

 

25.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Other financial liabilities:

      

Accounts payable

      7,250,633        10,188,192  

Accrued expenses

      4,694,493        4,339,314  

Borrowings from trust accounts

      6,769,383        5,207,791  

Agency business revenue

      733,990        271,946  

Foreign exchange payables

      902,564        887,817  

Domestic exchange settlement credits

      7,592,473        1,386,697  

Lease liabilities

      527,090        334,456  

Other miscellaneous financial liabilities

      3,857,393        3,520,039  

Present value discount

      (13,968 )       (21,247 ) 
  

 

 

     

 

 

  

Sub-total

      32,314,051        26,115,005  
  

 

 

     

 

 

  

Other liabilities:

      

Unearned income

      407,525        390,455  

Other miscellaneous liabilities

      388,973        413,442  
  

 

 

     

 

 

  

Sub-total

      796,498        803,897  
  

 

 

     

 

 

  

Total

      33,110,549        26,918,902  
  

 

 

     

 

 

  

 

- 149 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

26.

DERIVATIVES

 

(1)

Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
            Assets      Liabilities  
     Nominal
amount		      For cash
flow hedge		      For fair value
hedge		      For
trading		      For cash
flow hedge		      For fair value
hedge		      For trading  

Interest rate:

                     

Futures

      449,127        —         —         —         —         —         —   

Forwards

      3,530,000        —         —         52,855        —         —         274,980  

Swaps

      138,816,980        —         10,102        308,333        180        102,635        199,761  

Purchase options

      50,000        —         —         81        —         —         —   

Written options

      360,000        —         —         —         —         —         10,595  

Currency:

                     

Futures

      2,837        —         —         —         —         —         —   

Forwards

      111,927,474        —         —         5,638,032        —         —         1,805,299  

Swaps

      85,880,218        165,089        —         4,089,265        —         —         6,796,459  

Purchase options

      175,221        —         —         4,779        —         —         —   

Written options

      265,182        —         —         —         —         —         3,603  

Equity:

                     

Futures

      —         —         —         —         —         —         —   

Forwards

      1,520        —         —         182        —         —         —   

Swaps

      7,698        —         —         —         —         —         1,401  

Purchase options

      1,767        —         —         1,005        —         —         —   

Written options

      —         —         —         —         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      341,468,024        165,089        10,102        10,094,532        180        102,635        9,092,098  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
            Assets      Liabilities  
     Nominal
amount		      For cash
flow hedge		      For fair value
hedge		      For
trading		      For cash
flow hedge		      For fair value
hedge		      For trading  

Interest rate:

                     

Futures

      317,018        —         —         —         —         —         —   

Forwards

      3,960,000        —         —         83,198        —         —         169,527  

Swaps

      138,734,758        —         698        367,333        512        135,263        213,885  

Purchase options

      150,000        —         —         6,556        —         —         —   

Written options

      400,000        —         —         —         —         —         15,359  

Currency:

                     

Futures

      1,728        —         —         —         —         —         —   

Forwards

      97,713,561        —         —         1,935,832        —         —         885,870  

Swaps

      79,160,356        26,010        —         2,669,550        17,232        —         3,643,463  

Purchase options

      139,309        —         —         1,500        —         —         —   

Written options

      122,696        —         —         —         —         —         585  

Equity:

                     

Futures

      480,311        —         —         —         —         —         —   

Forwards

      137        —         —         36        —         —         —   

Swaps

      461,112        —         —         126,028        —         —         1,994  

Purchase options

      16,444,709        —         —         608,296        —         —         —   

Written options

      16,887,247        —         —         —         —         —         1,012,341  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      354,972,942        26,010        698        5,798,329        17,744        135,263        5,943,024  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 20), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position.

 

- 150 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

Overview of the Group’s hedge accounting

 

  1)

Fair value hedge

As of December 31, 2024, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 3,792,388 million Won, and foreign currency loans amounting to 159,659 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign and local currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments.

Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures and local currency debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item.

In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument.

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate.

 

  2)

Cash Flow Hedge

As of the December 31, 2024, the Group has applied cash flow hedge on local currency denominated debentures amounting to 139,987 million won and debentures on foreign currency amounting to 1,720,113 million won The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and ④ Mitigate the risks of cash flow fluctuation in variable interest rate foreign currency borrowings resulting from changes in market interest rates and designate it as a hedging instrument through entering into currency swap contracts and interest rate swap contracts.

By exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, the variable interest rate terms of the Korean won-denominated variable rate bond are converted to fixed interest rate terms, thereby eliminating the cash flow volatility risk. In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to USD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest. The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap.

 

- 151 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Only interest rate and foreign exchange rate fluctuation risks, which are the most significant factor in the cash flow fluctuation of the hedged item, are addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging. Accordingly, hedge ineffectiveness may arise from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction.

The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction.

 

  3)

Hedges of Net Investment in Foreign Operations

Foreign currency exposure arises from the Group’s net investments in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited, and overseas branch which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts.

The risk hedged in the net investment hedging is the fluctuation risk of KRW against USD, which may reduce the carrying amount of the Group’s net investments in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited, and overseas branch.

A portion of the Group’s net investments in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited, and overseas branch are hedged in USD denominated foreign currency bonds (Carrying amount as of December 31, 2024: USD 863,959,317) and mitigate foreign exchange risk arising from the net assets of subsidiaries. The debenture has been designated as a hedging instrument for the value change of net investments, which arises from fluctuation in the spot exchange rate between USD and KRW.

To evaluate the effectiveness of the hedge, the Group determines the economic relationship between the hedging instrument and hedged item by comparing (offsetting) changes in the amount of foreign investments due to spot exchange rate fluctuation and in the carrying amount of the liabilities due to spot exchange rate fluctuation. The Group’s policy is to hedge the net investment amount only within the principal range of the liabilities.

 

- 152 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

The nominal amounts of the hedging instrument are as follows (Unit: USD, EUR, and Korean Won in millions):

 

     December 31, 2024  
     1 year or less      1 year to 5
years		      More than 5
years		      Total  

Fair value hedge

            

Interest rate risk

            

Interest rate swap (USD)

      25,000,000        2,650,000,000        —         2,675,000,000  

Interest rate swap (KRW)

      —         —         155,000        155,000  

Cash flow hedge

            

Interest rate risk

            

Interest rate swap (KRW)

      140,000        —         —         140,000  

Foreign currencies translation risk and interest rate risk

            

Currency swap (USD)

      —         870,000,000        —         870,000,000  

Foreign currencies translation risk

            

Currency swap (USD)

      —         100,000,000        —         100,000,000  

Currency swap (EUR)

      —         194,780,000        —         194,780,000  

Hedges of net investment in foreign operations

            

Exchange risk

            

Foreign currency bond (USD)

      191,568,880        672,390,437        —         863,959,317  

 

     December 31, 2023  
     1 year or less      1 year to 5
years		      More than 5
years		      Total  

Fair value hedge

            

Interest rate risk

            

Interest rate swap (USD)

      1,000,000,000        1,975,000,000        —         2,975,000,000  

Interest rate swap (KRW)

      240,000        —         20,000        260,000  

Cash flow hedge

            

Interest rate risk

            

Interest rate swap (KRW)

      —         140,000        —         140,000  

Foreign currencies translation risk and interest rate risk

            

Currency swap (USD)

      —         270,000,000        —         270,000,000  

Foreign currencies translation risk

            

Currency swap (USD)

      —         100,000,000        —         100,000,000  

Currency swap (EUR)

      —         194,780,000        —         194,780,000  

Hedges of net investment in foreign operations

            

Exchange risk

            

Foreign currency bond (USD)

      400,000,000        463,959,317        —         863,959,317  

 

- 153 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

The average interest rate and average currency rate of the hedging instrument as of December 31, 2024 and 2023 are as follows:

 

    

December 31, 2024

    

Average interest rate and average exchange rate

Fair value hedge

   

Interest rate risk

   

Interest rate swap (USD)

    Fixed 3.47% receipt and (C.SOFR) + 1.06% paid

Interest rate swap (KRW)

    Fixed 4.52% receipt and CD 3M + 0.02% paid

Cash flow hedge

   

Interest rate risk

   

Interest rate swap (KRW)

    KRW CMS 5Y+0.46% receipt, 3.65% paid

Foreign currencies translation risk and interest rate risk Currency swap (USD)

    USD 1M SOFR+0.93% receipt, KRW 3.79% paid, USD/KRW = 1,344.45

Foreign currencies translation risk

   

Currency swap (USD)

    USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,138.50

Currency swap (EUR)

    EUR 1.98% receipt, KRW 3.40% paid, EUR/KRW = 1,344.08

Hedges of net investment

   

Exchanging rate risk

   

Foreign currency denominated debentures (USD/KRW)

    1,363.09

 

    

December 31, 2023

    

Average interest rate and average exchange rate

Fair value hedge

   

Interest rate risk

   

Interest rate swap (USD)

    Fixed 3.60% receipt and (C.SOFR) + 1.47% paid

Interest rate swap (KRW)

    Fixed 4.13% receipt and CD 3M paid

Cash flow hedge

   

Interest rate risk

   

Interest rate swap (KRW)

    KRW CMS 5Y+0.46% receipt, 3.65% paid

Foreign currencies translation risk and interest rate risk

   

Currency swap (USD)

    USD 1M SOFR+1.12% receipt, KRW 4.37% paid, USD/KRW = 1,293.97

Foreign currencies translation risk

   

Currency swap (USD)

    USD 1.75% receipt, KRW 1.63% paid, USD/KRW = 1,138.50

Currency swap (EUR)

    EUR 1.98% receipt, KRW 3.40% paid, EUR/KRW = 1,344.08

Hedges of net investment

   

Exchanging rate risk

   

Foreign currency denominated debentures (USD/KRW)

    1,306.12

 

- 154 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5)

The amounts related to items designated as hedging instruments are as follows (Unit: USD, EUR, and Korean Won in millions):

 

     December 31, 2024  
     Nominal amounts
of the hedging
instrument		      Carrying amount of the hedging
instrument		     

Line item in the

statement of financial

position where the

hedging instrument is

located

    Changing in
fair value used
for calculating
hedge
ineffectiveness		  
     Assets      Liabilities  

Fair value hedge Interest rate risk Interest rate Swap(USD)

      2,675,000,000        10,102        102,635     

Derivative assets

(designated for hedging)

Derivative liabilities

(designated for hedging)

      5,265  

Interest rate Swap(KRW)

      155,000              

Cash flow hedge Interest rate risk Interest rate swap(KRW)

      140,000        —         180     

Derivative assets

(designated for hedging)

      211  

Foreign currency translation risk and interest rate risk Currency swap(USD)

      870,000,000        104,320        —      

Derivative assets

(designated for hedging)

Derivative liabilities

(designated for hedging)

      110,714  

Foreign currency translation risk Currency swap(USD)

      100,000,000        29,861        —      

Derivative assets

(designated for hedging)

      18,623  

Currency swap(EUR)

      194,780,000        30,908        —      

Derivative assets

(designated for hedging)

      22,512  

Hedges of net investment in foreign operations Exchange rate risk

               

Foreign currency bond(USD)

      863,959,317        —         1,270,020     

Foreign currency

denominated debentures

      (156,015 ) 

 

     December 31, 2023  
     Nominal amounts
of the hedging
instrument		      Carrying amount of the
hedging instrument		     

Line item in the

statement of financial

position where the

hedging instrument is

located

    Changing in
fair value used
for calculating
hedge
ineffectiveness		  
     Assets      Liabilities  

Fair value hedge Interest rate risk Interest rate Swap(USD)

      2,975,000,000        698        135,263     

Derivative assets

(designated for hedging)

      55,651  

Interest rate Swap(KRW)

      260,000              

Cash flow hedge Interest rate risk Interest rate swap(KRW)

      140,000        —         512     

Derivative liabilities

(designated for hedging)

      (2,433 ) 

Foreign currency translation risk and interest rate risk Currency swap(USD)

      270,000,000        7,356        17,232      Derivative assets (designated for hedging) Derivative liabilities (designated for hedging)      (913 ) 

Foreign currency translation risk Currency swap(USD)

      100,000,000        10,956        —       Derivative assets (designated for hedging)      (5,644 ) 

Currency swap(EUR)

      194,780,000        7,698        —      

Derivative assets

(designated for hedging)

      19,063  

Hedges of net investment in foreign operations Exchange rate risk

               

 

- 155 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Nominal amounts of
the hedging
instrument		      Carrying amount of the
hedging instrument		     

Line item in the

statement of financial

position where the

hedging instrument is

located

    Changing in fair value
used for calculating
hedge ineffectiveness		  
     Assets      Liabilities  

Foreign currency bond(USD)

      863,959,317        —         1,113,989      Foreign currency bond      (19,088 ) 

 

(6)

Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Carrying amount of the
hedged item		      Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item		      Line item in the
statement of
financial
position in
which the
hedged item is
included		      Changing in
fair value used
for calculating
hedge
ineffectiveness		     Cash flow
hedge
reserve
(*2)		  
     Assets      Liabilities      Assets      Liabilities  

Fair value hedge

                    

Interest rate risk

                    

Debentures (*1)

      —         3,952,047        —         129,306        Debentures        (17,417 )      —   

Cash flow hedge

                    

Interest rate risk

                    

Debentures

      —         139,987        —         —         Debentures        (211 )      (133 ) 

Foreign currencies translation risk and interest rate risk Debentures

      —         1,275,768        —         —         Debentures        (110,714 )      (7,825 ) 

Foreign currencies translation risk

                    

Debentures

      —         444,345        —         —         Debentures        (41,134 )      (7,479 ) 

Hedges of net investment in foreign operations Exchange rate risk

                    

Foreign operations net asset

      —         1,270,020        —         —        

 Foreign
operations
net asset		  
 
 		      156,015       (149,577 ) 

 

(*1)

The accumulated profit on debentures on foreign currency amounted to 124,647 million Won, and the accumulated loss on debentures on local currency amounted to 4,659 million Won, as of December 31, 2024.

(*2)

After tax amount

 

     December 31, 2023  
     Carrying amount of the
hedged item		      Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item		      Line item in the
statement of
financial
position in
which the
hedged item is
included		      Changing in
fair value used
for calculating
hedge
ineffectiveness		     Cash
flow
hedge
reserve
(*2)		  
     Assets      Liabilities      Assets      Liabilities  

Fair value hedge

                    

Interest rate risk

                    

Debentures (*1)

      —         3,943,224        —         142,902        Debentures        (58,306 )      —   

Cash flow hedge

                    

Interest rate risk

                    

Debentures

      —         179,945        —         —         Debentures        2,433       25  

Foreign currencies translation risk and interest rate risk Debentures

      —         346,388        —         —         Debentures        22,914       (8,819 ) 

Foreign currencies translation risk Debentures

      —         406,059        —         —         Debentures        (13,419 )      (11,416 ) 

Hedges of net investment in foreign operations Exchange rate risk Foreign operations net asset

      —         1,113,989        —         —        

 Foreign
operations
net asset		  
 
 		      19,088       (34,750 ) 

 

(*1)

The accumulated profit on debentures on foreign currency amounted to 141,818 million Won, and the accumulated loss on debentures on local currency amounted to 1,084 million Won, as of December 31, 2023.

(*2)

After tax amount

 

- 156 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(7)

Amounts recognized in profit or loss due to the ineffective portion of fair value hedges during the current period are as follows (Unit: Korean Won in millions):

 

            For the year ended December 31, 2024
            Hedge ineffectiveness
recognized in profit or loss		     Line item in the profit or loss that
includes hedge ineffectiveness

Fair value hedge

      Interest rate risk        (12,152 )    Other net operating

income(expense)

 

            For the year ended December 31, 2023
            Hedge ineffectiveness
recognized in profit or loss		    

Line item in the profit or loss that

includes hedge ineffectiveness

Fair value hedge

      Interest rate risk        (2,655 )   

Other net operating

income(expense)

 

(8)

Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are as follows (Unit: Korean Won in millions):

 

          For the year ended December 31, 2024
          Changes in
the value
of hedging
instruments
recognized
in OCI		      Hedge
ineffectiveness
recognized in
profit or loss		      Changes in
the value
of foreign
basis
spread
recognized
in OCI		     

Line item recognized
in the profit or loss

    Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss		  

Line item

affected in profit

or loss due to
reclassification

Cash flow hedge

    Interest rate risk      211        —         —       Other net operating income (expense)    —   

Other net operating

income (expense)

  

Foreign currencies

translation risk

and interest rate

risk

      110,714        —         3,481      Other net operating income (expense)    (113,202)  

Other net operating

income (expense)

  

Foreign currencies

translation risk

      41,135        —         980      Other net operating income (expense)    (37,955)  

Other net

operating income

(expense)

 

    

For the year ended December 31, 2023

          Changes in
the value
of hedging
instruments
recognized
in OCI		     Hedge
ineffectiveness
recognized in
profit or loss		      Changes
in the
value of
foreign
basis
spread
recognized
in OCI		    

Line item recognized
in the profit or loss

    Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss		    

Line item

affected in profit

or loss due to
reclassification

Cash flow hedge

    Interest rate risk      (2,433 )      —         —      Other net operating income (expense)      —      Other net operating income (expense)
  

Foreign currencies

translation risk

and interest rate

risk

      (913 )      —         (4,871 )    Other net operating income (expense)      (11,683 )    Other net operating income (expense)
  

Foreign currencies

translation risk

      13,419       —         (3,521 )    Other net operating income (expense)      (6,950 )    Other net operating income (expense)

 

- 157 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(9)

The amounts recognized in profit or loss and other comprehensive income related to the hedging of net investments in foreign operations are as follows (Unit: Korean Won in millions):

 

           

For the years ended December 31, 2024

  
           

Other comprehensive income

  
           

Gain or loss on hedges

recognized in other

comprehensive income

   

Income tax

effect

    Total  

Hedges of net investment in foreign operation

     
 Exchange
rate risk		  
 		    (156,015)    41,188      (114,827 ) 

 

           

For the years ended December 31, 2024

           

Profit or loss

           

Hedge ineffectiveness

recognized in profit or loss

   

Account recognized for

hedge ineffectiveness

Hedges of net investment in foreign operation

     
 Exchange
rate risk		  
 		    —     — 

 

           

For the years ended December 31, 2023

  
           

Other comprehensive income

  
           

Gain or loss on hedges

recognized in other

comprehensive income

   

Income tax

effect

    Total  

Hedges of net investment in foreign operation

     
 Exchange
rate risk		  
 		    (19,088)    5,039      (14,049 ) 

 

           

For the years ended December 31, 2023

           

Profit or loss

           

Hedge ineffectiveness

recognized in profit or loss

   

Account recognized for

hedge ineffectiveness

Hedges of net investment in foreign operation

     
 Exchange
rate risk		  
 		    —     — 

No amount was reclassified from reserve of hedges of net investment in foreign operations to profit or loss.

 

27.

DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Beginning balance

      7,848        17,964  

Amounts recognized in losses

      (7,820 )       (10,116 ) 
  

 

 

     

 

 

  

Ending balance

      28        7,848  
  

 

 

     

 

 

  

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or losses for the years ended December 31, 2024 and 2023.

 

- 158 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

28.

EQUITY

 

(1)

Details of equity as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Capital

      

Common stock capital

      3,802,676        3,802,676  

Hybrid securities

      3,810,435        3,611,129  

Capital surplus

      

Paid in capital in excess of par

      854,499        854,499  

Others

      79,601        81,064  
  

 

 

     

 

 

  

Sub-total

      934,100        935,563  
  

 

 

     

 

 

  

Capital adjustments

      

Treasury stocks

      (35,517 )       (39,348 ) 

Other adjustments (*1)

      (1,699,038 )       (1,648,535 ) 
  

 

 

     

 

 

  

Sub-total

      (1,734,555 )       (1,687,883 ) 
  

 

 

     

 

 

  

Accumulated other comprehensive income

      

Net gain on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

      1,348        -   

Financial assets at FVTOCI

      60,438        79,694  

Changes in capital due to equity method

      (1,886 )       3,471  

Gain on foreign currency translation of foreign operations

      523,780        15,579  

Loss on hedges of net investment in foreign operations

      (149,577 )       (34,750 ) 

Remeasurements of defined benefit plan

      (86,218 )       (24,262 ) 

Loss on valuation of cash flow hedge

      (14,215 )       (20,806 ) 
  

 

 

     

 

 

  

Sub-total

      333,670        18,926  
  

 

 

     

 

 

  

Retained earnings (*2) (*3)

      26,950,510        24,986,470  

Non-controlling interest (*4)

      1,798,433        1,730,609  
  

 

 

     

 

 

  

Total

      35,895,269        33,397,490  
  

 

 

     

 

 

  

 

(*1)

Included 178,060 million Won in capital transaction gains and losses recognized by Woori Bank and (formerly) Woori Financial Group in 2014 and 2,238,228 million Won due to the spin-off of Kyongnam Bank and Gwangju Bank.

(*2)

The regulatory reserve for credit losses in retained earnings amounted to 2,392,542 million Won and 2,839,475 million Won as of December 31, 2024 and 2023, respectively in accordance with the relevant article.

(*3)

The earned surplus reserve in retained earnings amounted to 442,650 million Won and 300,190 million Won as of December 31, 2024 and 2023 in accordance with the Article 53 of the Financial Holding Company Act.

(*4)

The hybrid securities issued by Woori Bank amounting to 1,645,947 million Won and 1,546,447 million Won as of December 31, 2024 and 2023, respectively, are recognized as non-controlling interests 76,249 million Won and 95,637 million Won of dividends for the hybrid securities issued by Woori Bank are allocated to net profit and loss of the non-controlling interests for the years ended December 31, 2024 and 2023.

 

- 159 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

The number of authorized shares and others of the Group are as follows:

 

     December 31, 2024      December 31, 2023  

Shares of common stock authorized

      4,000,000,000 Shares        4,000,000,000 Shares  

Par value

      5,000 Won        5,000 Won  

Shares of common stock issued

      742,591,501 Shares        751,949,461 Shares  

Capital stock

      3,802,676 million Won        3,802,676 million Won  

 

(3)

Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):

 

     Issue date      Maturity      Interest rate (%)      December 31,
2024		     December 31,
2023		  

Securities in local currency

      2019-07-18        —         3.49        —        500,000  

Securities in local currency

      2019-10-11        —         3.32        —        500,000  

Securities in local currency

      2020-02-06        —         3.34        400,000       400,000  

Securities in local currency

      2020-06-12        —         3.23        300,000       300,000  

Securities in local currency

      2020-10-23        —         3.00        200,000       200,000  

Securities in local currency

      2021-04-08        —         3.15        200,000       200,000  

Securities in local currency

      2021-10-14        —         3.60        200,000       200,000  

Securities in local currency

      2022-02-17        —         4.10        300,000       300,000  

Securities in local currency

      2022-07-28        —         4.99        300,000       300,000  

Securities in local currency

      2022-10-25        —         5.97        220,000       220,000  

Securities in local currency

      2023-02-10        —         4.65        300,000       300,000  

Securities in local currency

      2023-09-07        —         5.04        200,000       200,000  

Securities in local currency

      2024-02-07        —         4.49        400,000       —   

Securities in local currency

      2024-06-19        —         4.27        400,000       —   

Securities in local currency

      2024-10-10        —         4.00        400,000       —   

Issuance cost

 

      (9,565 )      (8,871 ) 
           

 

 

    

 

 

  

Total

 

      3,810,435       3,611,129  
           

 

 

    

 

 

  

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance.

 

- 160 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning
balance		     Increase
(decrease) (*)		     Reclassification
adjustments		     Income
tax effect		     Ending
balance		  

Net gain (loss) on valuation of financial assets at FVTOCI

      79,694       (12,498 )      (22,704 )      15,946       60,438  

Net gain on credit risk fluctuation of financial liabilities designated to be measured at FVTPL

      —        1,831       —        (483 )      1,348  

Changes in capital due to equity method

      3,471       (6,965 )      —        1,608       (1,886 ) 

Gain (loss) on foreign currency translation of foreign operations

      15,579       529,531       —        (21,330 )      523,780  

Gain (loss) on hedges of net investment in foreign operations

      (34,750 )      (156,015 )      —        41,188       (149,577 ) 

Remeasurement gain (loss) related to defined benefit plan

      (24,262 )      (84,590 )      —        22,634       (86,218 ) 

Gain (loss) on valuation of derivatives designated as cash flow hedges

      (20,806 )      7,299       (461 )      (247 )      (14,215 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      18,926       278,593       (23,165 )      59,316       333,670  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and non-current assets held for sale are changes due to the period evaluation, and the reclassification adjustments amounting to 53,460 million Won and (10) million Won are due to disposal of equity securities and non-current assets held for sale, respectively during the period.

 

     For the year ended December 31, 2023  
     Beginning
balance		     Increase
(decrease) (*)		     Reclassification
adjustments		     Income tax
effect		     Ending
balance		  

Net gain (loss) on valuation of financial assets at FVTOCI

      (645,731 )      783,583       200,309       (258,467 )      79,694  

Changes in capital due to equity method

      475       (1,434 )      —        4,430       3,471  

Gain (loss) on foreign currency translation of foreign operations

      (24,202 )      39,458       —        323       15,579  

Gain (loss) on hedges of net investment in foreign operations

      (20,701 )      (19,088 )      —        5,039       (34,750 ) 

Remeasurement gain (loss) related to defined benefit plan

      55,235       (108,217 )      —        28,720       (24,262 ) 

Gain (loss) on valuation of cash flow hedge

      (4,282 )      (15,906 )      (944 )      326       (20,806 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      (639,206 )      678,396       199,365       (219,629 )      18,926  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

The increase(decrease) of financial asset valuation profit or loss at fair value through other comprehensive income and non-current assets held for sale are changes due to the period evaluation, and the reclassification adjustments amounting to 86 million Won and (50) million Won are due to disposal of equity securities and non-current assets held for sale, respectively during the period.

