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6-K

Woori Financial Group Inc. (WF)

6-K 2026-03-04 For: 2026-03-04
View Original
Added on July 07, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2026

Commission File Number: 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 Bank

On March 4, 2026, Woori Financial Group Inc. disclosed audit reports of Woori Bank, its wholly-owned subsidiary, for the fiscal year 2025 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 Bank and remain subject to change.

Please refer to the audit reports and Woori Bank’s 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 4, 2026 By: /s/ Seong Min Kwak
(Signature)
Name: Seong Min Kwak
Title: Deputy President

EX-99.1

Exhibit 99.1

LOGO

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THEYEARS ENDED

DECEMBER 31, 2025 and 2024

WOORI BANK

Page(s)
INDEPENDENT AUDITORS’ REPORT 1-3
Consolidated Financial Statements
Consolidated Statements of Financial Position 5-6
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 12-163

INDEPENDENT AUDITORS’ REPORT

(Based on a report originally issued in Korean)

The Board of Directors and Shareholder of

Woori Bank

Opinion

We have audited the consolidated financial statements of Woori Bank and its subsidiaries (the “Group”), which comprise the consolidated statements of financial position as of December 31, 2025 and 2024, the consolidated 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 consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

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 Auditors’ 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 the 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.

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.

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.

  • 1 -

Auditors’ 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 auditors’ 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<br>fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
--- ---
• Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial<br>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<br>the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are<br>required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up<br>to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
--- ---
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the<br>disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
--- ---
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business<br>activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.<br>
--- ---

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.

  • 2 -

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

  • 3 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2025 AND 2024

The accompanying consolidated financial statements including all footnote disclosures were

prepared by and are the responsibility of the management of Woori Bank

Jin Wan Jung

Presidentand Chief Executive Officer

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

(Phone Number)  02-2002-3000

  • 4 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025 AND 2024

December 31,<br>2025 December 31,<br>2024
(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 4 and 6) 37,235,090 26,030,754
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12,<br>18, 26 and 45) 21,117,410 24,599,169
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4,<br>8, 11, 12 and 18) 48,622,422 43,698,084
Securities at amortized cost (Notes 4, 9, 11, 12 and 18) 18,707,459 19,193,186
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45) 371,209,305 366,547,841
Investments in associates (Note 13) 1,095,521 1,067,880
Investment properties (Note 14) 502,885 523,118
Properties and equipment (Note 15) 2,946,422 3,001,875
Intangible assets (Note 16) 540,819 597,717
Assets held for sale (Note 17) 125,068 31,266
Current tax assets (Note 42) 51,168 47,653
Deferred tax assets (Note 42) 72,491 36,167
Derivative assets (Designated for hedging) (Notes 4, 11, 12, 26 and 45) 37,010 10,102
Net defined benefit assets (Note 24) 160,337 137,916
Other assets (Notes 19 and 45) 422,789 366,213
Total assets 502,846,196 485,888,941
LIABILITIES
Financial liabilities at FVTPL (Notes 4, 11, 12, 20, 26 and 45) 6,012,231 9,783,164
Deposits due to customers (Notes 4, 11, 21 and 45) 372,337,805 364,032,938
Borrowings (Notes 4, 11, 12, 22 and 45) 28,933,534 26,379,689
Debentures (Notes 4, 11, 12 and 22) 28,662,268 25,534,324
Provisions (Notes 23, 44 and 45) 637,475 530,106
Net defined benefit liability (Note 24) 2,903 2,803
Current tax liabilities (Note 42) 694,344 94,655
Deferred tax liabilities (Note 42) 579,094 868,848
Derivative liabilities (Designated for hedging) (Notes 4, 11, 12, 26 and 45) 27,050 102,634
Other financial liabilities (Notes 4, 11, 12, 25 and 45) 34,958,421 29,307,603
Other liabilities (Notes 25 and 45) 313,619 307,289
Total liabilities 473,158,744 456,944,053

(Continued)

  • 5 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025 AND 2024

(CONTINUED)

December 31,<br>2025 December 31,<br>2024
(Korean Won in millions)
EQUITY
Owners’ equity: 29,574,781 28,816,053
Share capital (Note 28) 3,581,392 3,581,392
Hybrid securities (Note 29) 1,406,513 1,645,947
Capital surplus (Note 28) 1,108,675 1,108,450
Other equity (Note 30) (1,426,182 ) (1,327,790 )
Retained earnings (Notes 31 and 32) 24,904,383 23,808,054
(Regulatory reserve for credit loss) (2,160,089 ) (1,905,354 )
(Regulatory reserve for credit loss to be reversed (provisioned for)) (239,509 ) (254,735 )
(Planned reversal of (provisioned for) regulatory reserve for credit loss) (239,509 ) (254,735 )
Non-controlling interests 112,671 128,835
Total equity 29,687,452 28,944,888
Total liabilities and equity 502,846,196 485,888,941

The accompanying notes are part of these consolidated financial statements.

  • 6 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

For the years ended<br>December 31
2025 2024
(Korean Won in millions, except for per share data)
Interest income 17,961,602 19,550,673
Financial assets at FVTPL 144,034 153,055
Financial assets at FVTOCI 1,278,693 1,281,641
Financial assets at amortized cost 16,538,875 18,115,977
Interest expense (10,145,097 ) (11,984,432 )
Net interest income (Notes 11, 34 and 45) 7,816,505 7,566,241
Fees and commissions income 1,223,567 1,215,592
Fees and commissions expense (230,348 ) (209,103 )
Net fees and commissions income (Notes 11, 35 and 45) 993,219 1,006,489
Dividend income (Notes 11 and 36) 383,469 374,687
Net gain on financial instruments at FVTPL (Notes 11, 37 and 45) 336,949 1,453,921
Net gain on financial assets at FVTOCI (Notes 11 and 38) 138,549 96,647
Net gain on financial assets at amortized cost (Note 11) 28,187 165,192
Net gain on disposals of loans and other financial assets at amortized cost 28,187 165,192
Provision for expected credit loss allowance (Notes 11, 39 and 45) (1,162,903 ) (821,250 )
General and administrative expenses (Notes 40 and 45) (4,293,462 ) (3,746,916 )
Other operating income (expenses), net (Notes 40 and 45) (719,771 ) (2,025,703 )
Operating income 3,520,742 4,069,308
Gain on valuation of investments in associates 45,928 44,067
Net other non-operating expenses (207,480 ) (104,388 )
Non-operating expenses (Notes 13 and<br>41) (161,552 ) (60,321 )
Net income before income tax expense 3,359,190 4,008,987
Income tax expense (Note 42) (777,091 ) (962,051 )
Net income
(Net income after the provision of regulatory reserve for credit loss for the years ended<br>December 31, 2025 and 2024 are 2,342,590 million Won and 2,792,201million Won, respectively) (Note 32) 2,582,099 3,046,936

(Continued)

  • 7 -

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (CONTINUED)

For the years ended<br>December 31
2025 2024
(Korean Won in millions, except for per share data)
Net gain (loss) on valuation of equity securities at FVTOCI 114,953 (142,653 )
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL (74 ) 1,348
Remeasurement loss related to defined benefit plan (20,041 ) (56,964 )
Changes in capital due to equity method (957 ) (1,663 )
Items that will not be reclassified to profit or loss 93,881 (199,932 )
Net gain (loss) on valuation of debt securities at FVTOCI (154,461 ) 172,152
Changes in capital due to equity method (2,293 ) (6,274 )
Gain (loss) on foreign currency translation of foreign operations (116,459 ) 503,398
Gain (loss) on evaluation of hedge of net investment in foreign operations 22,319 (114,827 )
Items that may be reclassified to profit or loss (250,894 ) 554,449
Other comprehensive income (loss), net of tax (Note 30) (157,013 ) 354,517
Total comprehensive income 2,425,086 3,401,453
Net income attributable to: 2,582,099 3,046,936
Net income attributable to owners 2,589,646 3,039,372
Net income (loss) attributable to non-controlling<br>interests (7,547 ) 7,564
Total comprehensive income attributable to: 2,425,086 3,401,453
Comprehensive income attributable to owners 2,440,011 3,381,799
Comprehensive income (loss) attributable to<br>non-controlling interests (14,925 ) 19,654
Earnings per share (Note 43)
Basic and diluted earnings per share (Unit : In Korean Won) 3,492 4,138

The accompanying notes are part of these consolidated financial statements.

  • 8 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Capitalstock Hybridsecurities Capital<br>surplus Other<br>equity Retainedearnings Owners’equity Non-controllinginterests Total<br>equity
(Korean Won in millions)
January 1, 2024 3,581,392 1,546,447 1,096,194 (1,568,050 ) 21,925,092 26,581,075 122,377 26,703,452
Net income — — — — 3,039,372 3,039,372 7,564 3,046,936
Dividends on common stocks — — — — (1,131,996 ) (1,131,996 ) (3,486 ) (1,135,482 )
Changes in subsidiaries’ capital — — 12,256 — — 12,256 (9,709 ) 2,547
Net gain on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL — — — 1,348 — 1,348 — 1,348
Net gain (loss) on valuation of financial assets at FVTOCI — — — 29,640 — 29,640 (141 ) 29,499
Net gain (loss) on disposal of financial assets at FVTOCI — — — (53,539 ) 53,539 — — —
Changes in capital due to equity method — — — (7,937 ) — (7,937 ) — (7,937 )
Equity method capital adjustment — — — 10 (10 ) — — —
Gain on foreign currency translation of foreign operations — — — 491,204 — 491,204 12,194 503,398
Loss on evaluation of hedges of net investment in foreign operations — — — (114,827 ) — (114,827 ) — (114,827 )
Remeasurement loss related to defined benefit plan — — — (57,000 ) — (57,000 ) 36 (56,964 )
Business combination under the common control — — — (590 ) — (590 ) — (590 )
Dividends on hybrid securities — — — — (76,249 ) (76,249 ) — (76,249 )
Issuance of hybrid securities — 757,970 — — — 757,970 — 757,970
Redemption of hybrid securities — (658,470 ) — (49,743 ) — (708,213 ) — (708,213 )
Appropriation of retained earnings — — — 1,694 (1,694 ) — — —
December 31, 2024 3,581,392 1,645,947 1,108,450 (1,327,790 ) 23,808,054 28,816,053 128,835 28,944,888
January 1, 2025 3,581,392 1,645,947 1,108,450 (1,327,790 ) 23,808,054 28,816,053 128,835 28,944,888
Net income — — — — 2,589,646 2,589,646 (7,547 ) 2,582,099
Dividends on common stocks — — — — (1,352,524 ) (1,352,524 ) (1,013 ) (1,353,537 )
Changes in subsidiaries’ capital — — 225 — — 225 (225 ) —
Net loss on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL — — — (74 ) — (74 ) — (74 )
Net gain (loss) on valuation of financial assets at FVTOCI — — — (39,936 ) — (39,936 ) 428 (39,508 )
Net gain (loss) on disposal of financial assets at FVTOCI — — — 1,326 (1,326 ) — — —
Changes in capital due to equity method — — — (3,250 ) — (3,250 ) — (3,250 )
Loss on foreign currency translation of foreign operations — — — (108,576 ) — (108,576 ) (7,884 ) (116,460 )
Gain on evaluation of hedges of net investment in foreign operations — — — 22,319 — 22,319 — 22,319
Remeasurement gain (loss) related to defined benefit plan — — — (20,118 ) — (20,118 ) 77 (20,041 )
Dividends on hybrid securities — — — — (89,134 ) (89,134 ) — (89,134 )
Redemption of hybrid securities — (239,434 ) — (416 ) — (239,850 ) — (239,850 )
Appropriation of retained earnings — — — 50,333 (50,333 ) — — —
December 31, 2025 3,581,392 1,406,513 1,108,675 (1,426,182 ) 24,904,383 29,574,781 112,671 29,687,452

The accompanying notes are part of these consolidated financial statements.

  • 9 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

For the years ended<br>December 31
2025 2024
(Korean Won in millions)
Cash flows from operating activities:
Net income 2,582,099 3,046,936
Adjustments:
Income tax expense 777,091 962,051
Interest income (17,961,602 ) (19,550,673 )
Interest expense 10,145,097 11,984,432
Dividend income (383,469 ) (374,687 )
(7,422,883 ) (6,978,877 )
Additions of expenses not involving cash outflows:
Loss on financial assets at FVTOCI 4,497 4,584
Provision for expected credit loss allowance 1,162,903 821,250
Loss on valuation of investments in associates 6,566 6,292
Loss on disposal of investments in associates 167 36
Loss on derivatives (designated for hedging) 9,532 24,252
Loss on fair value hedge 92,138 64,571
Retirement benefits 154,119 109,147
Loss on other provisions 103,785 40,657
Depreciation and amortization 488,090 456,461
Loss on disposal of properties and equipment, intangible asset and other assets 1,725 1,661
Impairment loss on properties and equipment, intangible asset and other assets 46,073 217
Loss on foreign currency translation — 989,283
Other losses — 10,888
Other operating expenses 1,014 9,509
2,070,609 2,538,808
Deductions of incomes not involving cash inflows:
Gain on financial instruments at FVTPL 517,832 1,251,052
Gain on financial assets at FVTOCI 143,070 101,231
Gain on valuation of investments in associates 52,494 50,359
Gain on disposal of investments in associates — 11,053
Gain on derivatives (designated for hedging) 102,915 40,843
Gain on fair value hedge 12,013 25,469
Gain related to other provisions 72 3,567
Gain on disposal of properties and equipment, intangible assets and other assets 7,126 1,591
Reversal of impairment loss on properties and equipment, intangible asset and other assets 300 —
Gain on disposal of assets held for sale 33,598 —
Gain on foreign currency translation 269,670 —
1,139,090 1,485,165
Changes in operating assets and liabilities:
Financial instruments at FVTPL 1,199,680 934,120
Loans and other financial assets at amortized cost (6,635,346 ) (21,446,518 )
Other assets (72,973 ) (23,583 )
Deposits due to customers 12,384,985 4,556,235
Provisions (11,117 ) (213,651 )
Net defined benefit liability (205,516 ) (103,569 )
Other financial liabilities 2,846,907 4,783,889
Other liabilities 13,393 (6,281 )
9,520,013 (11,519,358 )
Cash received (paid) from operating activities:
Interest income received 17,823,849 19,762,749
Interest expense paid (10,431,126 ) (11,439,384 )
Dividends received 383,503 374,719
Income tax paid (488,261 ) (362,782 )
Net cash inflow (outflow) from operating activities 12,898,713 (6,062,354 )
  • 10 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(CONTINUED)

For the years ended<br>December 31
2025 2024
(Korean Won in millions)
Cash flows from investing activities:
Disposal of financial instruments at FVTPL 19,066,387 13,100,856
Acquisition of financial instruments at FVTPL (20,015,510 ) (12,838,805 )
Disposal of financial assets at FVTOCI 30,943,285 26,916,235
Acquisition of financial assets at FVTOCI (35,787,465 ) (31,708,549 )
Redemption of securities at amortized cost 5,890,990 7,634,677
Acquisition of securities at amortized cost (5,312,962 ) (2,586,171 )
Disposal of investments in associates 29,359 33,161
Acquisition of investments in associates (25,885 ) (52,912 )
Disposal of properties and equipment 35,116 9,217
Acquisition of properties and equipment (271,835 ) (182,754 )
Disposal of intangible assets 2,754 2,340
Acquisition of intangible assets (137,162 ) (145,126 )
Disposal of assets held for sale 82,411 —
Net increase in other assets 37,839 18,141
Business combination under the common control — 2,627
Net cash inflow (outflow) from investing activities (5,462,678 ) 202,937
Cash flows from financing activities:
Net increase of derivatives (designated for hedging) (9,109 ) (25,442 )
Net increase (decrease) in borrowings 2,873,831 (981,449 )
Issuance of debentures 12,818,972 16,756,011
Redemption of debentures (9,793,897 ) (13,378,345 )
Redemption of lease liabilities (210,536 ) (213,326 )
Net decrease in other liabilities (51 ) (17,690 )
Dividends paid to common stocks (1,352,524 ) (1,131,996 )
Issuance of hybrid securities — 757,970
Redemption of hybrid securities (240,000 ) (726,055 )
Dividends paid to hybrid securities (89,134 ) (76,249 )
Dividends paid to non-controlling interest (1,013 ) (3,486 )
Change in non-controlling interests — 2,547
Net cash inflow from financing activities 3,996,539 962,490
Effects of exchange rate changes on cash and cash equivalents (228,238 ) 1,640,951
Net increase (decrease) in cash and cash equivalents 11,204,336 (3,255,976 )
Cash and cash equivalents, the beginning of the year 26,030,754 29,286,730
Cash and cash equivalents, the end of the year 37,235,090 26,030,754

The accompanying notes are part of these consolidated financial statements.

  • 11 -

WOORI BANK AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL
(1) Summary of the Parent company
--- ---

Woori Bank (hereinafter referred to as the “Bank”), which is a parent company in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No.1110 – ‘Consolidated Financial Statements’, was established in 1899 and is engaged in the commercial banking business under the Banking Act, trust business and foreign exchange business under the Financial Investment Services and Capital Market Act (the “Capital Market Act”).

As of December 31, 2025, the Bank’s shares are wholly owned by Woori Financial Group Inc. (“Woori Financial Group”) which was established in accordance with the Financial Holding Companies Act on January 11, 2019. The Bank has 716 million shares and ordinary share capital amounting to 3,581,392 million Korean Won.

The headquarters of the Bank is located at 51, Sogong-ro, Jung-gu, Seoul, Korea. The Bank has 656 branches and offices in Korea, and 16 branches, 8 branch offices and 4 offices overseas as of December 31, 2025.

(2) The consolidated financial statements for Woori Bank and its subsidiaries (the “Group”) include the<br>following subsidiaries:
Main business Percentage of ownership<br>(%) Location Financial<br>statements<br>as of<br>(2025)
--- --- --- --- --- --- --- --- --- --- --- --- ---
Subsidiaries December 31,<br>2025 December 31,<br>2024
Woori Bank:
Woori America Bank Finance 100.0 100.0 U.S.A. December 31
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 (*4) Finance 100.0 100.0 Russia December 31
PT Bank Woori Saudara Indonesia 1906 Tbk Finance 90.8 90.8 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. (*1) Asset securitization 15.0 15.0 Korea December 31
Jeonju Iwon Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Wonju I one Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Heitz Third Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woorihansoop 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori QS 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Dream 2nd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori K 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Display 3rd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Quantum Jump the 2nd Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HW 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Dream 3rd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori SJS 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
SPG the 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori-HWC<br>1st^^Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori HC 3rd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Park I 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HC 4th Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori SKR 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
  • 12 -
Main business Percentage of ownership<br>(%) Location Financial<br>statements<br>as of<br>(2025)
Subsidiaries December 31,<br>2025 December 31,<br>2024
Woori H chemical 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
HE the 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Hub The 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori K The 3rd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori KF 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori L Yongsan 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori HC 5th Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori Lotte Dongtan 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HC 6th Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HO 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori ESG 1st Co.,Ltd. (*5) Asset securitization — 0.0 Korea —
Woori Osiria 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Gangnam Landmark 2nd Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HP the 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori KF 2nd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori HD 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori ST 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HW 2nd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Mirae 1st Co., Ltd. (*5) Asset securitization — 0.0 Korea —
Woori HR 2nd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori QS 2nd Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Plasma 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
Woori Eugene 1st Co., Ltd. (*1) Asset securitization 0.0 0.0 Korea December 31
WOORIWON 1ST, CO., LIMITED. (*1) Asset securitization 0.0 0.0 Korea December 31
WOORI ENERBILITY 1ST, CO., LIMITED. (*1) Asset securitization 0.0 0.0 Korea December 31
WOORI HL 1ST, CO., LIMITED. (*1) Asset securitization 0.0 0.0 Korea December 31
WOORI SEOUL STATION AREA 1ST, CO,.LTD. (*1) Asset securitization 0.0 0.0 Korea December 31
WOORI PARC1. 2nd Co., Ltd. (*1) Asset securitization 0.0 — Korea December 31
WOORI HEROS 1st Co., Ltd. (*1) Asset securitization 0.0 — Korea December 31
WOORI GANGNAM ALPHA 1st Co.,Ltd. (*1) Asset securitization 0.0 — Korea December 31
WOORI BLOSSOM 1st Co., Ltd. (*1) Asset securitization 0.0 — Korea December 31
WOORI DK 1ST CO.,LTD. (*1) Asset securitization 0.0 — Korea December 31
WOORI TECHONE 1ST CO.,LTD (*1) Asset securitization 0.0 — Korea December 31
WOORI TECHONE 2ND CO.,LTD (*1) Asset securitization 0.0 — Korea December 31
WOORI SONO 1ST CO.,LTD (*1) Asset securitization 0.0 — Korea December 31
URI NC 1ST CO.,LTD. (*1) Asset securitization 0.0 — Korea December 31
Heungkuk Global Private Placement Investment<br>Trust No. 1 (*2) Securities investment 98.8 98.8 Korea December 31
AI Partners UK Water Supply Private Placement Investment Trust No. 2 (*2) Securities investment 97.3 97.3 Korea December 31
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 (*2) Securities investment 99.0 99.0 Korea December 31
IGIS Australia Investment Trust No. 209-1<br>(*2) Securities investment 99.4 99.4 Korea December 31
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1<br>(*2) Securities investment 99.3 99.3 Korea December 31
Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust<br>(*2) Securities investment 99.9 99.9 Korea December 31
Woori Infrastructure New Deal Private Placement Investment Trust No. 1 (*2) Securities investment 99.5 99.5 Korea December 31
Woori Global Secondary Private Placement Investment Trust No. 1 (*2) Securities investment 98.8 98.8 Korea December 31
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1 (*2) Securities investment 95.2 95.2 Korea December 31
Kiwoom Harmony Private Placement Investment<br>Trust No. 2 (*5) Securities investment — 97.3 Korea —
Kiwoom Harmony Private Placement Investment<br>Trust No. 1 (*2) Securities investment 97.7 97.4 Korea December 31
  • 13 -
Main business Percentage of ownership<br>(%) Location Financial<br>statements<br>as of<br>(2025)
Subsidiaries December 31,<br>2025 December 31,<br>2024
JB Airline Private Placement Investment<br>Trust No. 8 (*2) Securities investment 97.0 97.0 Korea December 31
Kiwoom Harmony Private Placement Investment<br>Trust No. 4 (*2) Securities investment 96.2 96.2 Korea December 31
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 (*2) Securities investment 93.5 93.5 Korea December 31
Woori Fund Financing General Type Private Investment Trust (*2) Securities investment 99.0 99.3 Korea December 31
Kiwoom Harmony Private Placement Investment Trust No. 9 (*2) Securities investment 100.0 — Korea December 31
Woori Bank Partners General Type Private Investment Trust No. 4 Securities investment 99.0 — Korea December 31
Principal Guaranteed Trust (*3) Trust 0.0 0.0 Korea December 31
Principal and Interest Guaranteed Trust (*3) Trust 0.0 0.0 Korea December 31
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
MAGI No.5 LuxCo S.a.r.l:
ADP 16 Brussels Asset securitization 100.0 100.0 Belgium December 31
Woori ESG Infrastructure Development General Private Investment Trust No. 1:
Woori Global Infrastructure Development Co., Ltd. Other Finance 100.0 100.0 Korea December 31
Namyangju Resource Circulation Facility Development Co., Ltd. Other professional service 100.0 100.0 Korea December 31
(*1) The entity is a structured entity for the purpose of asset securitization. Although the Group is not a majority<br>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.
--- ---
(*2) The entity is a structured entity for the purpose of investment in securities. Although the Group is not a<br>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) It was determined that the consolidated entity controlled the monetary trust under the Capital Markets Act,<br>taking into account the power of less than half of the ownership stake in investment-related activities, exposure to variable returns, and the ability to use power to affect the variable returns of the consolidated entity.
--- ---
(*4) Following Russia’s further invasion of Ukraine in February 2022, various countries, including the United<br>States, have imposed additional sanctions on a number of Russian individuals and entities, and restricted or prohibited certain activities relating to Russia such as making new investments or the provision of certain services. These sanctions may<br>result in a decrease in the value of financial or operating assets held by banks in relation to the disputed country, an increase in the collection period, restrictions on capital transfers, and a decrease in profits. As a result, the Group expect<br>future financial impacts on the business of its subsidiary, AO Woori Bank of Russia, as of December 31, 2025, but it is difficult to assess the maximum potential exposure or the ultimate adverse impact with any degree of certainty.<br>
--- ---
(*5) Excluded from the consolidation due to the end of the credit facilities for the year ended December 31,<br>2025.
--- ---
  • 14 -
(3) The Group has not consolidated the following entities as of December 31, 2025 and 2024 despite having more<br>than 50% ownership interest:
As of December 31, 2025
--- --- --- --- --- --- --- ---
Structured Entities Location Main<br><br><br>Business Percentage of<br>ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*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<br>No. 163-2 (*2) Korea Securities Investment 97.8
IGIS Global Private Placement Real Estate Fund<br>No. 148-1 (*1) Korea Securities Investment 69.0
IGIS Global Private Placement Real Estate Fund<br>No. 148-2 (*1) Korea Securities Investment 69.0
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
Woori Innovative Growth General Private Equity Special Asset InvestmentTrust No. 1<br>(*1) Korea Securities Investment 55.0
Midas Global Private Placement Real Estate Investment<br>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
Woori Innovative Growth General Private Equity Special Asset InvestmentTrust No. 2<br>(*1) Korea Securities Investment 55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1) Korea Securities Investment 92.6
Woori Private Real Estate Investment Trust No. 1 (*1) Korea Securities Investment 86.8
INMARK France Private Placement Real Estate Investment<br>Trust No. 18-1 (*1) Korea Securities investment 93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W<br>() (*2) Korea Securities investment 99.5
Woori Global Mid-market Secondaries Private Placement<br>Investment Trust No. 1 (*1) Korea Securities investment 80.0
KOTAM Global Infrastructure Private Equity Investment Trust<br>No. 1-4 (*2) Korea Securities investment 99.7
Hana UBS Class One Private Equity No. 3 C2 (*1) Korea Securities investment 51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1) Korea Securities investment 50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1) Korea Securities investment 90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1) Korea Securities investment 65.0
Woori Private Real Estate Investment Trust No. 5 (*1) Korea Securities investment 87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) Korea Securities investment 76.7
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 (*1) Korea Securities investment 79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1) Korea Securities investment 55.0
Woori Policy-type New Deal (Infra Investment) Private Placement InvestmentTrust No.1<br>(*1) Korea Securities investment 66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1) Korea Securities investment 80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 () (*1) Korea Securities investment 60.0
NH-Amundi WSCP VIII Private Placement Investment Trust<br>No. 2 () (*1) Korea Securities investment 65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 ()<br>(*2) Korea Securities investment 98.0
Woori Equity Investment General Type Private Investment Trust No.1 (*1) Korea Securities investment 93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1) Korea Securities investment 60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1) Korea Securities investment 66.7
Woori Financial Digital Investment Association No. 1 (*1) Korea Securities investment 88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1) Korea Securities investment 85.0

All values are in Euros.

  • 15 -
As of December 31, 2025
Structured Entities Location Main<br><br><br>Business Percentage of<br>ownership (%)
IGIS Global Private Placement Real Estate Fund<br>No. 316-1 (*2) Korea Securities investment 99.3
INMARK Spain Private Placement Real Estate Investment Trust<br>No. 26-2 (*2) Korea Securities investment 97.7
Woori Japan Blind General Type Private Real Estate Feeder InvestmentTrust No.1 (*2) Korea Securities investment 99.9
Woori Private Real Estate Investment Trust No. 6 (*1) Korea Securities investment 85.0
Woori New Growth Credit Fund 1 (*1) Korea Securities investment 70.9
Woori Asset Global Partnership Fund No. 5 (*1) Korea Securities investment 57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1) Korea Securities investment 82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1) Korea Securities investment 76.9
CHILLE PMGD Solar PV Investment Project Fund II (*2) Korea Securities investment 75.2
Woori Financial Dino Lab Investment Association No. 1 (*1) Korea Securities investment 70.0
Woori Bank Partners General Type Private Investment Trust No.3 (*1) Korea Securities investment 90.9
Woori Natixis Partnership Global Private Debt Fund<br>No. 1-1 () (*1) Korea Securities investment 80.0
NH-Amundi BXD Private Placement Real Estate Investment<br>Trust No. 2 () (*2) Korea Securities investment 77.8
Woori Private Real Estate Investment Trust No. 7 (*1) Korea Securities investment 87.0
Woori Junior Equity General Type Private Investment Trust (*1) Korea Securities investment 85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1) Korea Securities investment 50.0
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 (*1) Korea Securities investment 92.8
Woori Financial Dino Lab Investment Association No. 2 (*1) Korea Securities investment 60.0
Woori Top-Class Senior Junior Private Placement Investment<br>Trust (*1) Korea Securities investment 85.0
Woori Real Estate Blind Investment Private Placement Trust No.1 (*2) Korea Securities investment 70.0
Woori Natixis Partnership Global Private Debt Fund<br>No. 1-2 () (*1) Korea Securities investment 80.0

All values are in US Dollars.