 

- 161 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(5)

Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss.

 

  1)

Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Beginning balance

      2,392,542        2,839,475  

Planned provision of regulatory reserve (reversal) for credit loss

      276,300        (446,933 ) 
  

 

 

     

 

 

  

Ending balance

      2,668,842        2,392,542  
  

 

 

     

 

 

  

 

  2)

Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

 

     For the years ended December 31  
     2024      2023  

Net income before regulatory reserve

      3,171,470        2,626,894  

Provision of regulatory reserve (reversal) for credit loss

      276,300        (446,933 ) 

Adjusted net income after the provision of regulatory reserve

      2,895,170        3,073,827  

Dividends to hybrid securities

      (158,682 )       (131,148 ) 

Adjusted net income after regulatory reserve and dividends to hybrid securities

      2,736,488        2,942,679  

Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)

      3,692        4,002  

 

(6)

Treasury stock

Details of treasury stocks are as follows (Unit: Shares, Korean Won in millions):

 

     December 31, 2024  
     Beginning
balance		      Acquisition      Disposal and
others		      Ending
balance		  

Number of shares

      3,427,497        9,359,819        (9,705,040 )       3,082,276  
  

 

 

     

 

 

     

 

 

     

 

 

  

Carrying amount

      39,348        136,712        (140,543 )       35,517  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Beginning
balance		      Acquisition      Disposal and
others		      Ending
balance		  

Number of shares

      343,991        13,552,312        (10,468,806 )       3,427,497  
  

 

 

     

 

 

     

 

 

     

 

 

  

Carrying amount

      3,819        157,222        (121,693 )       39,348  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

- 162 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

29.

DIVIDENDS

 

(1)

Dividends per share and the total dividends for the fiscal year ended December 31, 2023 were 640 Won and 481,213 million Won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 22, 2024 and dividend record date as February 29, 2024. Dividends were paid in April 2024.

 

(2)

At the Board of Directors meeting held on April 26, 2024, it was approved to pay a quarterly dividend of 180 Won per share (total dividends are 133,657 million Won) with a record date of March 31, 2024. The dividends were paid in May 2024.

 

(3)

At the Board of Directors meeting held on July 25, 2024, it was approved to pay a quarterly dividend of 180 Won per share (total dividends are 133,657 million Won) with a record date of June 30, 2024. The dividends were paid in August 2024.

 

(4)

At the Board of Directors meeting held on October 18, 2024, it was approved to pay a quarterly dividend of 180 Won per share (total dividends are 133,657 million Won) with a record date of September 30, 2024. The dividends were paid in November 2024.

 

(5)

Dividends per share and the total dividends for the fiscal year ending December 31, 2024 were 660 Won and 490,075 million Won, respectively, will be proposed at the regular general shareholders’ meeting to be held on March 26, 2025. The record date for the year-end dividend of the fiscal year ending December 31, 2024, is February 28, 2025. The current financial statements do not include such outstanding dividends.

 

30.

NET INTEREST INCOME

 

(1)

Details of Interest income recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Financial assets at FVTPL

      236,793        192,094  

Financial assets at FVTOCI

      1,281,642        999,407  

Financial assets at amortized cost:

      

Securities at amortized cost

      643,056        782,513  

Loans and other financial assets at amortized cost:

      

Interest on due from banks

      624,006        543,789  

Interest on loans

      19,116,813        18,042,706  

Interest of other receivables

      111,031        81,045  
  

 

 

     

 

 

  

Subtotal

      19,851,850        18,667,540  
  

 

 

     

 

 

  

Total

      22,013,341        20,641,554  
  

 

 

     

 

 

  

 

(2)

Details of interest expense recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Interest on deposits due to customers

      9,599,529        8,738,249  

Interest on borrowings

      1,351,612        1,294,710  

Interest on debentures

      1,760,003        1,507,108  

Other interest expense

      398,694        348,588  

Interest on lease liabilities

      17,167        10,359  
  

 

 

     

 

 

  

Total

      13,127,005        11,899,014  
  

 

 

     

 

 

  

 

- 163 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

31.

NET FEES AND COMMISSIONS INCOME

 

(1)

Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Fees and commission received for brokerage

      156,534        146,216  

Fees and commission received related to credit

      178,136        182,151  

Fees and commission received for electronic finance

      128,163        125,760  

Fees and commission received on foreign exchange handling

      57,335        55,993  

Fees and commission received on foreign exchange

      115,450        99,071  

Fees and commission received for guarantee

      104,301        88,580  

Fees and commission received on credit card

      638,573        640,918  

Fees and commission received on securities business

      69,935        58,553  

Fees and commission from trust management

      252,732        266,197  

Fees and commission received on credit information

      10,733        10,768  

Fees and commission received related to lease

      892,126        698,463  

Other fees

      270,198        193,144  
  

 

 

     

 

 

  

Total

      2,874,216        2,565,814  
  

 

 

     

 

 

  

 

(2)

Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Fees and commissions paid

      340,083        339,340  

Credit card commission

      426,820        488,742  

Securities business commission

      1,159        1,287  

Others

      19,984        15,964  
  

 

 

     

 

 

  

Total

      788,046        845,333  
  

 

 

     

 

 

  

 

32.

DIVIDEND INCOME

 

(1)

Details of dividend income recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Dividend income related to financial assets at FVTPL

      291,123        222,357  

Dividend income related to financial assets at FVTOCI

      19,198        17,936  
  

 

 

     

 

 

  

Total

      310,321        240,293  
  

 

 

     

 

 

  

 

(2)

Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Dividend income recognized from assets held:

      

Equity securities

      19,198        17,936  

 

- 164 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

33.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE

 

(1)

Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Gain on financial instruments at FVTPL

      1,512,430        488,486  

Loss on financial instruments designated to be measured at FVTPL

      (19,647 )       —   
  

 

 

     

 

 

  

Total

      1,492,783        488,486  
  

 

 

     

 

 

  

 

(2)

Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair value and financial instruments held for trading are as follows (Unit: Korean Won in millions):

 

               For the years ended December 31  
               2024     2023  

Financial assets at FVTPL

    Securities   

Gain on transactions and valuation

      701,955       889,250  
     

Loss on transactions and valuation

      (306,311 )      (191,144 ) 
        

 

 

    

 

 

  
     

Sub-total

      395,644       698,106  
        

 

 

    

 

 

  
   Loans   

Gain on transactions and valuation

      16,825       6,064  
     

Loss on transactions and valuation

      (1,738 )      (2,289 ) 
        

 

 

    

 

 

  
     

Sub-total

      15,087       3,775  
        

 

 

    

 

 

  
   Other financial assets   

Gain on transactions and valuation

      12,715       9,742  
     

Loss on transactions and valuation

      (20,280 )      (19,291 ) 
        

 

 

    

 

 

  
     

Sub-total

      (7,565 )      (9,549 ) 
        

 

 

    

 

 

  
        Sub-total      403,166       692,332  
        

 

 

    

 

 

  

Derivatives

(Held for trading)

    Interest rates derivatives   

Gain on transactions and valuation

      2,981,638       4,741,233  
     

Loss on transactions and valuation

      (2,945,172 )      (4,990,352 ) 
        

 

 

    

 

 

  
     

Sub-total

      36,466       (249,119 ) 
        

 

 

    

 

 

  
   Currency derivatives   

Gain on transactions and valuation

      14,841,349       7,677,720  
     

Loss on transactions and valuation

      (13,757,446 )      (7,528,291 ) 
        

 

 

    

 

 

  
     

Sub-total

      1,083,903       149,429  
        

 

 

    

 

 

  
   Equity derivatives   

Gain on transactions and valuation

      1,182,962       3,169,071  
     

Loss on transactions and valuation

      (1,194,068 )      (3,273,202 ) 
        

 

 

    

 

 

  
     

Sub-total

      (11,106 )      (104,131 ) 
        

 

 

    

 

 

  
   Other derivatives   

Gain on transactions and valuation

      27       14  
     

Loss on transactions and valuation

      (26 )      (39 ) 
        

 

 

    

 

 

  
     

Sub-total

      1       (25 ) 
        

 

 

    

 

 

  
     

Sub-total

      1,109,264       (203,846 ) 
        

 

 

    

 

 

  
   Net, total      1,512,430       488,486  
        

 

 

    

 

 

  

 

(3)

Details of loss on financial instruments designated to be measured at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Net loss on deposits due to customers

      

Net loss on valuation of time deposits

      (19,647 )       —   

 

- 165 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

34.

NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions) :

 

     For the years ended December 31  
     2024      2023  

Gain on redemption of securities

      —         104  

Gain (loss) on transactions of securities

      96,620        (37,745 ) 
  

 

 

     

 

 

  

Total

      96,620        (37,641 ) 
  

 

 

     

 

 

  

 

35.

REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Provision for impairment loss due to credit loss on financial assets at FVTOCI

      (8,868 )       (16,542 ) 

Reversal of (provision for) impairment loss due to credit loss on securities at amortized cost

      3,287        (5,549 ) 

Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost

      (1,715,074 )       (1,839,987 ) 

Reversal of provision for guarantee (Provision for guarantee)

      5,250        (3,555 ) 

Provision for unused loan commitment

      (890 )       (29,283 ) 
  

 

 

     

 

 

  

Total

      (1,716,295 )       (1,894,916 ) 
  

 

 

     

 

 

  

 

- 166 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

36.

GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME (EXPENSES)

 

(1)

Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

 

               For the years ended December 31  
               2024      2023  

Employee benefits

    Short-term employee benefits    Salaries      1,932,906        1,831,137  
      Employee fringe benefits      640,924        600,001  
   Share based payment         27,629        12,946  
   Retirement benefit service costs         134,514        119,670  
   Termination         1,533        164,922  
        

 

 

     

 

 

  
      Subtotal      2,737,506        2,728,676  
        

 

 

     

 

 

  

Depreciation and amortization

      539,924        503,035  

Other general and administrative expenses

    Rent         124,041        124,355  
   Taxes and public dues         202,541        190,334  
   Service charges         257,113        245,656  
   Computer and IT related         142,979        144,017  
   Telephone and communication         93,178        88,018  
   Operating promotion         54,793        53,896  
   Advertising         156,795        161,896  
   Printing         5,955        6,072  
   Traveling         13,436        13,364  
   Supplies         9,021        9,156  
   Insurance premium         13,852        14,380  
   Maintenance         25,035        24,932  
   Water, light, and heating         19,415        19,161  
   Vehicle maintenance         14,394        14,725  
   Others (*)         58,995        101,760  
        

 

 

     

 

 

  
      Sub-total      1,191,543        1,211,722  
        

 

 

     

 

 

  
  

Total

         4,468,973        4,443,433  
        

 

 

     

 

 

  

 

(*)

In-house welfare fund contributions amounted to 40,047 million Won as of December 31, 2023.

 

(2)

Details of other operating income recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Gains on transactions of foreign exchange

      722,827        1,428,737  

Gains related to derivatives (designated for hedging)

      192,000        114,875  

Gains on fair value hedged items

      25,469        8,986  

Others

      349,033        288,862  
  

 

 

     

 

 

  

Total

      1,289,329        1,841,460  
  

 

 

     

 

 

  

 

- 167 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Losses on transactions of foreign exchange

      1,754,516        1,295,557  

KDIC deposit insurance premium

      509,832        464,213  

Contribution to miscellaneous funds

      533,335        453,805  

Losses related to derivatives (Designated for hedging)

      24,252        35,583  

Losses on fair value hedged items

      64,571        72,601  

Others (*)

      1,121,479        1,040,424  
  

 

 

     

 

 

  

Total

      4,007,985        3,362,183  
  

 

 

     

 

 

  

 

(*)

Other expense includes 28,509 million Won and 22,349 million Won for intangible asset amortization cost and 587,148 million Won and 462,394 million Won for lease depreciation cost for the years ended December 31, 2024 and 2023, respectively.

 

- 168 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Share-based payment

Details of performance condition share-based payment granted to executives as of December 31, 2024 and 2023 are as follows.

 

  1)

Performance condition share-based payment

 

Subject to

    Shares granted for the year 2020 (*3)

Type of payment

    Cash-settled

Vesting period

    January 1, 2020 ~ December 31, 2023

Date of payment

    2024-01-01

Fair value (*1)

    —

Valuation method

    —

Expected dividend rate

    —

Expected maturity date

    —

Number of shares remaining

    As of December 31, 2024    —
   As of December 31, 2023    944,343 shares

Number of shares granted (*2)

    As of December 31, 2024    —
   As of December 31, 2023    944,343 shares

Subject to

    Shares granted for the year 2021

Type of payment

    Cash-settled

Vesting period

    January 1, 2021 ~ December 31, 2024

Date of payment

    2025-01-01

Fair value (*1)

    15,831 Won

Valuation method

    Black-Scholes Model

Expected dividend rate

    6.48%

Expected maturity date

    —

Number of shares remaining

    As of December 31, 2024    1,105,292 shares
   As of December 31, 2023    1,105,515 shares

Number of shares granted (*2)

    As of December 31, 2024    1,105,292 shares
   As of December 31, 2023    1,105,515 shares

Subject to

    Shares granted for the year 2022

Type of payment

    Cash-settled

Vesting period

    January 1, 2022 ~ December 31, 2025

Date of payment

    2026-01-01

Fair value (*1)

    14,839 Won

Valuation method

    Black-Scholes Model

Expected dividend rate

    6.48%

Expected maturity date

    1 years

Number of shares remaining

    As of December 31, 2024    960,777 shares
   As of December 31, 2023    968,119 shares

Number of shares granted (*2)

    As of December 31, 2024    960,777 shares
   As of December 31, 2023    968,119 shares

Subject to

    Shares granted for the year 2023

Type of payment

    Cash-settled

Vesting period

    January 1, 2023 ~ December 31, 2026

Date of payment

    2027-01-01

Fair value (*1)

    13,909 Won

Valuation method

    Black-Scholes Model

Expected dividend rate

    6.48%

Expected maturity date

    2 years

Number of shares remaining

    As of December 31, 2024    916,849 shares
   As of December 31, 2023    924,077 shares

Number of shares granted (*2)

    As of December 31, 2024    916,849 shares
   As of December 31, 2023    924,077 shares

 

- 169 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

Subject to

    Shares granted for the year 2024

Type of payment

    Cash-settled

Vesting period

    January 1, 2024 ~ December 31, 2027

Date of payment

    2028-01-01

Fair value (*1)

    13,037 Won

Valuation method

    Black-Scholes Model

Expected dividend rate

    6.48%

Expected maturity date

    3 years

Number of shares remaining

    As of December 31, 2024    1,384,504 shares
   As of December 31, 2023    —

Number of shares granted (*2)

    As of December 31, 2024    1,384,504 shares
   As of December 31, 2023    —

 

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement.

(*2)

The number of payable stocks is granted at the initial contract date. This is a system in which the number of shares to be granted is determined based on the evaluation results of long-term performance indicators over a total of four years, including the current year, and the final cash compensation is made by reflecting the stock price at the time of payment. Performance is evaluated as long-term performance indication including relative shareholder return, net income, return on equity (ROE), C/I ratio, non-performing loan ratio and job performance.

(*3)

Payment was completed in current period.

 

2)

The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of December 31, 2024 and 2023, the carrying amount of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 62,557 million Won and 46,741 million Won, respectively, including the carrying amount of liabilities related to key management of 16,660 million Won and 19,924 million Won, respectively.

 

- 170 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

37.

NON-OPERATING INCOME (EXPENSES)

 

(1)

Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Gains on valuation of investments in joint ventures and associates

      96,176        132,541  

Losses on valuation of investments in joint ventures and associates

      (19,911 )       (22,710 ) 
  

 

 

     

 

 

  

Total

      76,265        109,831  
  

 

 

     

 

 

  

 

(2)

Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Other non-operating incomes

      88,398        117,746  

Other non-operating expenses

      (197,006 )       (209,153 ) 
  

 

 

     

 

 

  

Total

      (108,608 )       (91,407 ) 
  

 

 

     

 

 

  

 

(3)

Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Rental fee income

      23,307        26,477  

Gains on disposal of investments in joint ventures and associates

      19,642        33,123  

Gains on disposal of premise and equipment, intangible assets and other assets

      7,064        5,267  

Reversal of impairment losses of premise and equipment, intangible assets and other assets

      147        230  

Others (*)

      38,238        52,649  
  

 

 

     

 

 

  

Total

      88,398        117,746  
  

 

 

     

 

 

  

 

(*)

‘Others’ for the year ended December 31, 2024 and 2023 include 2,517 million Won and 14,060 million Won of other special gain related to other provisions.

 

(4)

Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Depreciation on investment properties

      8,216        5,398  

Operating expenses on investment properties

      2,110        2,058  

Losses on disposal of investments in joint ventures and associates

      532        588  

Losses on disposal of premise and equipment, intangible assets and other assets

      2,233        1,873  

Impairment losses of premise and equipment, intangible assets and other assets

      3,627        129  

Donation

      118,589        63,729  

Others (*)

      61,699        135,378  
  

 

 

     

 

 

  

Total

      197,006        209,153  
  

 

 

     

 

 

  

 

(*)

Other special losses related to other provisions for the years ended December 31, 2024 and 2023 are 31,023 million Won and 66,910 million Won, respectively.

 

- 171 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

38.

INCOME TAX EXPENSE

 

(1)

Details of income tax expenses are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Current tax expense:

      

Current tax expense with respect to the current period

      615,120        689,395  

Adjustments recognized in the current period in relation to the tax expense of prior periods

      (35,823 )       (22,825 ) 

Income tax expense directly attributable to other equity

      41,188        5,039  
  

 

 

     

 

 

  

Sub-total

      620,485        671,609  
  

 

 

     

 

 

  

Deferred tax expense

      

Change in deferred tax assets (liabilities) due to temporary differences

      408,941        442,852  

Income tax expense(income) directly attributable to equity

      18,128        (224,668 ) 

Others

      3,824        766  
  

 

 

     

 

 

  

Sub-total

      430,893        218,950  
  

 

 

     

 

 

  

Income tax expense

      1,051,378        890,559  
  

 

 

     

 

 

  

 

(2)

Income tax expense reconciled to net income before income tax expense is as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024     2023  

Net income before income tax expense

      4,222,847       3,517,453  

Tax calculated at statutory tax rate (*1)

      1,014,678       859,608  

Adjustments:

     

Effect of income that is exempt from taxation

      (46,946 )      (37,500 ) 

Effect of expenses that are not deductible in determining taxable income

      53,719       12,163  

Adjustments recognized in the current period in relation to the current tax of prior periods

      (36,205 )      (22,456 ) 

Others

      66,132       78,744  
  

 

 

    

 

 

  

Sub-total

      36,700       30,951  
  

 

 

    

 

 

  

Income tax expense

      1,051,378       890,559  
  

 

 

    

 

 

  

Effective tax rate

      24.90 %      25.32 % 

 

(*1)

The applicable income tax rate: 9.9% up to 200 million Won in tax basis, 20.9% over 200 million Won to 20 billion Won, 23.1% over 20 billion Won to 300 billion Won and 26.4% over 300 billion Won.

 

- 172 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Changes in deferred tax assets and liabilities for the years ended December 31, 2024 and 2023, are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning
balance		     Business
combination		     Recognized as
income (expense)		     Recognized as other
comprehensive
income (expense)		     Ending
Balance		  

Gain (loss) on financial assets

      (157,394 )      —        (110,523 )      15,463       (252,454 ) 

Gain (loss) on valuation of investment stocks accounted in equity method

      (10,372 )      —        (8,391 )      1,608       (17,155 ) 

Gain (loss) on valuation of derivatives

      35,812       —        (289,117 )      (247 )      (253,552 ) 

Accrued income

      (132,938 )      —        16,258       —        (116,680 ) 

Provision for loan losses

      40,988       —        41,496       —        82,484  

Loan and receivables written off

      9,772       —        (1,069 )      —        8,703  

Loan origination costs and fees

      (173,417 )      —        (6,775 )      —        (180,192 ) 

Defined benefit obligation

      427,265       —        29,008       22,120       478,393  

Deposits with employee retirement insurance trust

      (499,718 )      —        (400 )      514       (499,604 ) 

Provision for guarantee

      8,274       —        (2,474 )      —        5,800  

Other provision

      179,117       —        (47,570 )      —        131,547  

Others (*)

      (104,334 )      (544 )      (46,968 )      (21,330 )      (173,176 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net deferred tax assets(liabilities)

      (376,945 )      (544 )      (426,525 )      18,128       (785,886 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax losses amounts to 12,507 million won.

 

     For the year ended December 31, 2023  
     Beginning
balance		     Business
combination		     Recognized as
income (expense)		     Recognized as other
comprehensive
income (expense)		     Ending
Balance		  

Gain (loss) on financial assets

      373,145       —        (272,072 )      (258,467 )      (157,394 ) 

Gain (loss) on valuation of investment stocks accounted in equity method

      20,555       —        (35,357 )      4,430       (10,372 ) 

Gain on valuation of derivatives

      10,617       —        24,869       326       35,812  

Accrued income

      (90,330 )      —        (42,608 )      —        (132,938 ) 

Provision for loan losses

      (20,105 )      —        61,093       —        40,988  

Loan and receivables written off

      7,926       —        1,846       —        9,772  

Loan origination costs and fees

      (169,093 )      —        (4,324 )      —        (173,417 ) 

Defined benefit obligation

      369,785       —        29,308       28,172       427,265  

Deposits with employee retirement insurance trust

      (450,222 )      —        (50,044 )      548       (499,718 ) 

Provision for guarantee

      8,328       —        (54 )      —        8,274  

Other provision

      87,229       —        91,888       —        179,117  

Others (*)

      (70,335 )      (11,593 )      (22,729 )      323       (104,334 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net deferred tax assets(liabilities)

      77,500       (11,593 )      (218,184 )      (224,668 )      (376,945 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(*)

Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax losses amounts to 1,998 million won.

 

- 173 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Unrealizable temporary differences are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Deductible temporary differences

      332,384        313,565  

Tax loss carry forward

      62,963        16,823  

Taxable temporary differences

      (10,335,041 )       (9,138,085 ) 
  

 

 

     

 

 

  

Total

      (9,939,694 )       (8,807,697 ) 
  

 

 

     

 

 

  

No deferred income tax asset has been recognized for the deductible temporary difference of 304,997 million Won associated with investments in subsidiaries as of December 31, 2024, because it is not probable that the temporary differences will be reversed in the foreseeable future. Also, no deferred income tax asset has been recognized for the other 27,387 million won due to the uncertainty of its feasibility in the future.

No deferred income tax liability has been recognized for the taxable temporary difference of 10,335,041 million won associated with investment in subsidiaries as of December 31, 2024, due to the following reasons:

 

  •  

The Group is able to control the timing of the reversal of the temporary difference.

 

  •  

It is probable that the temporary difference will not be reversed in the foreseeable future.

As of December 31, 2024, the expected extinctive date of tax loss carry forward that are not recognized as deferred tax assets are as follows (Unit: Korean Won in millions):

 

     1 year or less      1 – 2 years      2 – 3 years      More than 3 years  

Tax loss carry forward

      7,609        7,204        6,661        41,489  

 

(5)

Details of accumulated current and deferred tax charged directly to other equity are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Loss on valuation of financial assets at FVTOCI

      (28,645 )       (44,591 ) 

Loss on financial instruments designated to be measured at FVTPL

      (483 )       —   

Gain on valuation of equity method investments

      2,272        664  

Gain on foreign currency translation of foreign operations

      (11,069 )       10,261  

Gain on valuation of hedge accounting of the net investment in foreign operations

      56,042        14,854  

Remeasurements of the defined benefit plan

      30,770        8,136  

Gain on derivatives designated as cash flow hedge

      (7 )       240  
  

 

 

     

 

 

  

Total

      48,880        (10,436 ) 
  

 

 

     

 

 

  

 

(6)

Current tax assets and liabilities are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Current tax assets

      61,613        203,542  

Current tax liabilities

      127,126        103,655  

 

(7)

Impact of Pillar Two income taxes

Under the Pillar Two legislation, the Group is liable to pay a top-up tax for the difference between their GloBE effective tax rate per jurisdiction and the 15% minimum rate. All entities within the group have an effective tax rate that exceeds 15%. There is no pillar two income tax expense for the year ended December 31, 2024. The Group applied the exception to recognizing and disclosing information about deferred tax and assets and liabilities related to Pillar Two income Taxes.

 

- 174 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

39.