(*1) Since the investee is a discretionary funds, the Group does not have power over the investee because the fund<br>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<br>fund’s activities even though it holds more than 50% of ownership interest.
(*2) The investment target for the fund was predefined, and the disposition of investment assets cannot be<br>determined by the Group, and as a fund of funds, the Group does not have ability to make decisions regarding investment assets in parent funds. The Group does not have the power over the fund’s activities even though it holds more than 50% of<br>ownership interest.
--- ---
(*3) Since the investee is a stock market stabilization fund, the Group does not have power over such fund as the<br>fund’s relevant activities are determined by the investment management committee, over which the Group does not have substantive rights. The Group does not have the power over the fund’s relevant activities even though the Group holds<br>more than 50% of ownership interest.
--- ---
As of December 31, 2024
--- --- --- --- --- --- --- ---
Structured Entities Location Main<br><br><br>Business Percentage of<br>ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*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<br>No. 163-2 (*2) Korea Securities Investment 97.8
IGIS Global Private Placement Real Estate Fund<br>No. 148-1 (*1) Korea Securities Investment 69.0
IGIS Global Private Placement Real Estate Fund<br>No. 148-2 (*1) Korea Securities Investment 69.0
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
Woori Innovative Growth General Private Equity Special Asset Investment<br>Trust No. 1<br>(*1) Korea Securities Investment 55.0
Midas Global Private Placement Real Estate Investment<br>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
Woori Innovative Growth General Private Equity Special Asset Investment<br>Trust No. 2<br>(*1) Korea Securities Investment 55.0
Woori Woori Bank Partners Private Placement Investment Trust <br>No. 1 (*1) Korea Securities Investment 92.6
  • 16 -
As of December 31, 2024
Structured Entities Location Main<br><br><br>Business Percentage of<br>ownership (%)
Woori Private Real Estate Investment Trust No. 1 (*1) Korea Securities Investment 84.9
INMARK France Private Placement Real Estate Investment<br>Trust No. 18-1 (*1) Korea Securities investment 93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W<br>() (*2) Korea Securities investment 99.5
Woori Global Mid-market Secondaries Private Placement<br>Investment Trust No. 1 (*1) Korea Securities investment 80.0
KOTAM Global Infrastructure Private Equity Investment Trust<br>No. 1-4 (*2) Korea Securities investment 99.7
Hana UBS Class One Private Equity No. 3 C2 (*1) Korea Securities investment 51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1) Korea Securities investment 50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1) Korea Securities investment 90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1) Korea Securities investment 65.0
Woori Private Real Estate Investment Trust No. 5 (*1) Korea Securities investment 87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) Korea Securities investment 76.7
Consus Solar Energy Private Placement Investment Trust No.1 (*1) Korea Securities investment 50.0
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 (*1) Korea Securities investment 79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1) Korea Securities investment 55.0
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1<br>(*1) Korea Securities investment 66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1) Korea Securities investment 80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 () (*1) Korea Securities investment 60.0
NH-Amundi WSCP VIII Private Placement Investment Trust<br>No. 2 () (*1) Korea Securities investment 65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 ()<br>(*2) Korea Securities investment 98.0
Woori Equity Investment General Type Private Investment Trust No. 1 (*1) Korea Securities investment 93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1) Korea Securities investment 60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1) Korea Securities investment 66.7
Woori Financial Digital Investment Association No. 1 (*1) Korea Securities investment 88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1) Korea Securities investment 85.0
IGIS Global Private Placement Real Estate Fund<br>No. 316-1 (*2) Korea Securities investment 99.3
INMARK Spain Private Placement Real Estate Investment Trust<br>No. 26-2 (*2) Korea Securities investment 97.7
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-2 (*2) Korea Securities investment 98.8
Woori Japan Blind General Type Private Real Estate Feeder InvestmentTrust No.1 (*2) Korea Securities investment 99.9
Woori Private Real Estate Investment Trust No. 6 (*1) Korea Securities investment 85.0
Woori New Growth Credit Fund 1 (*1) Korea Securities investment 70.9
Woori Asset Global Partnership Fund No. 5 (*1) Korea Securities investment 57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1) Korea Securities investment 82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1) Korea Securities investment 76.9
CHILLE PMGD Solar PV Investment Project Fund II (*2) Korea Securities investment 75.2
Woori Financial Dino Lab Investment Association No. 1 (*1) Korea Securities investment 70.0
Woori Bank Partners General Type Private Investment Trust No. 3 (*1) Korea Securities investment 90.9
Woori Natixis Partnership Global Private Debt Fund<br>No. 1-1 () (*1) Korea Securities investment 80.0
NH-Amundi BXD Private Placement Real Estate Investment<br>Trust No. 2 () (*2) Korea Securities investment 77.8
Woori Private Real Estate Investment Trust No. 7 (*1) Korea Securities investment 87.0
Woori Junior Equity General Type Private Investment Trust (*1) Korea Securities investment 85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1) Korea Securities investment 50.0

All values are in Euros.

  • 17 -
(*1) Since the investee is a discretionary funds, the Group does not have power over the investee because the fund<br>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<br>fund’s activities even though it holds more than 50% of ownership interest.
(*2) The investment target for the fund was predefined, and the disposition of investment assets cannot be<br>determined by the Group, and as a fund of funds, the Group does not have ability to make decisions regarding investment assets in parent funds. The Group does not have the power over the fund’s activities even though it holds more than 50% of<br>ownership interest.
--- ---
(*3) Since the investee is a stock market stabilization fund, the Group does not have power over such fund as the<br>fund’s relevant activities are determined by the investment management committee, over which the Group does not have substantive rights. The Group does not have the power over the fund’s relevant activities even though the Group holds<br>more than 50% of ownership interest.
--- ---
(4) The summarized financial information of the major subsidiaries is as follows. The financial information of each<br>subsidiary was prepared on the basis of consolidated financial statements. (Unit: Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets Liabilities Operating<br>revenue Net income<br>(loss)<br>attributable to<br>owners Total<br>comprehensive<br>income (loss)<br>attributable to<br>owners
Woori America Bank 5,689,437 4,924,553 300,381 52,975 39,253
Woori Global Markets Asia Limited 860,673 606,703 60,135 21,735 17,816
Woori Bank China Limited 6,588,780 5,861,752 275,334 (52,742 ) (45,931 )
AO Woori Bank 616,006 451,847 67,350 31,127 68,949
PT Bank Woori Saudara Indonesia 1906 Tbk 5,261,114 4,160,256 361,526 (74,133 ) (143,527 )
Banco Woori Bank do Brasil S.A. 222,794 207,470 25,143 (8,712 ) (5,113 )
Korea BTL Infrastructure Fund 766,563 292 26,464 23,751 24,604
Woori Finance Myanmar Co., Ltd. 49,785 23,582 11,592 2,911 2,369
Wealth Development Bank 284,766 239,272 21,399 (1,474 ) (3,434 )
Woori Bank Vietnam Limited 4,670,022 3,659,430 422,688 71,646 17,780
Woori Bank (Cambodia) PLC 1,920,614 1,303,923 233,323 4,316 (10,624 )
Woori Bank Europe 963,445 838,396 27,849 (4,193 ) 8,391
Money trust under the FISCM Act 1,120,413 1,097,773 52,318 (3,466 ) (3,466 )
Structured entity for securitization of financial assets 2,218,545 2,573,528 92,275 2,106 (188 )
Structured entity for the investments in securities 2,246,851 63,940 109,913 91,228 90,067
December 31, 2024
Assets Liabilities Operating<br>revenue Net income<br>(loss)<br>attributable to<br>owners Total<br>comprehensive<br>income (loss)<br>attributable to<br>owners
Woori America Bank 5,603,828 4,878,197 278,248 37,240 125,569
Woori Global Markets Asia Limited 764,409 528,256 60,999 22,453 49,694
Woori Bank China Limited 7,025,618 6,252,659 309,973 20,178 101,666
AO Woori Bank 507,190 411,981 56,523 30,459 20,742
PT Bank Woori Saudara Indonesia 1906 Tbk 5,423,733 4,168,715 386,889 56,768 156,791
Banco Woori Bank do Brasil S.A. 230,713 210,275 23,555 (1,412 ) (5,629 )
Korea BTL Infrastructure Fund 734,750 286 26,829 24,273 23,946
Woori Finance Myanmar Co., Ltd. 46,102 22,268 10,653 2,318 5,121
Wealth Development Bank 272,386 223,457 22,275 1,559 5,782
Woori Bank Vietnam Limited 3,932,302 2,939,490 371,959 61,565 132,345
Woori Bank (Cambodia) PLC 2,212,892 1,585,577 241,234 (14,786 ) 53,564
Woori Bank Europe 860,239 743,581 41,167 (6,330 ) 865
Money trust under the FISCM Act 1,201,313 1,175,208 51,546 2,935 2,935
Structured entity for securitization of financial assets 2,179,838 2,548,776 103,230 (5,533 ) 2,585
Structured entity for the investments in securities 2,138,102 62,111 122,417 97,685 127,430
  • 18 -
(5) The financial support that the Group provides to consolidated structured entities is as follows:<br>
• 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.

• Monetary 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, 2025 and December 31, 2024, the Group provides 2,199,949 million Won and 2,166,871 million Won of credit facilities for the structured entities mentioned above. As of December 31, 2025 and December 31, 2024 the purchase commitment amount is 1,727,021 million Won and 650,997 million Won, respectively.

(6) The Group has entered into various agreements with structured entities such as asset securitization, structured<br>finance, investment fund, and trust contract. The characteristics and the nature of risks related to unconsolidated structured entities over which the Group does not have control in accordance with K-IFRS<br>No.1110 – ‘Consolidated Financial Statements’ are as follows:

The ownership interests on unconsolidated structured entities that the Group hold are classified into asset securitization vehicles, structured finance and investment fund, based on the nature and the purpose of the structured entities.

The unconsolidated structured entities classified as ‘asset securitization vehicles’ are entities that issue asset-backed securities, pay the principal and interest or distribute dividends on asset-backed securities through borrowings or profits from the management, operation and sale of securitized assets. The Group transfers related risks by the purchase commitments of asset-backed securities or issuance of asset-backed securities through credit facilities, and the Group recognize 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.

The unconsolidated structured entities classified as ‘structured financing’ include real estate project financing investment vehicle, social overhead capital companies, and special purpose vehicles for ship (aircraft) financing. Each entity is incorporated as a separate company with a limited purpose in order to efficiently pursue business goals. ‘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 valuation 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 facilities 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.

  • 19 -

The 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 raise funding 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. As of December 31, 2025 and December 31, 2024, the investment value in MMF (Money Market Funds)and ETF(Exchanged Traded Funds) amounted to 309,121 million Won and 22,850 million Won, respectively, and there are no additional MMF and ETF-related commitments.

Total assets of the unconsolidated structured entities held by the Group, the carrying value of the related items recorded, the maximum exposure to risks, and the loss recognized in conjunction with the unconsolidated structured entities as of December 31, 2025 and December 31, 2024 are as follows: The maximum exposure to risks includes the amounts that are recognized in the consolidated financial statements and will be confirmed when certain conditions are met in the future such as investments, purchase commitments, credit facilities and others. (Unit: Korean Won in millions):

December 31, 2025
Asset<br>securitization<br>vehicle Structured<br>finance Investment<br>funds
Total asset of the unconsolidated structured entities 7,354,095 109,514,092 308,923,503
Assets recognized in the consolidated financial statements related to the unconsolidated<br>structured entities 5,304,248 3,874,855 10,356,285
Financial assets at FVTPL — 1,449 9,881,605
Financial assets at FVTOCI 1,255,413 50,419 —
Financial assets at amortized cost 4,048,835 3,821,790 275,198
Investments in associates — — 199,482
Derivative assets — 1,197 —
Liabilities recognized in the consolidated financial statements related to the unconsolidated<br>structured entities 162 1,569 296
Derivative liability — 89 —
Other liabilities (provisions) 162 1,480 296
The maximum exposure to risks (*) 5,324,018 4,844,385 16,112,524
Investments 5,304,248 3,874,855 10,356,285
Purchase agreement — — 5,491,639
Credit facilities 19,770 969,530 264,600
Loss recognized on unconsolidated structured entities — 343 166,364

(*) This is the amount after deducting the expected credit loss allowance.

December 31, 2024
Asset<br>securitization<br>vehicle Structured<br>finance Investment<br>funds
Total asset of the unconsolidated structured entities 7,286,074 74,946,966 255,076,205
Assets recognized in the consolidated financial statements related to the unconsolidated<br>structured entities 6,852,171 3,390,015 9,325,909
Financial assets at FVTPL — 1,792 9,042,357
Financial assets at FVTOCI 1,813,481 44,477 —
Financial assets at amortized cost 5,038,690 3,341,655 79,879
Investments in associates — — 201,084
Derivative assets — 2,091 2,589
Liabilities recognized in the consolidated financial statements related to the unconsolidated<br>structured entities 242 1,774 —
Derivative liability — 421 —
Other liabilities (provisions) 242 1,353 —
The maximum exposure to risks (*) 6,929,431 4,083,019 14,655,904
Investments 6,852,171 3,390,015 9,325,909
Purchase agreement — — 5,329,995
Credit facilities 77,260 693,004 —
Loss recognized on unconsolidated structured entities — 319 150,552

(*) This is the amount after deducting the expected credit loss allowance.

  • 20 -
(7) The share of non-controlling interests on the net income and equity of<br>subsidiaries of which non-controlling interests that are significant to the Group’s consolidated financial statements as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
1) Accumulated non-controlling interests at the end of the reporting<br>period
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
PT Bank Woori Saudara Indonesia 1906 Tbk 89,767 104,023
Wealth Development Bank 22,292 23,975
2) Net income or loss attributable to non-controlling interests<br>
--- ---
For the years ended<br>December 31
--- --- --- --- --- --- --- ---
2025 2024
PT Bank Woori Saudara Indonesia 1906 Tbk (6,856 ) 6,764
Wealth Development Bank (722 ) 764
3) Dividends to non-controlling interests
--- ---
For the years ended<br>December 31
--- --- --- --- --- --- ---
2025 2024
PT Bank Woori Saudara Indonesia 1906 Tbk 983 3,450
  • 21 -
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 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 material accounting policies applied in the preparation of consolidated financial statements as of and for the year ended December 31, 2025 are stated below, and the accounting policies applied are identical to ones used in the preparation of previous year’s consolidated financial statements, except for the effects of adopting new standards or interpretations as explained below.

The consolidated 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 consolidated financial statements of the Group were initially approved by the Board of Directors on February 5, 2026, subsequently amended and approved on February 27, 2026, and are scheduled to be approved at the annual shareholder’s meeting on March 20, 2026.

  1. From the accounting period beginning on January 1, 2025, the Group has newly applied the following amendments and interpretations.
i) Amendments to K-IFRS No.1021 ‘The Effects of Changes inForeign Exchange Rates’ and K-IFRS No.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 do not have a significant impact on the consolidated financial statements.

  1. The details of K-IFRS that have been issued and published as of January 1, 2025 but have not yet reached the effective date, and which the Group has not applied at an earlier date are as follows :
i) Amendments to K-IFRS No.1109 ‘FinancialInstruments’, K-IFRS No.1107 ‘Financial Instruments: Disclosures’

When an entity K-IFRS No.1109 ‘Financial Instruments’ and K-IFRS No.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 is in review for the impact of these amendments on the consolidated financial statements. These amendments

• permit to deem the financial liability to be settled (discharged) through an electronic payment system before the<br>settlement date in cases of meeting certain conditions;
  • 22 -
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal<br>and interest (SPPI) criterion;
• add new disclosures of impact on the entity and the extent to which the entity is exposed for each class of<br>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<br>(FVTOCI).
--- ---
ii) Annual Improvements to K-IFRS
--- ---

Annual Improvements to K-IFRS should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Group is in review for the impact of these amendments on the consolidated financial statements.

• K-IFRS No.1101 ‘First-time Adoption of International FinancialReporting Standards’: Hedge accounting by a first-time adopter
• K-IFRS No.1107 ‘Financial Instruments: Disclosures’:<br>Gain or loss on derecognition and implementation guidance
--- ---
• K-IFRS No.1109 ‘Financial Instruments’:<br>Derecognition of lease liabilities and definition of transaction price
--- ---
• K-IFRS No.1110 ‘Consolidated Financial Statements’:<br>Determination of a ‘de facto agent’
--- ---
• K-IFRS No.1007 ‘Statement of Cash Flows’: Costmethod
--- ---
iii) Standards to Korean IFRS 1118 ‘Presentation and Disclosure in Financial Statements’<br>
--- ---

K-IFRS No.1118*‘Presentation and Disclosure in Financial Statements’* replaces K-IFRS No. 1001*‘Presentation of Financial Statements’*. The new presentation requirements introduced in K-IFRS No. 1118 will increase the comparability of the financial performance of similar entities, especially with respect to how ‘operating profit or loss’ is defined. The new disclosure requirements for ‘management-defined performance measures’ will enhance transparency. The amendments should be applied for annual periods beginning on or after January 1, 2027, and earlier application is permitted. In accordance with the retrospective application requirements, comparative information for the year ended December 31, 2026, shall be restated under K-IFRS No. 1118.

The Group has not yet adopted K-IFRS No. 1118 and is in the process of determining the impact of its adoption. The Group has prepared a transition plan and is on track to report its first K-IFRS No. 1118-compliant interim financial statements for the period ending March 31, 2027 and annual financial statements for the period ending December 31, 2027.

Management is currently reviewing the impact of adopting K-IFRS No. 1118 on the Group’s consolidated financial statements. While the adoption of the new standard is not expected to affect the Group’s net profit or loss, it will require revenues and expenses in the statement of profit or loss to be classified into new categories, consequently affecting the calculation and presentation of operating profit.

(2) Basis of consolidated financial statement presentation

The consolidated financial statements incorporate the financial statements of the Bank and the entities (including structured entities) controlled by the Bank (and 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) has the ability to use its power to affect its returns. The Group reassesses whether or not 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.

  • 23 -

When the Group has less than a majority 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 or not the Group’s voting rights in an investee are sufficient to give it power, including:

• The relative size of the Group’s holding of voting rights and dispersion of holdings of the other vote<br>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<br>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. Profit or loss and each component of other comprehensive income are attributed to the owner of the Group and to the non-controlling interests. 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 deficit balance.

If a subsidiary uses accounting policies other than those of the Group for like transactions and events in similar circumstances, if necessary, adjustments shall be made to make the subsidiary’s accounting policies conform to those of the Group to prepare the consolidated financial statements.

All intra-group transactions and, related assets and liabilities, income and expenses are eliminated in full when preparing the consolidated financial statements.

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 amounts 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 is 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.

  • 24 -

At the acquisition date, the acquiree’s identifiable assets, liabilities and contingent liabilities that meet the condition for recognition under K-IFRS No.1103 are recognized at their fair value, except that:

• deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are<br>recognized and measured in accordance with K-IFRS No.1012 ‘Income Taxes’ and K-IFRS No.1019 ‘Employee Benefits’, respectively;<br>
• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based<br>payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with K-IFRS No.1102 ‘Share-based Payment at the acquisitiondate’; and
--- ---
• non-current assets (or disposal groups) that are classified as held for<br>sale in accordance with K-IFRS No.1105 ‘Non-current Assets Held for Sale and Discontinued Operations’ are measured at the lower of their previous<br>carrying amounts and fair value less costs to sell.
--- ---

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 which is included in intangible assets.

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 profit or loss as a bargain purchase.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value.

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 profit or loss (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.

A business combination under common control—where the same party ultimately controls all of the combining entities or businesses both before and after the combination, and such control is not transitory—is regarded, from the perspective of the controlling shareholder, as a transaction that results only in a legal reorganization without any substantive economic change. Accordingly, the acquiree’s assets and liabilities are recognized at their carrying amounts as recorded in the financial statements of the ultimate parent, and any difference between the consideration transferred and the carrying amount is reflected in equity.

  • 25 -
(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 the 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 No.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.

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 is recognized immediately in profit or loss.

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 No.1109 ‘Financial Instruments’; Recognition and Measurement. The Group recognized differences between the carrying amount and fair value in profit or loss 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 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 No.1105.

The requirements of K-IFRS No.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 No.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 No.1036 to the extent that the recoverable amount of the investment subsequently increases.

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.

  • 26 -

When a subsidiary 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.

(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; and
--- ---
• its expenses, including its share of any expenses incurred jointly.
--- ---

The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with K-IFRSs applicable to the particular 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 into 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 No.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 measured 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 brokerage 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. The majority of these fees and commission received for brokerage are from the business activities relevant to Consumer 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. The majority of these fees and commission received related to credit are from the business activities relevant to Consumer banking and Corporate banking segment.

  • 27 -
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. The majority of these fees and commission received for electronic finance are from the business activities relevant to Consumer banking and Corporate 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 Corporate 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 Corporate 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 Corporate banking segment.

⑦ 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 Consumer banking segment.

⑧ 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. The majority of these fees and commission received for brokerage are from the business activities relevant to Consumer banking segment.

⑨ 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 and no single operating segment represents majority of other fees.

2) Revenues from sources other than contracts with customers
① Interest income
--- ---

Interest income on financial assets measured at FVTPL, 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.

  • 28 -

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 costs and is being added or deducted to/from interest income on loans using effective interest rate method.

(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 the 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 is translated using foreign exchange rates at the end of the period. The foreign exchange differences are recognized in equity.

(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 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
  • 29 -

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<br>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,<br>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<br>evaluation is being reported to the management
--- ---
• The risk affecting the performance of the business model (and financial assets held under the business model),<br>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<br>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<br>activities
--- ---
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 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<br>
--- ---
• Early payment features and maturity extension features
--- ---
• Contractual terms that limit the Group’s claim on cash flows arising from certain assets (e.g. non-recourse feature)
--- ---
• Terms of holding multiple contractually linked financial tranche that concentrate credit risk. In such case,<br>credit risk comparison information of the instrument itself, the contractual cash flow characteristics of underlying financial instrument group and the underlying financial instrument group
--- ---
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 fair value gains or losses are recognized in profit or loss. Transaction costs related to acquisition at initial recognition is recognized as expense immediately upon its occurrence.

The Group may, at initial recognition, irrevocably designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

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.

  • 30 -

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. 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).

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 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. Gain or loss arising from financial liabilities at FVTPL is recognized in profit or loss 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 No.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.

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.

  • 31 -

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 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 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 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 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 the 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).

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.

  • 32 -

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.

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 No.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 do not belong to below two models and unused loan commitments<br>
• Simplified approach: When financial assets are either trade receivables, contract assets or lease receivables<br>
--- ---
  • 33 -
• 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.

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. Changes in loss allowance due to subsequent recoveries of amounts previously written off are recognized in profit or loss.

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 loss allowance is recognized in other comprehensive income. When financial assets at FVTOCI is disposed or repaid, the related loss allowance is reclassified from other comprehensive income to net income.

(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 book value 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 Properties 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.

  • 34 -

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 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 derecognition.

(12) Properties and equipment

Properties and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of Properties 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 Properties 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 35 to 57 years
Structures in leased office 4 to 5 years
Properties for business purpose 4 to 5 years

The Group reassesses the depreciation method, the estimated useful lives and residual values of Properties 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 Properties and equipment item exceeds the estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount.

(13) Intangible assets and goodwill

The Group is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and accumulated impairment losses. The Group’s intangible asset are amortized over the following economic lives using the straight-line method. The estimated useful life and amortization method 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 4 to 5 years or contract period

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.

  • 35 -
(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 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 profit or loss.

(15) Leases

The Group determines whether the agreement is a lease or includes a lease at the time of the agreement. In exchange for consideration in the contract, if the control over the use of the identified asset is transferred for a period of time, the contract is a lease or includes a lease. In determining whether a contract transfers control of the use of the identified asset, the Group uses the definition of a lease in K-IFRS No.1116.

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

• Fixed payments (including in-substance fixed payments)<br>
• Variable lease payments that depend on an index (or a rate), initially measured using the index or rate as at the<br>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<br>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<br>
--- ---

The lease liability is subsequently increased by 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.

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

  • 36 -

Most extension options in offices and vehicles leases have not been included in the lease liability, because

the Group could replace the assets without significant cost or business disruption.

The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.

During the current financial year, the financial effect of revising lease terms to reflect the effect of exercising extension and termination options was an increase in recognized lease liabilities and right-of-use assets of 1,308 million Won.

In the statement of financial position, the Group classified the right-of-use assets that do not meet the definition of investment property as ‘Properties 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 on the basis of its relative stand-alone price.

As a lessor, the Group classifies its leases as either an operating lease or a finance 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 No.1115 to allocate the consideration of the contract.

The Group applies derecognition and impairment provisions of K-IFRS No.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 No.1116.

  • 37 -
(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 profit or loss immediately unless the derivative is designated and 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.

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 No.1109 is 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 No.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 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<br>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<br>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 book value 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.

  • 38 -
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 book value 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 profit or loss. In case of debt instruments measured at FVTOCI, book value 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 book value. 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.

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 book value of hedged item due to hedged risk is amortized from the date of discontinuance of hedge accounting and is recognized in 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.

(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. Provisions are not recognized for the future operating losses.

The Group recognizes provision 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.

(19) 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.

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.

  • 39 -
(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 No.1109
• Initial book value less accumulated profit measured in accordance with<br>K-IFRS No.1115
--- ---
(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 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 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 curtailments and 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) Hedge accounting of net investment in a foreign operation

When applying hedge accounting of net investment in a foreign operation, the effective portion of changes in fair value of the hedging instrument is recognized in other comprehensive income and the ineffective portion of the hedge is recognized as current profit or loss in order to offset changes in the fair value of the hedged item caused by the hedging with changes in the fair value of the hedging instrument. The effective portion of hedge recognized in other comprehensive income will be reclassified from other comprehensive income to current profit or loss in accordance with K-IFRS No.1021 ‘The Effects of Changes in Foreign Exchange Rates’ at the time of disposal of a foreign operation or disposal of a portion of its foreign operations in the future.

  • 40 -
(23) 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.

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.

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 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 the 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 No.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.

(24) 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.

  • 41 -
3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The significant accounting estimates and assumptions are continuously being evaluated based on numerous factors including historical experiences and expectations of future events that are reasonably considered probable. 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 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 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 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 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 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 Note 2. Basis of Preparation and material Accounting Policies (9) 5), ‘Fair value of financial assets and liabilities’, 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 the end of the current reporting period about past events, current conditions and forecasts of future economic conditions.

The Group uses forward-looking information to estimate expected credit losses in accordance with K-IFRS No.1109 ‘Financial Instruments’. Considering the potential for increased insolvency due to rising domestic and international economic uncertainties, the Group estimates the probability of default (PD) and loss given default (LGD) using forward-looking information on key variables such as GDP growth rate, producer price index, apartment sales price index (KB, Seoul), and unemployment rate (original series), and accordingly recognizes additional expected credit loss provisions.

The Group used a modeling technique based on GDP growth rate to estimate expected credit losses at the end of the current period.

  • 42 -

The Group will continuously monitor the impact of domestic and international political and economic uncertainties on the economy and continue to evaluate the appropriateness of related forward-looking information.

The measurement of expected credit loss is described in 4. Risk management (1) 3) 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.

4. RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks. The Group is required to analyze and assess the level of complex risks and determine the permissible level of risks and manage such risks. The Group’s risk management procedures have been established to improve the quality of assets for holding or investment purposes by making decisions on how to avoid or mitigate risks through the identification of the source of the potential risks and their impact.

The Group has established an approach to manage the acceptable level of risks and reduce the excessive risks in financial instruments in order to maximize the profit given risks present, for which the group has implemented risk management processes of identification, measurement, assessment, control, monitoring and reporting of risk.

The risk is managed in accordance with the Group’s risk management policy. The Board Risk Management Committee, at the top decision-making level, makes decisions on the risk strategies such as the allocation of internal capital and the establishment of acceptable level of risk.