EARNINGS PER SHARE (“EPS”)

 

(1)

Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

 

     For the years ended December 31  
     2024      2023  

Net income attributable to common shareholders

      3,085,995        2,506,296  

Dividends to hybrid securities

      (158,682 )       (131,148 ) 

Net income attributable to common shareholders

      2,927,313        2,375,148  

Weighted average number of common shares outstanding (Unit: million shares)

      741        735  

Basic EPS (Unit: Korean Won)

      3,950        3,230  

 

(2)

The weighted average number of common shares outstanding is as follows (Unit: number of shares):

 

     For the year ended December 31, 2024  
     Number of shares     Accumulated number of shares
outstanding during period		  

Common shares issued at the beginning of the year

      751,949,461       275,213,502,726  

Treasury stocks

      (3,427,497 )      (1,254,463,902 ) 

Acquisition of treasury stock

      (9,359,809 )      (2,742,480,364 ) 

Disposal of treasury stock

      347,070       89,415,280  
    

 

 

  

Sub-total (①)

        271,305,973,740  
    

 

 

  

Weighted average number of common shares outstanding (②=(①/365))

        741,273,152  
    

 

 

  
     For the year ended December 31, 2023  
     Number of shares     Accumulated number of shares
outstanding during period		  

Common shares issued at the beginning of the year

      728,060,549       265,742,100,385  

Treasury stocks

      (343,991 )      (125,556,715 ) 

Acquisition and retirement of treasury stock etc.

      (13,500,691 )      (2,104,222,930 ) 

Acquisition of treasury stock (odd-lot stock at comprehensive share exchange)

      (51,621 )      (6,504,246 ) 

Disposal of treasury stock

      1,883,007       171,193,865  

Issuance of new shares (comprehensive share exchange)

      32,474,711       4,741,307,806  
    

 

 

  

Sub-total (①)

        268,418,318,165  
    

 

 

  

Weighted average number of common shares outstanding (②=(①/366))

        735,392,653  
    

 

 

  

Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2024 and 2023.

 

- 175 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

40.

CONTINGENT LIABILITIES AND COMMITMENTS

 

(1)

Details of guarantees are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Confirmed guarantees

      

Guarantee for loans

      60,571        58,205  

Acceptances

      617,599        467,964  

Guarantees in acceptances of imported goods

      75,265        74,916  

Other confirmed guarantees

      10,337,850        8,050,815  
  

 

 

     

 

 

  

Sub-total

      11,091,285        8,651,900  
  

 

 

     

 

 

  

Unconfirmed guarantees

   

Local letters of credit

      167,580        161,608  

Letters of credit

      3,213,170        2,873,350  

Other unconfirmed guarantees

      1,558,187        1,516,585  
  

 

 

     

 

 

  

Sub-total

      4,938,937        4,551,543  
  

 

 

     

 

 

  

Commercial paper purchase commitments and others

      581,040        589,858  
  

 

 

     

 

 

  

Total (*)

      16,611,262        13,793,301  
  

 

 

     

 

 

  

 

(*)

Includes financial guarantees of 4,156,790 million won and 3,661,656 million won as of December 31, 2024 and 2023, respectively.

 

(2)

Details of loan commitments and others are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Loan commitments

      133,863,588        126,829,192  

Other commitments (*)

      6,564,353        7,339,952  

 

(*)

As of December 31, 2024 and 2023, the amount of unsecured bills (purchase bills sales) and etc. are 1,992,030 million won and 2,485,853 million won, respectively.

 

(3)

Litigation case

Litigation case that the key Group is a defendant in a lawsuit pending (excluding fraud lawsuits and those lawsuits that are filed only to extend the statute of limitation, etc.) are 871 cases (litigation value of 862,669 million Won) and 603 cases (litigation value of 513,863 million Won) as of December 31, 2024 and 2023 respectively, and provisions for litigations are 23,233 million Won and 28,581 million Won.

 

- 176 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Other commitments

 

  1)

Responsible completion type management land trust is a trust that bears the obligation of responsible completion when the construction company fails to fulfill the obligation of responsible completion, and the obligation to compensate losses to the lending financial institution if Woori Asset Trust, a subsidiary, fails to fulfill the obligation of responsible completion. As of December 31, 2024, Woori Asset Trust, a subsidiary, has committed to fulfill responsibility for the completion of 7 projects (including completed projects), including knowledge industry center in Tangjeong-myeon, Asan-si, Chungcheongnam-do. the initial total limit of PF (Project Financing) loans from PF lending financial institutions invested in the responsible completion type management land trust business (including completion) is 546,000 million Won. After deduction of limits and other adjustments, the total limit of the PF lending financial institution is 384,680 million Won and the amount of PF loans is 354,830 million Won.

As of December 31, 2024, Woori Asset Trust has committed to fulfill responsibility for the completion of 5 projects (excluding completed project), including an officetel in the Okjeong district, Yangju-si, Gyeonggi-do. As of December 31, 2024, the initial total limit of PF (Project Financing) loans from PF lending financial institutions invested in the responsible completion type management land trust business (excluding completion) is 476,500 million Won and the amount of PF loans is 310,580 million Won. Regarding these commitment about the responsibility for completion, additional losses may occur. However, since the possibility and amount of loss cannot be reliably estimated, these impacts have not been reflected in the financial statements at the end of the current period.

Meanwhile, Woori Asset Trust Co., Ltd. has failed to fulfill the responsibility of the completion of 4 projects (excluding completion) including Oncheon park in Oncheon-dong, Busan. The total amount of PF limit from PF lending financial institutions invested in projects is 386,500 million Won and the amount of PF loans is 241,980 million Won. The PF limit may be subject to change during the project progress due to reasons such as limit deductions. The total amount of trust account limit for projects is 110,500 million Won and the amount utilized in the trust account is 80,535 million Won. The trust account limit may be subject to change during the project progress due to reasons such as limit deductions.

As of December 31, 2024, Woori Asset Trust has 4 cases (including completion), such as Oncheon park in Oncheon-dong, Busan, where our company’s guaranteed completion deadlines have passed. As of December 31, 2024, the total PF limit of the PF loan financial institutions invested in the concerned project is 287,000 million Won and the PF loan amount is 137,530 million Won. The PF limit may be subject to change during the project progress due to reasons such as limit deductions.

The total amount of trust account limit for projects is 45,200 million Won and the amount utilized in the trust account is 39,266 million Won. The trust account limit may be subject to change during the project progress due to reasons such as limit deductions.

 

  2)

Also, as of December 31, 2024, Woori Asset Trust, a subsidiary, may lend a trust account for a part of the total project cost in relation to 33 debt-type land trust contracts including Boutique Terrace Hotel in Woo-dong, Haeundae-gu, Busan. The maximum loan amount (unused limit) is 165,911 million Won. Whether or not Woori Asset Trust lends a trust account in relation to the relevant businesses is not an unconditional payment obligation, and it is determined by considering overall matters such as the unique account and the fund balance plan of each trust business.

 

  3)

Pursuant to some contracts related to asset securitization, as of December 31, 2024, Woori Card, a subsidiary, utilizes various prerequisites as triggering events causing early redemption, limiting risks that investors bear due to change in asset quality. Breach of such triggering clause leads to an early redemption of the securitized bonds.

 

  4)

During the prior period, there was an investigation by Fair Trade Commission regarding Loan-To-Value ratio. Woori Bank, a subsidiary, received the review report in January 2024, but cannot reasonably estimate its impact on consolidated financial statements.

 

  5)

Woori Card, a subsidiary, is currently under investigation by regulatory authorities regarding the leak of personal credit information of merchants’ representatives between January and April 2024. At this point, the outcome of the investigation cannot be predicted.

 

- 177 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

41.

RELATED PARTY TRANSACTIONS

Related parties of the Group as of December 31, 2024 and 2023, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the years ended December 31, 2024 and 2023 are as follows. Please refer to Note 13 for the details of joint ventures and associates.

 

(1)

Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

 

Related parties

   

Account title

    December 31,
2024		     December 31,
2023		  

Associates

    W Service Networks Co., Ltd.    Loans      51       108  
      Deposits due to customers      3,054       3,245  
      Accrued expenses      86       7  
      Other liabilities      339       100  
  

Korea Credit Bureau Co., Ltd.

    Loans      1       1  
      Deposits due to customers      780       771  
      Accrued expenses      13       1  
      Other liabilities      —        —   
  

Korea Finance Security Co., Ltd.

    Loans      3,225       3,228  
      Loss allowance      (43 )      (71 ) 
      Deposits due to customers      1,145       1,323  
      Other liabilities      3       6  
  

LOTTE CARD Co. Ltd.

    Loans      27,913       12,209  
      Account receivables      21       31  
      Loss allowance      (297 )      (269 ) 
      Derivative assets      1,075       —   
      Other assets      49       2  
      Deposits due to customers      20,207       62,587  
      Other liabilities      273       289  
  

K BANK Co., Ltd.

    Loans      18       54  
      Account receivables      32       13  
      Other assets      —        18  
      Other liabilities      193,719       214,135  
  

Others (*1)

    Loans      38,819       65,558  
      Loss allowance      (273 )      (61 ) 
      Other assets      66,088       47,828  
      Deposits due to customers      3,575       4,212  
      Other liabilities      232       992  

 

(*1)

Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership and etc., as of December 31, 2024 and 2023.

 

- 178 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

 

               For the years ended
December 31		  

Related parties

   

Account title

    2024     2023  

Associates

    W Service Network Co., Ltd.    Other income      35       —   
     

Interest expenses

      37       35  
     

Fees expenses

      483       552  
     

Other expenses

      1,095       1,575  
   Korea Credit Bureau Co., Ltd.    Interest expenses      —        9  
     

Fees expenses

      3,986       4,047  
     

Other expenses

      155       143  
   Korea Finance Security Co., Ltd.    Interest income      142       181  
     

Interest expenses

      3       3  
     

Provision (Reversal) of allowance for credit loss

      (32 )      26  
     

Other expenses

      25       33  
   LOTTE CARD Co., Ltd.    Interest income      1,586       10  
     

Fees income

      4,019       4,164  
     

Gain on derivatives

      1,075       —   
     

Loss on derivatives

      457       —   
     

Interest expenses

      4,127       5,665  
     

Provision (Reversal) of allowance for credit loss

      11       (455 ) 
   K BANK Co., Ltd.    Fees income      269       190  
     

Fees expenses

      —        339  
   Others (*)    Interest income      844       682  
     

Fees income

      53,562       15,295  
     

Dividend income

      3,729       1,700  
     

Other income

      2,890       4,760  
     

Interest expenses

      18,045       9,333  
     

Other expenses

      1,612       836  
     

Provision (Reversal) of allowance for credit loss

      212       (27 ) 

 

(*)

Others include Win Mortgage Co., Ltd. and etc., for the years ended December 31, 2024 and 2023.

 

- 179 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Major loan transactions with related parties for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

          For the year ended December 31, 2024  

Related parties

    Beginning
balance		      Loan      Collection      Others     Ending
balance (*)		  

Associates

    W Service Network Co., Ltd.      108        475        532        —        51  
   Korea Credit Bureau Co., Ltd.      1        3        3        —        1  
   Korea Finance Security Co., Ltd.      3,228        2,705        2,708        —        3,225  
   LOTTE CARD Co., Ltd.      12,209        288,794        274,484        1,394       27,913  
   K BANK Co., Ltd.      54        317        353        —        18  
   Win Mortgage Co.,Ltd.      15        243        250        —        8  
   ARAM CMC CO.LTD      41        —         —         —        41  
   Godo Kaisha Oceanos 1      38,121        —         —         649       38,770  
   Woori Zip 1      11,317        —         11,227        (90 )      —   
   Woori Zip 2      16,063        —         15,936        (127 )      —   

 

(*)

Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

 

          For the year ended December 31, 2023  

Related parties

    Beginning
balance		      Loan      Collection      Others     Ending
balance (*)		  

Associates

    W Service Network Co., Ltd.      120        483        495        —        108  
   Korea Credit Bureau Co., Ltd.      2        12        13        —        1  
   Korea Finance Security Co., Ltd.      3,433        2,911        3,116        —        3,228  
   LOTTE CARD Co., Ltd.      50,000        226,318        264,109        —        12,209  
   K BANK Co., Ltd.      3        218        167        —        54  
   Win Mortgage Co.,Ltd.      —         262        247        —        15  
   ARAM CMC CO.LTD      —         41        —         —        41  
   Godo Kaisha Oceanos 1      39,814        —         —         (1,693 )      38,121  
   Woori Zip 1      11,819        —         —         (502 )      11,317  
   Woori Zip 2      16,776        —         —         (713 )      16,063  
   Central Network Solutions Co., Ltd.      251        —         251        —        —   

 

(*)

Payments that occurred for business reasons among related parties are excluded and net increase or decrease was used for limited credit loan.

 

- 180 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Details of changes in major deposits due to customers with related parties for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

          For the year ended December 31, 2024  

Related parties

    Beginning
balance		      Increase      Decrease      Ending
balance (*)		  

Associates

    W Service Networks Co., Ltd      1,000        2,000        2,000        1,000  

Win Mortgage Co.,Ltd.

         600        2,266        1,479        1,387  

 

(*)

Details of payment between related parties, demand deposit due to customers and etc. are excluded.

 

          For the year ended December 31, 2024  

Related parties

    Beginning
balance		      Increase      Decrease      Ending
balance (*)		  

Associates

    W Service Networks Co., Ltd      1,200        1,000        1,200        1,000  
   Partner One Value Up I Private Equity Fund      100        —         100        —   
   Korea Credit Bureau Co., Ltd.      3,000        —         3,000        —   
   Win Mortgage Co.,Ltd.      —         1,200        600        600  

 

(*)

Details of payment between related parties, demand deposit due to customers and etc. are excluded.

 

(5)

There are no major borrowing transactions with related parties for the years ended December 31, 2024 and 2023.

 

(6)

Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):

 

Warrantee

    December 31, 2024      December 31, 2023      Warranty

Korea Finance Security Co., Ltd.

      635        632      Unused loan commitment

Korea Credit Bureau Co., Ltd.

      34        34      Unused loan commitment

W Service Network Co., Ltd.

      129        72      Unused loan commitment

K BANK Co., Ltd.

      282        246      Unused loan commitment

LOTTE CARD Co. Ltd.

      498,400        498,400      Unused loan commitment
         Confirmed Foreign
         Currency Payment
     1,691        1,483      Guarantee

Win Mortgage Co.,Ltd.

      42        34      Unused loan commitment

As of December 31, 2024 and 2023, the recognized payment guarantee provisions are 272 million won and 294 million won, respectively, in relation to the guarantees provided to the related parties above.

 

- 181 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(7)

Amount of commitments with the related parties

 

Warrantee

    December 31, 2024      December 31, 2023      Warranty

NH Woori Newdeal Growth Alpha Private Equity Fund 1

      15,906        36,941      Securities purchase commitment

Samsung Together Korea IPPF private securities investment trust 3 [Equity-FoFs]

      990,000        990,000      Securities purchase commitment

BTS 2nd Private Equity Fund

      1,854        4,774      Securities purchase commitment

STASSETS FUND III

      3,000        6,000      Securities purchase commitment

Synaptic Future Growth Private Equity Fund 1

      3,443        4,389      Securities purchase commitment

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership

      4,664        4,664      Securities purchase commitment

Woori Seoul Beltway Private Special Asset Fund No.1

      30,949        34,437      Securities purchase commitment

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust 2

      60        —       Securities purchase commitment

Woori Asset Global Partnership Fund No.5

      97,500        127,500      Securities purchase commitment

Woori-Q Corporate Restructuring Private Equity Fund

      —         12,186      Securities purchase commitment

JC Assurance No.2 Private Equity Fund

      1,351        1,351      Securities purchase commitment

Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund

      148        243      Securities purchase commitment

Woori Real Estate Investment No. 1 Limited Liability Company

      7,100        —       Securities purchase commitment

Woori Future Energy Private Special Asset Investment Trust(General) No.1

      33,600        —       Securities purchase commitment

LOTTE CARD Co., Ltd.

      350,000        —       Derivative commitment

 

- 182 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(8)

Major investment and Recovery transactions

There are no major investment and recovery transactions with related parties for the years ended December 31, 2024. The details of such transactions with related parties for the years ended December 31, 2023 are as follows (Unit: Korean Won in millions):

 

    

For the year ended

December 31, 2023

  

Related parties

    Investment
and others (*)		      Recovery and
others (*)		  

Woori Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)

      38        —   

Woori BIG SATISFACTION SHINJONG MMF 3RD

      —         441,470  

 

(*)

Investment and recovery transactions of associates are described in Note 13.(2)

 

(9)

Compensation for key management is as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Short-term employee salaries

      34,676        22,626  

Retirement benefit service costs

      1,372        1,160  

Share-based compensation

      11,298        5,474  
  

 

 

     

 

 

  

Total

      47,346        29,260  
  

 

 

     

 

 

  

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 3,523 million won and 3,932 million won, as of December 31, 2024 and 2023 respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 69,372 million won and 34,054 million won, respectively, as of December 31, 2024 and 2023.

 

- 183 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

42.

TRUST ACCOUNTS

 

(1)

Trust accounts of the Woori Bank are as follows (Unit: Korean Won in millions):

 

     Total assets      Operating income  
     December 31, 2024      December 31, 2023      For the years ended December 31  
     2024      2023  

Trust accounts

      85,894,740        75,636,483        2,544,969        2,296,627  

 

(2)

Receivables and payables between the Woori Bank and trust accounts are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Receivables:

      

Trust fees receivables

      46,273        48,383  
  

 

 

     

 

 

  

Payables:

      

Deposits due to customers

      265,364        166,241  

Borrowings from trust accounts

      5,214,906        3,769,913  
  

 

 

     

 

 

  

Total

      5,480,270        3,936,154  
  

 

 

     

 

 

  

 

(3)

Significant transactions between the Woori Bank and trust accounts are as follows (Unit: Korean Won in millions):

 

     For the years ended December 31  
     2024      2023  

Revenue:

      

Trust fees

      156,911        141,314  

Termination fees

      3,345        1,116  
  

 

 

     

 

 

  

Total

      160,256        142,430  
  

 

 

     

 

 

  

Expense:

      

Interest expenses on deposits due to customers

      955        957  

Interest expenses on borrowings from trust accounts

      148,498        88,099  
  

 

 

     

 

 

  

Total

      149,453        89,056  
  

 

 

     

 

 

  

 

- 184 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(4)

Principal guaranteed trusts and principal and interest guaranteed trusts are as follows;

 

  1)

The carrying amount of principal guaranteed trusts and principal and interest guaranteed trusts that Woori Bank provides are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Partial principal guaranteed trusts

      

Personal trust

      7,823        7,767  

Corporate trust

      189        217  

Deposit purpose

      1,544        1,515  
  

 

 

     

 

 

  

Sub-total

      9,556        9,499  
  

 

 

     

 

 

  
     

Principal guaranteed trusts

      

Old-age pension trusts

      2,450        2,582  

Personal pension trusts

      399,860        429,068  

Pension trusts

      592,533        642,756  

Retirement trusts

      26,159        26,082  

New personal pension trusts

      6,084        6,441  

New old-age pension trusts

      815        892  
  

 

 

     

 

 

  

Sub-total

      1,027,901        1,107,821  
  

 

 

     

 

 

  

Principal and interest guaranteed trusts

      

Development trusts

      19        19  

Unspecified money trusts

      334        334  
  

 

 

     

 

 

  

Sub-total

      353        353  
  

 

 

     

 

 

  

Total

      1,037,810        1,117,673  
  

 

 

     

 

 

  

 

- 185 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

43.

LEASES

 

(1)

Lessor

 

  1)

Finance lease

 

  ①

The total investment in finance lease and the present value of the minimum lease payments to be recovered are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Total investment in lease      Net investment in lease  

Within one year

      281,087        263,105  

After one year but within two years

      372,273        348,055  

After two years but within three years

      327,294        297,093  

After three years but within four years

      152,027        136,499  

After four years but within five years

      72,648        61,267  

After five years

      —         —   
  

 

 

     

 

 

  

Total

      1,205,329        1,106,019  
  

 

 

     

 

 

  

 

     December 31, 2023  
     Total investment in lease      Net investment in lease  

Within one year

      226,242        208,121  

After one year but within two years

      330,524        308,793  

After two years but within three years

      446,742        412,015  

After three years but within four years

      364,917        323,331  

After four years but within five years

      127,001        109,675  

After five years

      24        24  
  

 

 

     

 

 

  

Total

      1,495,450        1,361,959  
  

 

 

     

 

 

  

 

  ②

The unrealized interest income of the finance lease is as follows. (Unit: Korean Won in millions)

 

     December 31, 2024      December 31, 2023  

Total investment in lease

      1,205,329        1,495,450  

Net investment in lease

      

Present value of minimum lease payments

      1,106,019        1,361,959  
  

 

 

     

 

 

  

Unearned interest income

      99,310        133,491  
  

 

 

     

 

 

  

 

- 186 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

  2)

Operating lease

 

  ①

The details of prepaid lease assets and operating lease assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Prepaid lease assets

      42,996        20,538  

Operating lease assets

      

Acquisition cost

      5,132,477        4,199,535  

Accumulated depreciation

      (1,209,633 )       (913,609 ) 

Net carrying value

      3,922,844        3,285,926  
  

 

 

     

 

 

  

Total

      3,965,840        3,306,464  
  

 

 

     

 

 

  

 

  ②

The details of changes in operating lease assets are as follows(Unit: Korean Won in millions)

 

     For the years ended December 31  
     2024      2023  

Beginning balance

      3,285,926        2,590,457  

Acquisition

      1,463,419        1,336,203  

Disposal

      (262,184 )       (202,542 ) 

Depreciation

      (587,148 )       (462,394 ) 

Others

      22,831        24,202  
  

 

 

     

 

 

  

Ending balance

      3,922,844        3,285,926  
  

 

 

     

 

 

  

 

  ③

The future lease payments to be received under the lease contracts are as follows (Unit: Korean Won in millions)

 

     December 31, 2024      December 31, 2023  

Within one year

      895,812        748,283  

After one year but within two years

      763,682        681,591  

After two years but within three years

      515,003        517,967  

After three years but within four years

      312,886        286,677  

After four years but within five years

      102,478        121,621  
  

 

 

     

 

 

  

Total

      2,589,861        2,356,139  
  

 

 

     

 

 

  

 

  ④

There are no adjusted lease payments recognized as profit or loss for the years ended December 31, 2024 and 2023.

 

- 187 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(2)

Lessee

 

  1)

The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Lease payments

      

Within one year

      194,384        206,798  

After one year but within five years

      317,609        146,755  

After five years

      50,352        25,356  
  

 

 

     

 

 

  

Total

      562,345        378,909  
  

 

 

     

 

 

  

 

  2)

Total cash outflows from lease are as follows (Unit: Korean Won in millions):

 

     For the years ended
December 31		  
     2024      2023  

Total cash outflows from lease

      240,491        195,015  

 

  3)

Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

 

     For the years ended
December 31		  
     2024      2023  

Lease payments for short-term leases

      273        936  

Lease payments for which the underlying asset is of low value

      1,448        1,369  
  

 

 

     

 

 

  

Total

      1,721        2,305  
  

 

 

     

 

 

  

Variable lease payments that were not included in the measurement of lease liabilities for the years ended December 31, 2024 and 2023 were 24,380 million Won and 32,037 million Won.

 

- 188 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

44.

BUSINESS COMBINATION

 

(1)

General

The Group resolved to merge with Korea Foss Securities Co., Ltd. on May 3, 2024, following a resolution by the Board of Directors. This decision is based on maximizing synergy effects through the merger, enhancing competitiveness, improving management efficiency, and achieving sustainable growth.

The Group merged with Korea Foss Securities Co., Ltd. as the surviving company and Woori Investment Bank Co., Ltd. as the dissolving company, with the merger date set as August 1, 2024.

 

(2)

Identifiable Net Assets

 

  1)

The amounts of acquired assets and assumed liabilities as of the merger date are as follows (Unit: Korean Won in millions):

 

     Amount  

Assets

   

Cash and cash equivalents

      2,008  

Financial assets at fair value through profit or loss

      53,669  

Loans and other financial assets at amortized cost

      168,576  

Securities at amortized cost

      10,000  

Premises and equipment

      2,485  

Intangible assets (*1)

      6,873  

Current tax assets

      103  

Other assets

      1,723  
  

 

 

  

Sub-total

      245,437  
  

 

 

  

Liabilities

   

Deposits due to customers

      193,648  

Provisions

      218  

Other financial liabilities

      2,515  

Deferred tax liabilities (*2)

      544  

Other liabilities

      967  
  

 

 

  

Sub-total

      197,892  
  

 

 

  

Identifiable Net Assets Fair value

      47,545  
  

 

 

  

 

(*1)

For the trademark item among intangible assets, an impairment adjustment of 10 million KRW was made due to its lack of utility following the launch of Woori Investment Securities Co. Ltd. Additionally, the amount includes 2,613 million KRW recognized for customer relationships as a result of the business combination. This has been identified as a separate identifiable intangible asset and has been valued at fair value using the Multi-Period Excess Earnings Method (MEEM).

The Multi-Period Excess Earnings Method (MEEM) estimates the future cash flows generated by each intangible asset and deducts the portion of the cash flow attributable to the contribution of other assets. This method then discounts the pure cash flow generated by the intangible asset to its present value.

(*2)

The deferred tax liabilities were recognized by applying the marginal tax rate (20.9%) to the differences between the fair value and the carrying amount of the identifiable assets and liabilities

 

  2)

Merger Accounting

Legally, the merger is in the form of Korea Foss Securities Co., Ltd., the surviving company, absorbing Woori Investment Bank Co., Ltd, the merged company. However, for accounting purposes, it is treated as a reverse acquisition, where Woori Investment Bank Co., Ltd. is considered to have acquired Korea Foss Securities Co., Ltd.