(1) Credit risk

Credit risk represents the potential financial losses that may incur in the future when the counterparty refuses to fulfill or lose the ability 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.

i) Credit risk management
a. Credit facilities limit management
--- ---

The Group calculates and manages the appropriate borrowing limits by aggregation, business and industry through management of aggregation, total exposure and portfolio.

b. Credit risk monitoring organization and role
① Large Corporate Credit Analysis & Approval Dept.
--- ---
• Examination, approval, and maintenance of loans to large enterprises (including small- and medium-sized enterprises affiliated with major debt group)
--- ---
• Examination, approval, and maintenance of loans to government agencies, public institutions (50% or more of<br>government investments and contributions) and other corporations
--- ---
• Examination, approval, and maintenance of relevant real estate PF (Project Financing) (large or non-confirmed construction enterprises)
--- ---
• Operation controls over the ‘Credit Management for Affiliate Enterprise Groups’ as specified by the<br>Regulation on Supervision of Bank Business, etc.
--- ---
• Establishing and managing total exposure limits for affiliated companies
--- ---
• Management of approved loans (delinquency, asset quality, portfolios, etc.)
--- ---
• Credit limit management designated by the Banking Act for the affiliated companies
--- ---
  • 43 -
② IB/Global Investment Banking Credit Analysis & Approval Dept
• Examination, approval and maintenance of loans related to IB Group Investment Banking (including Principal<br>Investment excluding blind funds, structured securities of foreign currency bonds, real estate project financing, and branch-linked IB deals)
--- ---
• Examination, approval and maintenance of overseas branches or subsidiaries of local companies, foreign companies.<br>
--- ---
• Support for related tasks such as credit screening and maintenance of overseas review centers<br>
--- ---
• Management of approved loans (delinquency, asset quality, portfolios, etc.)
--- ---
• Establishing and managing total exposure limits for affiliated companies
--- ---
• Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies<br>
--- ---
• Credit research and credit rating for affiliated companies
--- ---
• Derivative-related risk examination and management for affiliated customers
--- ---
③ SME Credit Analysis & Approval Dept.
--- ---
• Examination, approval, and maintenance of loans to small and medium-sized<br>enterprises (excluding SMEs affiliated with major debt group) (including credit-related securities, credit derivatives, and credit-related deposits)
--- ---
• Examination, approval, and maintenance of loans to public institutions (less than 50% of government investments<br>and contributions) and other corporations
--- ---
• Consultation on loan examination, and agreement on the approval (including<br>follow-up) of overseas branches and local corporations of the enterprises
--- ---
• Examination, approval, and maintenance of relevant real estate PF (small and medium- construction enterprises)<br>
--- ---
• Examination, approval, and maintenance, etc. of business loans related to National Housing and Urban Fund<br>
--- ---
• Develop and maintain examination techniques
--- ---
• Management of approved loans (delinquency, asset quality, portfolios, etc.)
--- ---
• Establishing and managing total exposure limits for affiliated companies
--- ---
• Credit research and credit rating for affiliated companies
--- ---
• Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies<br>
--- ---
• Derivative-related risk examination and management for affiliated customers
--- ---
④ Retail Credit Analysis & Approval Dept.
--- ---
• Examination, approval, and maintenance of personal and individual business loans
--- ---
• Examination and approval of collective loans (including cases where construction enterprise is subject to<br>workout)
--- ---
⑤ Corporate Restructuring Dept.
--- ---
• General management of enterprises subject to workout, etc.
--- ---
• General management of enterprises subject to pre-workout, etc.<br>
--- ---
• General management on the borrower in the course of corporate rehabilitation procedures
--- ---
• Workout activities such as the establishment and implementation of corporate workout plans performed for<br>affiliated companies
--- ---
• Pre-workout activities such as the establishment and implementation of<br>corporate management diagnosis and management plans performed for affiliated companies
--- ---
• Credit examination, approval, setting total exposure limit and follow-up<br>management for affiliated companies
--- ---
• Examination and execution of loans for sound post-management of rehabilitation loans
--- ---
  • 44 -
c. Credit screening and post monitoring or post management
① Objective
--- ---
• To maintain appropriate credit ratings and improve asset quality
--- ---
② Main activities
--- ---
• Review the adequacy of credit and credit ratings, and maintain the consistency in application of ratings<br>
--- ---
• Review the appropriateness of asset classification by quality and the provision for credit losses<br>
--- ---
• Overall analysis of loan portfolio quality
--- ---
• Inspection of compliance with loan policies and relevant regulations, and recommendation for modification of<br>policies
--- ---
• Review the appropriateness of loan approval and compliance with loan commitments
--- ---
• Post-inspection of the branches’ discretionary decision for loans
--- ---
• Assessing the accuracy of the identification of bad loans and the timeliness of actions taken by the person in<br>charge of the loan
--- ---
ii) Current status by measurement method
--- ---
a. Method of calculating risk-weighted assets
--- ---
① The Group calculates the risk-weighted assets of the credit risk by obtaining approval of the internal<br>rating-based approach.
--- ---
② The internal rating-based approach meets the qualitative and quantitative requirements set by the Financial<br>Supervisory Service, including the use of advanced techniques in risk measurement, as well as the establishment of an internal control and risk management system. It enables more accurate measurement and management of credit risk than the standard<br>method.
--- ---
• The internal rating-based approach
--- ---

Risk-weighted assets are calculated by applying self-estimated risk measurement factors such as probability of default (PD), loss given default (LGD), exposure at default (EAD), and effective maturity (M) according to the internal rating of the Group.

b. Overview and utilization scope of credit rating evaluation model

<Overview of corporate credit rating model>

① Definition of corporate credit rating model

The corporate credit rating is the assessment of the possibility of default by the counterparty. It includes both scoring assessments that are evaluated according to quantitative methods using financial statements, etc., representative assessments that are evaluated according to quantitative methods using loans, deposit transactions, etc. of the representative’s the Bank itself and other financial institutions, and judgment evaluations that are evaluated by the evaluator’s subjective judgment. This represents that the degree of credit risk assessed is presented in a systematic manner.

② Operation of corporate credit rating model
• General corporate evaluation model: Classified to external audit based on<br>K-IFRS, external audit based on GAAP, non-external audit 1, non-external audit 2 and personal business based on their total<br>assets, sales volume, accounting standards, whether subject to external audit or not, loan size and types of business, such as individuals or corporations.
--- ---
  • 45 -
• Evaluation model of local governments
• Evaluation model of public institutions
--- ---
• Evaluation model of financial institutions: Banks, insurance companies, financial investment, and other financing<br>
--- ---
• Evaluation model of overseas companies
--- ---
• Evaluation model of non-profit organization: Private schools, medical<br>institutions, religious organizations, and other organizations
--- ---
• Specialized lending evaluation model: PF (Project Finance) (*1), OF (Object Financing) (*2), CF (Commodities<br>Financing) (*3), real estate financing for sale, Real estate financing for rent, fund financing, acquisition financing, and asset securitization.
--- ---

(*1) Project Finance (PF)

Credit provided for large-scale facility projects such as power plants and transportation facilities, secured by the project itself and repaid from the cash flow generated by the project.

(*2) Object Finance (OF)

Credit provided for the purchase of tangible assets such as ships and aircraft, secured by the asset itself and repaid from the cash flow generated by the asset.

(*3) Commodities Finance (CF)

Credit secured by reserves, inventories, or receivables related to commodities traded on recognized exchanges, with the proceeds from the sale of these assets used as the source of repayment.

③ Corporate credit rating system

The corporate credit rating system is divided into 14 grades (13 normal, 1 default) system, and each credit rating is presented in English (AAA ~ D).

<Overview of retail credit rating model>

① Definition of retail credit scoring model

This is a model that determines credit rating of retail loan customers by calculating credit score statistically using the customer information and operates two types of scoring system which are Application Scoring System and Behavior Scoring System according to applicable borrowers’ loan types.

• Application Scoring System (ASS): The model determines credit rating by statistically calculating credit score<br>for new retail loan applications using personal information, transaction information, credit information, and other relevant data.
• Behavior Scoring System (BSS): The model determines credit rating by statistically calculating credit score for<br>existing retail loans using transaction information, credit information, and relevant data.
--- ---
② Operation of retail credit scoring model
--- ---
• SOHO loan credit scoring model : ASS / BSS scoring model
--- ---
• Household loan credit scoring model : ASS / BSS scoring model
--- ---
③ Retail credit scoring model evaluation system : Presented in number from grade 1 to 10.
--- ---

<Utilization score of credit rating evaluation model>

① Utilizes as a key component in calculating BIS credit risk-weighted assets
  • 46 -
② Supports prompt loan decision-making by applying for interest rate (pricing), and discretionary<br>decision-making, etc.
③ Utilizes to measure overall risk such as asset quality and provisions for the credit losses<br>
--- ---
④ Utilizes as an indicator of Risk Adjusted Performance Measurement and relevant performance measurement.<br>
--- ---
c. Control structure for credit evaluation system (including content related to grade change)<br>
--- ---
① Securing the independence of granting credit rating
--- ---

The credit rating is granted through the evaluation department (large enterprise, small and medium-sized enterprise, personal, etc.) that is independent from the sales department, but the head of the branch has authority to grant credit ratings to small-scale loans according to the size of the loans. The Group clearly defines and operates procedures such as override, check list, authority and procedures, and review when granting credit ratings. For credit ratings granted by a sales branch and the evaluation department, periodic and regular loan reviews are performed by the credit supervision department to assess the consistency and timeliness of credit ratings.

② Securing independence of credit risk control operations

The Credit Risk Management Dept. within the Risk Management Group that is independent of the sales department is responsible for the design, monitoring/supervision of operation and performance, on-going review and modification. The Credit Risk Management Dept. conducts self-validation and monitoring of credit ratings, development and implementation of credit rating models.

③ Validation of credit evaluation systems by an independent third party

To secure the adequacy of the credit evaluation system, the Risk Model Validation Dept. within the Risk Management Group, which is independent from the credit evaluation system department, conducts validation of credit evaluation system. The Risk Model Validation Dept. conducts periodic validation to assess the adequacy of the credit evaluation system’s design, to determine whether BIS satisfies with the minimum requirements and to validate the utilization and calculation methods of risk measurement components (PD, LGD, EAD, etc.).

A third-party review is conducted in Head Office Audit Dept. for the development/ implementation of Credit Risk Management Dept.’s credit risk model, estimation of risk measurement factors, and the third party’s validation activities of the Risk Model Validation Dept.

④ Strengthen the role of the Board of Directors and management

Major decision-making related to the credit evaluation system and risk measurement factors are carried out in the approval process of the Executive Risk Management Committee and the Board Risk Management Committee (Board of Directors). Issues related to validation and monitoring of credit evaluation systems and risk measurement elements are regularly reported to the Executive Risk Management Committee and the Board Risk Management Committee (Board of Directors).

  • 47 -
d. Scope of application of internal rating method
BIS Ratio calculation method Exposure category Date of approval
--- --- --- --- --- --- ---
Standard method Permanent standard method Government, public institutions, and banks October 30, 2008
Standard method Subsidiaries, overseas branches, and other assets October 30, 2008
Internal rating-based model Large/small, medium-sized enterprise exposure (external<br>audit IFRS, external audit GAAP, non-external audit1, non-external audit2, personal business model), retail exposure, and asset-backed exposure (Credit rating-based<br>approach) October 30, 2008<br><br><br>February 13, 2015
Stepwise application Special financing, financial institutions and non-profit<br>organizations October 30, 2008
iii) Measurement of expected credit loss
--- ---

K-IFRS No.1109 ‘Financial Instruments’ 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<br>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<br>the credit risk has not increased significantly since initial recognition.
--- ---

At the end of each reporting period, the Group assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality, 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 above 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 —
  • 48 -

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<br>
• For loans overdue for less than 90 days, when it is determined that not even a portion of the loan will be<br>recovered unless claim actions such as disposal of collaterals are taken
--- ---
• When other objective indicators of impairment have been noted for the financial asset
--- ---

In addition, the Group reflects the future economic forecast adjustment coefficient in the probability of default and loss given default and recognizes additional provisions for expected credit losses by adjusting the future economic forecast adjustment coefficient in consideration of the potential for insolvency due to increase in domestic and international economic uncertainty.

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

Probability of default (PD) and loss given default (LGD) for each category of financial asset are being calculated by considering factors such as debtor 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 using reasonably supportable macroeconomic indicators such as Gross Domestic Product (real and original series) growth rate, average manufacturing utilization rate, apartment sales price index (KB, Seoul), unemployment rate (original series), etc., in order to forecast forward looking information conditions.

  • 49 -

The Group applies the following forward-looking model and reviews the results regularly.

• Development of estimation models through regression analysis of borrower(corporate/retail)/probability of default<br>by point in time and collateral (credit, collateral)/ default recovery rate by point in time (1-loss given default) and macroeconomic indicator data by year
Major macroeconomic variables Correlation between credit risk and macroeconomic<br>indicators
--- --- ---
Gross Domestic Product (real, original series) growth rate Negative (-) Correlation
Average manufacturing utilization rate 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
Housing transaction price index (KB, Nationwide) Negative (-) Correlation
KOSDAQ Negative (-) Correlation
• Calculation of estimated probability of default and estimated default recovery rate by incorporating future<br>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<br>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.<br>
--- ---
• Probability weight
--- ---

As of December 31, 2025, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %):

Normal<br>Scenario Good<br>Scenario Bad<br>Scenario Worst<br>Scenario
Probability weight 45.58 5.69 28.73 20.00
  • 50 -
• When reflecting the predicted probability of default and default recovery rates, the increase rate is used as a<br>future economic forecast adjustment coefficient and reflected in the estimate applied for the current year.

The Group has additionally applied a Worst scenario to the three macroeconomic variable scenarios (Normal, Good, and Bad) considering internal and external uncertainties. Assuming all other conditions remain the same and assigning a probability weight of 100% to each scenario, the results of the Group’s sensitivity analysis of expected credit loss allowance are as follows (Forecast period: 2026) (Unit: Korean Won in millions):

Scenarios Probability weight Assuming 100% Difference from<br>book value
Good 5.69 % 1,280,714 (675,757 )
Normal 45.58 % 1,394,081 (562,390 )
Bad 28.73 % 1,796,726 (159,745 )
Worst 20.00 % 4,255,128 2,298,657
  • 51 -
iv) Maximum exposure to credit risk

The Group’s maximum exposure to credit risk refers to net book value of financial assets net of expected credit loss allowances, which shows the uncertainties of maximum changes of net value of financial assets attributable to a particular risk without considering collateral and other credit enhancements obtained. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees loan commitment Additionally, loan commitments are the unused commitment amounts that represent the maximum exposure to credit risk for each loan.

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31,<br>2025 December 31,<br>2024
Loans and other financial assets at amortized cost Korean treasury and government agencies 158,916 194,896
Banks 22,306,039 23,060,847
Corporates 165,693,847 164,118,475
Retail 183,050,503 179,173,623
Sub-total 371,209,305 366,547,841
Financial assets at FVTPL (*1) Due from banks 261,470 73,951
Debt securities 4,117,965 4,651,188
Derivative assets 5,806,126 10,095,101
Sub-total 10,185,561 14,820,240
Financial assets at FVTOCI Debt securities and others 47,686,718 42,912,557
Securities at amortized cost Debt securities 18,707,459 19,193,186
Derivative assets (Designated for hedging) 37,010 10,102
Off-balance accounts Guarantees (*2) 16,070,080 16,610,473
Loan commitments 88,699,685 90,311,327
Sub-total 104,769,765 106,921,800
Total 552,595,818 550,405,726

(*1) Puttable financial instruments are not included.

(*2) As of December 31, 2025 and 2024, the financial guarantee amount of 5,032,789 million Won and 4,156,000 million Won are included, respectively.

  • 52 -
a) Credit risk exposure by geographical areas

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

December 31, 2025
Korea China U.S.A U.K Japan Others (*) Total
Loans and other financial assets at amortized cost 341,410,916 5,451,709 6,441,065 773,798 1,259,028 15,872,789 371,209,305
Securities at amortized cost 17,720,610 55,390 779,676 — — 151,783 18,707,459
Financial assets at FVTPL 7,607,000 32 1,040,587 502,905 277,765 757,272 10,185,561
Financial assets at FVTOCI 42,866,104 655,937 2,294,306 309,252 — 1,561,119 47,686,718
Derivative assets (Designated for hedging) — — 30,719 — 6,291 — 37,010
Off-balance accounts 97,169,751 1,069,795 1,352,886 756,252 35,333 4,385,748 104,769,765
Guarantees 13,271,393 285,532 419,757 261,870 13,746 1,817,782 16,070,080
Loan commitments 83,898,358 784,263 933,129 494,382 21,587 2,567,966 88,699,685
Total 506,774,381 7,232,863 11,939,239 2,342,207 1,578,417 22,728,711 552,595,818

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

December 31, 2024
Korea China U.S.A U.K Japan Others (*) Total
Loans and other financial assets at amortized cost 335,312,680 5,784,236 7,076,667 584,060 850,835 16,939,363 366,547,841
Securities at amortized cost 18,042,879 197,188 712,761 — — 240,358 19,193,186
Financial assets at FVTPL 10,387,361 88 1,824,414 553,842 430,341 1,624,194 14,820,240
Financial assets at FVTOCI 37,736,203 589,277 3,157,655 190,801 22,112 1,216,509 42,912,557
Derivative assets (Designated for hedging) — — 3,216 — 6,886 — 10,102
Off-balance accounts 100,568,462 1,213,479 1,689,796 87,755 20,758 3,341,550 106,921,800
Guarantees 13,792,824 497,302 763,582 87,755 20,758 1,448,252 16,610,473
Loan commitments 86,775,638 716,177 926,214 — — 1,893,298 90,311,327
Total 502,047,585 7,784,268 14,464,509 1,416,458 1,330,932 23,361,974 550,405,726

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

  • 53 -
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, 2025 and 2024 (Unit: Korean Won in millions):

December 31, 2025
Service Manufacturing Finance and<br>insurance Construction Individuals Others Total
Loans and other financial assets at amortized cost 82,661,426 50,363,769 32,939,748 4,468,456 180,689,079 20,086,827 371,209,305
Securities at amortized cost 89,611 — 8,009,336 39,968 — 10,568,544 18,707,459
Financial assets at FVTPL 65,673 424,379 5,710,158 4,392 100 3,980,859 10,185,561
Financial assets at FVTOCI 179,072 265,129 33,749,595 79,600 — 13,413,322 47,686,718
Derivative assets (Designated for hedging) — — 37,010 — — — 37,010
Off-balance accounts 21,447,783 25,003,158 14,659,721 3,024,118 33,261,431 7,373,554 104,769,765
Guarantees 5,062,242 7,346,416 1,575,301 718,525 4,257 1,363,339 16,070,080
Loan commitments 16,385,541 17,656,742 13,084,420 2,305,593 33,257,174 6,010,215 88,699,685
Total 104,443,565 76,056,435 95,105,568 7,616,534 213,950,610 55,423,106 552,595,818
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Service Manufacturing Finance and<br>insurance Construction Individuals Others Total
Loans and other financial assets at amortized cost 86,264,992 46,100,201 30,436,530 4,751,261 176,668,876 22,325,981 366,547,841
Securities at amortized cost 169,352 — 10,238,266 59,866 — 8,725,702 19,193,186
Financial assets at FVTPL 129,606 563,351 9,625,142 11,452 693 4,489,996 14,820,240
Financial assets at FVTOCI 331,590 474,837 29,935,897 194,940 — 11,975,293 42,912,557
Derivative assets (Designated for hedging) — — 10,102 — — — 10,102
Off-balance accounts 20,286,212 27,691,963 14,908,569 2,749,923 33,498,969 7,786,164 106,921,800
Guarantees 4,485,092 7,770,339 1,631,135 858,098 7,159 1,858,650 16,610,473
Loan commitments 15,801,120 19,921,624 13,277,434 1,891,825 33,491,810 5,927,514 90,311,327
Total 107,181,752 74,830,352 95,154,506 7,767,442 210,168,538 55,303,136 550,405,726
  • 54 -
v) 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, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Stage 1 Stage 2 Stage 3 Total Expected<br>credit loss<br>allowance Total, net
Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Loans and other financial assets at amortized cost 320,987,247 25,876,614 12,791,200 11,526,507 2,290,607 373,472,175 (2,262,870 ) 371,209,305
Korean treasury and government agencies 159,419 — — — — 159,419 (503 ) 158,916
Banks 21,947,704 380,844 — — — 22,328,548 (22,509 ) 22,306,039
Corporates 137,760,518 21,175,120 2,405,192 4,949,910 979,847 167,270,587 (1,576,740 ) 165,693,847
General business 99,660,976 14,532,450 2,075,889 3,692,874 822,745 120,784,934 (1,271,965 ) 119,512,969
Small- and medium-sized enterprise 26,324,391 6,316,669 321,059 1,253,836 155,743 34,371,698 (261,253 ) 34,110,445
Project financing and others 11,775,151 326,001 8,244 3,200 1,359 12,113,955 (43,522 ) 12,070,433
Retails 161,119,606 4,320,650 10,386,008 6,576,597 1,310,760 183,713,621 (663,118 ) 183,050,503
Securities at amortized cost 18,718,526 — — — — 18,718,526 (11,067 ) 18,707,459
Financial assets at FVTOCI (*3) 47,527,021 159,697 — — — 47,686,718 (28,937 ) 47,686,718
Total 387,232,794 26,036,311 12,791,200 11,526,507 2,290,607 439,877,419 (2,302,874 ) 437,603,482
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Collateral value
Stage 1 Stage 2 Stage 3 Total
Loans and other financial assets at amortized cost 233,729,937 21,699,210 1,009,058 256,438,205
Korean treasury and government agencies 103,817 — — 103,817
Banks 1,815,479 — — 1,815,479
Corporates 92,470,615 6,504,152 556,479 99,531,246
General business 61,019,442 5,128,816 475,788 66,624,046
Small- and medium-sized enterprise 23,443,754 1,375,336 80,691 24,899,781
Project financing and others 8,007,419 — — 8,007,419
Retails 139,340,026 15,195,058 452,579 154,987,663
Securities at amortized cost — — — —
Financial assets at FVTOCI (*3) — — — —
Total 233,729,937 21,699,210 1,009,058 256,438,205
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporates are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
(*3) Financial assets at FVTOCI are disclosed as the amount before deducting credit loss allowances as it does not<br>reduce the carrying amount.
--- ---
  • 55 -
December 31, 2024
Stage 1 Stage 2 Stage 3 Total Expected<br>credit loss<br>allowance Total, net
Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Loans and other financial assets at amortized cost 319,216,302 22,126,049 12,779,833 12,871,140 1,891,996 368,885,320 (2,337,479 ) 366,547,841
Korean treasury and government agencies 195,521 — — — — 195,521 (625 ) 194,896
Banks 22,842,408 115,722 88,306 — 36,140 23,082,576 (21,729 ) 23,060,847
Corporates 139,696,518 16,962,447 2,745,985 5,666,456 715,654 165,787,060 (1,668,585 ) 164,118,475
General business 97,835,687 10,772,864 2,359,928 4,012,005 548,821 115,529,305 (1,255,045 ) 114,274,260
Small- and medium-sized enterprise 30,520,022 5,841,706 376,099 1,560,415 163,776 38,462,018 (343,071 ) 38,118,947
Project financing and others 11,340,809 347,877 9,958 94,036 3,057 11,795,737 (70,469 ) 11,725,268
Retails 156,481,855 5,047,880 9,945,542 7,204,684 1,140,202 179,820,163 (646,540 ) 179,173,623
Securities at amortized cost 19,203,940 — — — — 19,203,940 (10,754 ) 19,193,186
Financial assets at FVTOCI (*3) 42,756,363 156,194 — — — 42,912,557 (29,082 ) 42,912,557
Total 381,176,605 22,282,243 12,779,833 12,871,140 1,891,996 431,001,817 (2,377,315 ) 428,653,584
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Collateral value
Stage 1 Stage 2 Stage 3 Total
Loans and other financial assets at amortized cost 237,605,385 22,440,301 828,926 260,874,612
Korean treasury and government agencies 55,775 — — 55,775
Banks 2,474,302 — — 2,474,302
Corporates 98,950,301 7,227,619 442,546 106,620,466
General business 59,099,372 5,578,709 328,666 65,006,747
Small- and medium-sized enterprise 32,222,974 1,588,272 113,880 33,925,126
Project financing and others 7,627,955 60,638 — 7,688,593
Retails 136,125,007 15,212,682 386,380 151,724,069
Securities at amortized cost — — — —
Financial assets at FVTOCI (*3) — — — —
Total 237,605,385 22,440,301 828,926 260,874,612
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporates are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
(*3) Financial assets at FVTOCI are disclosed as the amount before deducting credit loss allowances as it does not<br>reduce the carrying amount.
--- ---
  • 56 -
b) Guarantees and loan commitments

The credit quality of the guarantees and loan commitments as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Financial assets Stage 1 Stage 2 Stage 3 Total
Above<br>appropriate<br>credit rating<br>(*1) Lower than<br>a limited<br>credit rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Off-balance accounts
Guarantees 15,186,127 776,038 18,603 66,204 23,108 16,070,080
Loan commitments 83,416,740 2,902,883 2,179,241 200,588 233 88,699,685
Total 98,602,867 3,678,921 2,197,844 266,792 23,341 104,769,765
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporate are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial assets Stage 1 Stage 2 Stage 3 Total
Above<br>appropriate<br>credit rating<br>(*1) Lower than<br>a limited<br>credit rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Off-balance accounts
Guarantees 15,678,584 808,182 41,866 59,688 22,153 16,610,473
Loan commitments 85,592,644 2,416,771 2,080,517 221,395 — 90,311,327
Total 101,271,228 3,224,953 2,122,383 281,083 22,153 106,921,800
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporate are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
vi) Collateral and other credit enhancements
--- ---

For the year ended December 31, 2025, there have been no significant decreases in the value of collateral or other credit enhancements held by the Group or significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Group.

vii) Among the financial assets that have measured expected credit loss allowances in terms of lifetime expected<br>credit losses, amortized costs before changes in contractual cash flows for the year ended December 31, 2025 is 56,978 million Won, with net losses recognized along with the changes 9,244 million Won and for the year end<br>December 31, 2024 is 52,420 million Won, with net losses recognized along with the changes 1,500 million Won, respectively.
viii) The Group determines which loan is subject to write-off in accordance<br>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<br>and Bankruptcy Act. and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation, or when it is not possible to recover the loan amount through legal means such as selling debtor’s assets via<br>auctions or through any other means available. Notwithstanding the write-off, the Group may still exercise its right of collection after the asset has been written off in accordance with its collection<br>policies.
--- ---

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, 2025 and 2024 is 8,239,954 million Won and 7,662,692 million Won, respectively. In addition, the contractual uncollected amount of financial assets written off during the year ended December 31, 2025, but still in the process of recovery is 789,029 million Won.

  • 57 -
(2) Market risk

Market risk is the possible risk of loss arising from trading activities and non-trading activities in the volatility of market factors such as interest rates, stock prices and foreign exchange rates. Market risk arises from changes in the interest rates and foreign exchange rates for financial instruments that are not yet settled, and all contracts are exposed to a certain level of volatility according to changes in the interest rates, credit spreads, foreign exchange rates and the price of equity securities, and etc.

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 in the trading and non-trading activities and measuring its level and evaluating the appropriateness of the level of accepted market risks.

i) Market risk management for trading activities

The Group has introduced and applied the Basel III standard method according to Detailed Enforcement Regulations for Supervision of Banking Business <Appendix 3-2> as a measurement method of market risk since 2023. On a consolidated basis, the market risk capital requirements used for calculating the BIS ratio are determined by aggregating the capital required for sensitivity-based methods, default risk, and residual risk, and are managed within the established internal capital limit.

The sensitivity-based method measures linear and nonlinear losses that may occur due to unfavorable fluctuations such as interest rates, credit spreads, stock prices, exchange rates, and general commodity prices, and measures losses that may occur due to sudden bankruptcy not considered in the sensitivity method. Other losses not considered in the sensitivity method and default risk are measured in the residual risk required equity capital.

The foreign exchange positions intentionally opened to mitigate the impact of exchange rate fluctuations on the capital ratio, specifically for overseas business investments in key operating currencies such as IDR, VND, and CNY, are excluded from the calculation of market risk capital requirements with the approval of structural foreign exchange positions from the financial regulatory authorities. However, they are managed within market internal capital, among others.

In addition, in the event of extreme situations such as the IMF crisis and the global financial crisis, stress tests are conducted every month to measure the size of losses to prepare for crises.

Market risk limits, including internal capital, loss, and VaR limits, are allocated annually by the Board Risk Management Committee and Executive Risk Management Committee based on business groups, departments, teams and risk factors, while the position management department sets limits for business units excluding the derivatives book. Compliance with limits is independently monitored by both the operation department and the Risk Management Dept. And the details of the limit monitoring are regularly reported to the Executive Risk Management Committee and the Board Risk Management Committee.