 

- 189 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023

 

(3)

Goodwill

The goodwill recognized as a result of the business combination is as follows (Unit: Korean Won in millions):

 

     Amount  

Consideration transferred

      56,240  

Identifiable net assets fair value

      47,545  

Non-controlling interests(*)

      6,444  

Goodwill

      15,139  

 

(*)

Non-controlling interests were recognized at fair value applying the closing price on the acquisition date of Woori Venture Partners.

The consideration transferred in a business combination includes a control premium paid to acquire Korea Foss Securities Co., Ltd., resulting in the recognition of goodwill. Additionally, the consideration paid for the business combination includes amounts related to expected synergies, increased revenues, and future market growth.

As part of the acquisition, the consolidated company also acquired customer relationships of Korea Foss Securities Co., Ltd. These relationships meet the separability criterion and the recognition requirements for intangible assets, and thus were recognized separately from goodwill.

 

(4)

Assuming that the acquisition date for the business combination is the same as the beginning of the reporting period, the revenue and net income of Woori Investment Securities Co., Ltd. reported in the consolidated statement of comprehensive income are 439,640 million Won and 434 million Won, respectively.

 

45.

EVENTS AFTER THE REPORTING PERIOD

 

  (1)

At the Board of Directors meeting held on February 7, 2025, the Group declared to acquire and retire treasury stocks, it is expected to acquire 150 billion Won through trust contracts from February 11, 2025 to September 11, 2025, and all of the stocks acquired through this case will be retired afterwards.

 

  (2)

Woori Bank, a subsidiary, decided to implement a voluntary retirement program through a labor-management agreement in January 2025. As a result, the Group will recognize severance pay amounting to 169,013 million Won for the three-month period.

 

- 190 -

Independent Auditor’ Report on Internal Control over Financial

Reporting for Consolidation Purposes

Based on a report originally issued in Korean

To the Board of Directors and Shareholders

Woori Financial Group Inc.:

Opinion on Internal Control over Financial Reporting for Consolidation Purposes

We have audited Woori Financial Group Inc. and its subsidiaries (“the Group”)’ internal control over financial reporting (“ICFR”) for consolidation purposes as of December 31, 2024 based on the criteria established in the Conceptual Framework for Designing and Operating ICFR (“ICFR Design and Operation Framework”) issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the “ICFR Committee”).

In our opinion, the Group maintained, in all material respects, effective internal control over financial reporting for consolidation purposes as of December 31, 2024, based on ICFR Design and Operation Framework.

We also have audited, in accordance with Korean Standards on Auditing (KSAs), the consolidated financial statements of the Group, which comprise the consolidated statement of financial position as of December 31, 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information and other explanatory information, and our report dated March 5, 2025 expressed an unmodified opinion on those consolidated financial statements.

Basis for Opinion on Internal Control over Financial Reporting for Consolidation Purposes

We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting for Consolidation Purposes section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the internal control over financial reporting for consolidation purposes in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial Reporting for Consolidation Purposes

The Group’s management is responsible for designing, operating and maintaining effective internal control over financial reporting for consolidation purposes and for its assessment of the effectiveness of internal control over financial reporting for consolidation purposes, included in the accompanying ‘Operating Status Report of Internal Control over Financial Reporting for Consolidation Purposes.’

Those charged with governance have the responsibilities for overseeing the Group’s internal control over financial reporting for consolidation purposes.

Auditor’s Responsibilities for the Audit of the Internal Control over Financial Reporting for Consolidation Purposes

Our responsibility is to express an opinion on the Group’s internal control over financial reporting for consolidation purposes based on our audit. We conducted our audit in accordance with KSAs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting for consolidation purposes was maintained in all material respects.

 

- 191 -

Our audit of internal control over financial reporting for consolidation purposes included obtaining an understanding of internal control over financial reporting for consolidation purposes, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

Definition and Limitations of Internal Control over Financial Reporting for Consolidation Purposes

An entity’s internal control over financial reporting for consolidation purposes is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external purposes in accordance with Korean International Financial Reporting Standards (“K-IFRS”). A Group’s internal control over financial reporting for consolidation purposes includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the group; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with K-IFRS, and that receipts and expenditures of the group are being made only in accordance with authorizations of management and directors of the group; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the group’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting for consolidation purposes may not prevent or detect misstatements in the consolidated financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Jae-Beom Choi.

 

/s/ KPMG Samjong Accounting Corp.
Seoul, Korea
March 5, 2025

 

This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the internal control over financial reporting. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

- 192 -

Operating Status Report of

Internal Control over Financial Reporting for Consolidation Purposes

To the Shareholders, Board of Directors and Audit Committee of

Woori Financial Group Inc.

We, as the Chief Executive Officer (“CEO”) and Internal Control over Financial Reporting Officer of Woori Financial Group Inc. (“the Group”), assessed operating status of the Group’s Internal Control over Financial Reporting for Consolidation Purposes (“ICFR”) for the year ended December 31, 2024.

The Group’s management, including ourselves, is responsible for designing and operating ICFR.

We assessed whether the Group effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in consolidated financial statements to ensure preparation and disclosure of reliable consolidated financial information.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea (the “ICFR Committee”) as the criteria for design and operation of the Group’s ICFR. We also conducted an assessment of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment, we concluded that the Group’s ICFR is designed and operated effectively as of December 31, 2024, in all material respects, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings, and we have reviewed and verified this report with sufficient care.

February 28, 2025

Jong Yong Yim, Chief Executive Officer

Sung Wook Lee, Internal Control over Financial Reporting Officer

 

- 193 -

Exhibit 99.2

WOORI FINANCIAL GROUP INC.

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2024 AND 2023

 

WOORI FINANCIAL GROUP INC.    Page(s)  

Independent Auditor’s Report

      1-3  

Separate Financial Statements

   

Separate Statements of Financial Position

      5  

Separate Statements of Comprehensive Income

      6  

Separate Statements of Changes in Equity

      7  

Separate Statements of Cash Flows

      8-9  

Notes to the Separate Financial Statements

      10-70  

Report on Independent Auditor’s Audit of Internal Control over Financial Reporting

      71-72  

Operating Status Report of Internal Control over Financial Reporting

      73  

Independent Auditor’s Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders

Woori Financial Group Inc.

Opinion

We have audited the separate financial statements of Woori Financial Group Inc. (“the Company”), which comprise the separate statement of financial position as of December 31, 2024 and 2023, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2024 and 2023, and its separate financial performance and its separate cash flows for the year then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

We also have audited, in accordance with Korean Standards on Auditing (KSAs), the Company’s Internal Control over Financial Reporting (“ICFR”) as of December 31, 2024, based on the criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea, and our report dated March 5, 2025 expressed an unmodified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

We conducted our audits in accordance with KSAs. 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 that are relevant to our audit of the separate financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matter

We have determined that there are no key audit matters to communicate in our report.

Other Matter

The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

 

- 1 -

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

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with K-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, or has no realistic alternative but to do so.

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 KSAs 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 KSAs, 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 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 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 appropriate in the circumstances.

 

  •  

Evaluate the appropriateness of accounting policies used in the preparation of the separate financial statements and the reasonableness of accounting estimates and related disclosures made by management.

 

  •  

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on 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 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 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 financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 

- 2 -

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 the internal controls that we identify during our audit.

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

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

The engagement partner on the audit resulting in this independent auditor’s report is Jae-Beom Choi.

 

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 5, 2025

 

 

This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between 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 the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

- 3 -

WOORI FINANCIAL GROUP INC.

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

The accompanying separate financial statements including all footnote disclosures were

prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

Main Office Address: (Road Name Address) 51, Sogong-ro, Jung-gu, Seoul

(Phone Number) 02-2125-2000

WOORI FINANCIAL GROUP INC.

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2024 AND 2023

 

     December 31,
2024		     December 31,
2023		  
     (Korean Won in millions)  
ASSETS     

Cash and cash equivalents (Notes 5 and 31)

      1,185,912       289,507  

Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 7 and 9)

      553,518       539,709  

Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 31)

      204,431       1,104,815  

Investments in subsidiaries (Notes 10 and 31)

      24,206,017       23,670,476  

Premises and equipment (Notes 11 and 31)

      5,304       6,609  

Intangible assets (Note 12)

      3,308       4,052  

Net defined benefit asset (Note 16)

      1,378       3,941  

Current tax assets (Note 28)

      33,120       158,951  

Deferred tax assets (Note 28)

      4,379       7,478  

Other assets (Note 13)

      155,670       484  
  

 

 

    

 

 

  

Total assets

      26,353,037       25,786,022  
  

 

 

    

 

 

  
LIABILITIES     

Debentures (Notes 4, 9 and 14)

      2,037,567       1,587,659  

Provisions (Note 15)

      1,252       1,227  

Current tax liabilities (Note 28)

      84,701       32,125  

Other financial liabilities (Notes 4, 9, 17, 31 and 32)

      76,382       163,621  

Other liabilities (Note 17)

      404       392  
  

 

 

    

 

 

  

Total liabilities

      2,200,306       1,785,024  
  

 

 

    

 

 

  
EQUITY (Note 19)     

Capital stock

      3,802,676       3,802,676  

Hybrid securities

      3,810,225       3,610,953  

Capital surplus

      11,120,236       11,120,236  

Other equity

      (1,189 )      (7,871 ) 

Retained earnings

      5,420,783       5,475,004  
  

 

 

    

 

 

  

Total equity

      24,152,731       24,000,998  
  

 

 

    

 

 

  

Total liabilities and equity

      26,353,037       25,786,022  
  

 

 

    

 

 

  

The accompanying notes are part of these financial statements.

 

- 5 -

WOORI FINANCIAL GROUP INC.

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

     2024     2023  
     (Korean Won in millions)  

Interest income

      51,778       64,592  

Interest expense

      (49,650 )      (37,097 ) 
  

 

 

    

 

 

  

Net interest income (Notes 9, 21 and 31)

      2,128       27,495  

Fees and commissions income

      1,625       1,625  

Fees and commissions expense

      (21,944 )      (21,722 ) 
  

 

 

    

 

 

  

Net fees and commissions loss (Notes 22 and 31)

      (20,319 )      (20,097 ) 

Dividend income (Notes 23 and 31)

      1,208,522       1,482,956  

Net gain on financial instruments at FVTPL (Notes 9 and 24)

      —        2,023  

Reversal (Provision) of impairment losses due to credit loss (Notes 9, 25 and 31)

      608       (348 ) 

General and administrative expenses (Notes 26 and 31)

      (67,638 )      (67,359 ) 
  

 

 

    

 

 

  

Operating income

      1,123,301       1,424,670  

Non-operating expense (Note 27)

      (147 )      (1,043 ) 

Net income before income tax expense

      1,123,154       1,423,627  

Income tax income (Note 28)

      178       881  

Net income

      1,123,332       1,424,508  
  

 

 

    

 

 

  

Net gain on valuation of equity securities at FVTOCI (Note 19)

      10,164       19,789  

Remeasurement loss related to defined benefit plan (Note 16 and 19)

      (1,026 )      (873 ) 
  

 

 

    

 

 

  

Items that will not be reclassified to profit or loss:

      9,138       18,916  
  

 

 

    

 

 

  

Other comprehensive income, net of tax

      9,138       18,916  

Total comprehensive income

      1,132,470       1,443,424  
  

 

 

    

 

 

  

Earnings per share (Note 29)

     

Basic and diluted earnings per share (Unit: In Korean Won)

      1,296       1,754  

The accompanying notes are part of these financial statements.

 

- 6 -

WOORI FINANCIAL GROUP INC.

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

     Capital
stock		      Capital
surplus		      Hybrid
securities		     Other
equity		     Retained
earnings		     Total
equity		  
     (Korean Won in millions)  

January 01, 2023

      3,640,303        10,909,281        3,112,273       (26,186 )      5,261,231       22,896,902  

Total comprehensive income

               

Net income

      —         —         —        —        1,424,508       1,424,508  

Net gain on valuation of equity securities at FVTOCI

      —         —         —        19,789       —        19,789  

Remeasurement gain related to defined benefit plan

      —         —         —        (873 )      —        (873 ) 

Transactions with owners

               

Comprehensive stock exchange

      162,373        210,955        —        —        —        373,328  

Dividends to common stocks

      —         —         —        —        (979,586 )      (979,586 ) 

Issuance of hybrid securities

      —         —         498,680       —        —        498,680  

Dividends to hybrid securities

      —         —         —        —        (131,149 )      (131,149 ) 

Acquisition of treasury stock

      —         —         —        (100,601 )      —        (100,601 ) 

Retirement of treasury stock

      —         —         —        100,000       (100,000 )      —   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2023

      3,802,676        11,120,236        3,610,953       (7,871 )      5,475,004       24,000,998  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

January 01, 2024

      3,802,676        11,120,236        3,610,953       (7,871 )      5,475,004       24,000,998  

Total comprehensive income

               

Net income

      —         —         —        —        1,123,332       1,123,332  

Net gain on valuation of equity securities at FVTOCI

      —         —         —        10,164       —        10,164  

Remeasurement loss related to defined benefit plan

      —         —         —        (1,026 )      —        (1,026 ) 

Transactions with owners

               

Dividends to common stocks

      —         —         —        —        (882,183 )      (882,183 ) 

Issuance of hybrid securities

      —         —         1,196,816       —        —        1,196,816  

Dividends to hybrid securities

      —         —         —        —        (158,682 )      (158,682 ) 

Redemption of hybrid securities

      —         —         (997,544 )      (2,456 )      —        (1,000,000 ) 

Acquisition of treasury stock

      —         —         —        (136,688 )      —        (136,688 ) 

Retirement of treasury stock

      —         —         —        136,688       (136,688 )      —   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2024

      3,802,676        11,120,236        3,810,225       (1,189 )      5,420,783       24,152,731  
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

The accompanying notes are part of these financial statements.

 

- 7 -

WOORI FINANCIAL GROUP INC.

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

     2024     2023  
     (Korean Won in millions)  

Cash flows from operating activities:

     

Net income

      1,123,332       1,424,508  

Adjustments to net income:

     

Income tax income

      (178 )      (881 ) 

Interest income

      (51,778 )      (64,592 ) 

Interest expense

      49,650       37,097  

Dividend income

      (1,208,522 )      (1,482,956 ) 
  

 

 

    

 

 

  
     (1,210,828 )      (1,511,332 ) 
  

 

 

    

 

 

  

Adjustments for profit/loss items not involving cash flows:

     

Provision (reversal) of impairment losses due to credit loss

      (608 )      348  

Gain on valuation of financial instruments at FVTPL

      —        (2,023 ) 

Retirement benefit

      3,311       3,159  

Depreciation and amortization

      5,728       7,305  

Gain on disposal of premises and equipment, intangible assets and other assets

      (7 )      (35 ) 
  

 

 

    

 

 

  
     8,424       8,754  
  

 

 

    

 

 

  

Changes in operating assets and liabilities:

     

Loans and other financial assets at amortized cost

      (33,742 )      24,861  

Other assets

      204       (163 ) 

Net defined benefit liability

      (2,143 )      (2,338 ) 

Other financial liabilities

      38,028       (22,992 ) 

Other liabilities

      11       (199 ) 
  

 

 

    

 

 

  
     2,358       (831 ) 
  

 

 

    

 

 

  

Interest income received

      64,991       60,873  

Interest expense paid

      (46,054 )      (35,323 ) 

Dividends received

      1,208,517       1,482,771  

Income tax paid

      (2,145 )      (2,195 ) 
  

 

 

    

 

 

  
     1,225,309       1,506,126  
  

 

 

    

 

 

  

Net cash provided by operating activities

      1,148,595       1,427,225  
  

 

 

    

 

 

  

Cash flows from investing activities:

     

Net decrease on other investment assets

      974,000       226,000  

Acquisition of investments in subsidiaries

      (535,541 )      (898,740 ) 

Increase in advance payments related to investments in subsidiaries

      (155,388 )      —   

Acquisition of financial assets at FVTOCI

      —        (200,000 ) 

Acquisition of premises and equipment

      (258 )      (523 ) 

Acquisition of intangible assets

      (303 )      (583 ) 

Net decrease on guarantee deposits for leases

      37       98  
  

 

 

    

 

 

  

Net cash inflow(outflow) from investing activities

      282,547       (873,748 ) 
  

 

 

    

 

 

  

(Continued)

 

- 8 -

WOORI FINANCIAL GROUP INC.

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

     2024     2023  
     (Korean Won in millions)  

Cash flows from financing activities:

     

Issuance of debentures

      599,000       399,234  

Redemption of debentures

      (150,000 )      (260,000 ) 

Issuance of hybrid securities

      1,196,816       498,680  

Redemption of hybrid securities

      (1,000,000 )      —   

Acquisition of treasury stock

      (136,688 )      (100,601 ) 

Redemption of lease liabilities

      (3,000 )      (3,129 ) 

New stock issuance cost

      —        (780 ) 

Dividends paid to hybrid securities

      (158,682 )      (131,149 ) 

Dividends paid

      (882,183 )      (979,586 ) 
  

 

 

    

 

 

  

Net cash outflow from financing activities

      (534,737 )      (577,331 ) 
  

 

 

    

 

 

  

Net increase (decrease) in cash and cash equivalents

      896,405       (23,854 ) 

Cash and cash equivalents, beginning of the period

      289,507       313,361  
  

 

 

    

 

 

  

Cash and cash equivalents, end of the period (Note 5)

      1,185,912       289,507  
  

 

 

    

 

 

  

The accompanying notes are part of these financial statements.

 

- 9 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

1.

GENERAL

 

(1)

Summary of the parent company

Woori Financial Group, Inc. (hereinafter referred to the “Company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,802,676 million Won. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock transfer from the Company and subsidiaries as of incorporation are as follows (Unit: Number of shares):

 

Stock transfer company

    Total number of
issued shares		      Exchange ratio
per share		      Number of Parent
company’s stocks		  

Woori Bank

      676,000,000        1.0000000        676,000,000  

Woori FIS Co., Ltd.

      4,900,000        0.2999708        1,469,857  

Woori Finance Research Institute Co., Ltd.

      600,000        0.1888165        113,289  

Woori Credit Information Co., Ltd.

      1,008,000        1.1037292        1,112,559  

Woori Fund Service Co., Ltd.

      2,000,000        0.4709031        941,806  

Woori Private Equity Asset Management Co., Ltd.

      6,000,000        0.0877992        526,795  

As of August 1, 2019, the Company acquired a 73% interest in Tongyang Asset Management Co., Ltd. and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Company gained 100% control of ABL Global Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the name to Woori Global Asset Management Co., Ltd. on December 6, 2019.

The Company paid 598,391 million Won in cash and 42,103,377 new shares of the Company to acquire 100% interest of Woori Card Co., Ltd. from its subsidiary Woori Bank on September 10, 2019. On the same date, the Company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with 392,795 million Won in cash.

As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% when including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.) In addition, as of March 31, 2023, the Company acquired an additional 28.1% interests in Woori Asset Trust Co. (excluding treasury stock, 21.3% when including treasury stock).

As of December 10, 2020, the Company acquired 76.8% interests (excluding treasury stock, 74.0% when including treasury stock) in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.). In addition, as of April 15, 2021, the Company acquired an additional 13.3% interests in Woori Financial Capital Co., Ltd. (excluding treasury stock, 12.9% in the case of including treasury stock), and as of May 24, 2021, the Company additionally acquired treasury stock(3.6%) which Woori Financial Capital possessed.

As of March 12, 2021, the Company paid 113,238 million Won in cash to acquire 100% interests on Woori Savings Bank from Woori Financial Capital Co., Ltd., our subsidiary.

As of August 10, 2021, the Company paid 5,792,866 new shares of the Company to the shareholders of Woori Financial Capital Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (9.5%) of Woori Financial Capital Co., Ltd., to make it a wholly owned subsidiary.

As of January 7, 2022, Woori Financial F&I Co., Ltd., an investment company for non-performing loans and restructuring companies, was established (100% stock, 200 billion Won in stock payments) and incorporated as a subsidiary.

 

- 10 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

As of March 23, 2023, the Company acquired a 53.9% interests in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.) (excluding treasury stock, 52.0% in the case of including treasury stock). In addition, as of May 30, 2023, the Company additionally acquired treasury stock held by Woori Venture Partners Co., Ltd. (3.5%).

As of August 8, 2023, the Company paid 22,541,465 new shares of the Company to the shareholders of Woori Investment Bank Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (41.3%) of Woori Investment Bank Co., Ltd., to make it a wholly owned subsidiary. In addition, on the same day, the Company paid 9,933,246 new shares of the Company to the shareholders of Woori Venture Partners Co., Ltd. (excluding the Company) through comprehensive stock exchange and acquired residual interest (44.5%) of Woori Venture Partners Co., Ltd., to make it a wholly owned subsidiary.

As of January 29, 2024, the Company owned interest (77.5%) of Woori Asset Management Corp, as a result of merger with Woori Asset Management Corp (surviving company) and Woori Global Asset Management Co., Ltd. (dissolution company), which was liquidated. As of March 29, 2024, the Company acquired residual interest(22.5%) of Woori Asset Management Corp, to make it a wholly owned subsidiary.

On March 25, 2024, the Company participated in the capital increase and acquired the 1,062,045 shares (96.7% after acquiring shares, 79.4% including treasury shares) of Woori Asset Trust Co., Ltd.. Additionally, on March 29, 2024, Woori Asset Trust Co., Ltd. conducted a complete retirement of its 738,000 treasury shares. In addition, as of April 8, 2024, the Company additionally acquired minority interests (2.0%) of Woori Asset Trust Co., Ltd.. Afterward, the Company additionally acquired minority interests (0.9%) of Woori Asset Trust Co., Ltd. as of November 19, 2024.

On August 1, 2024, The Company owned 97.1% interest in merged securities firm as a result of merger between Korea Foss Securities (the surviving company) and Woori Investment Bank Co., Ltd. (dissolution company), and acquired an additional 2.3% out of the remaining interest. The merged securities company also changed its name to Woori Investment Securities Co., Ltd.

 

2.

BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

 

(1)

Basis of presentation

The Company’s separate financial statements are prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”). Material accounting policies applied in the preparation of the financial statements are described below.

The Company is preparing its financial statements in accordance with the K-IFRS, and the separate financial statements are prepared in accordance with K-IFRS 1027 ‘Separate Financial Statements’. The financial statements of the parent, associate or joint venture represent the investment assets in a manner that is based on direct equity investments, not based on the reported performance and net assets of the investee.

The financial statements are prepared at the end of each reporting period on the historical cost basis, except for certain non-current assets and financial assets that are either revalued or measured in fair value. Historical cost is generally measured at the fair value of consideration given to acquire assets.

Meanwhile, the financial statements of the Company were initially approved by the Board of Directors on February 7, 2025, and the final approval will be made in the annual general shareholders’ meeting on March 26, 2025.

 

  1)

The new standards and interpretations introduced from the current term and the resulting changes in accounting policies are as follows:

 

  1.1

K-IFRS No.1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current

 

- 11 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the financial statements.

 

  1.2

Amendments to K-IFRS 1007 ‘Statement of Cash Flows’, K-IFRS 1107 ‘Financial Instruments’: Disclosures – Supplier finance arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The amendments do not have a significant impact on the financial statements.

 

  1.3

Amendments to K-IFRS 1116 ‘Leases’ –Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the financial statements

 

  1.4

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of Cryptographic Assets

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the financial statements.

 

  2)

The details of K-IFRS that have been issued and published as of December 31, 2024 but have not yet reached the effective date, and have not been early adopted by the Company are as follows:

 

  2.1

Amendments to K-IFRS 1021 ‘The Effects of Changes in Foreign Exchange Rates’ and 1101 ‘First-time Adoption of International Financial Reporting Standards’ – Lack of Exchangeability

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Company does not expect the amendments to have a significant impact on the financial statements.

 

  2.2

Amendments to K-IFRS 1109 ‘Financial Instruments’, K-IFRS 1107 ‘Financial Instruments: Disclosures’

K-IFRS 1109 ‘Financial Instruments’ and K-IFRS 1107 ‘Financial Instruments: Disclosures’ have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Company does not expect the amendments to have a significant impact on the financial statements.

 

  •  

clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

 

  •  

clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

 

  •  

add new disclosures of impact on the entity and the extent to which the entity is exposed for each type of financial instruments if the timing or amount of contractual cash flow changes due to amendment of contract term; and

 

  •  

update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

 

- 12 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

  2.3

Annual Improvements to K-IFRS – ‘Volume 11’

Annual Improvements to K-IFRS – ‘Volume 11’ should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Company does not expect the amendments to have a significant impact on the financial statements.

 

  •  

K-IFRS 1101 ‘First-time Adoption of International Financial Reporting Standards’: Hedge accounting by a first-time adopter

 

  •  

K-IFRS 1107 ‘Financial Instruments: Disclosures’: Gain or loss on derecognition, and implementation guidance

 

  •  

K-IFRS 1109 ‘Financial Instruments’: Derecognition of lease liabilities and definition of transaction price

 

  •  

K-IFRS 1110 ‘Consolidated Financial Statements’: Determination of a ‘de facto agent’

 

  •  

K-IFRS 1007 ‘Statement of Cash Flows’: Cost method

The above enacted or amended standards will not have a significant impact on the Company.

 

(2)

Investments in subsidiaries and associates in separate financial statements

The Company selects and processes the cost method in accordance with K-IFRS 1027 for investments in subsidiaries, associates and jointly controlled entities, except for those classified as held for sale in accordance with K-IFRS 1105 ‘Non-current Assets Held for Sale and Discontinued Operations’. Dividends received from subsidiaries, associates and jointly controlled entities are recognized in profit or loss as dividend income when the right to receive dividends is established.

 

(3)

Revenue recognition

K-IFRS 1115 requires the recognition of revenues based on transaction price allocated to the performance obligation when or as the Company performs the obligation to the customer. Revenues other than those from contracts with customers, such as interest revenue, are measured through the effective interest rate method.

 

  1)

Revenues from contracts with customers

The Company recognizes revenue when the Company satisfies a performance obligation by transferring a promised good or service to a customer. When a performance obligation is satisfied, the Company shall recognize as a revenue the amount of the transaction price that is allocated to that performance obligation. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The revenue recognized by these standards is fees and commissions income.

 

  2)

Revenues from sources other than contracts with customers

Interest income on financial assets measured at FVTOCI and financial assets at amortized costs is measured using the effective interest method.

The effective interest method is a method of calculating the amortized cost of debt securities (or group of financial assets) and of allocating the interest income over the expected life of the asset. The effective interest rate is the rate that exactly discounts estimated future cash flows to the instrument’s initial total carrying amount over the expected period, or shorter if appropriate. Future cash flows include commissions and cost of reward points (limited to the primary component of effective interest rate) and other premiums or discounts that are paid or received between the contractual parties, and future cash flows exclude expected credit loss when calculating the effective interest rate. All contractual terms of a financial instrument are considered when estimating future cash flows.

 

- 13 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

For purchased or originated credit-impaired financial assets, interest revenue is recognized by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition. Even if the financial asset is no longer impaired in the subsequent periods due to credit improvement, the basis of interest revenue calculation is not changed from amortized cost to unamortized cost of the financial assets.

 

  3)

Dividend income

Dividend income is recognized when the right to receive dividends as a shareholder is confirmed. Dividend income is recognized as an appropriate item of profit or loss in the statement of comprehensive income according to the classification of financial instruments.

 

(4)

Accounting for foreign currencies

The Company’s separate financial statements are presented in Korean Won, which is the functional currency of the Company. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at its prevailing exchange rates at the date.

 

(5)

Cash and cash equivalents

The Company is classifying cash on hand, demand deposits, interest-earning deposits with original maturities of up to three months on acquisition date, and highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value as cash and cash equivalents.

 

(6)

Financial assets and financial liabilities

 

  1)

Financial assets

A regular way purchase or sale of financial assets is recognized or derecognized on the trade or settlement date. A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose term requires delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets at FVTOCI, and financial assets at amortized cost.

 

  a)

Business model

The Company evaluates the way business is being managed, and the purpose of the business model for managing a financial asset best reflects the way information is provided to the management at its portfolio level. Such information considers the following:

 

  •  

The accounting policies and purpose specified for the portfolio, and the actual operation of such policies. This includes strategy of the management focusing on the receipt of contractual interest revenue, maintaining a certain level of interest income, matching the duration of financial assets and the duration of corresponding liabilities to obtain the asset, and outflow or realization of expected cash flows from disposal of assets.

 

  •  

The way the performance of a financial asset held under the business model is evaluated, and the way such evaluation is being reported to the management

 

  •  

The risk affecting the performance of the business model (and financial assets held under the business model), and the way such risk is being managed

 

  •  

The compensation plan for the management (e.g. whether the management is being compensated based on the fair value of assets or based on contractual cash flows received)

 

  •  

Frequency, amount, timing and reason for sale of financial assets in the past and forecast of future sale activities

 

- 14 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

  b)

Contractual cash flows

The principal is defined to be the fair value of a financial asset at initial recognition. Interest is not only composed of consideration for the time value of money, consideration for the credit risk related to remaining principal at a certain period of time, and consideration for other cost (e.g. liquidity risk and cost of operation) and fundamental risk associated with lending, but also profit.

When evaluating whether contractual cash flows are solely payments of principal and interests, the Company considers the contractual terms of the financial instrument. When a financial asset contains contractual conditions that modify the timing and amount of contractual cash flows, it is required to determine whether contractual cash flows that arise during the remaining life of the financial instrument due to such contractual condition are solely payments of principal and interest. The Company considers the following elements when evaluating the above:

 

  •  

Conditions that lead to modification of timing or amount of cash flows

 

  •  

Contractual terms that adjust contractual nominal interest, including floating rate features

 

  •  

Early payment features and maturity extension features

 

  •  

Contractual terms that limit the Company’s claim on cash flows arising from certain assets

 

  1.1

Financial assets at FVTPL

The Company is classifying those financial assets that are not classified as either financial assets at amortized cost or financial assets at FVTOCI, and those designated to be measured at FVTPL, as financial assets at FVTPL. Financial assets at FVTPL are measured at fair value, and related profit or loss is recognized in net income. Transaction costs related to acquisition at initial recognition is recognized in net income immediately upon its occurrence.

It is possible to designate a financial asset as financial asset at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial asset at FVTPL (b) the financial asset forms part of the Company’s financial instrument group (A group composed of a combination of financial asset or liability), is measured at fair value and is being evaluated for its performance, and such information is provided internally and (c) the financial asset is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial asset at FVTPL is allowed under K-IFRS 1109 ‘Financial Instruments’. However, the designation is irrevocable.

 

  1.2

Financial assets at FVTOCI

When financial assets are held under a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and when contractual cash flows from such financial assets are solely payments of principal and interest, the financial assets are classified as financial assets at FVTOCI. Also, for investments in equity instruments that are not held for short-term trade, an irrevocable election is available at initial recognition to present subsequent changes in fair value as other comprehensive income.

At initial recognition, financial assets at FVTOCI is measured at its fair value plus any direct transaction cost and is subsequently measured in fair value. However, for equity instruments that do not have a quotation in an active market and in which fair value cannot be measured reliably, they are measured at cost. The changes in fair value except for profit or loss items such as impairment losses (reversals), interest revenue calculated by using effective interest method, and foreign exchange gain or loss, and related income tax effects are recognized as other comprehensive income until the asset’s disposal. Upon derecognition, the accumulated other comprehensive income is reclassified from equity to net income for FVTOCI (debt instrument), and reclassified within the equity for FVTOCI (equity instruments).

 

- 15 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

  1.3

Financial assets at amortized cost

When financial assets are held under a business model whose objective is to hold financial assets in order to collect contractual cash flows, and when contractual cash flows from such financial assets are solely payments of principal and interest, the financial assets are classified as financial assets at amortized cost. At initial recognition, financial assets at amortized cost are recognized at fair value plus any direct transaction cost. Financial assets at amortized cost is presented at amortized cost using effective interest method, less any loss allowance.

 

  2)

Financial liabilities

At initial recognition, financial liabilities are classified into either financial liabilities at FVTPL or financial liabilities at amortized cost.

Financial liabilities are usually classified as financial liabilities at FVTPL when they are acquired with a purpose to repurchase them within a short period of time, when they are part of a certain financial instrument portfolio that is actually and recently being managed with a purpose of short-term profit and joint management by the Company at initial recognition, and when they are derivatives that do not qualify as hedging instruments. Financial liabilities at FVTPL are measured at fair value, with any direct transaction cost recognized in profit or loss, and are subsequently measured at fair value. Profit or loss arising from financial liabilities at FVTPL is recognized in net income when occurred.

It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial liability at FVTPL (b) the financial liability forms part of the Company’s financial instrument group (a group composed of a combination of financial asset or liability) according to the Company’s documented risk management or investment strategy, is measured at fair value and is being evaluated for its performance, and such information is provided internally and (c) the financial liability is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL is allowed under K-IFRS 1109 ‘Financial Instruments’.

Financial liabilities designated as at FVTPL are initially recognized at fair value, with any direct transaction cost recognized in profit or loss, and are subsequently measured at fair value. Any profit or loss from financial liabilities at FVTPL are recognized in profit or loss.

Financial liabilities not classified as financial liabilities at FVTPL are measured at amortized cost. The Company is classifying liabilities such as borrowings etc. as financial liabilities at amortized cost.

 

  3)

Reclassification

Financial assets are not reclassified after initial recognition unless the Company modifies the business model used to manage financial assets. When the Company modifies the business model used to manage financial assets, all affected financial assets are reclassified on the first day of the first reporting period after the modification.

 

  4)

Derecognition

Financial assets are derecognized when contractual rights to cash flows from the financial assets are expired, or when substantially all of risk and reward for holding financial assets is transferred to another entity as a result of a sale of financial assets. If the Company does not have and does not transfer substantially all of the risk and reward of holding financial assets with control of the transferred financial assets retained, the Company recognizes financial assets to the extent of its continuing involvement. If the Company holds substantially all the risk and reward of holding a financial asset, it continues to recognize that asset and proceeds are accounted for as collateralized borrowings.

 

- 16 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

When a financial asset is fully derecognized, the difference between the book value and the sum of proceeds and accumulated other comprehensive income is recognized in profit or loss in case of debt instruments and recognized in retained earnings in case of equity instruments.

In cases when a financial asset is not fully derecognized, the Company allocates the book value into amounts retained in the books and removed from the books, based on the relative fair value of each portion at the date of sale, and based on the degree of continuing involvement. For the derecognized portion of the financial assets, the difference between its book value and the sum of proceeds and the portion of accumulated other comprehensive income attributable to that portion will be recognized in profit or loss in case of debt instruments and recognized in retained earnings in case of equity instruments. The accumulated other comprehensive income is distributed to the portion of book value retained in the books, and to the portion of book value removed from the books.

The Company derecognizes financial liabilities only when, the Company’s obligations are discharged, canceled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

When the Company exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Company accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 percent different from the discounted present value of the remaining cash flows of the original financial liability.

 

  5)

Fair value of financial instruments

Financial assets at FVTPL and financial assets at FVTOCI are measured and presented in financial statements at their fair values, and all derivatives are also subject to fair value measurement.

Fair value is defined as the price that would be received to exchange an asset or paid to transfer a liability in a recent transaction between independent parties that are reasonable and willing. Fair value is the transaction price of identical financial assets or financial liabilities generated in an active market. An active market is a market where trade volume is sufficient and objective price information is available due to the fact that bid and ask price differences are small.

When trade volume of a financial instrument is low, when transaction prices within the market show large differences among them, or when it cannot be concluded that a financial instrument is being traded within an active market due to disclosures being extremely limited, fair value is measured using valuation techniques based on alternative market information or using internal valuation techniques based on general and observable information obtained from objective sources. Market information includes maturity and characteristics, duration, similar yield curve, and variability measurement of financial instruments of similar nature. Fair value amount contains unique assumptions on each entity (the Company concluded that it is using assumptions applied in valuing financial instruments in the market, or risk-adjusted assumptions in case marketability does not exist).

The market approach and income approach, which are valuation techniques used to estimate the fair value of financial instruments, both require significant judgment. Market approach measures fair value using either a recent transaction price that includes the financial instrument, or observable information on comparable firm or assets. Income approach measures fair value through discounting future cash flows with a discount rate reflecting market expectations, and revenue, operating income, depreciation, capital expenditures, income tax, working capital and estimated residual value of financial investments are being considered when deriving future cash flows. Valuation techniques such as the above include estimates based on the financial instruments’ complexity and usefulness of observable information in the market.

 

- 17 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

The valuation techniques used in the evaluation of financial instruments are explained below.

Derivatives and equity securities without marketability are generally recognized at an amount computed by an independent appraiser. The Company uses the amount determined by the independent appraiser. The Company verifies the prices obtained from appraisers in various ways, including the evaluation of independent appraisers’ competency, indirect verification through comparison between appraisers’ price and other available market information, and reperformed by employees who have knowledge of valuation models and assumptions that appraisers used.

 

  6)

Expected credit losses on financial assets

The Company recognizes loss allowance on expected credit losses for the following assets:

 

  •  

Financial assets at amortized cost

 

  •  

Debt instruments measured at FVTOCI

 

  •  

Contract assets as defined by K-IFRS 1115

Expected credit losses are weighted-average value of a range of possible results, considering the time value of money, and are measured by incorporating information on past events, current conditions and forecasts of future economic conditions that are available without undue cost or effort at the reporting date.

The methods to measure expected credit losses are classified into following three categories in accordance with K-IFRS:

 

  •  

General approach: Financial assets that does not belong to below two models and unused loan commitments

 

  •  

Simplified approach: When financial assets are either trade receivables, contract assets or lease receivables

 

  •  

Credit impairment model: Purchased or originated credit-impaired financial assets

The measurement of loss allowance under general approach is differentiated depending on whether the credit risk has increased significantly after initial recognition. That is, loss allowance is measured based on 12-month expected credit loss when the credit risk has not increased significantly after initial recognition, while loss allowance is measured at lifetime expected credit loss when credit risk has increased significantly. Lifetime is the expected remaining life of the financial instrument up to the maturity date of the contract.

The measurement of loss allowance under simplified approach is always based on lifetime expected credit loss, and loss allowance under credit impairment model is measured as the cumulative change in lifetime expected credit loss since initial recognition.

 

  a)

Measurement of expected credit losses on financial asset at amortized cost

The expected credit losses on financial assets at amortized cost is measured by the difference between the contractual cash flows during the period and the present value of expected cash flows. Expected cash inflows are computed for individually significant financial assets in order to calculate expected credit losses.

When financial assets that are not individually significant, they are included in a group of financial assets with similar credit risk characteristics and expected credit losses of the Company are calculated collectively.

Expected credit losses are deducted through loss allowance account, and when the financial asset is determined to be uncollectible, the loss allowance is written off from the books along with the related financial asset.

 

- 18 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

b) Measurement of expected credit losses on financial asset at FVTOCI

The measurement method of expected credit loss is identical to financial asset at amortized cost, but changes in the allowance is recognized in other comprehensive income. When financial assets at FVTOCI is disposed or repaid, the related allowance is reclassified from accumulated other comprehensive income to net income.

 

(7)

Offsetting financial instruments

Financial assets and liabilities are presented as a net amount in the statements of financial position when the Company has an enforceable legal right and an intention to settle on a net basis or to realize an asset and settle the liability simultaneously.

 

(8)

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of Premises and equipment is expenditures directly attributable to their purchase or construction, which includes any cost 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. It also includes the initial estimate of costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are recognized in the carrying amount of an asset or as a separate asset (if appropriate) if it is probable that future economic benefit associated with the assets will flow into the Company and the cost of an asset can be measured reliably. Routine maintenance and repairs are expensed as incurred.

While land is not depreciated, for all other Premises and equipment, depreciation is charged to net income on a straight-line basis by applying the following estimated economic useful lives on the amount of cost or revalued amount less residual value.

 

     Useful life  

Leasehold Improvement

      5 years  

Equipment and Vehicles

      5 years  

The Company reassesses the depreciation method, the estimated useful lives and residual values of Premises and equipment at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate. When there is an indicator of impairment and the carrying amount of a Premises and equipment item exceeds the estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount.

 

(9)

Intangible assets and goodwill

The Company is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and accumulated impairment losses. The Company’s intangible asset are amortized over the following economic lives using the straight-line method. However, for some intangible assets, the period of time that is expected to be available is not predictable, so the useful life of some intangible assets is assessed as indefinite and not depreciated.

The estimated useful life and amortization method of intangible assets with a finite useful life are reviewed at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate.

 

     Useful life  

Software

      1~5 years  

Development cost

      5 years  

In addition, when an indicator that intangible assets are impaired is noted, and the carrying amount of the asset exceeds the estimated recoverable amount of the asset, the carrying amount of the asset is reduced to its recoverable amount immediately.

 

- 19 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(10)

Impairment of non-monetary assets

Intangible assets with indefinite useful lives or intangible assets that are not yet available for use are tested for impairment annually, regardless of whether or not there is any indication of impairment. All other assets are tested for impairment by estimating the recoverable amount when there is an objective indication that the carrying amount may not be recoverable. Recoverable amount is the higher of value in use or net fair value, less costs to sell. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and such impairment loss is recognized immediately in net income.

 

(11)

Derivative instruments

Derivative instruments are classified as forwards, futures, options, and swaps depending on the types of transactions, and are classified as either trading or hedging at the point of transaction based on its purpose.

Derivatives are initially recognized at the fair value of the contract date and are subsequently measured at the fair value of the end of each reporting period. The resulting gain or loss is recognized in net income immediately unless the derivative is designated and effective as a hedging instrument. If derivatives have been designated as hedging instruments and it is effective, the recognition point of gain or loss depends on the characteristics of the hedging relationship.

Derivatives with a positive fair value(+) are recognized as financial assets, and derivatives with a negative fair value(-) are recognized as financial liabilities. Derivatives in financial statements are not offset unless they have a legally enforceable right to set-off or intend to set-off.

 

(12)

Provisions

The Company recognizes provision if it has present or contractual obligations as a result of the past event, it is probable that an outflow of resources will be required to settle the obligation and the amount of the obligation is reliably estimated. Provision is not recognized for the future operating losses.

The Company recognizes the expenses incurred in recovering the leased asset to its original state, under the terms of the lease, as a provision at the commencement date of lease or at a specific period of time when the asset is liable as a result of its use. The provision is measured as the best estimate of the expenditure required to recover the asset and is regularly reviewed and adapted to the new circumstances.

Where there are a number of similar obligations, the probability that an outflow will be required in settlement is determined by considering the obligations as a whole. Although the likelihood of outflow for any one item may be small, if it is probable that some outflow of resources will be needed to settle the obligations as a whole, a provision is recognized.

The balance of provisions is reviewed at the end of each reporting period and adjusted to reflect the best estimate as of the end of the reporting period.

 

(13)

Equity instruments issued by the Company

 

  1)

Capital and compound financial instruments

The Company classifies a financial instrument that it issues as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The compound financial instruments issued by the Company are financial instruments which are neither a financial liability nor an equity instrument as they were designed to contain both equity and debt elements.

 

- 20 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

If the Company reacquires its own equity instruments, the consideration paid including the direct transaction costs (net of income tax expense) are presented as a deduction from total equity until such instruments are retired or reissued. When these instruments are reissued, the consideration received (net of direct transaction costs) is included in the shareholder’s equity.

 

  2)

Hybrid securities

In case of hybrid securities that have the unconditional right to avoid contractual obligations, such as to deliver cash or other financial assets related to financial instruments, they are classifies as equity instruments and presented as part of equity.

 

(14)

Employee benefits and pensions

The Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by the employees. Also, the Company recognizes expenses and liabilities in the case of accumulating compensated absences when the employees render services that entitle their right to future compensated absences. Similarly, the Company recognizes expenses and liabilities for customary profit distribution or bonuses when the employees render services, even though the Company does not have legal obligation to do so because it can be construed as constructive obligation.

The Company is operating defined benefit plans. For defined benefit plans, the defined benefit liability is calculated through an actuarial assessment using the projected unit credit method every end of the reporting period, conducted by professional actuaries. Remeasurement, comprising actuarial gains and losses, the return on plan assets (excluding interest), and the effect of the changes to the asset ceiling (if applicable) is reflected immediately in the separate statement of financial position with a charge or credit recognized in other comprehensive income in the period in which they occur.

Remeasurement recognized in the statement of comprehensive income is not reclassified to profit or loss in the subsequent periods. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are composed of service cost (including current service cost and past service cost, as well as gains and losses on curtailments and settlements), net interest expense (income) and remeasurement.

The Company presents the service cost and net interest expense (income) components in profit or loss, and the remeasurement component in other comprehensive income. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognized in the separate statement of financial position represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is recognized as an asset limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Liabilities for termination benefits are recognized at the earlier of either 1) the date when the Company is no longer able to cancel its proposal for termination benefits or 2) the date when the Company has recognized the cost of restructuring that accompanies the payment of termination benefits.

 

(15)

Income taxes

Income tax expense is composed of current tax and deferred tax. That is, income tax expense is composed of taxes payable or refundable during the period and deferred taxes calculated by applying asset-liability method to taxable and deductible temporary differences arising from operating loss and tax credit carryforwards. Temporary differences are the differences between the carrying values of assets and liabilities for financial reporting purposes and their tax bases. Deferred income tax benefit or expense is recognized for the change in deferred tax assets or liabilities. Deferred tax assets and liabilities are measured as of the reporting date using the enacted or substantively enacted tax rates expected to apply in the period in which the liability is settled or asset realized. Deferred tax assets, including the carryforwards of unused tax losses, are recognized to the extent it is probable that the deferred tax assets will be realized.

 

-21-

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

The Company, as a consolidation group for its wholly-owned subsidiaries applies consolidated tax return approach, in which the Company and its subsidiaries are consolidated into a single tax base and tax amount. The Company determined whether temporary differences are realizable by considering the Company and each subsidiary’s future taxable income. For the changes in deferred income tax asset (liability), the Company recognized income tax expense (benefit), excluding the amounts that are directly adjusted from equity. Also, as the Company became the consolidation entity for tax filings and tax returns, it recognized the total amount of income tax payables as liabilities and individual tax amounts to be received from each of its wholly-owned subsidiaries as receivables.

Deferred income tax assets and liabilities are offset if, and only if, the Company has a legally enforceable right to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority or when the entity intends to settle current tax liabilities and assets on a net basis with different taxable entities.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets or liabilities are not recognized if they arise from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit (tax loss) nor the accounting profit.

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity or when it arises from business combination.

The tax uncertainty arises from the compensation claim filed by the Company, and refund litigation for the amount of tax levied by the tax authority due to differences in tax law analysis. In response, the Company paid taxes in accordance with K-IFRS 2123 due to the tax authority’s claim, but recognized as a corporate tax asset if it is highly probable of a refund in the future. In addition, the Company appropriately estimates and reflects the amount of corporate tax liabilities based on the analysis of corporate tax laws and the evaluation of many factors, including past experiences.

 

(16)

Earnings per share (“EPS”)

Basic EPS is a calculation of net income per each common stock. It is calculated by dividing net income attributable to ordinary shareholders by the weighted-average number of common shares outstanding. Diluted EPS is calculated by adjusting the earnings and number of shares for the effects of all dilutive potential common shares.

 

(17)

Share-based payments

For cash-settled share-based payment transactions that provide cash in return for the goods or services received, the Company measures the goods or services received, and the corresponding liability at the fair value and recognizes as employee benefit expenses and liabilities during the vesting period.

The fair value of the liability is remeasured at the end of each reporting period and the settlement date until the liability is settled, and changes in fair value are recognized as employee benefits.

 

(18)

Leases

 

  1)

The Company determines whether the contract is, or contains, a lease at the date of initial application. A contract is or contains a lease if the right to control the use of an identified asset is transferred in exchange for the consideration received for a period of time. In determining whether a contract transfers control of the use of the identified asset, the Company uses the definition of lease in K-IFRS 1116.

 

- 22 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

  2)

Lessee

At the commencement date, the Company recognizes a right-of-use asset and a lease liability. The right-of-use asset is initially measured at cost, which comprises the amount of the initial measurement of the lease liability, lease payments made at or before the commencement date (less any lease incentives received), initial direct costs, and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located.

The right-of-use asset is subsequently depreciated on a straight-line basis from the commencement date to the end of the lease term. However, if the lease transfers ownership of the underlying asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the lessee depreciates the right-of-use asset same as a fixed asset from the commencement date to the end of the useful life of the underlying asset. The right-of-use asset may be reduced by an impairment of the underlying asset or adjusted by remeasurement of the lease liability.

At the commencement date, a lease liability is measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if the rate can be readily determined. If the rate cannot be readily determined, the Company’s incremental borrowing rate can be used. Generally, the Company uses incremental borrowing rate as a discount rate.

The Company makes adjustments to reflect the terms of the lease and the characteristics of the lease asset in interest rates obtained from external financial information, and calculates the incremental borrowing rate.

The company calculates the lease term by including the relevant period when it is quite certain that the lessee will exercise the extension option or the termination option. The company calculates the enforceable period in consideration of the economic disadvantages of terminating the contract if the lessee and the lessor have the right to terminate it without the consent of the other parties.

The lease payments included in the measurement of the lease liability comprise the following:

 

  •  

Fixed payments (including in-substance fixed payments)

 

  •  

Variable lease payments that depend on an index (or a rate), initially measured using the index or rate as at the commencement date

 

  •  

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, lease payments of the extended period if the lessee is reasonably certain to exercise extension option, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

A lease liability is subsequently measured by increasing the carrying amount to reflect interest rate on the lease liability and reducing the carrying amount to reflect the lease payments made. A lease liability is remeasured when future lease payments change, depending on the changes in an index or a rate, change in amounts expected to be payable due to residual value guarantees, assessment of whether the Company is reasonably certain to exercise the purchase option and extension option, the Company is not reasonably certain to exercise the termination options.

When lease liability is remeasured, the related right-of-use asset is adjusted and if the carrying amount of the right-of-use asset decreases to zero, the remeasurement amount is recognized in profit or loss.

The company consider all relevant facts and circumstances that lead to economic incentives not to exercise the extension option or not exercising the termination option. The period of the extension option (or the period of the termination option) is included in the lease period only when it is reasonably certain that the lessee will exercise the extension option (or will not).

The Company reevaluates the lease term when the option is exercised (or not exercised) or the Company is liable to exercise (or not exercise) the option. Company will change its judgment only when significant events occur that affect the lessee’s control and the determination of the lease term, or there is a significant change in the circumstances.

 

-23-

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

In the statement of financial position, the Company classified the right-of-use assets that do not meet the definition of investment property as ‘Premises and equipment’ and the lease liabilities as ‘other financial liabilities.’