  • 58 -
a) Trading activities

The market risk required equity capital at the end of the reporting period by risk group is as follows (Unit: Korean Won in millions):

Risk group December 31,<br>2025 December 31,<br>2024
Sensitivity-based risk General interest rate risk 34,292 29,029
Equity risk 3,152 3,006
General commodity risk 3 51
Foreign exchange risk (*) 110,144 114,174
Non-securitization credit spread risk 23,797 18,258
Securitization (excluding correlation trading portfolio, CTP) credit spread risk — —
CTP credit spread risk — —
Default risk Non-Securitization bankruptcy risk 9,207 8,604
Securitization (excluding CTP) default risk — —
CTP default risk — —
Residual risk Residual risk 1,106 1,182
Total 181,701 174,304

(*) The structural foreign exchange positions approved by the Financial Supervisory Service Governor are excluded from the calculation of the foreign exchange capital requirements.

ii) Market risk management for non-trading activities<br>

For non-trading sectors of the Group, NII (Net Interest Income) and NPV (Net Present Value) simulations are operated through the ALM (Asset Liability Management) system, and interest rate risks are managed and measured by various analysis methods such as calculating ΔNII (change in Net Interest Income) and ΔEVE (change in Economic Value of Equity).

NII is primarily an indicator of changes in profit from short-term changes in interest rates and is measured by deducting the interest expenses on the liability from the interest income from the asset. NPV is primarily an indicator of the risk of an economic value perspective resulting from fluctuations in interest rates and is measured by subtracting the present value of the liability from the present value of the asset. ΔNII indicates a change in net interest income over a specified future period (e.g., 1 year) due to fluctuations in interest rates, and ΔEVE indicates the economic value changes in equity capital resulting from changes in interest rates affecting the present value of asset, liabilities, and off-balance-sheet items.

Applying six scenarios of interest rate risk shocks (parallel increase and decrease, steepener, flattener and short-term interest rate increase and decrease), the interest rate risks of IRRBB (Interest Rate Risk in the Banking Book) are calculated. Based on the six scenarios above, the change in economic value of equity (ΔEVE) is measured, the maximum of which is the final ΔEVE. Also, the maximum calculated based on the two scenarios (parallel increase and decrease) is the final ΔNII.

For assets and liabilities as of December 31, 2025 and 2024 that include the Bank and consolidated trusts and subsidiaries of the Bank, details of ΔEVE and ΔNII calculated based on interest rate risk in banking book (IRRBB) are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
ΔEVE(*1) ΔNII(*2) ΔEVE(*1) ΔNII(*2)
488,658 685,472 952,830 668,290
(*1) ΔEVE: change in Economic Value of Equity
--- ---
(*2) ΔNII: change in Net Interest Income
--- ---
  • 59 -

The Group measures and manages the risks resulting from interest rate fluctuations caused by mismatches in interest rates and maturities of assets and liabilities. 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, 2025
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Asset:
Loans and other financial assets at amortized cost 242,452,158 49,888,783 19,968,147 12,907,840 66,559,606 3,874,317 395,650,851
Financial assets at FVTPL 21,445 — — — — — 21,445
Financial assets at FVTOCI 16,065,783 3,864,449 2,551,840 1,989,420 23,884,850 1,298,513 49,654,855
Securities at amortized cost 1,068,946 1,058,142 2,206,199 2,130,814 11,965,315 1,192,507 19,621,923
Total 259,608,332 54,811,374 24,726,186 17,028,074 102,409,771 6,365,337 464,949,074
Liability:
Deposits due to customers 168,307,298 57,072,670 42,566,190 43,628,460 63,954,509 29,396 375,558,523
Borrowings 20,176,206 3,471,807 1,085,634 1,257,658 2,883,194 518,214 29,392,713
Debentures 3,726,029 1,689,439 1,919,818 1,950,739 19,032,647 2,555,145 30,873,817
Total 192,209,533 62,233,916 45,571,642 46,836,857 85,870,350 3,102,755 435,825,053
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Asset:
Loans and other financial assets at amortized cost 228,548,911 50,494,417 23,092,039 15,052,939 64,031,345 4,200,527 385,420,178
Financial assets at FVTPL 22,850 — — — — — 22,850
Financial assets at FVTOCI 7,276,054 4,996,536 2,350,588 2,570,750 26,449,061 1,421,185 45,064,174
Securities at amortized cost 1,318,853 1,641,266 1,856,726 629,079 12,972,012 1,862,090 20,280,026
Total 237,166,668 57,132,219 27,299,353 18,252,768 103,452,418 7,483,802 450,787,228
Liability:
Deposits due to customers 166,067,906 54,851,422 43,879,398 40,969,896 62,233,212 34,575 368,036,409
Borrowings 17,300,859 3,577,136 1,144,449 1,343,675 2,961,263 513,870 26,841,252
Debentures 2,627,676 3,528,439 2,602,985 1,633,304 14,766,804 2,611,435 27,770,643
Total 185,996,441 61,956,997 47,626,832 43,946,875 79,961,279 3,159,880 422,648,304
  • 60 -
iii) Currency risk

The Bank manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. The Risk Management Committee sets market internal capital limits for each group to manage market risks, including currency risk. The trading desks and dealers manage the comprehensive position by operating spot foreign exchange and currency derivatives within the set market risk and foreign exchange position limits.

Financial instruments in foreign currencies exposed to currency risk as of December 31, 2025 and 2024 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):

December 31, 2025
CNY Others Total
Foreigncurrency Korean Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Foreign<br>currency Korean<br>Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Korean<br>Won<br>equivalent Korean<br>Won<br>equivalent
Asset Cash and cash equivalents 10,365 14,873,417 162,974 1,495,497 1,434 293,637 396 667,397 1,503,822 18,833,770
Loans and other financial assets at amortized cost 22,599 32,426,982 98,342 902,417 18,707 3,830,413 2,061 3,474,553 7,539,317 48,173,682
Financial assets at FVTPL 1,015 1,456,178 4,835 44,367 — — 184 310,228 19,687 1,830,460
Financial assets at FVTOCI 2,718 3,900,476 — — 3,185 652,090 283 477,752 870,955 5,901,273
Securities at amortized cost 610 875,923 — — 271 55,390 7 12,610 135,379 1,079,302
Total 37,307 53,532,976 266,151 2,442,281 23,597 4,831,530 2,931 4,942,540 10,069,160 75,818,487
Liability Financial liabilities at FVTPL 62 88,508 — 1 — — — 774 138 89,421
Deposits due to customers 22,953 32,935,771 215,351 1,976,126 21,625 4,428,000 5,781 9,744,458 6,344,375 55,428,730
Borrowings 7,846 11,258,513 34,754 318,915 957 195,936 359 605,116 2,060,833 14,439,313
Debentures 3,093 4,438,023 — — 600 122,856 — — — 4,560,879
Other financial liabilities 3,143 4,509,358 12,179 111,756 1,423 291,386 62 104,848 352,234 5,369,582
Total 37,097 53,230,173 262,284 2,406,798 24,605 5,038,178 6,202 10,455,196 8,757,580 79,887,925
Off-balance accounts 9,277 13,312,112 19,765 181,369 1,163 238,158 673 1,134,333 541,985 15,407,957
December 31, 2024
CNY Others Total
Foreigncurrency Korean Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Foreign<br>currency Korean<br>Won<br>equivalent Foreigncurrency Korean Won<br>equivalent Korean Won<br>equivalent Korean Won<br>equivalent
Asset Cash and cash equivalents 8,257 12,138,001 78,491 735,049 1,330 267,679 223 341,262 1,123,418 14,605,409
Loans and other financial assets at amortized cost 21,620 31,780,528 104,070 974,600 26,856 5,405,371 2,212 3,380,628 7,580,785 49,121,912
Financial assets at FVTPL 871 1,279,639 6,655 62,327 — — 145 222,355 20,086 1,584,407
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 35,103 51,599,625 189,216 1,771,976 32,076 6,455,860 2,653 4,055,172 9,747,702 73,630,335
Liability Financial liabilities at FVTPL 112 164,400 2 15 — — 1 1,766 751 166,932
Deposits due to customers 23,607 34,702,743 250,528 2,346,146 27,301 5,494,893 2,024 3,094,378 5,348,054 50,986,214
Borrowings 8,302 12,203,906 49,495 463,513 110 22,235 545 832,661 2,833,639 16,355,954
Debentures 3,379 4,967,433 — — — — — — — 4,967,433
Other financial liabilities 2,122 3,119,796 20,524 192,200 4,120 829,197 244 373,176 491,995 5,006,364
Total 37,522 55,158,278 320,549 3,001,874 31,531 6,346,325 2,814 4,301,981 8,674,439 77,482,897
Off-balance accounts 7,939 11,670,439 23,905 223,864 1,702 342,576 647 988,344 1,506,643 14,731,866

All values are in US Dollars.

  • 61 -
(3) Liquidity risk

Liquidity risk management prevents financial institutions from incurring losses due to lack of funds by effectively managing liquidity shortages that can occur due to inconsistent maturity of assets and liabilities or an unexpected outflow of funds. The entire assets and liabilities within the financial statements and off-balance sheet account that can generate cash-flow are subject to the liquidity risk management.

i) Liquidity risk management
a) Basel III regulatory response
--- ---

Through the standard ALM system, liquidity risks are managed by dividing them into short-term (liquidity coverage ratio, within 30 days) and mid- to long-term (net stabilization fund procurement ratio, over one year). Daily Liquidity Coverage Ratio (LCR) and quarterly Net Stable Funding Ratio (NSFR) are calculated and monitored, and relevant information is provided in accordance with the disclosure standards of the Basel Committee on Banking Supervision (BCBS).

b) Analysis of financing and operation status by maturity

As assets and liabilities are grouped into ALM account (COA; Chart of account) according to their account characteristics, and the gap ratio is identified through cash flow reports by various time and segment (e.g., by remaining period, contract period, etc.), the Group manages the liquidity risk by keeping the target ratio (limited) set this year. In addition, the Group established and manages the target ratio of concentration of funding for specific funding sources that are highly likely to withdraw. The Group also provides a function through daily ALM system to search relevant maturity report by business group so that related departments (e.g., the Financial Planning Department, the Treasury Department, each business group, etc.) can identify liquidity risk management indicators and status.

c) Establishment and implementation of Contingency Plan

Various inspection items related to liquidity risk are monitored on a daily or weekly basis by establishing and regularly inspecting the preceding Contingency Plan in order to effectively cope with the risk of capital outflow and procurement due to rapid and unexpected changes in market conditions. In addition, the Group has strengthened monitoring related to foreign currency liquidity by operating a foreign currency contingency plan separately from January 2012.

• Inspection items related to liquidity risk on the Contingency Plan checklist
∎ The amount of Won and foreign currency and insufficiency of funds
--- ---
∎ Liquidity coverage ratio (monthly average balance, daily balance)
--- ---
∎ The amounts of deposits and withdrawals (saving deposit in Korean Won, depository)
--- ---
∎ Overdraft limit exhaustion rate
--- ---
∎ Percentage of reduction in the balance of deferred deposits
--- ---
∎ Percentage of concentration of funding by subject and period
--- ---
∎ Won and foreign currency funding spread
--- ---
  • 62 -
ii) Maturity analysis of non-derivative financial liabilities<br>
a) Cash flows of principals and interests by remaining contractual maturities of<br>non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Financial liabilities at FVTPL 436,572 53,234 52,655 32,389 324,118 17,501 916,469
Deposits due to customers 240,375,790 42,639,701 31,088,985 45,721,916 16,993,271 1,212,200 378,031,863
Borrowings 14,281,066 4,327,804 3,581,578 3,018,431 3,360,731 518,214 29,087,824
Debentures 3,398,896 1,691,707 1,922,086 2,277,982 19,036,653 2,555,145 30,882,469
Lease liabilities 52,235 42,363 38,545 33,985 255,895 19,382 442,405
Other financial liabilities 22,585,097 82,539 — 2,626 235,446 3,847,739 26,753,447
Total 281,129,656 48,837,348 36,683,849 51,087,329 40,206,114 8,170,181 466,114,477
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Financial liabilities at FVTPL 74,205 — — — — — 74,205
Deposits due to customers 236,298,950 41,158,837 32,874,946 42,446,187 16,599,482 1,441,449 370,819,851
Borrowings 9,737,351 5,577,169 4,338,707 3,477,117 3,391,285 563,870 27,085,499
Debentures 2,073,670 3,683,287 2,606,561 2,036,919 14,770,810 2,611,573 27,782,820
Lease liabilities 53,205 42,188 38,538 34,265 262,872 50,352 481,420
Other financial liabilities 17,495,078 73,587 402 756 129,235 4,287,098 21,986,156
Total 265,732,459 50,535,068 39,859,154 47,995,244 35,153,684 8,954,342 448,229,951
b) Cash flows of principals and interests by expected maturities of<br>non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Financial liabilities at FVTPL 445,949 60,227 57,368 36,549 296,086 17,501 913,680
Deposits due to customers 247,316,349 44,727,394 30,657,625 39,953,741 14,486,615 433,032 377,574,756
Borrowings 14,283,463 4,328,924 3,582,649 3,020,493 3,354,081 518,214 29,087,824
Debentures 3,398,896 1,691,707 1,922,086 2,277,982 19,036,653 2,555,145 30,882,469
Lease liabilities 52,239 43,505 39,701 35,150 256,136 19,382 446,113
Other financial liabilities 22,585,097 82,539 — 2,626 235,446 3,847,739 26,753,447
Total 288,081,993 50,934,296 36,259,429 45,326,541 37,665,017 7,391,013 465,658,289
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Financial liabilities at FVTPL 74,205 — — — — — 74,205
Deposits due to customers 242,015,533 43,010,503 32,635,026 37,588,260 14,465,794 491,714 370,206,830
Borrowings 9,739,766 5,578,296 4,339,783 3,479,184 3,384,599 563,870 27,085,498
Debentures 2,073,670 3,683,287 2,606,561 2,036,919 14,770,810 2,611,573 27,782,820
Lease liabilities 53,208 43,333 39,738 35,465 267,183 50,352 489,279
Other financial liabilities 17,495,762 73,915 722 1,371 127,287 4,287,098 21,986,155
Total 271,452,144 52,389,334 39,621,830 43,141,199 33,015,673 8,004,607 447,624,787
  • 63 -
iii) Maturity analysis of derivative financial liabilities

Derivatives held for trading 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 classified as “within 3 months” in the table below. The cash flows from derivatives designated for hedging are estimated by offsetting cash inflows and cash outflows.

The cash flow by the maturity of derivative financial liabilities as of December 31, 2025 and 2024 is as follows (Unit: Korean Won in millions):

Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
December 31, 2025 Fair value hedge 4,867 11,239 (3,279 ) 13,407 1,247 (10,613 ) 16,868
Trading 5,121,181 — — — — — 5,121,181
December 31, 2024 Fair value hedge (6,816 ) 46,231 (11,740 ) 44,950 35,764 (5,834 ) 102,555
Trading 9,161,143 — — — — — 9,161,143
iv) Maturity analysis of off-balance accounts (guarantees, loan commitments<br>and others)
--- ---

A 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 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 payment limit by the Group in accordance with guarantees and loan commitment only applies to principal amounts. In the case of payment guarantees, which correspond to financial guarantees such as debenture issuance, loan collateral, loan commitments and other credit offerings provided by the Group, there is a contract maturity date; however, payment must be executed immediately upon the counterparty’s request. Details of off-balance accounts as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Guarantees 16,070,080 16,610,473
Loan commitments 88,699,685 90,311,327
Other commitments 5,636,343 6,039,793
  • 64 -
(4) Operational risk
i) Definition
--- ---

The Group defines the operational risk as the risk of potential losses arising from inadequate or incorrect internal procedures, human resource and system, and/or external factors.

ii) Operational risk measurement and management

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 of Risk Management Committee. The Group regularly calculates the operational risk capital and reports to the management, the Board of Risk Management Committee, and others.

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 Group has established a Business Continuity Plan (BCP) and conducts annual simulation drills.

(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 which has been implemented in Korea on December 31, 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.

In accordance with the above regulations, the Group is maintaining the following ratios as of December 31, 2025 and 2024, respectively: a 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 minimum total capital ratio of 12.5% and 11.5%.

Details of the Group’s capital adequacy ratio as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 (*) December 31, 2024
Risk-weighted assets for credit risk 165,110,790 171,533,503
Risk-weighted assets for market risk 2,271,256 2,178,805
Risk-weighted assets for operational risk 18,761,441 18,296,422
Total risk-weighted assets 186,143,487 192,008,730
Common Equity Tier 1 capital 26,296,573 25,060,125
Other Tier 1 capital 1,412,550 1,652,581
Tier 2 capital 3,581,401 3,717,491
Total risk-adjusted capital 31,290,524 30,430,197
Common Equity Tier 1 ratio 14.13 % 13.05 %
Tier 1 capital ratio 14.89 % 13.91 %
Total capital ratio 16.81 % 15.85 %
(*) Tier 1 capital ratio as of December 31, 2025 is estimation.
--- ---
  • 65 -
5. OPERATING SEGMENTS

In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker (the “CODM”) utilizes the information per type of customers. This financial information of the segments is regularly reviewed by the CODM.

(1) Segment by types of customers

The Group’s reporting segments comprise the following customers: consumer banking, corporate banking, investment banking, capital market, and headquarters and others. The reportable segments are classified based on the target customers for whom the service is being provided.

• Consumer banking: Loans/deposits and financial services for retail and individual consumers, etc.<br>
• Corporate banking: Loans/deposits and export/import, Financial services for corporations, etc.<br>
--- ---
• Investment banking: Domestic/foreign investment, Structured finance, M&A, Equity & fund investment<br>related business, Venture advisory related tasks, Real estate SOC development practices, etc.
--- ---
• Capital market: Investment in securities and derivatives, etc.
--- ---
• Headquarters and others: Segments that do not belong to operating segments above.
--- ---

The details of operating income by each segment for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2025
Consumer<br>banking Corporate<br>banking Investment<br>banking Capital<br>market Headquarters<br>and others Sub-total Adjustments<br>(*) Continuing<br>operations
Net interest income (expense) 2,073,271 3,134,469 (221,612 ) (41,276 ) 1,870,034 6,814,886 1,001,619 7,816,505
Interest income 5,887,905 7,127,115 444,641 120,150 3,803,916 17,383,727 577,875 17,961,602
Interest expense (2,338,283 ) (6,169,595 ) (29 ) 16,162 (2,077,096 ) (10,568,841 ) 423,744 (10,145,097 )
Inter-segment (1,476,351 ) 2,176,949 (666,224 ) (177,588 ) 143,214 — — —
Net non-interest income 484,596 643,090 548,876 172,300 366,552 2,215,414 (1,054,812 ) 1,160,602
Non-interest income 401,231 644,892 783,327 11,720,595 1,650,125 15,200,170 (13,089,448 ) 2,110,722
Non-interest expense (28,489 ) (99,705 ) (234,451 ) (11,548,295 ) (1,073,816 ) (12,984,756 ) 12,034,636 (950,120 )
Inter-segment 111,854 97,903 — — (209,757 ) — — —
Other expense (1,972,820 ) (1,694,632 ) (41,890 ) (16,377 ) (1,658,669 ) (5,384,388 ) (71,977 ) (5,456,365 )
Administrative expense (1,942,080 ) (1,210,708 ) (40,019 ) (32,194 ) (1,031,702 ) (4,256,703 ) (36,759 ) (4,293,462 )
Reversal of (provision for) expected credit loss allowance (30,740 ) (483,924 ) (1,871 ) 15,817 (626,967 ) (1,127,685 ) (35,218 ) (1,162,903 )
Operating income 585,047 2,082,927 285,374 114,647 577,917 3,645,912 (125,170 ) 3,520,742
Non-operating income (expense) (2,822 ) (23,511 ) 33,455 (32,211 ) (98,722 ) (123,811 ) (37,741 ) (161,552 )
Gain on valuation of investments in associates — — 30,627 235 15,066 45,928 — 45,928
Other non-operating income (expense) (2,822 ) (23,511 ) 2,828 (32,446 ) (113,788 ) (169,739 ) (37,741 ) (207,480 )
Net income before income tax expense 582,225 2,059,416 318,829 82,436 479,195 3,522,101 (162,911 ) 3,359,190
Income tax expense (153,708 ) (549,578 ) (84,171 ) (21,763 ) 42,634 (766,586 ) (10,505 ) (777,091 )
Net interest income 428,517 1,509,838 234,658 60,673 521,829 2,755,515 (173,416 ) 2,582,099
(*) Adjustments were made for the presentation of profit or loss in accordance with<br>K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.
--- ---
  • 66 -
For the year ended December 31, 2024
Consumer<br>banking Corporate<br>banking Investment<br>banking Capital<br>market Headquarters<br>and others Sub-total Adjustments<br>(*) Continuing<br>operations
Net interest income (expense) 2,347,537 3,236,304 (268,845 ) (61,738 ) 1,292,907 6,546,165 1,020,076 7,566,241
Interest income 6,072,087 8,459,406 462,395 118,247 3,844,336 18,956,471 594,202 19,550,673
Interest expense (3,225,417 ) (6,906,235 ) (58 ) 11,696 (2,290,292 ) (12,410,306 ) 425,874 (11,984,432 )
Inter-segment (499,133 ) 1,683,133 (731,182 ) (191,681 ) (261,137 ) — — —
Net non-interest income 435,555 611,386 584,626 206,750 107,580 1,945,897 (874,664 ) 1,071,233
Non-interest income 413,213 657,790 798,762 19,470,420 1,014,657 22,354,842 (19,048,803 ) 3,306,039
Non-interest expense (67,906 ) (130,075 ) (214,136 ) (19,263,670 ) (733,158 ) (20,408,945 ) 18,174,139 (2,234,806 )
Inter-segment 90,248 83,671 — — (173,919 ) — — —
Other expense (1,967,867 ) (1,580,876 ) (24,618 ) (54,003 ) (750,351 ) (4,377,715 ) (190,451 ) (4,568,166 )
Administrative expense (1,893,526 ) (1,097,939 ) (32,348 ) (33,495 ) (655,696 ) (3,713,004 ) (33,912 ) (3,746,916 )
Reversal of (provision for) expected credit loss allowance (74,341 ) (482,937 ) 7,730 (20,508 ) (94,655 ) (664,711 ) (156,539 ) (821,250 )
Operating income 815,225 2,266,814 291,163 91,009 650,136 4,114,347 (45,039 ) 4,069,308
Non-operating income (expense) (63,998 ) (6,900 ) 49,216 — (6,780 ) (28,462 ) (31,859 ) (60,321 )
Gain on valuation of investments in associates — — 26,935 307 16,825 44,067 — 44,067
Other non-operating income (expense) (63,998 ) (6,900 ) 22,281 (307 ) (23,605 ) (72,529 ) (31,859 ) (104,388 )
Net income before income tax expense 751,227 2,259,914 340,379 91,009 643,356 4,085,885 (76,898 ) 4,008,987
Income tax expense (198,324 ) (583,029 ) (89,860 ) (24,026 ) (31,921 ) (927,160 ) (34,891 ) (962,051 )
Net income 552,903 1,676,885 250,519 66,983 611,435 3,158,725 (111,789 ) 3,046,936
(*) Adjustments were made for the presentation of profit or loss in accordance with<br>K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.
--- ---
(2) Information about products and services
--- ---

The products of the Group are classified as interest-bearing products such as loans, deposits and debt securities and non-interest bearing products such as loan commitment, credit commitment, equity securities, and credit card service. This classification of products has been reflected in the segment information presenting interest income and non-interest income.

(3) Information about geographic area

Among the Group’s revenue (interest income and non-interest income) from services, revenue from the domestic customers for the years ended December 31, 2025 and 2024 amounted to 17,022,516 million Won and 19,562,153 million Won, respectively, and revenue from the foreign customers amounted to 3,049,808 million Won and 3,294,559 million Won, respectively. Among the Group’s non-current assets (investments in associates, investment properties, properties and equipment and intangible assets), non-current assets attributed to domestic customers as of December 31, 2025 and 2024 are 4,690,338 million Won and 4,773,618 million Won, respectively, and non-current assets attributed to foreign customers are 395,309 million Won and 416,972 million Won, respectively.

(4) 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, 2025 and 2024, respectively.

  • 67 -
6. CASH AND CASH EQUIVALENTS
(1) Details of cash and cash equivalents as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Cash 1,825,654 1,661,098
Foreign currencies 641,954 811,732
Demand deposits 34,641,585 23,494,419
Time deposits 125,897 63,505
Total 37,235,090 26,030,754
(2) Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
Counterparty December 31, 2025 Reason of restriction
--- --- --- --- --- --- --- ---
Due from banks in local currency:
Due from Bank of Korea (BOK) BOK 16,555,802 Reserve deposits under the BOK Act
Due from banks in foreign currencies:
Due from banks on demand BOK and others 6,919,255 Reserve deposits and others
Total 23,475,057
Counterparty December 31, 2024 Reason of restriction
Due from banks in local currency:
Due from Bank of Korea (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 and others
Total 12,667,062
  • 68 -
(3) Among the investing and financing activities, significant transactions not involving cash inflows and outflows<br>for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year<br>ended December 31,<br>2025 For the year<br>ended December 31,<br>2024
--- --- --- --- --- --- --- --- ---
Changes in other comprehensive income (loss) due to valuation of financial assets at<br>FVTOCI (38,610 ) (23,899 )
Changes in accounts payable related to acquisition of financial assets at FVTOCI 29,307 —
Changes in financial assets at FVTOCI due to debt-equity swap — 13,536
Changes in other comprehensive income (loss) of investments accounted for using the equity<br>method (3,250 ) (7,937 )
Changes in other comprehensive income (loss) related to hedge of net investment of foreign<br>operation 22,319 (114,827 )
Changes in other comprehensive income (loss) of foreign operations translation (108,576 ) 491,204
Reclassification investment properties to properties and equipment — 65,280
Reclassification properties and equipment to investment properties 14,440 —
Reclassification properties and equipment to assets held for sale 107,479 19,692
Reclassification investment properties to assets held for sale 35,137 —
Increase in the<br>right-of-use assets and lease liabilities 158,742 327,319
Changes in accounts payable related to acquisition of intangible assets (6,808 ) 24,134
  • 69 -
(4) Adjustments of liabilities from financing activities for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
January 1,<br>2025 Cash flow Not involving cash inflows and<br>outflows December 31,<br>2025
Foreign<br>Exchange Changed in<br>value of<br>hedged<br>items Others
Borrowings 26,379,689 2,873,831 (319,991 ) — 5 28,933,534
Debentures 25,534,324 3,025,075 (122,099 ) 80,760 144,208 28,662,268
Lease liabilities 450,682 (210,536 ) (1,640 ) — 172,680 411,186
Net Derivative Liability (Hedging Purpose) 92,532 (9,109 ) — (93,549 ) 166 (9,960 )
Rental deposit 39,414 (51 ) — — — 39,363
Total 52,496,641 5,679,210 (443,730 ) (12,789 ) 317,059 58,036,391
For the year ended December 31, 2024
January 1,<br>2024 Cash flow Not involving cash inflows and<br>outflows December 31,<br>2024
Foreign<br>Exchange Changed in<br>value of<br>hedged<br>items Others
Borrowings 25,254,732 (981,449 ) 2,106,383 — 23 26,379,689
Debentures 21,277,033 3,377,666 683,588 17,417 178,620 25,534,324
Lease liabilities 299,621 (213,326 ) 13,510 — 350,877 450,682
Net Derivative Liability (Hedging Purpose) 134,565 (25,442 ) — (5,265 ) (11,326 ) 92,532
Rental deposit 57,104 (17,690 ) — — — 39,414
Total 47,023,055 2,139,759 2,803,481 12,152 518,194 52,496,641
  • 70 -
7. FINANCIAL ASSETS AT FVTPL

Details of financial assets at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Due from banks:
Gold banking assets 261,470 73,951
Securities:
Debt securities
Korean treasury and government agencies 3,555,331 4,094,554
Financial institutions 139,440 159,968
Corporates 320,323 241,119
Securities loaned — 12,361
Others 102,871 143,186
Equity securities 313,287 313,795
Capital contributions 2,445,936 2,258,811
Beneficiary certificates 7,906,695 6,969,099
Others 181,982 188,878
Sub-total 14,965,865 14,381,771
Derivatives assets 5,806,126 10,095,101
Other assets 83,949 48,346
Total 21,117,410 24,599,169

Financial assets designated to be measured at FVTPL upon initial recognition is nil as of December 31, 2025 and 2024.