The Company has chosen a practical expedient that does not recognize the right-of-use asset and lease liabilities for short-term leases with a lease term less than 12 months and leases for which the underlying asset is of low value. The Company recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term.

 

-24-

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

3.

MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The material accounting estimates and assumptions are continuously being evaluated based on numerous factors including historical experiences and expectations of future events considered to be reasonably possible. Actual results can differ from those estimates based on such definitions. The accounting estimates and assumptions that contain significant risk of materially changing current book values of assets and liabilities in the next accounting periods are as follows:

 

(1)

Income taxes

The Company has recognized current and deferred taxes based on best estimates of expected future income tax effect arising from the Company’s operations until the end of the current reporting period. However, actual tax payment may not be identical to the related assets and/or liabilities already recognized, and these differences may affect current taxes and deferred tax assets/liabilities at the time when income tax effects are finalized. Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized only to the extent that it is probable that future taxable profit will be available against which the tax losses carried forward and the deductible temporary differences can be utilized. In this case the Company’s evaluation considers various factors such as estimated future taxable profit based on forecasted operating results, which are based on historical financial performance. The Company is reviewing the book value of deferred tax assets every end of the reporting period and in the event that the possibility of earning future taxable income changes, the deferred tax assets are adjusted up to taxable income sufficient to use deductible temporary differences.

 

(2)

Valuation of financial instruments

Financial assets at FVTPL and FVTOCI are recognized in the separate financial statements at fair value. All derivatives are measured at fair value. Valuation techniques are required in order to determine fair values of financial instruments where observable market prices do not exist. Financial instruments that are not actively traded and have low price transparency will have less objective fair value and require broad judgment in liquidity, concentration, uncertainty in market factors and assumption in price determination and other risks.

As described in Note 2, (6) 5), ‘Fair value of financial instruments’, when valuation techniques are used to determine the fair value of a financial instrument, various general techniques are used, and various types of assumptions and variables are incorporated during the process.

 

(3)

Impairment of financial instruments

K-IFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, which depends on the degree of increase in credit risk after their initial recognition.

 

    

Stage 1

   

Stage 2

   

Stage 3

   Credit risk has not significantly increased since initial recognition(*)    Credit risk has significantly increased since initial recognition    Credit has been impaired
Allowance for expected credit losses   

Expected 12-month credit losses:

 

Expected credit losses due to possible defaults on financial instruments within a 12-month period from the end of reporting period.

   

Expected lifetime credit losses:

 

Expected credit losses from all possible defaults during the expected lifetime of the financial instruments.

 

(*)

Credit risk may be considered to not have been significantly increased when credit risk is low at the end of reporting period.

The Company has estimated the allowance for credit losses based on reasonable and supportable information that was available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

 

- 25 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(4)

Defined benefit plan

The Company operates a defined benefit pension plan. Defined benefit obligation is calculated at every end of the reporting period by performing actuarial valuation, and estimation of assumptions such as discount rate, expected wage growth rate and mortality rate is required to perform such actuarial valuation. The defined benefit plan, due to its long-term nature, contains significant uncertainties in its estimates.

 

- 26 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

4.

RISK MANAGEMENT

The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Department analyzes, assesses, and establishes risk management standards, including policies, guidelines, management systems and decision-making to ensure sound management of the Company.

The Risk Management Committee, Chief Risk Officer (“CRO”) and the Risk Management Department are operated as risk management organizations. The board of directors operates the Risk Management Committee, composed of nonexecutive directors for professional risk management. The Risk Management Committee performs as the top decision-making body for risk management by establishing fundamental risk management policies that are consistent with the Company’s management strategy and by determining the Company’s acceptable level of risk.

CRO assists the Risk Management Committee and operates the Company Risk Management Council, which is composed of the risk management managers of the subsidiaries, to periodically check and improve the external environment and the Company’s risk burden. The Risk Management Department which is independently structured, controls the risk management matter of the Company and reports key risks and assists decision-making.

(1) Credit risk

Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain the Company’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

 

  1)

Credit risk management

The Company measures expected loss on assets subject to credit risk management and uses it as a management indicator.

 

  2)

Maximum exposure

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):

 

          December 31, 2024      December 31, 2023  

Loans and other financial assets at amortized
cost (*)

    Government      1        —   
   Banks      165,144        1,095,274  
   Corporates      39,286        9,541  
     

 

 

     

 

 

  

Total

      204,431        1,104,815  
     

 

 

     

 

 

  

 

(*)

Cash and cash equivalents are not included.

 

- 27 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

  a)

Credit risk exposure by geographical areas

The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  
     Korea      Korea  

Loans and other financial assets at amortized cost

      204,431        1,104,815  

 

  b)

Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of December 31, 2024 and December 31, 2023 (Unit: Korean Won in millions):

 

     December 31, 2024  
     Finance and
insurance		      Others      Total  

Loans and other financial assets at amortized cost

      203,262        1,169        204,431  

 

     December 31, 2023  
     Finance and
insurance		      Others      Total  

Loans and other financial assets at amortized cost

      1,103,460        1,355        1,104,815  

 

- 28 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

  3)

Credit risk exposure

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL as of December 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total      Loss
allowance		     Total, net  
Financial assets    Above
appropriate
credit rating (*1)		      Less than a
limited credit
rating
(*2)		      Above
appropriate
credit rating
(*1)		      Less than a
limited credit
rating
(*2)		  

Loans and other financial assets at amortized cost

      204,487        —         —         —         —         204,487        (56 )      204,431  

Government

      1        —         —         —         —         1        —        1  

Banks

      165,200        —         —         —         —         165,200        (56 )      165,144  

Corporates

      39,286        —         —         —         —         39,286        —        39,286  

General business

      39,286        —         —         —         —         39,286        —        39,286  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total

      204,487        —         —         —         —         204,487        (56 )      204,431  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
(*1)

Credit grade of corporates are AAA ~ BBB.

(*2)

Credit grade of corporates are BBB- ~ C.

 

     December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total      Loss
allowance		     Total, net  
Financial assets    Above
appropriate
credit rating
(*1)		      Less than a
limited credit
rating
(*2)		      Above
appropriate
credit rating
(*1)		      Less than a
limited credit
rating
(*2)		  

Loans and other financial assets at amortized cost

      1,105,478        —         —         —         —         1,105,478        (663 )      1,104,815  

Government

      —         —         —         —         —         —         —        —   

Banks

      1,095,937        —         —         —         —         1,095,937        (663 )      1,095,274  

Corporates

      9,541        —         —         —         —         9,541        —        9,541  

General business

      9,541        —         —         —         —         9,541        —        9,541  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total

      1,105,478        —         —         —         —         1,105,478        (663 )      1,104,815  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(*1)

Credit grade of corporates are AAA ~ BBB.

(*2)

Credit grade of corporates are BBB- ~ C.

 

- 29 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(2)

Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company’s main market risk is interest rate risk.

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Within 3
months
(*1)		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Asset:

                     

Loans and other financial assets at amortized
cost (*1)

      1,293,729        —         —         —         —         —         1,293,729  

Financial assets at FVTOCI (*2)

      —         —         —         —         —         553,518        553,518  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      1,293,729        —         —         —         —         553,518        1,847,247  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liability:

                     

Debentures

      14,965        114,700        222,634        12,083        1,770,174        62,019        2,196,575  

 

     December 31, 2023  
     Within 3
months
(*1)		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Asset:

                     

Loans and other financial assets at amortized cost (*1)

      762,823        587,227        —         41,580        —         —         1,391,630  

Financial assets at FVTOCI (*2)

      —         —         —         —         —         539,709        539,709  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total

      762,823        587,227        —         41,580        —         539,709        1,931,339  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liability:

                     

Debentures

      11,118        11,118        160,834        10,192        643,664        926,872        1,763,798  

 

(*1)

The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with 1,192,702 million Won and 762,823 million Won as of December 31, 2024 and 2023, respectively.

(*2)

Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the remaining contract.

 

- 30 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(3)

Liquidity risk

Liquidity risk refers to the risk that the Company may encounter difficulties in meeting obligations from its financial liabilities.

 

  1)

Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the maturity of assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

 

  2)

Maturity analysis of non-derivative financial liabilities

 

  a)

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over
5 years		      Total  

Debentures

      14,965        114,700        222,634        12,083        1,770,174        62,019        2,196,575  

Lease liabilities

      778        776        772        769        328        —         3,423  

Other financial liabilities (*)

      19,176        —         8,768        281        44,798        —         73,023  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      34,919        115,476        232,174        13,133        1,815,300        62,019        2,273,021  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over
5 years		      Total  

Debentures

      11,118        11,118        160,834        10,192        643,664        926,872        1,763,798  

Lease liabilities

      746        741        741        741        323        —         3,292  

Other financial liabilities (*)

      11,744        136,062        —         278        12,334        —         160,418  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      23,608        147,921        161,575        11,211        656,321        926,872        1,927,508  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

It does not include lease liabilities.

 

  b)

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Debentures

      14,965        114,700        222,634        12,083        1,770,174        62,019        2,196,575  

Lease liabilities

      778        776        772        769        328        —         3,423  

Other financial liabilities (*)

      19,176        —         8,768        281        44,798        —         73,023  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      34,919        115,476        232,174        13,133        1,815,300        62,019        2,273,021  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

- 31 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
     Within 3
months		      4 to 6
months		      7 to 9
months		      10 to 12
months		      1 to 5
years		      Over 5
years		      Total  

Debentures

      11,118        11,118        160,834        10,192        643,664        926,872        1,763,798  

Lease liabilities

      746        741        741        741        323        —         3,292  

Other financial liabilities (*)

      11,744        136,062        —         278        12,334        —         160,418  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      23,608        147,921        161,575        11,211        656,321        926,872        1,927,508  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

It does not include lease liabilities.

 

  3)

Maturity analysis of derivative financial liabilities

There are no derivative financial liabilities measured at fair value through profit or loss as of December 31, 2024 and 2023.

 

(4)

Capital management

The Company complies with the standard of capital adequacy provided by financial regulatory authorities. The capital adequacy standard is based on Basel III published by Basel Committee on Banking Supervision in Bank for International Settlement and was implemented in Korea in December 2013. The capital adequacy ratio is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the consolidated financial statements of the Company.

According to the above regulations, the Company is required to meet the following minimum requirements: Common Equity Tier 1 capital ratio of 9.0% and 8.0%, a Tier 1 capital ratio of 10.5% and 9.5%, and a Total capital ratio of 12.5% and 11.5%, respectively.

Details of the Company’s capital adequacy ratio calculated based on the consolidated financial statements are as follows (Unit: Korean Won in millions):

 

Details    December 31, 2024(*)     December 31, 2023  

Tier 1 capital

      28,522,910       26,343,941  

Other Tier 1 capital

      4,869,567       4,596,584  

Tier 2 capital

      3,535,362       3,815,920  
  

 

 

    

 

 

  

Total risk-adjusted capital

      36,927,839       34,756,445  
  

 

 

    

 

 

  

Risk-weighted assets for credit risk

      210,365,462       195,490,941  

Risk-weighted assets for market risk

      3,125,478       4,697,055  

Risk-weighted assets for operational risk

      21,609,530       19,603,749  
  

 

 

    

 

 

  

Total risk-weighted assets

      235,100,470       219,791,745  
  

 

 

    

 

 

  

Common Equity Tier 1 ratio

      12.13 %      11.99 % 
  

 

 

    

 

 

  

Tier 1 capital ratio

      14.20 %      14.08 % 
  

 

 

    

 

 

  

Total capital ratio

      15.71 %      15.81 % 
  

 

 

    

 

 

  

 

(*)

The capital ratio at the end of the current period is provisional.

 

- 32 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

5.

CASH AND CASH EQUIVALENTS

 

(1)

Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Demand deposits

      11,912        9,507  

Fixed deposits

      1,174,000        280,000  
  

 

 

     

 

 

  

Total

      1,185,912        289,507  
  

 

 

     

 

 

  

 

(2)

Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Changes in other comprehensive income related to valuation of financial assets at FVTOCI

      10,164        19,789  

Changes in right-of-use assets due to new contract

      3,192        1,238  

Changes in lease liabilities due to new contract

      3,126        1,238  

Comprehensive stock exchange

      —         374,109  

Change in bond discount issuance differences due to bond issuance

      1,000        766  

 

(3)

Adjustments of liabilities from financing activities for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning      Cash flow     Not involving cash inflows and
outflows		      Ending  
    Amortization      Others (*)  

Debentures

      1,587,659        449,000       908        —         2,037,567  

Lease liabilities

      3,203        (3,000 )      88        3,068        3,359  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

      1,590,862        446,000       996        3,068        2,040,926  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

(*)

Changes in lease liabilities due to new contracts include 3,126 million Won.

 

     For the year ended December 31, 2023  
     Beginning      Cash flow     Not involving cash inflows and
outflows		      Ending  
    Amortization      Others (*)  

Debentures

      1,447,762        139,234       663        —         1,587,659  

Lease liabilities

      5,884        (3,128 )      212        235        3,203  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

      1,453,646        136,106       875        235        1,590,862  
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

(*)

Changes in lease liabilities due to new contracts and renewed include 483 million Won.

 

- 33 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

6.

FINANCIAL ASSETS AT FVTPL

There are no financial assets measured at fair value through profit or loss as of December 31, 2024 and December 31, 2023.

 

7.

FINANCIAL ASSETS AT FVTOCI

 

(1)

Details of financial assets at FVTOCI as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Hybrid securities

      553,518        539,709  

 

(2)

Details of equity securities designated as financial assets at FVTOCI as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

Purpose of acquisition

    December 31, 2024      December 31, 2023  

Investment for political purpose

      553,518        539,709  

 

8.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

 

(1)

Details of loans and other financial assets at amortized cost as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Due from banks

      99,944        1,073,346  

Other financial assets

      104,487        31,469  
  

 

 

     

 

 

  

Total

      204,431        1,104,815  
  

 

 

     

 

 

  

 

(2)

Details of due from banks are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Due from banks in local currency:

      

Due from depository banks

      100,000        1,074,000  

Loss allowance

      (56 )       (654 ) 
  

 

 

     

 

 

  

Total

      99,944        1,073,346  
  

 

 

     

 

 

  

 

- 34 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(3)

Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

 

  1)

Allowance for credit losses

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (654 )       —         —         (654 ) 

Reversal of provision of allowance for credit loss

      598        —         —         598  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (56 )       —         —         (56 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (313 )       —         —         (313 ) 

Provision of allowance for credit loss

      (341 )       —         —         (341 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (654 )       —         —         (654 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  2)

Gross carrying amount

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      1,074,000        —         —         1,074,000  

Net decrease

      (974,000 )       —         —         (974,000 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      100,000        —         —         100,000  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      1,300,000        —         —         1,300,000  

Net decrease

      (226,000 )       —         —         (226,000 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      1,074,000        —         —         1,074,000  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(4)

Details of other financial assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Receivables

      95,857        9,541  

Accrued income

      6,520        19,829  

Lease deposits

      2,109        2,108  

Other assets

      1        —   

Loss allowance

      —         (9 ) 
  

 

 

     

 

 

  

Total

      104,487        31,469  
  

 

 

     

 

 

  

 

- 35 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(5)

Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):

 

  1)

Allowance for credit losses

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (9 )       —         —         (9 ) 

Reversal of allowance for credit loss

      9        —         —         9  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      —         —         —         —   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      (3 )       —         —         (3 ) 

Provision of allowance for credit loss

      (6 )       —         —         (6 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      (9 )       —         —         (9 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  2)

Gross carrying amount

 

     For the year ended December 31, 2024  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      31,478        —         —         31,478  

Net increase

      73,009        —         —         73,009  
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      104,487        —         —         104,487  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Stage 1      Stage 2      Stage 3      Total  

Beginning balance

      742,193        —         —         742,193  

Net decrease

      (710,715 )       —         —         (710,715 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Ending balance

      31,478        —         —         31,478  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

- 36 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

9.

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

 

(1)

The fair value hierarchy

The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial assets and liabilities. The specific financial instruments characteristics and market condition such as volume of transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market assumptions are not readily available, the Company’s own assumptions reflect those that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

 

  •  

Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

 

  •  

Level 2— fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

 

  •  

Level 3— fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

 

(2)

Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Level 1      Level 2      Level 3      Total  

Financial assets:

            

Financial assets at FVTOCI

            

Hybrid securities

      —         —         553,518        553,518  

 

     December 31, 2023  
     Level 1      Level 2      Level 3      Total  

Financial assets:

            

Financial assets at FVTOCI

            

Hybrid securities

      —         —         539,709        539,709  

Financial assets measured at FVTPL and financial assets measured at FVTOCI are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

 

- 37 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Company determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows:

 

    

Valuation methods

   

Input variables

Hybrid securities    The fair value is measured using the Hull and White model and the Monte Carlo Simulations.    YTM Matrix, Additive spread by grade, Risk spread by entity, Effective Credit rating, Issuing information by item, Interest rate volatility estimate

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs are as follows:

 

    

Fair value
measurement
technique

   

Type

   

Significant

unobservable

inputs

   

Range

   

Impact of changes in significant
unobservable inputs on fair value
measurement

Hybrid securities    Hull and White, Monte Carlo Simulation    Hybrid securities related    Interest rate volatility estimate, Discount rate   

Interest rate volatility estimate 0.56%

Discount rate

3.83% ~ 6.10%

    Variation of fair value increases as variation of interest rate volatility estimate increases.

The fair value of financial assets classified as level 3 uses external valuation figures.

 

(3)

Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows. (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning
balance		      Net
Income		      Other
comprehensive
income		      Purchases/
issuances		      Disposals/
settlements		      Transfer to or
out of
Level 3		      Ending
balance		  

Financial assets:

                     

Financial assets at FVTPL Derivative assets

      —         —         —         —         —         —         —   

Financial assets at FVTOCI

                     

Hybrid securities

      539,709        —         13,809        —         —         —         553,518  

 

     For the year ended December 31, 2023  
     Beginning
balance		      Net
Income		      Other
comprehensive
income		      Purchases/
issuances		      Disposals/
settlements		     Transfer to or
out of
Level 3		      Ending
balance		  

Financial assets:

                    

Financial assets at FVTPL Derivative assets

      689        2,023        —         —         (2,712 )      —         —   

Financial assets at FVTOCI

                    

Hybrid securities

      312,771        —         26,938        200,000        —        —         539,709  

 

(4)

Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for hybrid securities of which fair value changes are recognized as other comprehensive income among level 3 financial instruments.

 

- 38 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility.(Unit: Korean Won in millions):

 

     December 31, 2024  
     Net income      Other comprehensive income (loss)  
     Favorable      Unfavorable      Favorable      Unfavorable  

Financial assets:

            

Financial assets at FVTOCI

            

Hybrid securities (*)

      —         —         11,910        (11,567 ) 

 

(*)

Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%, respectively.

 

     December 31, 2023  
     Net income      Other comprehensive income (loss)  
     Favorable      Unfavorable      Favorable      Unfavorable  

Financial assets:

            

Financial assets at FVTOCI

            

Hybrid securities (*)

      —         —         16,476        (15,888 ) 

 

(*)

Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%, respectively.

 

 

-39-

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(5)

Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Fair value      Carrying amount  
     Level 1      Level 2      Level 3      Total  

Financial assets:

               

Loans and other financial assets at amortized cost (*1)

      —         —         204,431        204,431        204,431  

Financial liabilities:

               

Debentures

      —         2,010,571        —         2,010,571        2,037,567  

Other financial liabilities (*1,2)

      —         —         73,023        73,023        73,023  

 

(*1)

The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

 

(*2)

It does not include lease liabilities.

 

     December 31, 2023  
     Fair value      Carrying amount  
     Level 1      Level 2      Level 3      Total  

Financial assets:

               

Loans and other financial assets at amortized cost (*1)

      —         —         1,104,815        1,104,815        1,104,815  

Financial liabilities:

               

Debentures

      —         1,518,440        —         1,518,440        1,587,659  

Other financial liabilities (*1,2)

      —         —         160,418        160,418        160,418  

 

(*1)

The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

(*2)

It does not include lease liabilities.

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Company determines the fair value using valuation methods. For the disclosed items in which book value is considered to be the approximate value of fair value, valuation techniques and input variables are not disclosed. Valuation techniques and input variables for the fair value of financial liabilities that are recorded at amortized cost are as follows:

 

    

Valuation methods

   

Input variables

Debentures    The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Company.    Risk-free market rate, etc.

 

(6)

Financial instruments by category

Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in millions):

 

  1)

Financial assets

 

     December 31, 2024  
Financial assets    Financial assets at
FVTPL		      Financial assets at
FVTOCI		      Financial assets at
amortized cost		      Total  

Due from banks

      —         —         99,944        99,944  

Hybrid securities

      —         553,518        —         553,518  

Other financial assets

      —         —         104,487        104,487  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      —         553,518        204,431        757,949  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

- 40 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

     December 31, 2023  
Financial assets    Financial assets at
FVTPL		      Financial assets at
FVTOCI		      Financial assets at
amortized cost		      Total  

Due from banks

         —         —         1,073,346        1,073,346  

Hybrid securities

      —         539,709        —         539,709  

Other financial assets

      —         —         31,469        31,469  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      —         539,709        1,104,815        1,644,524  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  2)

Financial liabilities

 

     December 31, 2024      December 31, 2023  
Financial liabilities    Financial liabilities at
FVTPL		      Financial liabilities at
amortized cost		      Financial liabilities
at FVTPL		      Financial
liabilities at
amortized cost		  

Debentures

         —         2,037,567           —         1,587,659  

Other financial liabilities (*)

      —         73,023        —         160,418  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      —         2,110,590        —         1,748,077  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

It does not include lease liabilities.

 

(7)

Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Interest income
(expense)		     Reversal of
credit loss		      Gain on
transactions
and valuation		      Dividends      Total  

Financial assets at FVTPL

      —        —            —         —         —   

Financial assets at FVTOCI

      —        —         —         25,545        25,545  

Loans and other financial assets at amortized cost (*)

      51,778       608        —         —         52,386  

Financial liabilities at amortized cost

      (49,515 )      —         —         —         (49,515 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total

      2,263       608        —         25,545        28,416  
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

(*)

7,201 million Won interest income of cash and cash equivalents are included.

 

     For the year ended December 31, 2023  
     Interest income
(expense)		     Provision of
credit loss		     Gain on
transactions
and valuation		      Dividends      Total  

Financial assets at FVTPL

      —        —        2,023        —         2,023  

Financial assets at FVTOCI

      —        —        —         17,131        17,131  

Loans and other financial assets at amortized cost (*)

      64,592       (348 )      —         —         64,244  

Financial liabilities at amortized cost

      (36,834 )      —        —         —         (36,834 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total

      27,758       (348 )      2,023        17,131        46,564  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

(*)

15,070 million Won interest income of cash and cash equivalents are included.

 

- 41 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

10.

INVESTMENTS IN SUBSIDIARIES

 

(1)

Details of Investments in subsidiaries are as follows (Unit: Korean Won in millions and number of shares):

 

Subsidiaries (*1)

    Location    Capital
stock		      Main business

Woori Bank

    Korea      3,581,400      Bank

Woori Card Co., Ltd.

    Korea      896,300      Finance

Woori Financial Capital Co., Ltd.

    Korea      373,800      Finance

Woori Investment Securities Co., Ltd. (*3)

    Korea      242,900      Securities brokerage

Woori Asset Trust Co., Ltd.

    Korea      16,900      Real estate trust

Woori Savings Bank

    Korea      187,400      Mutual saving bank

Woori F&I Co., Ltd.

    Korea      31,500      Finance

Woori Asset Management Corp

    Korea      24,000      Finance

Woori Venture Partners Co., Ltd.

    Korea      50,000      Other financial services

Woori Private Equity Asset Management Co., Ltd.

    Korea      80,000      Finance

Woori Credit Information Co., Ltd.

    Korea      5,000      Credit information

Woori Fund Service Co., Ltd.

    Korea      10,000      Financial support service
business

Woori FIS Co., Ltd.

    Korea      24,500      System software

Woori Finance Research Institute Co., Ltd.

    Korea      3,000      development & maintenance

Woori Global Asset Management Co., Ltd.

    Korea      —       Finance

 

     December 31, 2024    December 31, 2023

Subsidiaries (*1)

    Number of
shares		      Percentage of
ownership
(%) (*2)		      Financial statements
date of use		    Number of
shares		      Percentage of
ownership
(%) (*2)		      Financial statements
date of use

Woori Bank

      716,000,000        100.0      December 31, 2024      716,000,000        100.0      December 31, 2023

Woori Card Co., Ltd.

      179,266,200        100.0      December 31, 2024      179,266,200        100.0      December 31, 2023

Woori Financial Capital Co., Ltd.

      74,757,594        100.0      December 31, 2024      74,757,594        100.0      December 31, 2023

Woori Investment Securities Co., Ltd. (*3)

      483,141,111        99.5      December 31, 2024      1,382,850,405        100.0      December 31, 2023

Woori Asset Trust Co., Ltd.

      3,368,645        99.6      December 31, 2024      2,210,600        95.3      December 31, 2023

Woori Savings Bank

      37,476,895        100.0      December 31, 2024      24,802,623        100.0      December 31, 2023

Woori F&I Co., Ltd.

      6,298,895        100.0      December 31, 2024      4,000,000        100.0      December 31, 2023

Woori Asset Management Corp

      4,797,154        100.0      December 31, 2024      2,920,000        73.0      December 31, 2023

Woori Venture Partners Co., Ltd.