8. FINANCIAL ASSETS AT FVTOCI
(1) Details of financial assets at FVTOCI as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Debt securities:
Korean treasury and government agencies 6,333,111 7,776,569
Financial institutions 27,980,461 25,266,163
Corporates 3,248,996 3,032,609
Bonds denominated in foreign currencies 5,740,314 6,598,937
Securities loaned 238,406 —
Mortgage-backed debt securities 4,135,189 238,279
Sub-total 47,676,477 42,912,557
Equity securities 935,704 785,527
Loans 10,241 —
Total 48,622,422 43,698,084
  • 71 -
(2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
Purpose of acquisition December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Investment for strategic business partnership purpose 838,909 683,894
Debt-equity swap 96,795 101,627
Others — 6
Total 935,704 785,527
(3) Changes in the expected credit loss allowance and gross carrying amount of financial assets at FVTOCI for the<br>years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
i) Credit loss allowances
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (29,082 ) — — (29,082 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net provision for expected credit loss allowance (8,387 ) — — (8,387 )
Disposal 6,644 — — 6,644
Others (*) 1,888 — — 1,888
Ending balance (28,937 ) — — (28,937 )
(*) Others consist of foreign currencies translation, etc.
--- ---
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 for expected credit loss allowance (8,866 ) — — (8,866 )
Disposal 6,788 — — 6,788
Others (*) 375 — — 375
Ending balance (29,082 ) — — (29,082 )
(*) Others consist of foreign currencies translation, etc.
--- ---
  • 72 -
ii) Gross carrying amount
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 42,912,557 — — 42,912,557
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 36,152,747 — — 36,152,747
Disposal/Redemption (30,793,820 ) — — (30,793,820 )
Loss on fair value valuation (219,257 ) — — (219,257 )
Amortization on the effective interest method 125,398 — — 125,398
Others (*) (490,907 ) — — (490,907 )
Ending balance 47,686,718 — — 47,686,718
(*) Others consist of foreign currencies translation, etc.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 36,694,110 — — 36,694,110
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 31,911,154 — — 31,911,154
Disposal/Redemption (26,868,484 ) — — (26,868,484 )
Gain on fair value valuation 224,896 — — 224,896
Amortization on the effective interest method 134,553 — — 134,553
Others (*) 816,328 — — 816,328
Ending balance 42,912,557 — — 42,912,557
(*) Others consist of foreign currencies translation, etc.
--- ---
(4) The reason for the disposal of equity securities designated as financial assets at FVTOCI during the years<br>ended December 31, 2025 and 2024 include the disposal of stocks acquired through debt-equity swaps, etc. The fair values at disposal dates and the cumulative gains or losses are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31,
--- --- --- --- --- --- --- ---
2025 2024
Fair value at disposal date 10,907 155,637
Cumulative losses (1,800 ) 72,744
  • 73 -
9. SECURITIES AT AMORTIZED COST
(1) Details of securities at amortized cost as of December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Korean treasury and government agencies 9,698,695 7,646,463
Financial institutions 3,352,648 4,004,011
Corporates 4,587,882 5,997,996
Bonds denominated in foreign currencies 1,067,156 1,514,028
Mortgage-backed debt securities 12,145 41,442
Credit loss allowances (11,067 ) (10,754 )
Total 18,707,459 19,193,186
(2) Changes in the expected credit loss allowance and gross carrying amount of securities at amortized cost for the<br>years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
i) Credit loss allowances
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (10,754 ) — — (10,754 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net provision for expected credit loss allowance (330 ) — — (330 )
Others (*) 17 — — 17
Ending balance (11,067 ) — — (11,067 )
(*) Others consist of foreign currencies translation, etc.
--- ---
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 expected credit loss <br>allowance 3,287 — — 3,287
Others (*) (100 ) — — (100 )
Ending balance (10,754 ) — — (10,754 )
(*) Others consist of foreign currencies translation, etc.
--- ---
  • 74 -
ii) Gross carrying amount
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 19,203,940 — — 19,203,940
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 5,312,962 — — 5,312,962
Disposal / Redemption (5,890,990 ) — — (5,890,990 )
Amortization on the effective interest method 111,965 — — 111,965
Others (*) (19,351 ) — — (19,351 )
Ending balance 18,718,526 — — 18,718,526
(*) Others consist of foreign currencies translation, etc.
--- ---
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 / Redemption (7,634,677 ) — — (7,634,677 )
Amortization on the effective interest method 93,318 — — 93,318
Others (*) 149,015 — — 149,015
Ending balance 19,203,940 — — 19,203,940
(*) Others consist of foreign currencies translation, etc.
--- ---
10. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST
--- ---
(1) Details of loans and other financial assets at amortized cost as of December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- ---
Due from banks 1,525,783 2,115,204
Loans 359,839,901 355,306,033
Other financial assets 9,843,621 9,126,604
Total 371,209,305 366,547,841
(2) Details of due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Due from banks in local currencies:
Due from non-depository institutions 20,624 152
Others 16,249 256
Expected credit loss allowance (27 ) —
Sub-total 36,846 408
Due from banks in foreign currencies:
Due from banks on demand 149,839 177,886
Due from banks on time 276,498 193,654
Others 1,066,872 1,749,580
Expected credit loss allowance (4,272 ) (6,324 )
Sub-total 1,488,937 2,114,796
Total 1,525,783 2,115,204
  • 75 -
(3) Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
Counterparty December 31, 2025 Reason of restriction
--- --- --- --- --- --- --- ---
Due from banks in local currency:
Others MSBI LIMITED Seoul and others 16,246 Credit Support Annex (CSA) collateral and others
Sub-total 16,246
Due from banks in foreign currencies:
Due from banks on demand National Bank of Cambodia and others 149,279 Reserve deposits and others
Due from banks on time TORONTO DOMINION BANK, NEW YORK and others 129,141 Federal Reserve Discount Window
Others Goldman Sachs Intl., LON and others 772,024 Credit Support Annex (CSA) collateral and others
Sub-total 1,050,444
Total 1,066,690
Counterparty December 31, 2024 Reason of restriction
Due from banks in local currency:
Others Korea Exchange Co., Ltd. and others 253 Accumulated amount for Joint Compensation Fund and others
Sub-total 253
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 Deposit using the fund settlement system and others
Others BNP-PARIBAS, PAR and others 1,093,853 Credit Support Annex (CSA) collateral and others
Sub-total 1,263,201
Total 1,263,454
  • 76 -
(4) Changes in the expected credit loss allowance and gross carrying amount of due from banks for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
i) Credit loss allowances
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (6,324 ) — — (6,324 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net reversal of expected credit loss allowance 2,017 — — 2,017
Others (*) 8 — — 8
Ending balance (4,299 ) — — (4,299 )
(*) Others consist of foreign currencies translation, etc.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (15,843 ) — — (15,843 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net reversal of expected credit loss <br>allowance 9,875 — — 9,875
Others (*) (356 ) — — (356 )
Ending balance (6,324 ) — — (6,324 )
(*) Others consist of foreign currencies translation, etc.
--- ---
ii) Gross carrying amount
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 2,121,528 — — 2,121,528
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net decrease (585,516 ) — — (585,516 )
Others (*) (5,930 ) — — (5,930 )
Ending balance 1,530,082 — — 1,530,082
(*) Others consist of foreign currencies translation, etc.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 1,731,066 — — 1,731,066
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net increase 275,579 — — 275,579
Others (*) 114,883 — — 114,883
Ending balance 2,121,528 — — 2,121,528
(*) Others consist of foreign currencies translation, etc.
--- ---
  • 77 -
(5) Details of loans as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Loans in local currency 303,140,737 302,131,888
Loans in foreign currencies 32,243,233 33,126,734
Domestic banker’s usance 2,647,891 2,803,761
Credit card accounts 16,199 13,524
Bills bought in foreign currencies 4,396,122 4,328,404
Bills bought in local currency 82,657 54,405
Factoring receivables 130 237
Advances for customers on guarantees 11,909 7,541
Private placement bonds 75,397 91,400
Securitized loans 2,187,733 2,153,730
Call loans 2,430,625 1,847,377
Bonds purchased under resale agreements 13,886,494 10,098,618
Loan origination costs and fees 810,170 825,322
Discounted present value (73 ) (95 )
Expected credit loss allowance (2,089,323 ) (2,176,813 )
Total 359,839,901 355,306,033
(6) Changes in expected credit loss allowance of loans for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance (157,643 ) (110,025 ) (154,861 ) (901,184 ) (558,150 ) (294,468 )
Transfer to 12-month expected credit losses (29,973 ) 29,061 912 (68,626 ) 68,203 423
Transfer to lifetime expected credit losses 13,001 (13,938 ) 937 34,824 (36,626 ) 1,802
Transfer to credit-impaired financial assets 5,651 10,682 (16,333 ) 102,381 111,004 (213,385 )
Net reversal of (provision for) expected credit loss allowance 24,292 (48,040 ) (242,369 ) (28,581 ) 4,544 (836,547 )
Recovery — — (34,681 ) — — (39,440 )
Write-off — — 195,950 — — 598,956
Disposal 23 1,638 18,519 24 3,736 259,609
Interest income from impaired loans — — 11,970 — — 26,717
Others 9,188 1,809 18,428 18,344 24,475 98,924
Ending balance (135,461 ) (128,813 ) (201,528 ) (842,818 ) (382,814 ) (397,409 )
For the year ended December 31, 2025
Credit card accounts Total (*)
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance (482 ) — — (1,059,309 ) (668,175 ) (449,329 )
Transfer to 12-month expected credit losses — — — (98,599 ) 97,264 1,335
Transfer to lifetime expected credit losses — — — 47,825 (50,564 ) 2,739
Transfer to credit-impaired financial assets — — — 108,032 121,686 (229,718 )
Net reversal of (provision for) expected credit loss allowance 2 — — (4,287 ) (43,496 ) (1,078,916 )
Recovery — — — — — (74,121 )
Write-off — — — — — 794,906
Disposal — — — 47 5,374 278,128
Interest income from impaired loans — — — — — 38,687
Others — — — 27,532 26,284 117,352
Ending balance (480 ) — — (978,759 ) (511,627 ) (598,937 )
(*) Additional loss reserves are included for borrowers who have been subject to government support policies<br>related to COVID-19.
--- ---
  • 78 -
For the year ended December 31, 2024
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance (124,382 ) (85,351 ) (109,733 ) (879,530 ) (530,765 ) (272,985 )
Transfer to 12-month expected credit losses (21,444 ) 21,160 284 (63,848 ) 62,682 1,166
Transfer to lifetime expected credit losses 10,032 (10,665 ) 633 56,928 (58,131 ) 1,203
Transfer to credit-impaired financial assets 3,398 11,703 (15,101 ) 126,752 86,380 (213,132 )
Net provision for expected credit loss allowance (25,492 ) (48,403 ) (190,092 ) (113,048 ) (128,829 ) (312,139 )
Recovery — — (52,575 ) — — (26,473 )
Write-off — — 148,652 — — 265,413
Disposal 12 1,409 8,728 23 6,675 237,439
Interest income from impaired loans — — 9,815 — — 19,240
Others 233 122 44,528 (28,461 ) 3,838 5,800
Ending balance (157,643 ) (110,025 ) (154,861 ) (901,184 ) (558,150 ) (294,468 )
For the year ended December 31, 2024
Credit card accounts Total (*)
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance (290 ) — — (1,004,202 ) (616,116 ) (382,718 )
Transfer to 12-month expected credit losses — — — (85,292 ) 83,842 1,450
Transfer to lifetime expected credit losses — — — 66,960 (68,796 ) 1,836
Transfer to credit-impaired financial assets — — — 130,150 98,083 (228,233 )
Net provision for expected credit loss allowance (192 ) — — (138,732 ) (177,232 ) (502,231 )
Recovery — — — — — (79,048 )
Write-off — — — — — 414,065
Disposal — — — 35 8,084 246,167
Interest income from impaired loans — — — — — 29,055
Others — — — (28,228 ) 3,960 50,328
Ending balance (482 ) — — (1,059,309 ) (668,175 ) (449,329 )
(*) Additional loss reserves are included for borrowers who have been subject to government support policies<br>related to COVID-19.
--- ---
(7) Changes in the gross carrying amount of loans for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance 136,642,369 14,794,056 582,284 193,727,219 10,797,740 925,654
Transfer to 12-month expected credit losses 4,495,401 (4,479,996 ) (15,405 ) 2,669,039 (2,666,625 ) (2,414 )
Transfer to lifetime expected credit losses (6,234,683 ) 6,261,274 (26,591 ) (4,200,106 ) 4,204,573 (4,467 )
Transfer to credit-impaired financial assets (180,242 ) (225,213 ) 405,455 (954,135 ) (589,819 ) 1,543,954
Write-off — — (195,950 ) — — (598,956 )
Disposal (149 ) (3,986 ) (169,663 ) (199 ) (11,067 ) (905,584 )
Net increase (decrease) 7,632,929 (1,392,116 ) 173,418 2,174,129 (2,425,086 ) 165,983
Ending balance 142,355,625 14,954,019 753,548 193,415,947 9,309,716 1,124,170
For the year ended December 31, 2025
Credit card accounts Total
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance 13,524 — — 330,383,112 25,591,796 1,507,938
Transfer to 12-month expected credit losses — — — 7,164,440 (7,146,621 ) (17,819 )
Transfer to lifetime expected credit losses — — — (10,434,789 ) 10,465,847 (31,058 )
Transfer to credit-impaired financial assets — — — (1,134,377 ) (815,032 ) 1,949,409
Write-off — — — — — (794,906 )
Disposal — — — (348 ) (15,053 ) (1,075,247 )
Net increase (decrease) 2,675 — — 9,809,733 (3,817,202 ) 339,401
Ending balance 16,199 — — 335,787,771 24,263,735 1,877,718
  • 79 -
For the year ended December 31, 2024
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance 127,674,653 14,354,290 451,815 176,679,421 9,254,469 644,675
Transfer to 12-month expected credit losses 4,489,361 (4,479,550 ) (9,811 ) 2,113,183 (2,110,200 ) (2,983 )
Transfer to lifetime expected credit losses (6,231,947 ) 6,255,567 (23,620 ) (5,370,710 ) 5,376,484 (5,774 )
Transfer to credit-impaired financial assets (167,853 ) (203,536 ) 371,389 (780,420 ) (418,239 ) 1,198,659
Write-off — — (148,652 ) — — (265,413 )
Disposal (128 ) (21,525 ) (155,855 ) (134 ) (38,464 ) (759,391 )
Net increase (decrease) 10,878,283 (1,111,190 ) 97,018 21,085,879 (1,266,310 ) 115,881
Ending balance 136,642,369 14,794,056 582,284 193,727,219 10,797,740 925,654
For the year ended December 31, 2024
Credit card accounts Total
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance 9,634 — — 304,363,708 23,608,759 1,096,490
Transfer to 12-month expected credit losses — — — 6,602,544 (6,589,750 ) (12,794 )
Transfer to lifetime expected credit losses — — — (11,602,657 ) 11,632,051 (29,394 )
Transfer to credit-impaired financial assets — — — (948,273 ) (621,775 ) 1,570,048
Write-off — — — — — (414,065 )
Disposal — — — (262 ) (59,989 ) (915,246 )
Net increase (decrease) 3,890 — — 31,968,052 (2,377,500 ) 212,899
Ending balance 13,524 — — 330,383,112 25,591,796 1,507,938
(8) Details of other financial assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Receivables 7,129,791 6,187,932
Accrued income 1,459,223 1,489,025
Telex and telephone subscription rights and refundable deposits 727,616 730,903
Other assets 696,239 873,086
Expected credit loss allowance (169,248 ) (154,342 )
Total 9,843,621 9,126,604
  • 80 -
(9) Changes in the expected credit loss allowance on other financial assets for the years ended December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (17,377 ) (4,566 ) (132,399 ) (154,342 )
Transfer to 12-month expected credit losses (254 ) 228 26 —
Transfer to lifetime expected credit losses 122 (139 ) 17 —
Transfer to credit-impaired financial assets 35 190 (225 ) —
Net provision for expected credit loss allowance (4,103 ) (2,650 ) (18,492 ) (25,245 )
Write-off — — 9,154 9,154
Disposal — — 467 467
Other increase (decrease) 827 (34 ) (75 ) 718
Ending balance (20,750 ) (6,971 ) (141,527 ) (169,248 )
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance (4,194 ) (4,617 ) (115,649 ) (124,460 )
Transfer to 12-month expected credit losses (274 ) 257 17 —
Transfer to lifetime expected credit losses 234 (253 ) 19 —
Transfer to credit-impaired financial assets 23 74 (97 ) —
Net provision for expected credit loss allowance (5,098 ) (21 ) (14,046 ) (19,165 )
Write-off — — 429 429
Disposal — 4 1,131 1,135
Other increase (decrease) (8,068 ) (10 ) (4,203 ) (12,281 )
Ending balance (17,377 ) (4,566 ) (132,399 ) (154,342 )
(10) Changes in the gross carrying amount of other financial assets for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 8,837,712 59,175 384,059 9,280,946
Transfer to 12-month expected credit losses 13,226 (13,195 ) (31 ) —
Transfer to lifetime expected credit losses (18,935 ) 18,954 (19 ) —
Transfer to credit-impaired financial assets (2,079 ) (1,836 ) 3,915 —
Write-off — — (9,154 ) (9,154 )
Disposal — — (606 ) (606 )
Net increase (decrease) and others 716,084 (9,126 ) 34,725 741,683
Ending balance 9,546,008 53,972 412,889 10,012,869
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance 11,894,172 68,555 121,353 12,084,080
Transfer to 12-month expected credit losses 15,833 (15,813 ) (20 ) —
Transfer to lifetime expected credit losses (30,158 ) 30,179 (21 ) —
Transfer to credit-impaired financial assets (1,797 ) (1,061 ) 2,858 —
Write-off — — (429 ) (429 )
Disposal — (7 ) (1,599 ) (1,606 )
Net increase (decrease) and others (3,040,338 ) (22,678 ) 261,917 (2,801,099 )
Ending balance 8,837,712 59,175 384,059 9,280,946
  • 81 -
11. THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
(1) The fair value hierarchy
--- ---

The fair value hierarchy is determined by the level of market observable inputs. The market observable inputs reflect unique characteristics of a financial instrument or market condition (including transparency and whether there are transactions among market participants), and when a financial instrument is traded in an active market, the best estimate of its fair value is the quoted price in the active market. The Group maximizes the use of market observable inputs and minimizes the use of unobserved firm-specific inputs to selected valuation techniques. Fair value of the Group is measured based on the perspective of a market participant. As such, even when market observable inputs are not readily available, firm-specific inputs reflect factors that market participants would use for measuring the fair value of assets or liabilities.

The fair value measurement is described in 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<br>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.,<br>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<br>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 be categorized 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.

(2) Fair value hierarchy of financial assets and liabilities measured at fair value as of December 31, 2025<br>and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Level 1 (*) Level 2 (*) Level 3 Total
Financial assets:
Financial assets at FVTPL
Due from banks 261,470 — — 261,470
Debt securities 3,516,654 601,311 — 4,117,965
Equity securities 19,789 — 293,498 313,287
Capital contributions — 325 2,445,611 2,445,936
Beneficiary certificates 290,242 2,928,546 4,687,907 7,906,695
Derivative assets — 5,805,206 920 5,806,126
Other financial assets in foreign currencies — — 83,949 83,949
Others — — 181,982 181,982
Sub-total 4,088,155 9,335,388 7,693,867 21,117,410
Financial assets at FVTOCI
Debt securities 13,495,614 34,180,863 — 47,676,477
Equity securities 359,601 — 576,103 935,704
Loans — — 10,241 10,241
Sub-total 13,855,215 34,180,863 586,344 48,622,422
Derivative assets (designated for hedging) — 37,010 — 37,010
Total 17,943,370 43,553,261 8,280,211 69,776,842
  • 82 -
December 31, 2025
Level 1 (*) Level 2 (*) Level 3 Total
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers 263,251 — — 263,251
Derivative liabilities — 5,121,181 — 5,121,181
Securities sold 70,298 — — 70,298
Sub-total 333,549 5,121,181 — 5,454,730
Financial liabilities designated to be measured at FVTPL
Deposit due to customers — 557,501 — 557,501
Derivative liabilities (designated for hedging) — 27,050 — 27,050
Total 333,549 5,705,732 — 6,039,281
(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at<br>fair value. The Group recognizes transfers among levels at the end of the reporting periods in which events have occurred or conditions have changed.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Level 1 (*) Level 2 (*) Level 3 Total
Financial assets:
Financial assets at FVTPL
Due from banks 73,951 — — 73,951
Debt securities 4,029,244 621,944 — 4,651,188
Equity securities 14,064 — 299,731 313,795
Capital contributions — — 2,258,811 2,258,811
Beneficiary certificates 123,847 2,491,891 4,353,361 6,969,099
Derivative assets — 10,093,915 1,186 10,095,101
Other financial assets in foreign currencies — — 48,346 48,346
Others — — 188,878 188,878
Sub-total 4,241,106 13,207,750 7,150,313 24,599,169
Financial assets at FVTOCI
Debt securities 14,117,594 28,794,963 — 42,912,557
Equity securities 315,639 — 469,888 785,527
Sub-total 14,433,233 28,794,963 469,888 43,698,084
Derivative assets (designated for hedging) — 10,102 — 10,102
Total 18,674,339 42,012,815 7,620,201 68,307,355
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers 74,205 — — 74,205
Derivative liabilities — 9,159,742 1,401 9,161,143
Sub-total 74,205 9,159,742 1,401 9,235,348
Financial liabilities designated to be measured at FVTPL
Deposit due to customers — 547,816 — 547,816
Derivative liabilities (designated for hedging) — 102,634 — 102,634
Total 74,205 9,810,192 1,401 9,885,798
(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at<br>fair value. The Group recognizes transfers among levels at the end of the reporting periods in which events have occurred or conditions have changed.
--- ---

Financial assets and liabilities at FVTPL, financial assets and liabilities designated to be measured at FVTPL, 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.

  • 83 -

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 used for the fair value measurement of financial assets and liabilities<br>classified into level 2 as of December 31, 2025 and 2024 are as follows:
Valuation methods Input variables
--- --- --- --- ---
Debt securities Fair value is measured by discounting the future cash flows of debt securities applying the<br>risk-free rate with credit spread Risk-free rate and Credit spread
Capital contributions and beneficiary certificates The capital contributions and beneficiary certificates are measured with Net Asset Value. Values of underlying assets such as bond
Derivatives The fair value is measured through Option Pricing Model, etc. Discount rate, Volatility, Exchange rate, etc.
Deposit due to customers The fair value is measured through Hull-White model. Swaption volume, etc.
② Valuation methods and input variables used for the fair value measurement of financial assets and liabilities<br>classified into level 3 as of December 31, 2025 and 2024 are as follows:
--- ---
Valuation methods Input variables
--- --- --- --- ---
Loans The fair value is measured using the DCF (Discounted Cash Flow) Model, a valuation technique<br>commonly used in the market, which considers the price and volatility of the underlying assets Price and volatility of underlying asset
Equity securities, capital contributions, beneficiary certificates and others The fair value is measured by considering the characteristics of the subject being evaluated,<br>using methods such as the 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, Least-Squares Monte Carlo and<br>Binomial Tree. Risk-free rate, Market risk premium, Corporate Beta, Stock price, Volatility of underlying assets,<br>etc.
Derivatives The fair value is measured through Option Pricing Model, etc. Correlation coefficient, Stock price, Volatility of underlying assets, etc.
Others The fair value of the underlying asset, after calculating the fair value using the DCF model,<br>etc., considering the price and volatility of the calculated underlying asset, is calculated using the Binomial Tree, which are commonly used valuation techniques in the market. Stock price, Volatility of underlying assets, etc.
  • 84 -

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs as of December 31, 2025 and 2024 are as follows:

① December 31, 2025
Fair value<br><br><br>measurement<br> <br>technique Type Significant but<br><br><br>unobservable input<br> <br>variable Range Impact of changes in significant<br>unobservable inputs on fair<br>value<br>measurement
--- --- --- --- --- ---
Derivative assets Option valuation model and others Equity related Stock price, Volatility of underlying asset 22.55% Variation of fair value increases as stock price and volatility of underlying assets<br>increases.
Discount rate 16.88% Fair value increases as discount rate decreases.
Liquidation value 0.00% Fair value increases as liquidation value increases.
Equity securities, capital contributions and beneficiary certificates Binominal Tree Stock price, Volatility of underlying asset 14.91%~34.34% Variation of fair value increases as stock price and volatility of underlying asset<br>increases.
DCF model and others Discount rate 4.21%~18.15% 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.
Loans DCF model Discount rate 0.7%~0.9% Fair value increases as discount rate decreases
Others Binominal Tree and others Stock price, Volatility of underlying asset 14.91%~42.44% Variation of fair value increases as stock price and volatility of underlying asset<br>increases.
② December 31, 2024
--- ---
Fair value<br><br><br>measurement<br> <br>technique Type Significant but<br><br><br>unobservable input<br> <br>variable Range Impact of changes in significant<br>unobservable inputs on fair<br>value<br>measurement
--- --- --- --- --- ---
Derivative Option valuation model and others Equity related Correlation coefficient 0.29~0.65 Variation of fair value increases as correlation coefficient increases.
Stock price, Volatility of underlying asset 25.71% Variation of fair value increases as stock price and volatility 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.
Equity securities, capital contributions and beneficiary certificates Binominal Tree Stock price, Volatility of underlying asset 18.76%~36.37% Variation of fair value increases as stock price and volatility of underlying asset<br>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.
Others Binominal Tree and others Stock price, Volatility of underlying asset 18.36%~36.90% Variation of fair value increases as stock price and volatility of underlying asset<br>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.

  • 85 -
(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 for the years<br>ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
January 1,<br>2025 Net income<br>(loss)<br>(*1) Other<br>comprehensive<br>income Purchases/<br>issuances Disposal/<br>settlements Transfer to or<br>out of Level 3<br>(*2) December 31,<br>2025
Financial assets:
Financial assets at FVTPL
Equity securities 299,731 4,618 — 12,903 (12,263 ) (11,491 ) 293,498
Capital contributions 2,258,811 46,637 — 384,283 (242,521 ) (1,599 ) 2,445,611
Beneficiary certificates 4,353,361 15,126 — 1,014,243 (694,823 ) — 4,687,907
Derivative assets 1,186 (123 ) — — (143 ) — 920
Other financial assets in foreign currencies 48,346 (118 ) — 35,721 — — 83,949
Others 188,878 7,279 — — (14,175 ) — 181,982
Sub-total 7,150,313 73,419 — 1,447,150 (963,925 ) (13,090 ) 7,693,867
Financial assets at FVTOCI
Equity securities 469,888 — 104,079 2,882 (746 ) — 576,103
Loans — — 3 348,428 (338,190 ) — 10,241
Sub-total 469,888 — 104,082 351,310 (338,936 ) — 586,344
Total 7,620,201 73,419 104,082 1,798,460 (1,302,861 ) (13,090 ) 8,280,211
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities 1,401 — — — (1,401 ) — —
Total 1,401 — — — (1,401 ) — —
(*1) The losses that increase the financial liabilities are presented as positive amounts, and the gains that<br>decrease the financial liabilities are presented as negative amounts. The profit amount to 65,012 million Won for the year ended December 31, 2025, which is from financial assets and liabilities that the Group holds as of December 31,<br>2025.
--- ---
(*2) Changes in the availability of observable market data for the financial instrument have resulted in transfer<br>between fair value hierarchy level, and the Group recognize changes in levels at the end of reporting period that result in changes in events or circumstances that result in transfer between fair value hierarchy level.
--- ---
  • 86 -
For the year ended December 31, 2024
January 1,<br>2024 Net income<br>(loss)<br>(*1) Other<br>comprehensive<br>income Purchases/<br>issuances Disposals/<br>settlements Transfer to or<br>out of Level 3<br>(*2) December 31,<br>2024
Financial assets:
Financial assets at FVTPL
Equity securities 275,075 9,732 — 14,283 (1,306 ) 1,947 299,731
Capital contributions 1,858,728 114,735 — 475,667 (190,319 ) — 2,258,811
Beneficiary certificates 3,349,910 88,854 — 1,226,259 (311,662 ) — 4,353,361
Derivative assets 128,335 (970 ) — 327 (126,506 ) — 1,186
Other financial assets in foreign currency 42,406 5,940 — — — — 48,346
Others 180,690 13,335 — 12,011 (17,158 ) — 188,878
Sub-total 5,835,144 231,626 — 1,728,547 (646,951 ) 1,947 7,150,313
Financial assets at FVTOCI
Equity securities 467,842 — 5,077 2,922 (5,953 ) — 469,888
Loans — — — 202,916 (202,916 ) — —
Sub-total 467,842 — 5,077 205,838 (208,869 ) — 469,888
Total 6,302,986 231,626 5,077 1,934,385 (855,820 ) 1,947 7,620,201
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities 1,994 1,114 — — (1,707 ) — 1,401
Total 1,994 1,114 — — (1,707 ) — 1,401
(*1) The losses that increase the financial liabilities are presented as positive amounts, and the gains that<br>decrease the financial liabilities are presented as negative amounts. The profit amount to 258,943 million Won for the year ended December 31, 2024, which is from financial assets and liabilities that the Group holds as of<br>December 31, 2024.
--- ---
(*2) Changes in the availability of observable market data for the financial instrument have resulted in transfer<br>between fair value hierarchy level, and the Group recognize changes in levels at the end of reporting period that result in changes in events or circumstances that result in transfer between fair value hierarchy level.
--- ---
(4) The results of a sensitivity analysis on the rational fluctuation in the unobservable inputs used for measuring<br>Level 3 financial instruments are as follows.
--- ---

Sensitivity analysis of financial instruments is performed by classifying the effect of changes in unobservable inputs on changes in the value of financial instruments into favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable input, the below table presents the most favorable or the most unfavorable circumstances. 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 8,280,211 million Won and 7,621,602 million Won as of December 31, 2025 and 2024, respectively, equity investments of 7,431,613 million Won and 7,162,562 million Won are excluded from the sensitivity analysis.

  • 87 -

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility on the fair value of a Level 3 financial instruments as of December 31, 2025 and 2024 (Unit: Korean Won in millions):

December 31, 2025
Net income (loss) Other comprehensive income (loss)
Favorable Unfavorable Favorable Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (*1)(*2) 19 (19 ) — —
Equity securities (*2) (*3) 16,040 (11,738 ) — —
Beneficiary certificates (*3) (*4) 835 (835 ) — —
Others (*2) 2,731 (2,458 ) — —
Financial assets at FVTOCI
Equity securities (*3) — — 24,554 (17,814 )
Total 19,625 (15,050 ) 24,554 (17,814 )
(*1) Fair value changes in equity related derivatives assets are calculated by increasing or decreasing liquidation<br>value or discount rate, which are major unobservable variables, by 1%p.
--- ---
(*2) The change in fair value is calculated by increasing or decreasing the stock price (-10% to 10%) and volatility (-10% to 10%), the major unobservable inputs.
--- ---
(*3) Fair value changes in equity securities are calculated by increasing or decreasing terminal 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.<br>
--- ---
(*4) Even if the sensitivity analysis of the beneficiary certificates is not possible in practice, fair value<br>changes of the financial assets whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation of real estate which is underlying assets by 1%p.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Net income (loss) Other comprehensive income (loss)
Favorable Unfavorable Favorable Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (*1) 50 (51 ) — —
Equity securities (*2) (*3) 19,338 (13,996 ) — —
Beneficiary certificates (*4) 706 (705 ) — —
Others (*2) (*4) 2,554 (2,402 ) — —
Financial assets at FVTOCI
Equity securities (*3) (*4) — — 34,080 (22,698 )
Total 22,648 (17,154 ) 34,080 (22,698 )
(*1) Fair value changes in equity related derivatives assets and liabilities are calculated by increasing or<br>decreasing correlation coefficient or volatility, which are major unobservable variables, by 10%.
--- ---
(*2) The change in fair value is calculated by increasing or decreasing the share price (-10% to 10%) and volatility (-10%p to 10%p), the major unobservable inputs.
--- ---
(*3) Fair value changes in equity securities are calculated by increasing or decreasing growth rate (-1%p ~ 1%p) and<br>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.<br>
--- ---
(*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in<br>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 of real estate which is underlying assets<br>by 1%p.
--- ---
  • 88 -
(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions): Fair value information for cash that is not measured at fair value because the carrying amount is a reasonable approximation of fair value is not included.<br>
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Fair value Book<br>value
Level 1 Level 2 Level 3 Total
Financial assets:
Securities at amortized cost 6,900,334 11,750,572 — 18,650,906 18,707,459
Loans and other financial assets at amortized cost — 7,170,646 365,766,384 372,937,030 371,209,305
Financial liabilities:
Deposits due to customers — 372,487,253 — 372,487,253 372,337,805
Borrowings — 28,898,915 — 28,898,915 28,933,534
Debentures — 28,537,580 — 28,537,580 28,662,268
Other financial liabilities (*) — 34,547,172 — 34,547,172 34,547,235
(*) Lease liabilities are excluded as of December 31, 2025
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Fair value Book<br>value
Level 1 Level 2 Level 3 Total
Financial assets:
Securities at amortized cost 3,242,385 15,894,576 — 19,136,961 19,193,186
Loans and other financial assets at amortized cost — 6,392,635 363,857,524 370,250,159 366,547,841
Financial liabilities:
Deposits due to customers — 364,348,962 — 364,348,962 364,032,938
Borrowings — 26,416,049 — 26,416,049 26,379,689
Debentures — 25,488,907 — 25,488,907 25,534,324
Other financial liabilities — 28,855,883 — 28,855,883 28,856,921
(*) Lease liabilities are excluded as of December 31, 2024
--- ---

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 using valuation techniques. Valuation techniques and input variables for financial assets and liabilities that are measured at amortized costs are given as follows:

Valuation techniques Input variables
Securities at amortized cost The fair value is measured by discounting the projected cash flows of debt securities by applying<br>risk-free rate plus a credit spread. Risk-free 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<br>the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor. Risk-free rate, credit spread and expected 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<br>the market discount rate that is reflecting credit rating of the Group. Risk-free rate and credit spread
  • 89 -
(6) Financial instruments by category

Carrying amounts of financial assets and liabilities by each category as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Financial<br>assets at<br>FVTPL Financial<br>assets at<br>FVTOCI Financial<br>assets at<br>amortized cost Derivative<br>assets<br>(designated<br>for hedging) Total
Financial assets:
Due from banks 261,470 — 1,525,783 — 1,787,253
Securities 14,965,865 48,612,181 18,707,459 — 82,285,505
Loans — 10,241 359,839,901 — 359,850,142
Derivative assets 5,806,126 — — 37,010 5,843,136
Other financial assets 83,949 — 9,843,621 — 9,927,570
Total 21,117,410 48,622,422 389,916,764 37,010 459,693,606
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial<br>liabilities at<br>FVTPL Financial<br>liabilities<br>designated to<br>be measured<br>at FVTPL Financial<br>liabilities at<br>amortized cost Derivative<br>liabilities<br>(designated<br>for hedging) Total
Financial liabilities:
Deposits due to customers 263,251 557,501 372,337,805 — 373,158,557
Borrowings 70,298 — 28,933,534 — 29,003,832
Debentures — — 28,662,268 — 28,662,268
Derivative liabilities 5,121,181 — — 27,050 5,148,231
Other financial liabilities (*) — — 34,547,235 — 34,547,235
Total 5,454,730 557,501 464,480,842 27,050 470,520,123
(*) Lease liabilities are excluded as of December 31, 2025.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial<br>assets at<br>FVTPL Financial<br>assets at<br>FVTOCI Financial<br>assets at<br>amortized cost Derivative<br>assets<br>(designated<br>for hedging) Total
Financial assets:
Due from banks 73,951 — 2,115,204 — 2,189,155
Securities 14,381,771 43,698,084 19,193,186 — 77,273,041
Loans — — 355,306,033 — 355,306,033
Derivative assets 10,095,101 — — 10,102 10,105,203
Other financial assets 48,346 — 9,126,604 — 9,174,950
Total 24,599,169 43,698,084 385,741,027 10,102 454,048,382
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial<br>liabilities at<br>FVTPL Financial<br>liabilities<br>designated to<br>be measured<br>at FVTPL Financial<br>liabilities at<br>amortized cost Derivative<br>liabilities<br>(designated<br>for hedging) Total
Financial liabilities:
Deposits due to customers 74,205 547,816 364,032,938 — 364,654,959
Borrowings — — 26,379,689 — 26,379,689
Debentures — — 25,534,324 — 25,534,324
Derivative liabilities 9,161,143 — — 102,634 9,263,777
Other financial liabilities (*) — — 28,856,921 — 28,856,921
Total 9,235,348 547,816 444,803,872 102,634 454,689,670
(*) Lease liabilities are excluded as of December 31, 2024.
--- ---
  • 90 -
(7) Income or expense from financial instruments by category

Income or expense from financial instruments by category for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2025
Interest<br>income<br>(expense) Fees and<br>commissions<br>income Provision for<br>credit loss Gain<br>on valuation<br>and<br>transaction Dividend<br>income Total
Financial assets at FVTPL 144,034 90 — 336,560 363,102 843,786
Financial assets designated to be measured at FVTPL(*) — — — 389 — 389
Financial assets at FVTOCI 1,278,693 280 (8,387 ) 138,549 20,367 1,429,502
Securities at amortized cost 539,833 — (330 ) — — 539,503
Loans and other financial assets at amortized cost 15,999,042 — (1,149,927 ) 28,187 — 14,877,302
Financial liabilities at amortized cost (10,128,584 ) — — — — (10,128,584 )
Net derivatives <br>(designated for hedging) — — — 13,257 — 13,257
Total 7,833,018 370 (1,158,644 ) 516,942 383,469 7,575,155
(*) The amount recognized as other comprehensive income in regard to financial liabilities designated to be<br>measured at FVTPL for the year ended December 31, 2025 is 74 million Won.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest<br>income<br>(expense) Fees and<br>commissions<br>income Reversal of<br>(Provision<br>for) credit<br>loss Gain (loss)<br>on valuation<br>and<br>transaction Dividend<br>income Total
Financial assets at FVTPL 153,055 864 — 1,473,568 356,921 1,984,408
Financial assets designated to be measured at FVTPL(*) — — — (19,647 ) — (19,647 )
Financial assets at FVTOCI 1,281,641 951 (8,866 ) 96,647 17,766 1,388,139
Securities at amortized cost 642,888 — 3,287 — — 646,175
Loans and other financial assets at amortized cost 17,473,089 — (827,485 ) 165,192 — 16,810,796
Financial liabilities at amortized cost (11,969,046 ) — — — — (11,969,046 )
Net derivatives <br>(designated for hedging) — — — (22,511 ) — (22,511 )
Total 7,581,627 1,815 (833,064 ) 1,693,249 374,687 8,818,314
(*) The amount recognized as other comprehensive income in regard to financial liabilities designated to be<br>measured at FVTPL for the year ended December 31, 2024 is 1,831 million Won.
--- ---
  • 91 -
12. DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS
(1) Derecognition of financial instruments
--- ---
i) Transferred financial assets that do not meet the condition of derecognition
--- ---
a) 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, as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Assets transferred Financial assets at FVTOCI 4,135,189 238,279
Securities at amortized cost 12,145 41,442
Related liabilities Bonds sold under repurchase agreements 3,955,860 278,767
b) 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 amounts of the securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31,<br>2025 Loaned to
Financial assets at FVTOCI Korean treasury and government bonds and others 238,406 Korea Securities Finance Corporation
December 31,<br>2024 Loaned to
--- --- --- --- --- --- --- ---
Financial assets at FVTPL Korean treasury and government bonds and others 12,361 Korea Securities Finance Corporation

The details of the transferred financial assets that do not meet the condition of derecognition in their entirety, such as disposal of securities under repurchase agreement or securities loaned, are also explained in Note 18.

c) Securitization of financial assets

As of December 31, 2025 and 2024, the structured entity subject to consolidation issued asset-backed securities using loans and corporate bonds held by the Group, The details and the Group bears related risks through purchase agreements or credit offerings. of the transfer transaction of financial instruments are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Book value (*) Book value (*)
Assets transferred Loans at amortized cost 2,187,733 2,153,730
Related liabilities Securitization borrowings 2,187,733 2,153,730
Securitization bonds 4,006 4,006
(*) The carrying amount is the amount before the provision for credit losses is deducted.
--- ---
  • 92 -
(2) The offset of financial assets and liabilities

The Group holds both the uncollected domestic exchange receivables and the unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS No.1032. Therefore, the total amount of uncollected domestic exchange receivables (or unpaid domestic exchange payables) has been offset with part of unpaid domestic exchange payables (or uncollected domestic exchange receivables) and has been disclosed in loans and other financial assets at amortized cost and other financial liabilities of the Group’s consolidated statements of financial position, respectively.

The Group also holds the derivative assets, derivative liabilities, receivable spot exchange and payable spot exchange that do not meet the offsetting criteria of K-IFRS No.1032, but provide the Group under the circumstances of the trading party’s defaults, insolvency or bankruptcy, with the right of offsetting. Items such as cash collateral cannot satisfy the offsetting criteria of K-IFRS No.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, 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 loan. The Group under the repurchase agreements has 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 No.1032. The Group disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loans and other financial assets at amortized cost.

As of December 31, 2025 and 2024, the financial instruments to be offset and covered by master netting agreements and similar agreements are as follows (Unit: Korean Won in millions):

December 31, 2025
Gross<br>amounts of<br>recognized<br>financial<br>assets Gross<br>amounts of<br>recognized<br>financial<br>assets setoff Net amounts<br>of financial<br>assets<br>presented Related amounts not setoff in<br>the consolidated statement of<br>financial position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>received
Financial assets:
Derivative assets (*1) 5,830,683 — 5,830,683 10,126,842 67,406 1,947,283
Receivable spot exchange (*2) 6,310,848 — 6,310,848
Bonds purchased under resale agreements (*2) 13,886,494 — 13,886,494 13,886,494 — —
Domestic exchanges settlement credits (*2)(*5) 37,873,998 37,601,886 272,112 — — 272,112
Total 63,902,023 37,601,886 26,300,137 24,013,336 67,406 2,219,395
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Gross<br>amounts of<br>recognized<br>financial<br>liabilities Gross<br>amounts of<br>recognized<br>financial<br>liabilities<br>setoff Net amounts<br>of financial<br>liabilities<br>presented Related amounts not setoff in<br>the consolidated statement of<br>financial position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>pledged
Financial liabilities:
Derivative liabilities (*1) 5,145,396 — 5,145,396 9,635,132 294,611 1,530,107
Payable spot exchange (*3) 6,314,454 — 6,314,454
Bonds sold under repurchase agreements (*4) 3,955,860 — 3,955,860 3,955,860 — —
Domestic exchanges settlement debits (*3) (*5) 49,342,824 37,601,886 11,740,938 — — 11,740,938
Total 64,758,534 37,601,886 27,156,648 13,590,992 294,611 13,271,045
(*1) The items include derivatives held for trading and derivatives designated for hedging.
--- ---
(*2) The items are included in loans and other financial assets at amortized cost.
--- ---
(*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.
--- ---
  • 93 -
December 31, 2024
Gross<br>amounts of<br>recognized<br>financial<br>assets Gross<br>amounts of<br>recognized<br>financial<br>assets setoff Net amounts<br>of financial<br>assets<br>presented Related amounts not setoff in<br>the consolidated statement of<br>financial position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>received
Financial assets:
Derivative assets (*1) 10,100,965 — 10,100,965 12,148,980 235,654 3,301,458
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 — —
Domestic exchanges settlement credits (*2) (*5) 33,347,374 32,915,242 432,132 — — 432,132
Total 59,132,084 32,915,242 26,216,842 22,247,598 235,654 3,733,590
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Gross<br>amounts of<br>recognized<br>financial<br>liabilities Gross<br>amounts of<br>recognized<br>financial<br>liabilities<br>setoff Net amounts<br>of financial<br>liabilities<br>presented Related amounts not setoff in<br>the consolidated statement of<br>financial position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>pledged
Financial liabilities:
Derivative liabilities (*1) 9,255,756 — 9,255,756 11,899,060 533,052 2,408,916
Payable spot exchange (*3) 5,585,272 — 5,585,272
Bonds sold under repurchase agreements (*4) 278,767 — 278,767 278,767 — —
Domestic exchanges settlement debits (*3) (*5) 40,505,570 32,915,242 7,590,328 7,590,328 — —
Total 55,625,365 32,915,242 22,710,123 19,768,155 533,052 2,408,916

(*1) The items include derivatives held for trading and derivatives designated for hedging.

(*2) The items are included in loans and other financial assets at amortized cost.

(*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.