      100,000,000        100.0      December 31, 2024      100,000,000        100.0      December 31, 2023

Woori Private Equity Asset Management Co., Ltd.

      16,000,000        100.0      December 31, 2024      16,000,000        100.0      December 31, 2023

Woori Credit Information Co., Ltd.

      1,008,000        100.0      December 31, 2024      1,008,000        100.0      December 31, 2023

Woori Fund Service Co., Ltd.

      2,000,000        100.0      December 31, 2024      2,000,000        100.0      December 31, 2023

Woori FIS Co., Ltd.

      4,900,000        100.0      December 31, 2024      4,900,000        100.0      December 31, 2023

Woori Finance Research Institute Co., Ltd.

      600,000        100.0      December 31, 2024      600,000        100.0      December 31, 2023

Woori Global Asset Management Co., Ltd.

      —         —       December 31, 2024      4,000,000        100.0      December 31, 2023

 

(*1)

Only subsidiaries invested directly by the Company are included.

(*2)

The percentage is based on the effective shareholding rate relative to the number of stocks outstanding.

(*3)

On August 1, 2024, after merging with Korea Foss Securities Co., Ltd., the company changed its name to Woori Investment Securities Co., Ltd.

 

- 42 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(2)

Changes in the carrying value of investments in subsidiaries are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning balance      Acquisition      Disposal      Ending balance  

Woori Bank

      18,921,151        —         —         18,921,151  

Woori Card Co., Ltd.

      1,118,367        —         —         1,118,367  

Woori Financial Capital Co., Ltd.

      1,003,206        —         —         1,003,206  

Woori Investment Securities Co., Ltd. (*1)

      1,207,351        56,085        —         1,263,436  

Woori Asset Trust Co., Ltd. (*2)

      403,642        218,080        —         621,722  

Woori Savings Bank (*3)

      213,238        100,000        —         313,238  

Woori F&I Co., Ltd. (*4)

      200,000        120,000        —         320,000  

Woori Asset Management Corp (*5)

      122,449        74,376        —         196,825  

Woori Venture Partners Co., Ltd.

      336,439        —         —         336,439  

Woori Private Equity Asset Management Co., Ltd.

      57,797        —         —         57,797  

Woori Credit Information Co., Ltd.

      16,466        —         —         16,466  

Woori Fund Service Co., Ltd.

      13,939        —         —         13,939  

Woori FIS Co., Ltd.

      21,754        —         —         21,754  

Woori Finance Research Institute Co., Ltd.

      1,677        —         —         1,677  

Woori Global Asset Management Co., Ltd. (*6)

      33,000        —         33,000     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      23,670,476        568,541        33,000        24,206,017  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

On August 1, 2024, after merging with Korea Foss Securities Co., Ltd., the company changed its name to Woori Investment Securities Co., Ltd., and the Company additionally acquired 2.3% interests of THE KOREA SECURITIES FINANCE CORPORATION and Fount co., Ltd.

(*2)

The capital increase amount of 200,000 million Won was made in March 2024, and the Company additionally acquired minority interests of 1.95% in April 2024. Afterward, the Company additionally acquired minority interests of 0.89% in November, 2024.

(*3)

The Capital increase amount of 100,000 million Won was made in June 2024.

(*4)

The Capital increase amount of 120,000 million Won was made in May 2024.

(*5)

On January 29, 2024, Woori Asset Management Corp merged with Woori Global Asset Management Co., Ltd. and the Company acquired residual interest (22.5%) of Woori Asset Management Corp, to make it wholly subordinated on March 29, 2024.

(*6)

On January 29, 2024, it was merged into Woori Asset Management Corp and excluded from our subsidiaries.

 

- 43 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

     For the year ended December 31, 2023  
     Beginning balance      Acquisition      Disposal      Ending balance  

Woori Bank

      18,921,151        —         —         18,921,151  

Woori Card Co., Ltd.

      1,118,367        —         —         1,118,367  

Woori Financial Capital Co., Ltd.

      1,003,206        —         —         1,003,206  

Woori Investment Bank Co., Ltd. (*1)

      447,673        759,678        —         1,207,351  

Woori Asset Trust Co., Ltd. (*2)

      224,198        179,444        —         403,642  

Woori Savings Bank

      213,238        —         —         213,238  

Woori F&I Co., Ltd.

      200,000        —         —         200,000  

Woori Asset Management Corp

      122,449        —         —         122,449  

Woori Venture Partners Co., Ltd. (*3)

      —         336,439        —         336,439  

Woori Global Asset Management Co., Ltd.

      33,000        —         —         33,000  

Woori Private Equity Asset Management Co., Ltd.

      57,797        —         —         57,797  

Woori Credit Information Co., Ltd

      16,466        —         —         16,466  

Woori Fund Service Co., Ltd.

      13,939        —         —         13,939  

Woori FIS Co., Ltd.

      21,754        —         —         21,754  

Woori Finance Research Institute Co., Ltd.

      1,677        —            —         1,677  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      22,394,915        1,275,561        —         23,670,476  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(*1)

The Company acquired residual interest (41.3%, including treasury stocks) of Woori Investment Bank Co., Ltd. in August 8 2023, to make it a wholly owned subsidiary and the capital increase amount of 500,000 million Won was made in December 2023.

(*2)

The Company additionally acquired 28.1% (excluding treasury stocks) interests of Woori Asset Trust Co Ltd on March 31, 2023. In the case of including treasury stocks, the share ratio was 21.3%.

(*3)

The Company additionally acquired 53.9% interests of Daol Investment Co Ltd (excluding treasury stocks) on March 23, 2023. In the case of including treasury stocks, the share ratio was 52.0%) and the Company name was changed to Woori Venture Partners Co., Ltd. The Company additionally acquired treasury stocks held by Woori Venture Partners Co., Ltd. (3.5% interests) in May 2023, and acquired 44.5% residual interest in August 8 2023, to make it a wholly owned subsidiary.

 

- 44 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

11.

PREMISES AND EQUIPMENT

 

(1)

Details of premises and equipment as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Building      Equipment and
Vehicles		      Leasehold
improvements		      Total  

Premises and equipment (owned)

      —         605        1,380        1,985  

Right-of-use asset

      2,799        520        —         3,319  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      2,799        1,125        1,380        5,304  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Building      Equipment and
Vehicles		      Leasehold
improvements		      Total  

Premises and equipment (owned)

      —         1,078        2,053        3,131  

Right-of-use asset

      2,970        508        —         3,478  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      2,970        1,586        2,053        6,609  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(2)

Details of premises and equipment (owned) as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Equipment and Vehicles      Leasehold
improvements		      Total  

Acquisition cost

      6,403        6,497        12,900  

Accumulated depreciation

      (5,798 )       (5,117 )       (10,915 ) 
  

 

 

     

 

 

     

 

 

  

Net carrying amount

      605        1,380        1,985  
  

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Equipment and Vehicles      Leasehold
improvements		      Total  

Acquisition cost

      6,370        6,272        12,642  

Accumulated depreciation

      (5,292 )       (4,219 )       (9,511 ) 
  

 

 

     

 

 

     

 

 

  

Net carrying amount

      1,078        2,053        3,131  
  

 

 

     

 

 

     

 

 

  

 

(3)

Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Equipment and Vehicles      Leasehold
improvements		      Total  

Beginning balance

      1,078        2,053        3,131  

Acquisitions

      33        225        258  

Depreciation

      (506 )       (898 )       (1,404 ) 
  

 

 

     

 

 

     

 

 

  

Ending balance

      605        1,380        1,985  
  

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Equipment and Vehicles      Leasehold
improvements		      Total  

Beginning balance

      1,944        3,125        5,069  

Acquisitions

      358        165        523  

Depreciation

      (1,224 )       (1,237 )       (2,461 ) 
  

 

 

     

 

 

     

 

 

  

Ending balance

      1,078        2,053        3,131  
  

 

 

     

 

 

     

 

 

  

 

- 45 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(4)

Details of right-of-use assets as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Building      Equipment and Vehicles      Total  

Acquisition cost

      7,828        1,167        8,995  

Accumulated depreciation

      (5,029 )       (647 )       (5,676 ) 
  

 

 

     

 

 

     

 

 

  

Net carrying amount

      2,799        520        3,319  
  

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Building      Equipment and Vehicles      Total  

Acquisition cost

      5,295        928        6,223  

Accumulated depreciation

      (2,325 )       (420 )       (2,745 ) 
  

 

 

     

 

 

     

 

 

  

Net carrying amount

      2,970        508        3,478  
  

 

 

     

 

 

     

 

 

  

 

(5)

Details of changes in right-of-use assets for the years ended December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Building      Equipment and Vehicles      Total  

Beginning balance

      2,970        508        3,478  

New contracts

      2,799        393        3,192  

Modification

      (38 )       —         (38 ) 

Termination

      —         (36 )       (36 ) 

Depreciation

      (2,932 )       (345 )       (3,277 ) 
  

 

 

     

 

 

     

 

 

  

Ending balance

      2,799        520        3,319  
  

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Building      Equipment and Vehicles      Total  

Beginning balance

      5,462        521        5,983  

New contracts

      754        484        1,238  

Modification

      (173 )       —         (173 ) 

Termination

      —         (116 )       (116 ) 

Depreciation

      (3,073 )       (381 )       (3,454 ) 
  

 

 

     

 

 

     

 

 

  

Ending balance

      2,970        508        3,478  
  

 

 

     

 

 

     

 

 

  

 

- 46 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

12.

INTANGIBLE ASSETS

 

(1)

Details of intangible assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024  
     Software      Development cost      Membership deposit      Total  

Acquisition cost

      4,631        3,622        2,371        10,624  

Accumulated amortization

      (4,339 )       (2,977 )       —         (7,316 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net carrying amount

      292        645        2,371        3,308  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 31, 2023  
     Software      Development cost      Membership deposit      Total  

Acquisition cost

      4,328        3,622        2,371        10,321  

Accumulated amortization

      (3,841 )       (2,428 )       —         (6,269 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net carrying amount

      487        1,194        2,371        4,052  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(2)

Details of changes in intangible assets are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Software     Development cost     Membership
deposit		      Construction
in progress		      Total  

Beginning balance

      487       1,194       2,371        —         4,052  

Acquisitions

      303       —        —         —         303  

Amortization

      (498 )      (549 )      —         —         (1,047 ) 

Transfer

      —        —        —         —         —   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance

      292       645       2,371        —         3,308  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Software     Development cost     Membership
deposit		      Construction
in progress		     Total  

Beginning balance

      704       1,784       2,371        —        4,859  

Acquisitions

      172       61       —         350       583  

Amortization

      (678 )      (712 )      —         —        (1,390 ) 

Transfer

      289       61       —         (350 )      —   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Ending balance

      487       1,194       2,371        —        4,052  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

13.

OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Prepaid expenses

      281        484  

Advance payments

      155,389        —   
  

 

 

     

 

 

  
     155,670        484  
  

 

 

     

 

 

  

 

- 47 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

14.

DEBENTURES

Details of debentures are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  
     Interest rate (%)      Amount      Interest rate (%)      Amount  

Face value of bonds:

            

General bonds

      2.19~4.25        1,090,000        1.70~4.25        640,000  

Subordinated bonds

      2.13~2.55        950,000        2.13~2.55        950,000  
     

 

 

        

 

 

  

Sub-total

         2,040,000           1,590,000  
     

 

 

        

 

 

  

Discounts on bonds

         (2,433 )          (2,341 ) 
     

 

 

        

 

 

  

Total

         2,037,567           1,587,659  
     

 

 

        

 

 

  

 

15.

PROVISIONS

 

(1)

Details of provisions are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Asset retirement obligation

      1,252        1,227  

 

(2)

Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Beginning balance

      1,227        487  

Provisions provided

      —         754  

Amortization

      46        52  

Reversal due to modification

      (21 )       (66 ) 
  

 

 

     

 

 

  

Ending balance

      1,252        1,227  
  

 

 

     

 

 

  

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased assets used as offices as of December 31, 2024, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of the lease period of each office, and the Company used the average amount of the major subsidiaries’ actual recovery cost and the inflation rate for the past 3 years in order to estimate future recovery cost.

 

- 48 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

16.

NET DEFINED BENEFIT ASSET

The retirement benefit of the Company is based on the defined benefit retirement pension plan.

Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of the reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Company is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:

 

Volatility of asset

    The defined benefit obligation was estimated with a discount rate calculated based on the return on high quality corporate bond. A deficit may occur if the rate of return of plan assets falls short of the discount rate.

Decrease in profitability of high quality bonds

    A decrease in profitability of high quality bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation

    Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

 

(1)

Details of net defined benefit asset are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Present value of defined benefit obligation

      (14,313 )       (13,280 ) 

Fair value of plan assets

      15,691        17,221  
  

 

 

     

 

 

  

Net defined benefit asset

      1,378        3,941  
  

 

 

     

 

 

  

 

(2)

Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Beginning balance

      13,280        18,660  

Transfer-in / out

      (412 )       (6,959 ) 

Current service cost

      3,519        3,524  

Interest cost

      586        967  

Remeasurements

   

Financial assumption

      700        1,161  
  

Demographic assumptions

      (25 )       —   
  

Experience adjustment

      473        (634 ) 

Retirement benefit paid

      (1,559 )       (1,783 ) 

Others

      (2,249 )       (1,656 ) 
  

 

 

     

 

 

  

Ending balance

      14,313        13,280  
  

 

 

     

 

 

  

 

- 49 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(3)

Changes in the plan assets are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Beginning balance

      17,221        24,607  

Transfer-in / out

      (2,517 )       (6,014 ) 

Interest income

      794        1,332  

Remeasurements

      (247 )       (658 ) 

Employer’s contributions

      1,800        —   

Retirement benefit paid

      (1,360 )       (2,046 ) 
  

 

 

     

 

 

  

Ending balance

      15,691        17,221  
  

 

 

     

 

 

  

 

(4)

The fair value of plan assets as of December 31, 2024 and 2023 is as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Cash and due from banks

      15,691        17,221  

Meanwhile, among plan assets, realized returns on plan assets amount to 547 million Won and 674 Won for the years ended December 31, 2024 and 2023, respectively. The contribution expected to be paid in the fiscal year beginning after the reporting period is 1,284 million Won.

 

(5)

The amounts recognized in net income and total comprehensive income in relation to defined benefit plans are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Current service cost

      3,519        3,524  

Net interest expense

      (208 )       (365 ) 
  

 

 

     

 

 

  

Cost recognized in net income

      3,311        3,159  
  

 

 

     

 

 

  

Remeasurements (*)

      1,395        1,185  
  

 

 

     

 

 

  

Cost recognized in total comprehensive income

      4,706        4,344  
  

 

 

     

 

 

  

 

(*)

Amount before tax

 

(6)

Key actuarial assumptions used in defined benefit liability(asset) measurement are as follows:

 

     December 31, 2024   December 31, 2023
Discount rate    3.98%   4.55%

Future wage growth rate

    5.75%   5.75%
Mortality rate    Issued by Korea Insurance
Development Institute		   Issued by Korea Insurance
Development Institute

Retirement rate

    Issued by Korea Insurance
Development Institute		   Issued by Korea Insurance
Development Institute

The weighted average maturity of the defined benefit obligation is 9.26 years.

 

- 50 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(7)

The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows (Unit: Korean Won in millions):

 

          December 31, 2024      December 31, 2023  

Discount rate

    Increase by 1% point      (1,163 )       (1,119 ) 
   Decrease by 1% point      1,325        1,277  

Future wage growth rate

    Increase by 1% point      1,290        1,251  
   Decrease by 1% point      (1,157 )       (1,118 ) 

 

17.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Other financial liabilities:

      

Accounts payable

      48,323        140,592  

Accrued expenses

      24,700        19,826  

Lease liabilities

      3,359        3,203  
  

 

 

     

 

 

  

Sub-total

      76,382        163,621  
  

 

 

     

 

 

  

Other liabilities:

      

Other miscellaneous liabilities

      404        392  
  

 

 

     

 

 

  

Total

      76,786        164,013  
  

 

 

     

 

 

  

 

18.

DERIVATIVES

There are no derivative assets (liabilities) as of December 31, 2024 and 2023.

 

- 51 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

19.

EQUITY

 

(1)

Details of equity as of December 31, 2024 and 2023 are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Capital

      

Common stock capital

      3,802,676        3,802,676  

Hybrid securities

      3,810,225        3,610,953  

Capital surplus

      11,120,236        11,120,236  
  

 

 

     

 

 

  

Other equity

      

Treasury stocks

      (628 )       (628 ) 

Accumulated other comprehensive income

      1,895        (7,243 ) 

Other adjustments

      (2,456 )       —   
  

 

 

     

 

 

  

Sub-total

      (1,189 )       (7,871 ) 
  

 

 

     

 

 

  

Retained earnings (*1)(*2)

      5,420,783        5,475,004  
  

 

 

     

 

 

  

Total

      24,152,731        24,000,998  
  

 

 

     

 

 

  

 

(*1)

The regulatory reserve for credit loss in retained earnings amounted to 137 million Won and 3,697 million Won as of December 31, 2024 and 2023, respectively in accordance with the relevant article.

(*2)

The earned surplus reserve in retained earnings amounted to 442,650 million Won and 300,190 million Won as of December 31, 2024 and 2023 in accordance with the Article 53 of the Financial Holding Company Act.

 

(2)

The number of authorized shares and others of the Company are as follows:

 

     December 31, 2024      December 31, 2023  

Shares of common stock authorized

      4,000,000,000 Shares        4,000,000,000 Shares  
Par value per share      5,000 Won        5,000 Won  

Shares of common stock issued (*)

      742,591,501 Shares        751,949,461 Shares  

Capital stock

      3,802,676 million Won        3,802,676 million Won  

 

(*)

The capital stock is not equal to the total face value of issued shares due to the retirement of earnings.

 

- 52 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(3)

Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):

 

     Issue date      Maturity      Interest rate (%)      December 31,
2024		     December 31,
2023		  

Securities in local currency

      2019-07-18        —         3.49        —        500,000  

Securities in local currency

      2019-10-11        —         3.32        —        500,000  

Securities in local currency

      2020-02-06        —         3.34        400,000       400,000  

Securities in local currency

      2020-06-12        —         3.23        300,000       300,000  

Securities in local currency

      2020-10-23        —         3.00        200,000       200,000  

Securities in local currency

      2021-04-08        —         3.15        200,000       200,000  

Securities in local currency

      2021-10-14        —         3.60        200,000       200,000  

Securities in local currency

      2022-02-17        —         4.10        300,000       300,000  

Securities in local currency

      2022-07-28        —         4.99        300,000       300,000  

Securities in local currency

      2022-10-25        —         5.97        220,000       220,000  

Securities in local currency

      2023-02-10        —         4.65        300,000       300,000  

Securities in local currency

      2023-09-07        —         5.04        200,000       200,000  

Securities in local currency

      2024-02-07        —         4.49        400,000       —   

Securities in local currency

      2024-06-19        —         4.27        400,000       —   

Securities in local currency

      2024-10-10        —         4.00        400,000       —   

Issuance cost

 

      (9,775 )      (9,047 ) 
           

 

 

    

 

 

  

Total

 

      3,810,225       3,610,953  
           

 

 

    

 

 

  

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from the date of issuance.

 

- 53 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(4)

Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning
balance		      Increase
(decrease)		      Income tax
effect		      Ending
balance		  

Net gain (loss) on valuation of financial assets at FVTOCI

      (7,575 )       13,810        (3,645 )       2,590  

Remeasurement gain (loss) related to defined benefit plan

      332        (1,395 )       368        (695 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      (7,243 )       12,415        (3,277 )       1,895  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     For the year ended December 31, 2023  
     Beginning
balance		      Increase
(decrease)		      Income tax
effect		      Ending
balance		  

Net gain (loss) on valuation of financial assets at FVTOCI

      (27,364 )       26,938        (7,149 )       (7,575 ) 

Remeasurement gain (loss) related to defined benefit plan

      1,204        (1,185 )       313        332  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      (26,160 )       25,753        (6,836 )       (7,243 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(5)

Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial Holding Company Supervision Regulations, the Company calculates and discloses the regulatory reserve for credit loss.

1) Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Beginning balance

      137        3,697  

Planned provision (reversal) of regulatory reserve for credit loss

      1,152        (3,560 ) 
  

 

 

     

 

 

  

Ending balance

      1,289        137  
  

 

 

     

 

 

  

2) Provision of regulatory reserve for credit loss, adjusted net income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Net income before regulatory reserve

      1,123,332        1,424,508  

Provision (reversal) of regulatory reserve for credit loss

      1,152        (3,560 ) 

Adjusted net income after the provision of regulatory reserve

      1,122,180        1,428,068  

Dividends to hybrid securities

      (158,682 )       (131,149 ) 

Adjusted net income after regulatory reserve and dividends to hybrid securities

      963,498        1,296,919  

Adjusted EPS after regulatory reserve and dividends to hybrid securities (Unit: Korean Won)

      1,294        1,759  

 

- 54 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(6)

Statements of appropriations of retained earnings are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024
(Expected date of disposal March 26, 2025)		      For the year ended December 31, 2023
(Confirmed date of disposal March 22, 2024)		  

Unappropriated retained earnings:

      

Unappropriated retained earnings carried over from prior years

      4,551,003        4,243,846  

Interim dividend (dividend per share (%))

(2024: 540 Won (10.8 %))

(2023: 360 Won (7.2%))

      (400,970 )       (266,089 ) 

Dividend to hybrid equity securities

      (158,682 )       (131,149 ) 

Retirement of treasury stock

      (136,688 )       (100,000 ) 

Net income

      1,123,332        1,424,508  
  

 

 

     

 

 

  
     4,977,995        5,171,116  
  

 

 

     

 

 

  

Transfer to retained earnings:

      

Earned profit reserves

      —         3,560  
  

 

 

     

 

 

  
     —         3,560  

Appropriation of retained earnings:

      

Earned profit reserves

      112,340        142,460  

Regulatory reserve for credit loss

      1,152        —   

Amortization of Redemption Loss on Hybrid Securities

      2,456        —   

Cash dividend (dividend per share (%))

(2024: 660 Won (13.2 %))

(2023: 640 Won (12.8%))

      490,075        481,213  
  

 

 

     

 

 

  
     606,023        623,673  
  

 

 

     

 

 

  

Unappropriated retained earnings to be carried forward

      4,371,972        4,551,003  
  

 

 

     

 

 

  

 

(7)

Details of changes in treasury stock are as follows (Unit: Korean Won in millions, number of shares):

 

     December 31, 2024  
     Beginning balance      Acquisition      Retirement     Ending balance  

Number of shares

      53,945        9,357,960        (9,357,960 )      53,945  

Book value

      628        136,688        (136,688 )      628  

 

     December 31, 2023  
     Beginning balance      Acquisition      Retirement     Ending balance  

Number of shares

      2,324        8,637,420        (8,585,799 )      53,945  

Book value

      26        100,602        (100,000 )      628  

 

- 55 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

20.

DIVIDENDS

 

(1)

Dividends per share and the total dividends for the fiscal year ended December 31, 2023 were 640 Won and 481,213 million Won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 22, 2024 and dividend record date as February 29, 2024. Dividends were paid in April 2024.

 

(2)

At the Board of Directors meeting held on April 26, 2024, it was approved to pay a quarterly dividend of 180 Won per share (total dividends are 133,657 million Won) with a record date of March 31, 2024. The dividends were paid in May 2024.

 

(3)

At the Board of Directors meeting held on July 25, 2024, it was approved to pay a quarterly dividend of 180 Won per share (total dividends are 133,657 million Won) with a record date of June 30, 2024. The dividends were paid in August 2024.

 

(4)

At the Board of Directors meeting held on October 18, 2024, it was approved to pay a quarterly dividend of 180 Won per share (total dividends are 133,657 million Won) with a record date of September 30, 2024. The dividends were paid in November 2024.

 

(5)

Dividends per share and the total dividends for the fiscal year ending December 31, 2024 were 660 Won and 490,075 million Won, respectively, will be proposed at the regular general shareholders’ meeting to be held on March 26, 2025. The record date for the year-end dividend of the fiscal year ending December 31, 2024, is February 28, 2025. The current financial statements do not include such outstanding dividends.

 

21.

NET INTEREST INCOME

 

(1)

Details of interest income recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Interest on due from banks

      51,677        64,496  

Interest of other receivables

      101        96  
  

 

 

     

 

 

  

Total

      51,778        64,592  
  

 

 

     

 

 

  

 

(2)

Details of interest expense recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Interest on debentures

      49,515        36,834  

Other interest expense

      47        51  

Interest on lease liabilities

      88        212  
  

 

 

     

 

 

  

Total

      49,650        37,097  
  

 

 

     

 

 

  

 

22.

NET FEES AND COMMISSIONS INCOME

 

(1)

Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Fees and commissions income

      1,625        1,625  

 

- 56 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(2)

Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Fees and commissions paid

      10,256        10,752  

Others

      11,688        10,970  
  

 

 

     

 

 

  

Total

      21,944        21,722  
  

 

 

     

 

 

  

 

23.

DIVIDEND INCOME

 

(1)

Details of dividend income recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Dividend income recognized from investments in subsidiaries

      1,182,977        1,465,826  

Dividend income recognized from FVTOCI

      25,545        17,130  
  

 

 

     

 

 

  

Total

      1,208,522        1,482,956  
  

 

 

     

 

 

  

 

24.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE

 

(1)

Details of gain or loss related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Gain on financial instruments at FVTPL

      —         2,023  

 

(2)

Details of net gain or loss on financial instruments at fair value through profit or loss and financial instruments held for trading are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Derivatives (Held for trading) Equity derivatives Gain on transactions and valuation

      —         2,023  

 

25.

IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Impairment losses due to credit loss are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Reversal of (Provision for) impairment loss due to credit loss on loan and other financial assets at amortized cost

      608        (348 ) 

 

- 57 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

26.

GENERAL AND ADMINISTRATIVE EXPENSES

 

(1)

Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):

 

               For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Employee benefits

    Short-term employee benefits    Salaries      30,443        29,196  
      Employee fringe benefits      8,834        9,978  
   Retirement benefit service costs         3,311        3,159  
   Termination         206        —   
   Share based payment         4,368        2,362  
        

 

 

     

 

 

  
      Sub-total      47,162        44,695  
        

 

 

     

 

 

  

Depreciation and amortization

            5,728        7,305  

Other general and administrative expenses

    Rent         1,630        1,715  
   Taxes and public dues         482        461  
   Service charges         1,517        2,631  
   Computer and IT related         6,593        6,358  
   Telephone and communication         871        803  
   Operating promotion         1,378        1,165  
   Advertising         90        95  
   Printing         54        62  
   Traveling         329        400  
   Supplies         107        144  
   Insurance premium         203        202  
   Reimbursement         1,258        1,079  
   Maintenance         3        —   
   Vehicle maintenance         206        220  
   Others         27        24  
        

 

 

     

 

 

  
      Sub-total      14,748        15,359  
        

 

 

     

 

 

  
   Total         67,638        67,359  
        

 

 

     

 

 

  

 

(2)

Share-based payment

Details of performance condition share-based payment granted to executives as of December 31, 2024 and 2023 are as follows.

 

  1)

Performance condition share-based payment

 

Subject to

       Shares granted for the year 2020 (*3)

Type of payment

       Cash-settled

Vesting period

       January 1, 2020 ~ December 31, 2023

Date of payment

       2024-01-01

Fair value (*1)

       — 

Valuation method

       — 

Expected dividend rate

       — 

Expected maturity date

       — 

Number of shares remaining

    As of December 31, 2024    — 
   As of December 31, 2023    189,270 shares

Number of shares granted (*2)

    As of December 31, 2024    — 
   As of December 31, 2023    189,270 shares

Subject to

       Shares granted for the year 2021

Type of payment

       Cash-settled

Vesting period

       January 1, 2021 ~ December 31, 2024

Date of payment

       2025-01-01

Fair value (*1)

       15,831 Won

Valuation method

       Black-Scholes Model

Expected dividend rate

       6.48%

Expected maturity date

       0 years

 

- 58 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

Number of shares remaining

    As of December 31, 2024    239,798 shares
   As of December 31, 2023    239,798 shares

Number of shares granted (*2)

    As of December 31, 2024    239,798 shares
   As of December 31, 2023    239,798 shares

Subject to

       Shares granted for the year 2022

Type of payment

       Cash-settled

Vesting period

       January 1, 2022 ~ December 31, 2025

Date of payment

       2026-01-01

Fair value (*1)

       14,839 Won

Valuation method

       Black-Scholes Model

Expected dividend rate

       6.48%

Expected maturity date

       1 years

Number of shares remaining

    As of December 31, 2024    223,176 shares
   As of December 31, 2023    223,176 shares

Number of shares granted (*2)

    As of December 31, 2024    223,176 shares
   As of December 31, 2023    223,176 shares

Subject to

       Shares granted for the year 2023

Type of payment

       Cash-settled

Vesting period

       January 1, 2023 ~ December 31, 2026

Date of payment

       2027-01-01

Fair value (*1)

       13,909 Won

Valuation method

       Black-Scholes Model

Expected dividend rate

       6.48%

Expected maturity date

       2 years

Number of shares remaining

    As of December 31, 2024    160,929 shares
   As of December 31, 2023    160,929 shares

Number of shares granted (*2)

    As of December 31, 2024    160,929 shares
   As of December 31, 2023    160,929 shares

Subject to

       Shares granted for the year 2024

Type of payment

       Cash-settled

Vesting period

       January 1, 2024 ~ December 31, 2027

Date of payment

       2028-01-01

Fair value (*1)

       13,037 Won

Valuation method

       Black-Scholes Model

Expected dividend rate

       6.48%

Expected maturity date

       3 years

Number of shares remaining

    As of December 31, 2024    194,569 shares
   As of December 31, 2023    — 

Number of shares granted (*2)

    As of December 31, 2024    194,569 shares
   As of December 31, 2023    — 

 

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement.

(*2)

The number of payable stocks is granted at the initial contract date. This is a system in which the number of shares to be granted is determined based on the evaluation results of long-term performance indicators over a total of four years, including the current year, and the final cash compensation is made by reflecting the stock price at the time of payment. Performance is evaluated as long-term performance indication including relative shareholder return, net income, return on equity (ROE), C/I ratio, non-performing loan ratio and job performance.

(*3)

Payment was completed during the current period.

 

  2)

The Company accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of December 31, 2024 and 2023 the book value of the liabilities related to the performance condition share-based payments recognized by the Company is 11,883 million Won and 9,598 million Won.

 

- 59 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

27.

NON-OPERATING INCOME (EXPENSES)

 

(1)

Details of non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Other non-operating income

      194        98  

Other non-operating expense

      (341 )       (1,141 ) 
  

 

 

     

 

 

  

Total

      (147 )       (1,043 ) 
  

 

 

     

 

 

  

 

(2)

Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Lease change cancellation income

      7        37  

Others

      187        61  
  

 

 

     

 

 

  

Total

      194        98  
  

 

 

     

 

 

  

 

(3)

Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Donations

      335        1,120  

Lease change cancellation loss

      —         2  

Others

      6        19  
  

 

 

     

 

 

  

Total

      341        1,141  
  

 

 

     

 

 

  

 

28.

INCOME TAX ICOME AND DEFERRED TAX

 

(1)

Details of income tax income are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Current tax expense:

      

Current tax expense with respect to the current period

      —         —   
  

 

 

     

 

 

  

Sub-total

      —         —   
  

 

 

     

 

 

  

Deferred tax expense income

      

Change in deferred tax liabilities(assets) due to temporary differences

      3,100        5,955  

Income tax income directly attributable to equity

      (3,278 )       (6,836 ) 
  

 

 

     

 

 

  

Sub-total

      (178 )       (881 ) 
  

 

 

     

 

 

  

Income tax income

      (178 )       (881 ) 
  

 

 

     

 

 

  

 

- 60 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(2)

The relationship between income before income tax expense deduction and income tax expense in the current comprehensive income statement is as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Net income before income tax expense

      1,123,154        1,423,627  

Tax calculated at statutory tax rate (*1)

      286,150        365,476  

Adjustments:

      

Effects of income that is exempt from taxation

      (315,282 )       (386,749 ) 

Effect of expenses that are not deductible in determining taxable profit

      467        613  

Effect of corporate tax due to consolidate tax plans

      29,037        19,975  

Others

      (550 )       (196 ) 
  

 

 

     

 

 

  

Sub-total

      (286,328 )       (366,357 ) 
  

 

 

     

 

 

  

Income tax income

      (178 )       (881 ) 
  

 

 

     

 

 

  

Effective tax rate (*2)

      —         —   
  

 

 

     

 

 

  

 

(*1)

In 2024 and 2023, the corporate tax rate is 9.9% up to 200 million Won in tax basis, 20.9% over 200 million Won to 20 billion Won, 23.1% over 20 billion Won to 300 billion Won and 26.4% over 300 billion Won.

(*2)

It is tax income for the years ended December 31, 2024 and 2023, so the annual effective tax rate was not calculated.

 

- 61 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(3)

Details of changes in deferred income tax assets and liabilities are as follows (Unit: Korean Won in millions):

 

     For the year ended December 31, 2024  
     Beginning balance     Recognized as
income (expense)		     Recognized as other
comprehensive
income (expense)		     Ending Balance  

Gain (loss) related to securities

      2,717       —        (3,646 )      (929 ) 

Provision for loan losses

      173       (158 )      —        15  

Defined benefit liability

      1,841       79       303       2,223  

Deposits with employee retirement insurance trust

      (1,841 )      (447 )      65       (2,223 ) 

Provisions

      324       7       —        331  

Share based payment

      2,533       603       —        3,136  

Others

      1,731       94       —        1,825  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net deferred tax assets(liabilities) in total

      7,478       178       (3,278 )      4,378  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the year ended December 31, 2023  
     Beginning balance     Recognized as
income (expense)		     Recognized as other
comprehensive
income (expense)		     Ending Balance  

Gain (loss) related to securities

      9,866       —        (7,149 )      2,717  

Provision for loan losses

      83       90       —        173  

Defined benefit liability

      1,430       272       139       1,841  

Deposits with employee retirement insurance trust

      (2,640 )      625       174       (1,841 ) 

Provisions

      129       195       —        324  

Share based payment

      2,189       344       —        2,533  

Others

      2,376       (645 )      —        1,731  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net deferred tax assets(liabilities) in total

      13,433       881       (6,836 )      7,478  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

- 62 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(4)

Unrealizable temporary differences are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Deductible temporary differences

      7,915        7,545  

Taxable temporary differences

      (7,920,330 )       (7,920,330 ) 
  

 

 

     

 

 

  

Total

      (7,912,415 )       (7,912,785 ) 
  

 

 

     

 

 

  

No deferred income tax asset has been recognized for the deductible temporary difference of 7,915 million Won associated with investments in subsidiaries as of December 31, 2024, because it is not probable that the temporary differences will be reversed in the foreseeable future.

No deferred income tax liability has been recognized for the taxable temporary difference of 7,920,330 million Won associated with investment in subsidiaries as of December 31, 2024, due to the following reasons:

 

  •  

The Company is able to control the temporary difference of extinguishment.

 

  •  

It is probable that the temporary difference will not be reversed in the foreseeable future.

 

(5)

Details of accumulated deferred tax charged directly to other equity are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Net gain (loss) on valuation of financial assets at FVTOCI

      (929 )       2,717  

Remeasurements of defined benefit plan

      269        (99 ) 
  

 

 

     

 

 

  

Total

      (660 )       2,618  
  

 

 

     

 

 

  

 

(6)

Current tax assets and liabilities are as follows (Unit: Korean Won in millions)

 

     December 31, 2024      December 31, 2023  

Current tax assets

      33,120        158,951  

Current tax liabilities

      84,701        32,125  

 

(7)

The Company has reviewed an impact analysis on corporate taxes in relation to Pillar Two Model Rules. The Company concluded that there will be no significant impact on the current corporate tax expense of the Company as of December 31, 2024.

 

- 63 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

29.

EARNINGS PER SHARE (“EPS”)

 

(1)

Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Net profit attributable to owners

      1,123,332        1,424,508  

Dividends to hybrid securities

      (158,682 )       (131,149 ) 

Net income attributable to common shareholders

      964,650        1,293,359  

Weighted average number of common shares outstanding (Unit: million shares)

      744        737  

Basic EPS (Unit: Korean Won)

      1,296        1,754  

 

(2)

The weighted average number of common shares outstanding is as follows: (Unit: number of shares)

For the year ended December 31, 2024

 

     Number of shares      Accumulated number of
shares outstanding during
period		  

Common shares issued at the beginning of the period

      751,949,461        275,213,502,726  

Treasury stock

      (53,945 )       (19,743,870 ) 

Acquisition and retirement of treasury stock

      (9,357,960 )       (2,741,882,280 ) 

Sub-total (①)

         272,451,876,576  

Weighted average number of common shares outstanding (②=(①/366))

         744,404,034  

For the year ended December 31, 2023

 

     Number of shares      Accumulated number of
shares outstanding during
period		  

Common shares issued at the beginning of the period

      728,060,549        265,742,100,385  

Treasury stock

      (2,324 )       (848,260 ) 

Acquisition and retirement of treasury stock

      (8,585,799 )       (1,386,759,947 ) 

Acquisition of treasury stock (odd-lot stock at comprehensive share exchange)

      (51,621 )       (6,504,246 ) 

Issuance of new shares (comprehensive share exchange)

      32,474,711        4,741,307,806  

Sub-total (①)

         269,089,295,738  

Weighted average number of common shares outstanding (②=(①/365))

         737,230,947  

Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2024 and 2023.

 

- 64 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

30.

CONTINGENT LIABILITIES AND COMMITMENTS

 

(1)

Litigation case

As of December 31, 2024, the Company currently has one lawsuit as a defendant related to Woori Asset Trust Co., Ltd. stock trading payments. The lawsuit is in the first trial stage, with a claim amount of 13,305 million Won. It is not possible to reasonably estimate the potential impact on the Company’s financial statements as of December 31, 2024.

 

(2)

Details of loan commitments with financial institutions are as follows (Unit: Korean Won in millions):

 

          December 31, 2024      December 31, 2023  
    

Financial institutions

    Line of credit      Loan balance      Line of credit      Loan balance  

Loans

    Standard Chartered Bank Korea Ltd.      100,000        —         100,000        —   

 

- 65 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

31.

RELATED PARTY TRANSACTIONS

Related parties of the Company as of December 31, 2024 and 2023, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the years ended December 31, 2024 and 2023 are as follows:

 

(1)

Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):

 

Related parties

   

Title of account

    December 31, 2024     December 31, 2023  

Subsidiaries Woori Bank

    Cash and cash equivalents      1,185,912       289,507  
   Other financial assets      163,893       1,094,635  
   Allowance for credit losses      (56 )      (663 ) 
   Other financial liabilities      36,427       131,397  

Woori Card Co., Ltd.

    Other financial assets      26,229       8,597  
   Other financial liabilities      280       225  

Woori Financial Capital Co., Ltd.

    Other financial assets      12,850       816  
   Other financial liabilities      282       4,430  

Woori Savings Bank

    Other financial liabilities      1,014       1,271  

Woori Financial F&I Co., Ltd.

    Other financial liabilities      3,440       1,650  

Woori Asset Management Corp (*)

    Other financial liabilities      —        46  

Woori Private Equity Asset Management Co. Ltd.

    Other financial assets      346       76  

Woori Credit Information Co., Ltd.

    Other financial assets      303       744  

Woori Fund Service Co., Ltd.

    Other financial assets      711       436  

Woori FIS Co., Ltd.

    Other financial assets      1       —   
   Other financial liabilities      581       1,540  

Woori Finance Research Institute Co., Ltd.

    Other financial assets      155       175  
   Other financial liabilities      2,620       2,590  

Associates of subsidiaries W Service Networks Co., Ltd.

    Other financial liabilities      22       48  

 

(*)

Other financial liabilities of Woori Global Asset Management Co., Ltd. are included due to merger during the current period.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(2)

Major gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):

 

Related parties

   

Title of account

    For the year ended
December 31, 2024		     For the year ended
December 31, 2023		  

Subsidiaries Woori Bank

    Interest income      51,778       63,806  
   Fees and commissions income      1,625       1,625  
   Dividend income      1,131,996       1,372,572  
   Interest expenses (*2)      67       190  
   Fees and commissions expense      19       34  
   Provision (Reversal) of impairment loss due to credit loss      (607 )      348  
   General and administrative expenses (*2)      4,496       4,639  

Woori Card Co., Ltd.

    Dividend income      38,675       49,083  

Woori Financial Capital Co., Ltd.

    Dividend income      34,487       45,626  
   Interest expenses (*2)      8       8  
   General and administrative expenses (*2)      104       75  

Woori Investment Securities Co., Ltd. (*1)

    Dividend income      —        11,803  
   Other income      163       —   

Woori Asset Trust Co., Ltd

    Dividend income      —        780  

Woori Savings Bank

    Dividend income      —        1,383  

Woori Venture Partners

    Dividend income      800       —   

Woori Credit Information Co., Ltd.

    Dividend income      1,504       535  

Woori Fund Service Co., Ltd.

    Dividend income      1,060       1,174  

Woori FIS Co., Ltd.

    General and administrative expenses      5,987       5,781  

Woori Finance Research Institute Co., Ltd.

    Fees and commissions expenses      8,920       7,690  

Associates of subsidiaries W Service Networks Co., Ltd.

    General and administrative expenses      327       769  

 

(*1)

The Company has issued hybrid capital securities amount of 1,200,000 million Won during the current period and Woori Investment Securities Co., Ltd. purchased 20,000 million Won out of 1,200,000 million Won issued. The underwriting fee amount of 34 million Won is included in the issuance cost. In addition, of the 600,000 million Won of debentures issued during the current period, 20,000 million Won was acquired by Woori Investment Securities Co., Ltd. and the Company paid 10 million Won as an acquisition fee which is included in the discount on debentures issued. And, of the 80,000 million Won of debentures issued during the prior period, 10,000 million Won was acquired by Woori Investment Bank Co., Ltd. and the Company paid 10 million Won as an acquisition fee which is included in the discount on debentures issued.

(*2)

The depreciation of right-of-use assets and interest expense of lease liabilities arising from lease transactions during the current term and prior term are included.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(3)

The details of the right-of-use assets and lease liabilities due to lease transactions with related parties as of December 31, 2024 and 2023 are as follows (Unit: Korea Won in millions):

 

Related parties

   

Title of account

    December 31, 2024      December 31, 2023  

Subsidiary

    Woori Bank    Right-of-use assets      2,799        2,970  
      Lease liabilities (*)      2,795        2,658  
   Woori Financial Capital Co., Ltd.    Right-of-use assets      266        226  
      Lease liabilities (*)      282        238  

 

(*)

Cash outflows of lease liabilities redemption for the years ended December 31, 2024 and 2023 are 2,751 million Won and 2,797 million Won, respectively.

(4)

Major loan transactions with related parties for the years ended December 31, 2024 and 2023 are as follows (Unit: Korea Won in millions):

 

                 For the year ended December 31, 2024  

Related parties (*1)

    Title of
account		      Beginning
balance		      Increase      Decrease      Ending
balance		  

Subsidiary

    Woori Bank      Deposit (*2)        1,354,000        4,553,000        4,633,000        1,274,000  

 

(*1)

For the 1,200,000 million Won of hybrid securities issued during the current period, 20,000 million Won was purchased by Woori Investment Securities Co., Ltd. and the entire amount was sold to the market on the date of issuance. In addition, of the 600,000 million Won of debentures issued during the current period, 20,000 million Won was acquired by Woori Investment Securities Co., Ltd. and the entire amount was sold to the market on the date of issuance.

(*2)

Excludes due from banks without withdrawal limitations.

 

                For the year ended December 31, 2023  

Related parties (*1)

    Title of
account		      Beginning
balance		      Increase      Decrease      Ending
balance		  

Subsidiary

   Woori Bank      Deposit (*2)        1,595,000        5,379,000        5,620,000        1,354,000  

 

(*1)

For the 80,000 million Won of debentures issued during the prior period, 10,000 million Won was purchased by Woori Investment Securities Co., Ltd. and the entire amount was sold to the market on the date of issuance.

(*2)

Excludes due from banks without withdrawal limitations.

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

(5)

The details of equity-related transactions with related parties are as follows (Unit: Korean Won in million)

 

     For the year ended
December 31, 2024		  

Related parties

    Investment and contribution  

Subsidiary

    Woori Investment Securities Co., Ltd. (*1)      56,085  

Subsidiary

    Woori Asset Trust Co Ltd (*2)      218,080  

Subsidiary

    Woori Asset Management Corp (*3)      41,376  

Subsidiary

    Woori Savings Bank (*4)      100,000  

Subsidiary

    Woori Financial F&I Co., Ltd. (*5)      120,000  

 

(*1)

During the current period, the Company acquired majority interests of 2.3%.

(*2)

During the current period, the capital increase amount of 200,000 million Won was made. Afterward, the Company additionally acquired minority interests of 2.84%.

(*3)

The Company acquired interest (22.5%) of Woori Asset Management Corp to make it wholly owned subsidiary.

(*4)

During the current period, the capital increase amount of 100,000 million Won was made.

(*5)

During the current period, the capital increase amount of 120,000 million Won was made.

 

     For the year ended December 31, 2023  

Related parties

    Investment      Acquisition of hybrid
securities		  

Subsidiary

    Woori Card Co., Ltd.      —         200,000  

Subsidiary

    Woori Investment Securities Co., Ltd. (*1)      759,678        —   

Subsidiary

    Woori Asset Trust Co., Ltd (*2)      179,444        —   

Subsidiary

    Woori Venture Partners (*3)      336,439        —   

 

(*1)

During the prior period, the Company acquired 41.3% residual interests (including treasury stocks) of Woori Investment Securities Co., Ltd. Afterward, the Capital increase amount of 500,000 million Won was made in December 2023.

(*2)

During the prior period, the Company additionally acquired 28.1% (excluding treasury stocks) interests of Woori Asset Trust Co Ltd. In the case of including treasury stocks, the share ratio was 21.3%.

(*3)

During the prior period, the Company additionally acquired 53.9% (excluding treasury stocks) interests of Woori Venture Partners Co., Ltd., which was included in subsidiaries. In the case of including treasury stocks, the share ratio was 52.0%). Afterward, the Company additionally acquired treasury stocks (3.5% interests) and acquired 44.5% residual interests held by Woori Venture Partners Co., Ltd.

(6)

There are no guarantees provided to the related party. The unused commitments and payment guarantees provided from the related party are as follows (Unit: Korean Won in millions):

 

Related parties

    December 31,
2024		      December 31,
2023		      Warranty  

Subsidiary

    Woori Card Co., Ltd.      665        715        Unused loan commitment  

 

(7)

Compensation for key management is as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Short-term employee salaries

      5,502        5,094  

Retirement benefit service costs

      162        134  

Share-based compensation

      3,729        1,970  
  

 

 

     

 

 

  

Total

      9,393        7,198  
  

 

 

     

 

 

  

 

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WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

 

Key management includes registered executives and non-registered executives. The Company has not recognized any outstanding assets, allowance and related impairment loss due to credit losses from transaction with key management as of December 31, 2024 and 2023. Liabilities related to key management compensation are 12,850 million Won and 10,457 million Won as of December 31, 2024 and 2023, respectively.

 

32.

LEASES

 

(1)

The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):

 

     December 31, 2024      December 31, 2023  

Lease payments:

      

Within one year

      3,095        2,969  

After one year but within five years

      328        323  
  

 

 

     

 

 

  

Total

      3,423        3,292  
  

 

 

     

 

 

  

 

(2)

Total cash outflows from lease are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Total cash outflows from lease

      3,123        3,312  

 

(3)

Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):

 

     For the year ended
December 31, 2024		      For the year ended
December 31, 2023		  

Lease payments for short-term leases

      2        20  

Lease payments for which the underlying asset is of low value

      121        163  

 

33.

EVENTS AFTER THE REPORTING PERIOD

At the Board of Directors meeting held on February 7, 2025, the Company declared to acquire and retire treasury stocks, it is expected to acquire 150 billion Won through trust contracts from February 11, 2025 to September 11, 2025, and all of the stocks acquired through this case will be retired afterwards.

 

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Independent Auditor’ Report on Internal Control over Financial Reporting

Based on a report originally issued in Korean

To the Board of Directors and Shareholders

Woori Financial Group Inc.

Opinion on Internal Control over Financial Reporting

We have audited Woori Financial Group Inc. (“the Company”) internal control over financial reporting (“ICFR”) as of December 31, 2024 based on the criteria established in the Conceptual Framework for Designing and Operating ICFR (“ICFR Design and Operation Framework”) issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea (the “ICFR Committee”).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on ICFR Design and Operation Framework.

We also have audited, in accordance with Korean Standards on Auditing (KSAs), the separate financial statements of the Company, which comprise the separate statement of financial position as of December 31, 2024, the separate statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising of material accounting policy information and other explanatory information, and our report dated March 5, 2025 expressed an unmodified opinion on those separate financial statements.

Basis for Opinion on Internal Control over Financial Reporting

We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the internal control over financial reporting in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial Reporting

The Company’s management is responsible for designing, operating and maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying ‘Operating Status Report of Internal Control over Financial Reporting.’

Those charged with governance have the responsibilities for overseeing the Company’s internal control over financial reporting.

Auditor’s Responsibilities for the Audit of the Internal Control over Financial Reporting

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We conducted the audit in accordance with KSAs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

 

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Definition and Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards (“K-IFRS”). A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements in the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditor’s report is Jae-Beom Choi.

 

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 5, 2025

 

This report is effective as of March 5, 2025, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the internal control over financial reporting. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

 

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Operating Status Report of

Internal Control over Financial Reporting

To the Shareholders, Board of Directors and Audit Committee of

Woori Financial Group Inc.

We, as the Chief Executive Officer (“CEO”) and Internal Control over Financial Reporting(“ICFR”) Officer of Woori Financial Group Inc. (the “Company”), assessed operating status of the Company’s Internal Control over Financial Reporting for the year ended December 31, 2024.

The Company’s management, including ourselves, is responsible for designing and operating ICFR.

We assessed whether the Company effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a misstatement in financial statements to ensure preparation and disclosure of reliable financial information.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea (the “ICFR Committee”) as the criteria for design and operation of the Company’s ICFR. We also conducted an assessment of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment, we concluded that the Company’s ICFR is designed and operated effectively as of December 31, 2024, in all material respects, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings, and we have reviewed and verified this report with sufficient care.

February 28, 2025

Jong Yong Yim, Chief Executive Officer

Sung Wook Lee, Internal Control over Financial Reporting Officer

 

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