  • 94 -
13. INVESTMENTS IN ASSOCIATES
(1) Investments in associates accounted for using the equity method of accounting as of December 31, 2025 and<br>2024 are as follows:
--- ---
Percentage of ownership<br>(%)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Associates Main business December 31,<br>2025 December 31,<br>2024 Location Financial statements<br>as of
Woori Bank:
W Service Networks Co., Ltd. (*1) Freight & staffing<br>services 4.9 4.9 Korea November 30, 2025<br>(*4)
Korea Credit Bureau Co., Ltd. (*2) Credit information 9.9 9.9 Korea December 31, 2025
Korea Finance Security Co., Ltd. (*2) Security service 15.0 15.0 Korea November 30, 2025<br>(*4)
Dongwoo C & C Co., Ltd. (*3) Construction 23.2 23.2 Korea —
SJCO Co., Ltd. (*3) Aggregate<br>transportation and<br>wholesale 27.5 27.5 Korea —
G2 Collection Co., Ltd. (*3) Wholesale and<br>retail sales 28.9 28.9 Korea —
Kyesan Engineering Co., Ltd. (*3) Construction 23.2 23.2 Korea —
Good Software Lab Co., Ltd. (*3) Service 28.9 28.9 Korea —
Wongwang Co., Ltd. (*3) Wholesale and real<br>estate 29.0 29.0 Korea —
Sejin Construction Co., Ltd. (*3) Construction 29.6 29.6 Korea —
DAEA SNC Co., Ltd. (*3) Wholesale and<br>retail sales 24.0 24.0 Korea —
ARES-TECH Co., Ltd. (*3) Electronic<br>component<br>manufacturing 23.4 23.4 Korea —
PREXCO Co., Ltd. (*3) Manufacturing 28.1 28.1 Korea —
Jiwon Plating Co., Ltd. (*3) Plating 20.5 20.5 Korea —
NK Eng Co., Ltd. (*5) Manufacturing — 23.1 Korea —
Youngdong Sea Food Co., Ltd. (*3) Processed sea food<br>manufacturing 24.0 24.0 Korea —
Beomgyo Co., Ltd. (*3) Telecommunication<br>equipment retail<br>sales 23.1 23.1 Korea —
K BANK Co., Ltd. (*2) Finance 12.0 12.0 Korea November 30, 2025<br>(*4)
Partner One Value Up I Private Equity Fund Other financial<br>services 23.3 23.3 Korea December 31, 2025
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership (*3) Other financial<br>services 20.0 20.0 Korea December 31, 2025
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund Other financial<br>services 25.0 25.0 Korea December 31, 2025
Woori-Shinyoung Growth-Cap Private Equity Fund I Other financial<br>services 24.5 24.5 Korea December 31, 2025
LOTTE CARD Co., Ltd. Credit card and<br>installment<br>financing 20.0 20.0 Korea September 30,<br>2025 (*4)
Woori-Q Corporate Restructuring Private Equity<br>Fund (*7) Trust and collective<br>investment 19.7 20.4 Korea December 31, 2025
PCC-Woori LP Secondary Fund Other financial<br>services 26.9 26.9 Korea December 31, 2025
  • 95 -
Percentage of ownership<br>(%)
Associates Main business December 31,<br>2025 December 31,<br>2024 Location Financial statements<br>as of
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] Other financial<br>services 100.0 100.0 Korea December 31, 2025
Union Technology Finance Investment<br><br><br>Association Other financial<br>services 29.7 29.7 Korea December 31, 2025
KUM HWA Co., Ltd. (*3) Telecommunication<br>equipment retail<br>sales 20.0 20.0 Korea December 31, 2025
Paratus Woori Material Component Equipment joint venture company Other financial<br>services 20.8 20.8 Korea December 31, 2025
Jinmyung Plus Co., Ltd. (*3) Manufacturing 20.2 20.2 Korea September 30, 2025 (*4)
Orient Shipyard Co., Ltd. (*3) Manufacturing of<br>ship components 22.7 22.7 Korea September 30, 2025 (*4)
BTS 2nd Private Equity Fund Other financial<br>services 20.0 20.0 Korea December 31, 2025
Woori Financial Digital Investment Association No. 1 Other financial<br>services 88.0 88.0 Korea December 31, 2025
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures Other financial<br>services 28.3 28.3 Korea December 31, 2025
KG Fashion Co., Ltd. (*3) Manufacturing 20.8 20.8 Korea November 30, 2025 (*4)
Win Mortgage Co., Ltd. (*1) Other financial<br>services 4.5 4.5 Korea September 30, 2025 (*4)
NH Woori Newdeal Growth Alpha Private Equity Fund 1 Other financial<br>services 22.3 22.4 Korea December 31, 2025
SF CREDIT PARTNERS, LLC (*2) Other financial<br>services 10.0 10.0 U.S.A. December 31, 2025
Rea Company Ltd. (*3) Manufacturing 24.5 24.5 Korea —
Aram CMC Co., Ltd. (*3) Manufacturing 20.0 20.0 Korea —
Woori Financial Dino Lab Investment Association No. 1 Other financial<br>services 70.0 70.0 Korea December 31, 2025
Woori Corporate Turnaround No. 1 Private Equity Fund Other financial<br>services 27.3 27.3 Korea December 31, 2025
Market & Farm Co., Ltd. (*3) Wholesale and<br>commodity<br>brokerage business 23.7 23.7 Korea December 31, 2025
SAMJI TEXTILE CO.,LTD. (*3) Wholesale and<br>commodity<br>brokerage business 29.4 29.4 Korea —
Woori Financial Dino Lab Investment Association No. 2 (*6) Other financial<br>services 60.0 — Korea December 31, 2025
TH International Co.,Ltd. Cosmetics<br>wholesale business<br>and general travel<br>business 21.3 — Korea —
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1:
Ulsan Yeocheon Development Co., Ltd. (*6) Sewage and<br>wastewater<br>treatment business 50.0 — Korea December 31, 2025
  • 96 -
(*1) Most of the significant business transactions of associates are with the Group as of December 31, 2025 and<br>2024.
(*2) The Group can participate in decision-making body and exercise significant influence over financial policies<br>and operational policies.
--- ---
(*3) There is no investment balance as of December 31, 2025 and 2024.
--- ---
(*4) The equity method was applied using the most recent financial statements available because financial statement<br>at the end of the reporting period cannot be obtained, and any 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 group were appropriately reflected.<br>
--- ---
(*5) It was excluded from associates due to the sale liquidation and others for the year ended December 31,<br>2025.
--- ---
(*6) It was added to associates during the year ended December 31, 2025.
--- ---
(*7) The entity was classified as an associate based on the voting rights in proportion to the initial capital<br>commitment ratio.
--- ---
  • 97 -
(2) Changes in the carrying value of investments in associates accounted for using the equity method of accounting<br>for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Acquisition<br>cost January 1,<br>2025 Share of<br>profits (losses) Acquisition Disposal<br>and others Dividends Change in<br>capital and<br>others December 31,<br>2025
W Service Networks Co., Ltd. 108 204 5 — — (5 ) — 204
Korea Credit Bureau Co., Ltd. 3,313 9,001 3,443 — — (90 ) — 12,354
Korea Finance Security Co., Ltd. 3,267 3,616 216 — — — — 3,832
K BANK Co., Ltd. 224,657 262,250 11,392 — — — (3,942 ) 269,700
Partner One Value Up I Private Equity Fund 5,039 2,123 (113 ) — — — — 2,010
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership — 2,263 (28 ) — — (1,000 ) — 1,235
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund 4,630 4,532 — 98 — — — 4,630
Woori-Shinyoung Growth-Cap Private Equity Fund I 3,638 20,702 9,107 — (4,598 ) — — 25,211
LOTTE CARD Co., Ltd. 346,810 575,580 22,967 — — (7,743 ) (185 ) 590,619
Woori-Q Corporate Restructuring Private Equity<br>Fund 16,186 20,386 148 — (1,260 ) — — 19,274
PCC-Woori LP Secondary Fund 7,000 5,994 (395 ) — — — — 5,599
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 10,000 10,847 235 — — — — 11,082
Union Technology Finance Investment Association 13,449 11,770 (2,487 ) — — — — 9,283
KUM HWA Co., Ltd. (*) — — — — — — — —
Paratus Woori Material Component Equipment joint venture company 6,487 11,615 (180 ) — (5,813 ) — — 5,622
Jinmyung Plus Co., Ltd. — 9 1 — — — — 10
Orient Shipyard Co., Ltd. (*) — — — — — — — —
BTS 2nd Private Equity Fund 8,766 7,799 (175 ) 620 — — — 8,244
Woori Financial Digital Investment Association No. 1 41,700 43,564 1,570 — (2,300 ) (1,220 ) — 41,614
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 13,500 11,178 (239 ) 1,500 — — — 12,439
KG Fashion Co., Ltd. (*) — — — — — — — —
Win Mortgage Co., Ltd. 23 135 (25 ) — — (9 ) — 101
NH Woori Newdeal Growth Alpha Private Equity Fund 1 40,272 36,752 (2,814 ) 10,768 (4,497 ) — — 40,209
SF CREDIT PARTNERS, LLC 15,504 16,000 938 2,445 — — (367 ) 19,016
Woori Financial Dino Lab Investment Association No. 1 3,500 3,426 (110 ) — — — — 3,316
Woori Corporate Turnaround No. 1 Private Equity Fund 1,718 8,134 2,332 4,247 (10,890 ) — — 3,823
Rea Company Ltd. (*) — — — — — — — —
Market & Farm Co., Ltd. (*) — — — — — — — —
Woori Financial Dino Lab Investment Association No. 2 6,000 — (107 ) 6,000 — — — 5,893
Ulsan Yeocheon Development Co., Ltd. 207 — (6 ) 207 — — — 201
Total 775,774 1,067,880 45,675 25,885 (29,358 ) (10,067 ) (4,494 ) 1,095,521
(*) The amount for which no loss was recognized for associates due to discontinuation of the equity method was<br>30 million Won for KG Fashion Co., Ltd, 38 million Won for Market & Farm Co., Ltd., and 1 million Won for Orient Shipyard Co., Ltd., and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 48 million Won<br>for Orient Shipyard Co., Ltd., 189 million Won for KG Fashion CO., Ltd., 118 million Won for Rea Company Ltd. and 38 million Won in Market & Farm Co., Ltd.
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  • 98 -
For the year ended December 31, 2024
Acquisition<br>cost January 1,<br>2024 Share of<br>profits (losses) Acquisition Disposal<br>and others Dividends Change in<br>capital and<br>others December 31,<br>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
Woori-Shinyoung Growth-Cap Private Equity Fund I 8,237 23,496 (2,656 ) — — (138 ) — 20,702
LOTTE CARD Co., Ltd. 346,810 587,392 17,861 — — (15,591 ) (14,082 ) 575,580
Woori-Q Corporate Restructuring Private Equity<br>Fund 17,446 9,852 1,523 9,011 — — — 20,386
PCC-Woori LP Secondary Fund 7,000 7,298 (1,304 ) — — — — 5,994
Together-Korea Government Private Pool Private Securities Investment Trust No. 3 10,000 10,540 307 — — — — 10,847
Union Technology Finance Investment Association 13,449 12,270 (500 ) — — — — 11,770
KUM HWA Co., Ltd (*) — — — — — — — —
Paratus Woori Material Component Equipment joint venture company 12,300 11,799 (184 ) — — — — 11,615
Dicustody Co., Ltd. — 1 — — (1 ) — — —
Jinmyung Plus Co., Ltd. — 14 (5 ) — — — — 9
Orient Shipyard Co., Ltd. (*) — — — — — — — —
BTS 2nd Private Equity Fund 8,146 4,838 41 2,920 — — — 7,799
Woori Financial Digital Investment Association No. 1 44,000 32,463 101 11,000 — — — 43,564
Joongang Network Solution Co., Ltd. — 88 100 — (101 ) — (87 ) —
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 12,000 8,406 (228 ) 3,000 — — — 11,178
KG Fashion Co., Ltd. (*) — — — — — — — —
Win Mortgage Co., Ltd. 23 105 32 — — (2 ) — 135
NH Woori Newdeal Growth Alpha Private Equity Fund 1 34,001 22,390 13,109 15,025 (4,656 ) (9,116 ) — 36,752
SF CREDIT PARTNERS, LLC 13,059 12,845 1,326 — — — 1,829 16,000
Woori FG DINNO Lab Fund 1st 3,500 — (74 ) 3,500 — — — 3,426
Woori Corporate Turnaround No. 1 Private Equity Fund 8,361 — (227 ) 8,361 — — — 8,134
779,248 1,029,697 44,060 52,912 (22,143 ) (25,786 ) (10,860 ) 1,067,880
(*1) The amount for which no loss was recognized for associates due to discontinuation of the equity method was<br>19 million Won for Orient Shipyard Co., Ltd., and 39 million Won in KG Fashion CO., Ltd, 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<br>Fashion CO., Ltd..
--- ---
  • 99 -
(3) Summary financial information relating to investments in associates accounted for using the equity method of<br>accounting as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
As of and for the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Subsidiaries Assets Liabilities Operating<br>revenue Net income<br>(loss) Other<br>comprehensive<br>income (loss) Total<br>comprehensive<br>income (loss)
W Service Networks Co., Ltd. 7,423 3,301 15,306 754 — 754
Korea Credit Bureau Co., Ltd. 160,778 38,645 202,976 36,559 — 36,559
Korea Finance Security Co., Ltd. 40,856 15,307 44,434 1,813 — 1,813
K BANK Co., Ltd. 32,826,189 30,643,202 1,133,400 88,207 (30,073 ) 58,134
Partner One Value Up I Private Equity Fund 9,420 775 (391 ) (484 ) — (484 )
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 6,212 38 2 (127 ) — (127 )
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund 15,747 100 1 (388 ) — (388 )
Woori-Shinyoung Growth-Cap Private Equity Fund I 103,810 1,077 37,506 36,345 — 36,345
LOTTE CARD Co., Ltd. (*) 24,614,346 21,040,011 2,235,400 108,426 (1,957 ) 106,469
Woori-Q Corporate Restructuring Private Equity<br>Fund 98,251 324 2,628 1,293 — 1,293
PCC-Woori LP Secondary Fund 21,317 522 2,438 (1,473 ) — (1,473 )
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 11,084 1 241 235 — 235
Union Technology Finance Investment Association 31,762 509 2,015 1,483 — 1,483
KUM HWA Co., Ltd. 4 167 — — — —
Paratus Woori Material Component Equipment joint venture company 27,487 427 2 (865 ) — (865 )
Jinmyung Plus Co., Ltd. 494 447 131 (25 ) — (25 )
Orient Shipyard Co., Ltd. 7,020 23,626 — (4 ) — (4 )
BTS 2nd Private Equity Fund 41,452 234 1 (881 ) — (881 )
Woori Financial Digital Investment Association No. 1 47,288 — 3,989 1,784 — 1,784
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 44,196 245 60 (842 ) — (842 )
KG Fashion Co., Ltd. 2,114 2,906 377 (122 ) — (122 )
Win Mortgage Co., Ltd. 4,804 2,562 11,881 139 — 139
NH Woori Newdeal Growth Alpha Private Equity Fund 1 182,355 2,013 (10,792 ) (12,911 ) — (12,911 )
SF CREDIT PARTNERS, LLC 333,410 148,541 21,326 11,068 (3,670 ) 7,398
Woori Financial Dino Lab Investment Association No. 1 4,737 — 10 (158 ) — (158 )
Woori Corporate Turnaround No.1 Private Equity Fund 25,152 642 9,684 8,558 — 8,558
Market & Farm Co., Ltd. 779 883 — (160 ) — (160 )
Woori Financial Dino Lab Investment Association No. 2 9,821 — 16 (179 ) — (179 )
Ulsan Yeocheon Development Co., Ltd. 1,439 1,036 — (12 ) — (12 )
(*) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the<br>adjustments that occurred by the difference of accounting policies with the Group.
--- ---
  • 100 -
As of and for the year ended December 31, 2024
Subsidiaries Assets Liabilities Operating<br>revenue Net income<br>(loss) Other<br>comprehensive<br>income (loss) Total<br>comprehensive<br>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 Lime Impact 1st Startup Venture Specialist Private Equity Fund 15,745 100 1 (388 ) — (388 )
Woori-Shinyoung Growth-Cap Private Equity Fund I 84,775 419 4,422 (10,824 ) — (10,824 )
LOTTE CARD Co., Ltd. (*) 24,416,416 20,937,932 2,103,130 100,468 (20,494 ) 79,974
Woori-Q Corporate Restructuring Private Equity<br>Fund 101,315 1,362 1,278 164 — 164
PCC-Woori LP Secondary Fund 22,863 600 2,549 (4,767 ) — (4,767 )
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 10,849 1 306 300 — 300
Union Technology Finance Investment Association 40,269 641 19 (646 ) — (646 )
KUM HWA Co., Ltd. 4 167 — — — —
Paratus Woori Material Component Equipment joint venture company 58,285 2,380 — (884 ) — (884 )
Jinmyung Plus Co., Ltd. 499 459 96 (32 ) — (32 )
Orient Shipyard Co., Ltd. 7,025 23,626 — (76 ) — (76 )
BTS 2nd Private Equity Fund 39,431 432 628 (468 ) — (468 )
Woori Financial Digital Investment Association No. 1 49,506 2 857 114 — 114
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 39,694 197 40 (802 ) — (802 )
KG Fashion Co., Ltd. 2,201 2,850 544 (197 ) — (197 )
Win Mortgage Co., Ltd. 6,053 3,073 16,435 1,044 — 1,044
NH Woori Newdeal Growth Alpha Private Equity Fund 1 164,574 762 40,639 38,093 — 38,093
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 )
Woori Financial Dino Lab Investment Association No. 1 4,896 1 14 (105 ) — (105 )
Woori Corporate Turnaround No.1 Private Equity Fund 30,045 220 63 (833 ) — (833 )
Market & Farm Co., Ltd. 954 902 4,933 (125 ) — (125 )
(*) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the<br>adjustments that occurred by the difference of accounting policies with the Group.
--- ---
  • 101 -
(4) The entities that the Group excluded from the associates although the Group’s shareholding ratio of<br>common stock is more than 20% as of December 31, 2025 and 2024 are as follows:
December 31, 2025
--- --- --- --- --- --- ---
Associate (*) Number of shares owned (shares) Percentage of ownership (%)
CL Tech Co., Ltd. 10,191 28.6
CT INTERNATIONAL CO.,LTD. 1,741 26.7
Happy Home Co.,Ltd. 14,924 22.7
(*) Although the Group’s common stock ownership of the entity is more than 20%, the Group does not have<br>significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in associates.
--- ---
December 31, 2024
--- --- --- --- --- --- ---
Associate (*) Number of shares owned (shares) Percentage of ownership (%)
CL Tech Co., Ltd. 10,191 28.6
TH International Co.,Ltd. 6,737 21.3
WORK-LIFE BALANCE CO.,LTD 209 21.3
(*) Although the Group’s common stock ownership of the entity is more than 20%, the Group does not have<br>significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in associates.
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  • 102 -
(5) As of December 31, 2025 and 2024, the reconciliations from the net assets of the associates to the book<br>value of the shares of the investment in associates are as follows (Unit: Korean Won in millions except for ownership):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Associates Total net<br>asset Ownership<br>(%) Ownership<br>portion of net<br>assets Basis<br>difference Intercompany<br>transaction and<br>others Book<br>Value
W Service Networks Co., Ltd. 4,122 4.9 204 — — 204
Korea Credit Bureau Co., Ltd. 122,133 9.9 12,107 247 — 12,354
Korea Finance Security Co., Ltd. 25,549 15.0 3,832 — — 3,832
K BANK Co., Ltd. (*) 2,081,003 12.0 248,878 20,822 — 269,700
Partner One Value Up I Private Equity Fund 8,645 23.3 2,010 — — 2,010
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 6,174 20.0 1,235 — — 1,235
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund 15,647 25.0 3,912 — 718 4,630
Woori-Shinyoung Growth-Cap Private Equity Fund I 102,733 24.5 25,211 — — 25,211
LOTTE CARD Co., Ltd. (*) 2,953,104 20.0 590,619 — — 590,619
Woori-Q Corporate Restructuring Private Equity<br>Fund 97,927 19.7 19,274 — — 19,274
PCC-Woori LP Secondary Fund 20,795 26.9 5,599 — — 5,599
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 11,083 100.0 11,082 — — 11,082
Union Technology Finance Investment Association 31,253 29.7 9,283 — — 9,283
KUM HWA Co., Ltd. (163 ) 20.0 (33 ) — 33 —
Paratus Woori Material Component Equipment joint venture company 27,060 20.8 5,622 — — 5,622
Jinmyung Plus Co., Ltd. 48 20.2 10 — — 10
Orient Shipyard Co., Ltd. (16,606 ) 22.7 (3,774 ) — 3,774 —
BTS 2nd Private Equity Fund 41,218 20.0 8,244 — — 8,244
Woori Financial Digital Investment Association No. 1 47,288 88.0 41,614 — — 41,614
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 43,951 28.3 12,439 — — 12,439
KG Fashion Co., Ltd. (792 ) 20.8 (164 ) — 164 —
Win Mortgage Co., Ltd. 2,242 4.5 101 — — 101
NH Woori Newdeal Growth Alpha Private Equity Fund 1 180,342 22.3 40,209 — — 40,209
SF CREDIT PARTNERS, LLC 184,869 10.0 18,487 529 — 19,016
Rea Company Ltd. (2 ) 24.5 (1 ) — 1 —
Woori Financial Dino Lab Investment Association No. 1 4,737 70.0 3,316 — — 3,316
Woori Corporate Turnaround No.1 Private Equity Fund 24,510 27.3 6,685 — (2,862 ) 3,823
Market & Farm Co., Ltd. (104 ) 23.7 (25 ) — 25 —
Woori Financial Dino Lab Investment Association No. 2 9,821 60.0 5,893 — — 5,893
Ulsan Yeocheon Development Co., Ltd. 402 50.0 201 — — 201
(*) The net asset and net asset equity amount is after the stock options, etc.
--- ---
  • 103 -
December 31, 2024
Associates Total net<br>asset Ownership<br>(%) Ownership<br>portion of net<br>assets Basis<br>difference Intercompany<br>transaction and<br>others Book<br>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 Lime Impact 1st Startup Venture Specialist Private Equity Fund 15,645 25.0 3,911 — 621 4,532
Woori-Shinyoung Growth-Cap Private Equity Fund I 84,357 24.5 20,702 — — 20,702
LOTTE CARD Co., Ltd. (*) 2,877,907 20.0 575,580 — — 575,580
Woori-Q Corporate Restructuring Private Equity<br>Fund 99,952 20.4 20,386 — — 20,386
PCC-Woori LP Secondary Fund 22,262 26.9 5,994 — — 5,994
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 10,848 100.0 10,847 — — 10,847
Union Technology Finance Investment Association 39,627 29.7 11,770 — — 11,770
KUM HWA Co., Ltd. (163 ) 20.0 (33 ) — 33 —
Paratus Woori Material Component Equipment joint venture company 55,904 20.8 11,615 — — 11,615
Jinmyung Plus Co., Ltd. 40 20.2 9 — — 9
Orient Shipyard Co., Ltd. (16,601 ) 22.7 (3,773 ) — 3,773 —
BTS 2nd Private Equity Fund 38,999 20.0 7,799 — — 7,799
Woori Financial Digital Investment Association No. 1 49,504 88.0 43,564 — — 43,564
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 39,497 28.3 11,178 — — 11,178
KG Fashion Co., Ltd. (649 ) 20.8 (135 ) — 135 —
Win Mortgage Co., Ltd. 2,981 4.5 135 — — 135
NH Woori Newdeal Growth Alpha Private Equity Fund 1 163,812 22.4 36,752 — — 36,752
SF CREDIT PARTNERS, LLC 154,712 10.0 15,470 — 530 16,000
Aram CMC Co., Ltd. 88 20.0 18 — (18 ) —
Woori Financial Dino Lab Investment Association No. 1 4,895 70.0 3,426 — — 3,426
Woori Corporate Turnaround No.1 Private Equity Fund 29,825 27.3 8,134 — — 8,134
Market & Farm Co., Ltd. 52 23.7 12 — (12 ) —
(*) The net asset and net asset equity amount is after the stock options , etc.
--- ---
  • 104 -
14. INVESTMENT PROPERTIES
(1) Details of investment properties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Acquisition cost 581,418 599,143
Accumulated depreciation (78,533 ) (76,025 )
Net carrying value 502,885 523,118
(2) Changes in investment properties are as follows (Unit: Korean Won in millions):
--- ---
For the years ended<br>December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 523,118 592,528
Depreciation (6,397 ) (8,768 )
Classification as assets held for sale (35,137 ) —
Transfer (*) 14,440 (65,280 )
Foreign currencies translation adjustments 6,861 4,638
Ending balance 502,885 523,118
(*) This is the reclassification amount between properties and equipment, and investment properties for land and<br>buildings for the years ended December 31, 2025 and 2024.
--- ---
(3) Fair value of investment properties amounted to 863,170 million Won and 873,600 million Won as of<br>December 31, 2025 and 2024, 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<br>classified as level 3 on the fair value hierarchy.
--- ---
(4) Rental fee earned from investment properties is amounted to 31,665 million Won and 31,657 million Won<br>for the years ended December 31, 2025 and 2024, respectively. The operating expenses directly related to the investment properties where rental fee was earned are 6,397 million Won and 8,768 million Won for the years ended<br>December 31, 2025 and 2024, respectively.
--- ---
(5) The minimum lease payments expected to be received in the future under the<br>non-refundable lease agreement as of December 31, 2025 and 2024. (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Lease payments:
Within a year 13,150 10,762
More than 1 year and within 2 years 8,589 6,055
More than 2 years and within 3 years 7,038 3,772
More than 3 years and within 4 years 7,020 3,487
More than 4 years and within 5 years 5,753 3,438
More than 5 years 3,793 3,441
Total 45,343 30,955
  • 105 -
15. PROPERTIES AND EQUIPMENT
(1) Details of properties and equipment as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Properties and equipment (owned) 1,542,661 576,648 255,493 70,188 45,761 2,490,751
Right-of-use<br>assets — 436,831 18,840 — — 455,671
Carrying value 1,542,661 1,013,479 274,333 70,188 45,761 2,946,422
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Properties and equipment (owned) 1,542,666 612,520 213,537 65,331 68,440 2,502,494
Right-of-use<br>assets — 475,908 23,473 — — 499,381
Carrying value 1,542,666 1,088,428 237,010 65,331 68,440 3,001,875
(2) Details of properties and equipment (owned) as of December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Acquisition cost 1,542,661 942,520 1,061,894 482,193 45,761 4,075,029
Accumulated depreciation — (365,821 ) (806,401 ) (412,005 ) — (1,584,227 )
Accumulated impairment losses — (51 ) — — — (51 )
Net carrying value 1,542,661 576,648 255,493 70,188 45,761 2,490,751
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Acquisition cost 1,542,666 972,797 992,819 478,498 68,440 4,055,220
Accumulated depreciation — (360,277 ) (779,282 ) (413,167 ) — (1,552,726 )
Net carrying value 1,542,666 612,520 213,537 65,331 68,440 2,502,494
  • 106 -
(3) Details of changes in properties and equipment (owned) for the years ended December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Beginning balance 1,542,666 612,520 213,537 65,331 68,440 2,502,494
Acquisition 26,291 28,057 115,430 27,138 74,919 271,835
Disposal (148 ) — (898 ) (1,221 ) (31,355 ) (33,622 )
Depreciation — (30,236 ) (72,948 ) (21,856 ) — (125,040 )
Impairment loss — (51 ) — — — (51 )
Foreign currencies translation adjustment (990 ) (361 ) (1,310 ) (613 ) (51 ) (3,325 )
Transfer (*) 53,424 (4,371 ) 2,163 1,342 (66,998 ) (14,440 )
Classification as held for sale (78,582 ) (28,897 ) — — — (107,479 )
Others — (13 ) (481 ) 67 806 379
Ending balance 1,542,661 576,648 255,493 70,188 45,761 2,490,751
(*) This is the reclassification amount between properties and equipment, and investment properties for land and<br>buildings for the year ended December 31, 2025.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Beginning balance 1,495,945 614,415 184,298 52,364 36,486 2,383,508
Acquisition 215 27,919 88,160 28,639 37,821 182,754
Disposal (7,253 ) — (1,468 ) (1,517 ) — (10,238 )
Depreciation — (30,854 ) (71,703 ) (18,965 ) — (121,522 )
Foreign currencies translation adjustment 1,489 532 4,224 3,059 334 9,638
Transfer (*) 61,544 3,736 5,338 853 (6,191 ) 65,280
Classification as held for sale (16,477 ) (3,215 ) — — — (19,692 )
Business combination — — 2 — — 2
Others 7,203 (13 ) 4,686 898 (10 ) 12,764
Ending balance 1,542,666 612,520 213,537 65,331 68,440 2,502,494
(*) This is the reclassification amount between properties and equipment, and investment properties for land and<br>buildings for the year ended December 31, 2024
--- ---
(4) Details of right-of-use assets<br>as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Acquisition cost 893,177 38,683 931,860
Accumulated depreciation (456,346 ) (19,843 ) (476,189 )
Net carrying value 436,831 18,840 455,671
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Acquisition cost 867,170 38,206 905,376
Accumulated depreciation (391,262 ) (14,733 ) (405,995 )
Net carrying value 475,908 23,473 499,381
  • 107 -
(5) Details of changes in<br>right-of-use assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions) :
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Beginning balance 475,908 23,473 499,381
New contracts 145,170 7,309 152,479
Changes in contracts 55,056 — 55,056
Termination (20,546 ) (665 ) (21,211 )
Depreciation (217,572 ) (11,529 ) (229,101 )
Others (1,185 ) 252 (933 )
Ending balance 436,831 18,840 455,671
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Beginning balance 327,554 17,899 345,453
New contracts 313,469 15,595 329,064
Changes in contracts 46,097 15 46,112
Termination (14,764 ) (1,009 ) (15,773 )
Depreciation (203,212 ) (11,488 ) (214,700 )
Others 6,764 2,461 9,225
Ending balance 475,908 23,473 499,381
  • 108 -
16. INTANGIBLE ASSETS
(1) Details of intangible assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill Industrial<br>property<br>rights Development<br>cost Others Membership Construction<br>in progress Total
Acquisition cost 172,791 2,350 713,690 1,183,153 25,559 5,399 2,102,942
Accumulated amortization — (1,969 ) (494,624 ) (985,220 ) — — (1,481,813 )
Accumulated impairment losses (45,714 ) — — (33,552 ) (1,044 ) — (80,310 )
Net carrying value 127,077 381 219,066 164,381 24,515 5,399 540,819
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill Industrial<br>property<br>rights Development<br>cost Others Membership Construction<br>in progress Total
Acquisition cost 181,229 2,245 635,314 1,137,672 26,241 6,003 1,988,704
Accumulated amortization — (1,810 ) (432,903 ) (921,629 ) — — (1,356,342 )
Accumulated impairment losses — — — (33,552 ) (1,093 ) — (34,645 )
Net carrying value 181,229 435 202,411 182,491 25,148 6,003 597,717
(2) Details of changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Goodwill Industrial<br>property<br>rights Development<br>cost Others Membership Construction<br>in progress Total
Beginning balance 181,229 435 202,411 182,491 25,148 6,003 597,717
Acquisition — 1 78,384 44,640 2,044 5,285 130,354
Disposal — — — (34 ) (2,682 ) (16 ) (2,732 )
Amortization (*1) — (159 ) (61,729 ) (65,664 ) — — (127,552 )
Provision for impairment loss (*2) (45,714 ) — — — (8 ) — (45,722 )
Transfer — 104 — 4,839 — (4,943 ) —
Foreign currencies translation adjustment (8,438 ) — — (1,447 ) 13 (116 ) (9,988 )
Others — — — (444 ) — (814 ) (1,258 )
Ending balance 127,077 381 219,066 164,381 24,515 5,399 540,819
(*1) Amortization of other intangible assets amounting to 32,495 million Won is included in other operating<br>expenses.
--- ---
(*2) Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if<br>recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.
--- ---
  • 109 -
For the year ended December 31, 2024
Goodwill Industrial<br>property<br>rights Development<br>cost Others Membership Construction<br>in progress Total
Beginning balance 163,517 489 163,678 162,792 22,138 7,167 519,781
Acquisition — 18 75,890 67,382 3,976 25,181 172,447
Disposal — — (113 ) (1,717 ) (522 ) — (2,352 )
Amortization (*1) — (182 ) (50,033 ) (61,256 ) — — (111,471 )
Provision for impairment loss (*2) — — — — (217 ) — (217 )
Transfer — 110 12,989 10,990 — (24,089 ) —
Foreign currencies translation adjustment 17,712 — — 4,163 274 586 22,735
Business combination — — — 1 — — 1
Others — — — 136 (501 ) (2,842 ) (3,207 )
Ending balance 181,229 435 202,411 182,491 25,148 6,003 597,717
(*1) Amortization of other intangible assets amounting to 28,509 million Won is included in other operating<br>expenses.
--- ---
(*2) Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if<br>recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.
--- ---
(3) Goodwill
--- ---
1) Details of major goodwill as of December 31, 2025 and 2024 are as follows (Unit: Korea Won in millions):<br>
--- ---
Cash Generating Unit (*1) December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
PT Bank Woori Saudara Indonesia 1906 Tbk (*2) 72,404 109,262
Woori Bank (Cambodia) PLC (*3) 47,589 64,584
Total 119,993 173,846
(*1) The goodwill has been allocated to the cash-generating unit that will benefit from the synergies of the<br>business combination, and the cash-generating unit generally consists of a sales unit or its sub-sector.
--- ---
(*2) The Group has acquired Saudara Bank to expand retail sales in Indonesia, and recognized the goodwill as it is<br>expected to strengthen our competitiveness by securing a local sales network in Indonesia.
--- ---
(*3) The Group has acquired Vision Fund Cambodia to expand Cambodian retail sales, and recognized goodwill based on<br>the economies of scale and acquired customer base.
--- ---
2) Impairment test
--- ---

The recoverable amount of the cash-generating unit is measured at larger amount among the net fair value or the value in 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 net fair value is calculated by reflecting the characteristics of the current cash-generating unit in the past sale amounts of similar cash-generating units in the market. 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. PT Bank Woori Saudara Indonesia 1906 Tbk and Woori Bank (Cambodia) PLC applied growth rate for 1% 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 discount rate, including assumptions about risk-free 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. (Unit: Korean Won in millions):

  • 110 -
Category PT Bank Woori<br>Saudara Indonesia<br>1906 Tbk Woori Bank<br>(Cambodia) PLC
Discount rate (%) 12.96 12.83
Terminal growth rate (%) 1.00 1.00
Recoverable amount 1,106,424 591,103
Carrying amount 1,136,686 606,555

As a result of the impairment test on goodwill, the carrying amount of the cash-generating unit to which the goodwill was allocated exceeds the recoverable amount, and therefore an impairment loss has been recognized.

3) Sensitivity analysis

The sensitivity of recoverable amount due to changes in significant but unobservable inputs used in measuring recoverable amount of PT Bank Woori Saudara Indonesia 1906 Tbk and Woori Bank (Cambodia) PLC as of December 31, 2025, is as follows (Unit: Korean Won in millions):

PT Bank Woori<br>Saudara Indonesia<br>1906 Tbk Woori Bank<br>(Cambodia) PLC
Discount rate Increase by 1.0 % point (97,991 ) (52,311 )
Decrease by 1.0 % point 116,379 62,246
Terminal growth rate Increase by 1.0 % point 78,719 42,278
Decrease by 1.0 % point (66,567 ) (35,687 )
17. ASSETS HELD FOR SALE
--- ---

Assets held for sale as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Properties and equipment (*) 91,480 31,266
Investment properties (*) 33,588 —
Total 125,068 31,266
(*) The Group classifies above assets as assets held for sale that are highly likely to be sold within one year<br>from December 31, 2025 and 2024, based on the management’s decision.
--- ---
  • 111 -
18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES
(1) Assets subjected to lien as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- ---
Collateral given to Amount Reason for collateral
Loans and other financial assets at amortized cost Due from banks in local currency Korea Exchange Co.,Ltd. 3,362 Margin deposit for CCP
MSBI LIMITED Seoul 12,634 CSA variable margin and others
Due from banks in foreign currencies Goldman Sachs Intl., and others 353,030 CSA variable margin and others
Mortgage-backed securities Public offering 2,067,313 Covered bonds
Financial assets at FVTPL Korean financial institutions government bonds and others ING BANK and others 587,591 CSA variable margin and others
The BOK and others 1,814,134 Settlement risk and others
Financial assets at <br>FVTOCI Korean treasury and government bonds and others The BOK and others 3,056,643 Related to bonds sold under repurchase agreements (*)
The BOK 362,317 Settlement risk and others
Korean financial institutions debt securities and others The BOK and others 927,890 Related to bonds sold under repurchase agreements (*)
The BOK 9,283,095 Settlement risk and others
Foreign financial institutions debt securities CCIL Exchange 150,656 Related to bonds sold under repurchase agreements (*)
SOCIETE GENERAL, PAR 386,609 CSA variable margin and others
RJF 93,681 Collateral to receive a borrowing limit
Securities at <br>amortized cost Korean treasury and government bonds and others The BOK and others 9,100,505 Settlement risk and others
Korean financial institutions debt securities and others The BOK and others 5,098,911 Settlement risk and others
Foreign financial institutions debt securities RJF and others 30,441 Collateral to receive a borrowing limit
NATIXIS 12,145 Related to bonds sold under repurchase agreements (*)
Total 33,340,957
(*1) The financial assets are not derecognized and provided as collaterals because the Group entered into an<br>agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Group continuously recognizes the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.<br>
--- ---
  • 112 -
December 31, 2024
Collateral given to Amount Reason for collateral
Loans and other financial assets at amortized cost Due from banks in local currency Korea Exchange Co.,Ltd. 3 Margin deposit for CCP
Due from banks in foreign currencies BNP-PARIBAS, PAR and others 647,782 CSA variable margin and others
Mortgage-backed securities Public offering 1,790,810 Covered bonds
Financial assets at FVTPL Korean financial institutions debt securities and others DBS BANK LTD, SEL and others 698,231 CSA variable margin and others
Financial assets at <br>FVTOCI Korean financial institutions debt securities and others CITIBANK, N.A. LONDON and others 74,143 Related to bonds sold under repurchase agreements (*)
Korean financial institutions debt securities and others The BOK and others 8,863,286 Settlement risk and others
Foreign financial institutions debt securities Central Bank of Brazil and others 164,136 Related to bonds sold under repurchase agreements (*)
RJF 110,530 Collateral to receive a borrowing limit
SOCIETE GENERAL, PAR 358,781 CSA variable margin
Securities at <br>amortized cost Korean treasury and government bonds and others The BOK and others 11,526,197 Settlement risk and others
Foreign financial institutions debt securities NATIXIS 41,442 Related to bonds sold under repurchase agreements (*)
RJF and others 34,508 Collateral to receive a borrowing limit
Total 24,309,849
(*) The financial assets are not derecognized and provided as collaterals because the Group entered into an<br>agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Group continuously recognizes the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.<br>
--- ---
(2) Assets acquired through foreclosures as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Non-operational real estates 47,849 48,576
Non-operational assets 484 497
Real estate assessment provision (1,794 ) (1,898 )
Accumulated Depreciation (3,490 ) (2,745 )
Total 43,049 44,430
  • 113 -
(3) Securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
December 31,<br>2025 Loaned to
--- --- --- --- --- --- --- ---
Financial assets at FVTOCI Korean treasury and government bonds and others 238,406 Korea Securities Finance Corporation
December 31,<br>2024 Loaned to
--- --- --- --- --- --- --- ---
Financial assets at FVTPL Korean treasury and government bonds and others 12,361 Korea Securities Finance Corporation

Securities loaned are lending of specific securities to borrowers who agree to return the same quantity of the same security at the end of lending period. As the Group does not derecognize these securities, there are no liabilities recognized through such transactions relates to securities loaned.

(4) Collaterals held that can be disposed and re-subjected to lien<br>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, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Fair values of collaterals Fair values of collaterals<br>disposed or re-subjected to lien
Securities 14,673,954 —
December 31, 2024
--- --- --- --- --- --- ---
Fair values of collaterals Fair values of collaterals<br>disposed or re-subjected to lien
Securities 10,640,153 —
19. OTHER ASSETS
--- ---

Details of other assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Prepaid expenses 335,506 296,902
Advance payments 10,121 8,502
Non-operational assets 43,050 44,430
Others 34,112 16,379
Total 422,789 366,213
  • 114 -
20. FINANCIAL LIABILITIES AT FVTPL
(1) Financial liabilities at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Financial liabilities at FVTPL 5,454,730 9,235,348
Financial liabilities designated to be measured at FVTPL 557,501 547,816
Total 6,012,231 9,783,164
(2) Details of financial liabilities at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Deposits due to customers :
Gold banking liabilities 263,251 74,205
Borrowings
Securities sold 70,298 —
Derivative liabilities 5,121,181 9,161,143
Total 5,454,730 9,235,348
(3) Details of financial liabilities designated to be measured at FVTPL as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Deposits due to customers :
Time Deposits 557,501 547,816

These contracts are designated as financial liabilities at fair value through profit or loss in accordance with K- IFRS No.1109 ‘Financial Instrument’ because the group of financial instruments is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, in cases where designating financial liabilities as items measured at fair value through profit or loss makes the information more relevant.

(4) Changes in fair value due to fluctuation in credit risk reflected in financial liabilities designated to be<br>measuredat FVTPL for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended<br>December 31, 2025 For the year ended<br>December 31, 2024
--- --- --- --- --- --- --- --- ---
Financial liabilities designated to be measured at FVTPL 557,501 547,816
Changes in fair value due to fluctuation in credit risk (*) 74 (1,831 )
Accumulated changes in fair value due to fluctuation in credit risk (*) (1,757 ) (1,831 )
(*) The loss recognized in other comprehensive income for the year ended December 31, 2025 with respect to<br>financial liabilities designated to be measured at FVTPL are 74 million Won, and the cumulative profit are 1,757 million Won. The profit recognized in other comprehensive income for the year ended December 31, 2024 with respect to<br>financial liabilities designated to be measured at FVTPL are 1,831 million Won, and the cumulative profit are 1,831 million Won.
--- ---

When deposits due to customers are measured at fair value, adjustments are made to reflect the credit risk of the Group. This is a method determined by adjusting the Group’s credit spread observed in the credit evaluation.

  • 115 -
(5) The difference between financial liabilities designated to be measured at FVTPL’s carrying amount and<br>nominal amount at maturity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Carrying amount 557,501 547,816
Nominal amount at maturity 540,000 530,000
Difference 17,501 17,816
21. DEPOSITS DUE TO CUSTOMERS
--- ---

Details of deposits due to customers by type as of December 31, 2025, and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Deposits in local currency:
Demand deposits 8,210,457 8,875,838
Saving deposits with flexible withdrawal options 125,842,027 115,920,730
Other saving deposits 172,747,445 175,594,379
Mutual installment 18,219 19,901
Certificate of deposits 9,274,299 11,742,425
Other deposits 955,588 1,037,810
Sub-total 317,048,035 313,191,083
Deposits in foreign currencies:
Deposits in foreign currencies 55,428,731 50,986,214
Present value discount (138,961 ) (144,359 )
Total 372,337,805 364,032,938
22. BORROWINGS AND DEBENTURES
--- ---
(1) Details of borrowings as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- ---
Lenders Interest rate (%) Amount
Borrowings in local currency:
Borrowings from the BOK The BOK 1.0 1,845,239
Borrowings from government funds Small Enterprise and Market Service and others 0.0 ~ 3.5 2,195,534
Others The Korea Development Bank and others 0.0 ~ 4.6 6,037,670
Sub-total 10,078,443
Borrowings in foreign currencies The Export-Import Bank of Korea and others 0.8 ~ 8.0 12,884,832
Bills sold Others 0.0 ~ 2.0 1,033
Call money Bank and others 1.7 ~ 10.0 2,013,940
Bonds sold under repurchase agreements The BOK and others 1.0 ~ 14.9 3,955,860
Present value discount (574 )
Total 28,933,534
  • 116 -
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 ~ 4.8 5,609,910
Sub-total 9,757,095
Borrowings in foreign currencies The Export-Import Bank of Korea and others 0.0 ~ 12.0 14,937,950
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 ~ 12.2 278,767
Present value discount (593 )
Total 26,379,689
(2) Details of debentures as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest rate (%) Amount Interest rate (%) Amount
Face value of bond (*):
Ordinary bonds 0.8 ~ 5.4 24,816,021 0.8 ~ 6.3 22,170,995
Subordinated bonds 1.9 ~ 5.1 3,872,768 1.9 ~ 5.1 3,471,380
Other bonds 17.0 4,006 17.0 4,006
Sub-total 28,692,795 25,646,381
Discounts on bonds (30,527 ) (112,057 )
Total 28,662,268 25,534,324
(*) Includes debentures under fair value hedge amounting to 4,046,624 million Won and 3,952,047 million<br>Won as of December 31, 2025 and 2024, respectively.
--- ---
23. PROVISIONS
--- ---
(1) Details of provisions as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Provisions for guarantees (*1) 79,315 70,686
Provisions for unused commitments 72,412 76,713
Asset retirement obligation 91,231 87,599
Other provisions (*2) 394,517 295,108
Total 637,475 530,106
(*1) Provisions for guarantees include provisions for financial guarantees of 52,730 million Won and<br>48,001 million Won as of December 31, 2025 and 2024, respectively.
--- ---
(*2) Other provisions consist of provisions for litigation, compensation for loss and others.
--- ---
  • 117 -
(2) Changes in provisions for guarantees and unused loan commitments for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
i) Provisions for guarantees
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 56,525 2,534 11,627 70,686
Transfer to 12-month expected credit loss 536 (536 ) — —
Transfer to expected credit loss for the entire period (438 ) 438 — —
Transfer to credit-impaired financial assets (809 ) (39 ) 848 —
Net provision for unused amount 4,005 1,015 3,344 8,364
Others (*) 270 (5 ) — 265
Ending balance 60,089 3,407 15,819 79,315
(*) Includes the impact from change of financial guarantee liabilities.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 68,894 2,800 7,225 78,919
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 for (reversal of) unused amount (9,352 ) (108 ) 4,211 (5,249 )
Others (*) (3,004 ) 19 1 (2,984 )
Ending balance 56,525 2,534 11,627 70,686
(*) Includes the impact from change of financial guarantee liabilities.
--- ---
  • 118 -
ii) Provisions for unused loan commitments
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 67,341 9,372 — 76,713
Transfer to 12-month expected credit loss 2,054 (2,054 ) — —
Transfer to expected credit loss for the entire period (901 ) 901 — —
Transfer to credit-impaired financial assets (51 ) (100 ) 151 —
Net reversal of unused amount (949 ) (3,009 ) (147 ) (4,105 )
Others (197 ) 1 — (196 )
Ending balance 67,297 5,111 4 72,412
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance 74,090 8,401 — 82,491
Transfer to 12-month expected credit loss 2,385 (2,385 ) — —
Transfer to expected credit loss for the entire period (1,602 ) 1,602 — —
Transfer to credit-impaired financial assets (57 ) (53 ) 110 —
Net provision for (reversal of) unused amount (8,271 ) 1,816 (110 ) (6,565 )
Others 796 (9 ) — 787
Ending balance 67,341 9,372 — 76,713
(3) Changes in asset retirement obligation for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 87,599 86,290
Provisions provided 3,173 3,553
Provisions used (7,825 ) (4,468 )
Reversal — (223 )
Amortization 1,076 1,243
Increase in restoration costs and others 7,208 1,204
Ending balance 91,231 87,599
  • 119 -

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 properties as of end of reporting period 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 the preceding year in order to estimate future recovery cost.

(4) Changes in other provisions for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 295,108 458,264
Provisions provided 103,785 29,769
Provisions used and others (4,486 ) (185,576 )
Reversal of unused amount (72 ) (3,344 )
Foreign currencies translation adjustments 82 209
Others 100 (4,214 )
Ending balance 394,517 295,108
(5) Others
--- ---
① The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund<br>(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 current period.
--- ---
② The Group recognized a provision for the estimated amount of contractual refunds and loss compensations that<br>may be payable in relation to customer losses expected fund redemption delays, with ending balances of 259,168 million Won and 246,422 million Won as of December 31, 2025 and 2024, respectively. In addition, the Group recognized a<br>provision—comprising estimated compensation for expected customer losses on equity-linked securities and the expected fines and penalties to be imposed by the Financial Services<br>Commission—amounting to 2,847 million Won and 781 million Won as of December 31, 2025 and 2024, respectively.
--- ---
  • 120 -
24. NET DEFINED BENEFIT LIABILITY(ASSET)

The retirement benefit of the Group 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 actuarial assumptions that are considered to be the most reasonable estimate of the future cash flows (the projected unit method, which takes account of projected earnings increases).

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 discount rate calculated based on return on<br>high-quality corporate bonds. A deficit may occur if the rate of return of plan assets falls short of the discount rate.
Decrease in return on high quality corporate bonds A decrease in return on high-quality corporate bonds will be partially offset by some increase in<br>the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.
Risk of inflation Most defined benefit obligations are related to inflation rate; the higher the inflation rate is,<br>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) as of December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
December 31,<br>2025 December 31,<br>2024
--- --- --- --- --- --- --- --- ---
Present value of defined benefit obligations 1,714,739 1,591,119
Fair value of plan assets (1,872,173 ) (1,726,232 )
Net defined benefit asset (157,434 ) (135,113 )
(2) Changes in the carrying value of defined benefit obligation for the years ended December 31, 2025 and 2024<br>are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 1,591,119 1,358,687
Current service cost 132,888 121,807
Interest cost 64,523 64,548
Remeasurements Financial assumptions (21,059 ) 79,646
Demographic assumptions — (533 )
Experience adjustments 39,568 (14,545 )
Foreign currencies translation adjustments 780 400
Retirement benefit paid (120,526 ) (87,193 )
Past service cost 26,469 —
Effect of moving in and out of associates 780 409
Liability acquired through business combination — 68,237
Others 197 (344 )
Ending balance 1,714,739 1,591,119
  • 121 -
(3) Changes in the plan assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 1,726,232 1,577,806
Employer’s contributions 213,000 100,000
Interest income 69,761 77,208
Remeasurements (10,825 ) (13,670 )
Retirement benefit paid (123,693 ) (83,331 )
Effect of moving in and out of associates 464 2,514
Asset acquired through business combination — 68,237
Other (2,766 ) (2,532 )
Ending balance 1,872,173 1,726,232
(4) The details of plan assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Time deposits and others 1,872,173 1,726,232
(5) Realized returns on plan assets amount to 58,936 million Won and 63,538 million Won for the years<br>ended December 31, 2025 and 2024, respectively, and the contribution expected to be paid in the current accounting year amounts to 131,611 million Won.
--- ---
(6) The amounts recognized in net income and total comprehensive income in relation to defined benefit plans for<br>the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended<br>December 31, 2025 For the year ended<br>December 31, 2024
--- --- --- --- --- --- --- --- ---
Current service cost 132,888 121,807
Past service cost (*) 26,469 —
Net interest income (5,238 ) (12,660 )
Cost recognized in net income 154,119 109,147
Remeasurements 29,334 78,238
Cost recognized in total comprehensive income 183,453 187,385
(*) This occurred due to changes in the criteria for determining ordinary wages during the year ended<br>December 31, 2025.
--- ---

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 2,783 million Won and 2,030 million Won for the years ended December 31, 2025 and 2024, respectively.

(7) Key actuarial assumptions used in defined benefit liability measurement as of December 31, 2025 and 2024<br>are as follows:
December 31, 2025 December 31, 2024
--- --- --- ---
Discount rate 4.46% 4.03%
Future wage growth rate 5.49% 5.19%
Mortality rate Issued by Korea Insurance<br>Development Institute Issued by Korea Insurance<br>Development Institute
Retirement rate Experience rate for each<br>employment classification Experience rate for each<br>employment classification

The weighted average maturity of defined benefit liability is 9.57 years.

  • 122 -
(8) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025 (*) December 31, 2024 (*)
--- --- --- --- --- --- --- --- --- --- ---
Discount rate Increase by 1% point (145,339 ) (137,958 )
Decrease by 1% point 167,619 159,621
Future wage growth rate Increase by 1% point 169,126 160,833
Decrease by 1% point (149,127 ) (141,388 )
(*) Although the above sensitivity analyses are based on a change in an assumption while holding all other<br>assumptions constant; in practice, more than one assumption are correlated. The sensitivity of the defined benefit obligation to changes in principal actuarial assumptions is calculated using the projected unit credit method, the same method applied<br>when calculating the defined benefit obligations recognized in the statement of financial position.
--- ---
(9) The details of the maturity of the defined benefit obligation as of December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Within 1 year 71,790 60,056
After 1 year but less than 2 years 101,440 83,523
After 2 years but less than 5 years 427,450 409,094
After 5 years but less than 10 years 525,678 457,362
After 10 years 1,564,105 1,390,927
25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
--- ---

Other financial liabilities and other liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Other financial liabilities:
Accounts payable 7,413,925 6,438,827
Accrued expenses 4,013,134 4,363,030
Borrowings from trust accounts 7,692,762 6,769,383
Agency business revenue 594,684 733,988
Foreign exchange payables 784,357 902,564
Domestic exchange payables 11,740,938 7,590,328
Lease liabilities 411,186 450,682
Other miscellaneous financial liabilities 2,308,664 2,059,919
Present value discount (1,229 ) (1,118 )
Sub-total 34,958,421 29,307,603
Other liabilities:
Unearned income 72,837 111,796
Other miscellaneous liabilities 240,782 195,493
Sub-total 313,619 307,289
Total 35,272,040 29,614,892
  • 123 -
26. DERIVATIVES
(1) Derivative assets and derivative liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets Liabilities
Nominal<br>amount For fair value<br>hedge For trading For fair value<br>hedge For trading
Interest rate:
Futures 49,325 — — — —
Forwards 3,340,000 — 155,174 — 92,925
Swaps 134,530,759 37,010 136,924 27,050 144,643
Written options 320,000 — — — 8,194
Currency:
Forwards 106,808,822 — 2,681,099 — 1,173,984
Swaps 71,716,550 — 2,830,743 — 3,700,608
Purchase options 67,650 — 1,267 — —
Written options 81,999 — — — 827
Equity:
Forwards 163 — 104 — —
Purchase options 1,711 — 815 — —
Total 316,916,979 37,010 5,806,126 27,050 5,121,181
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets Liabilities
Nominal<br>amount For fair value<br>hedge For trading For fair value<br>hedge For trading
Interest rate:
Futures 101,831 — — — —
Forwards 3,530,000 — 52,855 — 274,980
Swaps 138,866,980 10,102 308,647 102,634 204,086
Purchase options 50,000 — 81 — —
Written options 360,000 — — — 10,595
Currency:
Forwards 111,916,607 — 5,638,033 — 1,804,764
Swaps 84,460,271 — 4,089,519 — 6,861,714
Purchase options 175,221 — 4,779 — —
Written options 265,182 — — — 3,603
Equity:
Forwards 1,520 — 182 — —
Swaps 7,698 — — — 1,401
Purchase options 1,767 — 1,005 — —
Total 339,737,077 10,102 10,095,101 102,634 9,161,143

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 20), and derivatives held for hedging are presented as derivative assets and derivative liabilities in the consolidated statements of financial position.

  • 124 -
(2) Overview of the Group’s hedge accounting
1) Fair value hedge
--- ---

As of December 31, 2025, the Group has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 3,763,978 million Won, and Korean Won denominated debentures amounting to 282,646 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign currency and Korean Won denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments.

According to the interest rate swap contract, an amount computed by multiplying the difference between the fixed and variable interest rate to the predetermined nominal amount will be exchanged. As a result, the fixed interest rate condition in the foreign currency and Korean Won denominated debentures will practically be converted into variable interest rate, thereby eliminating the risk of fair value fluctuation. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value to the face value of the hedging instrument.

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 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 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) Hedges of net investment in foreign operations

The foreign currency exposure arises from the Group’s net investment in Woori America Bank, Woori Bank (Cambodia) PLC, Woori Global Markets Asia Limited and foreign branches, which use USD as functional currency. The risk arises from fluctuation in the spot exchange rate between USD and KRW. This may change the net investment amount.

The risk hedged from net investment hedging is the risk of fluctuations in KRW against USD, which could reduce the net investment carrying amount of the Group in Woori America Bank, Woori Bank (Cambodia) PLC. and Woori Global Markets Asia Limited.

Some of the Group’s net investments in Woori America bank, Woori Bank (Cambodia) PLC., Woori Global Markets Asia Limited, etc. are hedged in USD-denominated foreign currency bonds (Carrying amount as of December 31, 2025: USD 863,959,317) and mitigate the exchange risk arising from the net assets of subsidiaries and foreign branches. The bond was designated as a hedging instrument for changes in the value of net investments resulting from fluctuations in the spot exchange rate between USD and KRW.

To assess 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 only within the principal range of the liabilities.

  • 125 -
(3) The nominal amounts of the hedging instrument as of December 31, 2025 and 2024 are as follows (Unit: USD,<br>and Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
1 year or less 1 year to 5 years More than 5<br>years Total
Fair value hedge
Interest rate risk
Interest rate swaps () 550,000,000 2,100,000,000 — 2,650,000,000
Interest rate swaps (KRW) — — 290,000 290,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures () — 863,959,317 — 863,959,317

All values are in US Dollars.

December 31, 2024
1 year or less 1 year to 5 years More than 5<br>years Total
Fair value hedge
Interest rate risk
Interest rate swaps () 25,000,000 2,650,000,000 — 2,675,000,000
Interest rate swaps (KRW) — — 155,000 155,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures () 191,568,880 672,390,437 — 863,959,317

All values are in US Dollars.

(4) The average interest rate and average exchange rate of the hedging instrument as of December 31, 2025 and<br>2024 are as follows:
December 31, 2025
--- --- ---
Fair value hedge
Interest rate risk
Interest rate swaps () Fixed 3.47% receipt and C.SOFR+1.06% floating paid
Interest rate swaps (KRW) Fixed 3.94% receipt and CD 3M+0.01% floating paid
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (/KRW) 1,421.88

All values are in US Dollars.

December 31, 2024
Fair value hedge
Interest rate risk
Interest rate swaps () Fixed 3.47% receipt and C.SOFR+1.06% floating paid
Interest rate swaps (KRW) Fixed 4.52 % receipt and CD 3M+ 0.02% floating paid
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (/KRW) 1,363.09

All values are in US Dollars.

  • 126 -
(5) Fair value hedge
1) The amounts related to items designated as fair value hedging instruments as of December 31, 2025 and 2024<br>are as follows (Unit: USD, and Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Nominal amounts of the<br>hedging instrument Carrying amounts<br>of the hedging<br>instrument Line item in the consolidated<br>statement of financial position<br>where the hedging<br>instrument is<br>located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Fair value hedge
Interest rate risk 2,650,000,000 37,010 27,050 Derivative assets<br><br><br>(Designated for hedging) 93,549
Interest rate swaps 290,000 Derivative liabilities<br><br><br>(Designated for hedging)
December 31, 2024
Nominal amounts of the<br>hedging instrument Carrying amounts<br>of the hedging<br>instrument Line item in the consolidated<br>statement of financial position<br>where the hedging<br>instrument is<br>located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Fair value hedge
Interest rate risk 2,675,000,000 10,102 102,634 Derivative assets<br><br><br>(Designated for hedging) 5,265
Interest rate swaps 155,000 Derivative liabilities<br><br><br>(Designated for hedging)

All values are in US Dollars.

  • 127 -
2) Details of carrying amount to fair value hedged and amount adjusted due to hedge accounting as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Carrying amounts of<br>the hedging item Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item (*) Line item in the<br>consolidated<br>statement of financial<br>position in which the<br>hedged item is<br>included Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities Assets Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures — 3,763,978 — 29,538 Debentures (91,877 )
Korean Won denominated debentures — 282,646 — 7,354 Debentures 11,117
(*) The accumulated profit on foreign currency denominated debentures was 29,538 million Won, and the<br>accumulated profit on Korean Won denominated debentures was 7,354 million Won as of December 31, 2025.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Carrying amounts of<br>the hedging item Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item (*) Line item in the<br>consolidated<br>statement of financial<br>position in which the<br>hedged item is<br>included Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities Assets Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures — 3,792,388 — 124,647 Debentures (12,758 )
Korean Won denominated debentures — 159,659 — 4,659 Debentures (4,659 )
(*) The accumulated profit on foreign currency denominated debentures was 124,647 million Won, and the<br>accumulated loss on Korean Won denominated debentures was 4,659 million Won as of December 31, 2024.
--- ---
3) Amounts recognized in profit or loss due to the ineffective portion of fair value hedges for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- ---
Hedge ineffectiveness<br>recognized in profit or loss Line item in the profit or loss
Fair value hedge Interest rate risk 12,789 Other operating income net
For the year ended December 31, 2024
--- --- --- --- --- --- --- ---
Hedge ineffectiveness<br>recognized in profit or loss Line item in the profit or loss
Fair value hedge Interest rate risk (12,152 ) Other operating expense, net
  • 128 -
(6) Hedges of net investments in foreign operations
1) The amounts related to items designated as hedging instruments of net investments in foreign operations as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions, USD):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Nominal amounts of<br>the hedging<br>instrument Carrying amounts of the<br>hedging instrument Line item in the<br>consolidated<br>statement of financial<br>position<br>where the<br>hedging instrument is<br>located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures 863,959,317 — 1,239,695 Foreign currency denominated debentures 30,325

All values are in US Dollars.

December 31, 2024
Nominal amounts of<br>the hedging<br>instrument Carrying amounts of the<br>hedging instrument Line item in the<br>consolidated<br>statement of financial<br>position where the<br>hedging instrument is<br>located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures 863,959,317 — 1,270,020 Foreign currency<br>denominated debentures (156,015 )

All values are in US Dollars.

2) The amounts related to items designated as hedged items of net investments in foreign operations as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- ---
Changing in fair value used for calculating<br>hedge ineffectiveness Balance of foreign currency translation<br>reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets (30,325 ) (127,258 )
December 31, 2024
--- --- --- --- --- --- --- ---
Changing in fair value used for calculating<br>hedge ineffectiveness Balance of foreign currency translation<br>reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets 156,015 (149,577 )
  • 129 -
3) The amounts recognized in other comprehensive income and profit or loss related to net investment hedges in<br>foreign operations for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Other comprehensive income Profit or loss
Hedge gain or loss<br>recognized in other<br>comprehensive income Income tax<br>effect Sub-total Hedge ineffectiveness<br>recognized in profit or<br>loss Line item<br>recognizing<br>ineffectiveness
Hedges of net investment in foreign operations
Foreign exchange risk 30,325 (8,006 ) 22,319 — —
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Other comprehensive income Profit or loss
Hedge gain or loss<br>recognized in other<br>comprehensive income Income tax<br>effect Sub-total Hedge ineffectiveness<br>recognized in profit or<br>loss Line item<br>recognizing<br>ineffectiveness
Hedges of net investment in foreign operations
Foreign exchange risk (156,015 ) 41,188 (114,827 ) — —

No amount was reclassified from reserve of hedges of net investment in foreign operations to profit or loss for the years ended December 31, 2025 and 2024.

27. DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Beginning balance 28 7,848
Amounts recognized in profits or losses (28 ) (7,820 )
Ending balance — 28

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 at the transaction price, even though there are differences noted between the transaction price and the fair value price produced by the valuation techniques at the time of acquisition. In addition, the difference between fair value and transaction price is deferred and amortized to maturity and reflected in profit or loss. The table above presents the difference yet to be realized as profit or losses for the years ended December 31, 2025 and 2024.

  • 130 -
28. SHARE CAPITAL AND CAPITAL SURPLUS
(1) The number of authorized shares and others as of December 31, 2025 and 2024 are as follows:<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Shares of common stock authorized 5,000,000,000 Shares 5,000,000,000 Shares
Par value per share 5,000 Won 5,000 Won
Shares of common stock issued 716,000,000 Shares 716,000,000 Shares
Share capital 3,581,392 million Won 3,581,392 million Won
(2) Details of capital surplus as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Capital in excess of par value 1,068,420 1,068,420
Other capital surplus 40,255 40,030
Total 1,108,675 1,108,450
29. HYBRID SECURITIES
--- ---

The bond-type hybrid securities classified as owner’s equity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Issue date Maturity date Interest rate<br>(%) December 31,<br>2025 December 31,<br>2024
Hybrid securities in local currency June 3, 2015 June 3, 2045 4.4 — 240,000
September 21, 2022 — 5.2 320,000 320,000
September 21, 2022 — 5.5 30,000 30,000
October 16, 2023 — 5.4 300,000 300,000
Hybrid securities in foreign currency July 24, 2024 — 6.4 761,805 761,805
Issuance cost (5,292 ) (5,858 )
Total 1,406,513 1,645,947

The hybrid securities mentioned above are either without a maturity date or its maturity can be extended indefinitely at the maturity date without changing terms, and early redemption may be made after 5, 7 or 10 years from the issue date (Issuer Call). In addition, interest payments can be suspended or canceled at the Group’s discretion.

  • 131 -
30. OTHER EQUITY
(1) Details of other equity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Accumulated other comprehensive income:
Net gain (loss) on valuation of financial assets at FVTOCI (9,489 ) 29,121
Net gain on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL 1,274 1,348
Loss on evaluation of investment stocks by equity method (4,480 ) (1,230 )
Gain on foreign currency translation of foreign operations 416,980 525,556
Loss on evaluation of hedge of net investment in foreign operations (127,258 ) (149,577 )
Remeasurement loss related to defined benefit plan (94,186 ) (74,068 )
Sub-total 182,841 331,150
Other capital adjustments (1,609,023 ) (1,658,940 )
Total (1,426,182 ) (1,327,790 )
(2) Changes in the accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Beginning<br>balance Increase<br>(decrease)<br>(*) Reclassification<br>adjustments Income tax<br>effect (*) Ending<br>balance
Net gain (loss) on valuation of financial assets at FVTOCI 29,121 30,103 (81,510 ) 12,797 (9,489 )
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL 1,348 (74 ) — — 1,274
Gain (loss) on evaluation of investment stocks by equity method (1,230 ) (4,493 ) — 1,243 (4,480 )
Gain (loss) on foreign currency translation of foreign operations 525,556 (111,864 ) — 3,288 416,980
Gain (loss) on evaluation of hedge of net investment in foreign operations (149,577 ) 30,325 — (8,006 ) (127,258 )
Remeasurement gain (loss) related to defined benefit plan (74,068 ) (29,334 ) — 9,216 (94,186 )
Total 331,150 (85,337 ) (81,510 ) 18,538 182,841
(*) Net loss on valuation of financial assets at FVTOCI includes 1,326 million Won which was transferred to<br>retained earnings due to disposal of equity securities.
--- ---
  • 132 -
For the year ended December 31, 2024
Beginning<br>balance Increase<br>(decrease)<br>(*) Reclassification<br>adjustments Income tax<br>effect<br>(*) Ending<br>balance
Net gain (loss) on valuation of financial assets at FVTOCI 53,020 (23,295 ) (17,770 ) 17,166 29,121
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL — 1,831 — (483 ) 1,348
Gain (loss) on evaluation of investment stocks by equity method 6,697 (10,847 ) — 2,920 (1,230 )
Gain (loss) on foreign currency translation of foreign operations 34,352 503,947 — (12,743 ) 525,556
Gain (loss) on evaluation of hedge of net investment in foreign operations (34,750 ) (156,015 ) — 41,188 (149,577 )
Remeasurement gain (loss) related to defined benefit plan (17,068 ) (78,238 ) — 21,238 (74,068 )
Total 42,251 237,383 (17,770 ) 69,286 331,150
(*) Net gain on valuation of financial assets at FVTOCI included the 53,539 million Won which was transferred<br>to retained earnings due to disposal of equity securities.
--- ---
31. RETAINED EARNINGS
--- ---

Details of retained earnings as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Legal reserve Legal reserves in Korea 3,329,754 3,049,754
Other legal reserve 33,239 33,239
Sub-total 3,362,993 3,082,993
Voluntary reserve Business rationalization reserve 8,000 8,000
Reserve for financial structure improvement 235,400 235,400
Additional reserve 8,576,104 8,576,104
Regulatory reserve for credit loss 2,160,089 1,905,354
Revaluation reserve 701,685 701,685
Sub-total 11,681,278 11,426,543
Retained earnings before appropriation 9,860,112 9,298,518
Total 24,904,383 23,808,054
1) Legal reserve
--- ---

In accordance with the Article 40, Banking Act of Korea, earned surplus reserve is appropriated at least one tenth of the earnings after tax on every dividend declaration, not exceeding the paid in capital. This reserve may not be used other than for offsetting a deficit or transferring to capital.

2) Other legal reserve

Other legal reserves were appropriated in the branches located in Japan, India and Bangladesh according to the banking laws of Japan, India and Bangladesh, and may be used to offset any deficit incurred in those branches.

3) Business rationalization reserve

Pursuant to the Restriction of Special Taxation Act, the Group was previously required to appropriate, as a reserve for business rationalization, amounts equal to tax reductions arising from tax exemptions and tax credits up to December 31, 2001. The requirement was no longer effective from 2002.

  • 133 -
4) Reserve for financial structure improvement

From 2002 to 2014, the Finance Supervisory Services recommended banks in Korea to appropriate at least 10 percent of net income after accumulated deficit for financial structure improvement, until tangible common equity ratio equals 5.5 percent. This reserve is not available for payment of cash dividends; however, it can be used to reduce a deficit or be transferred to capital. The reserve and appropriation are an autonomous judgment matter of the Group since 2015.

5) Additional reserve

Additional reserve is a voluntary reserve to retain earnings for capital adequacy and soundness of the Group’s operation.

6) Regulatory reserve for credit loss

In accordance with paragraph 1 and 2 of Article 29 of the Regulation on Supervision of Banking Business (“RSBB”), if provisions for credit loss under K-IFRS for the accounting purpose are lower than provisions for credit loss under RSBB, the Group is prohibited to provide dividends with the regulatory reserve.

7) Revaluation reserve

Revaluation reserve is the amount of limited dividends set by the Board of Directors to be recognized as complementary capital when the gain or loss occurred in the property revaluation by adopting K-IFRS.

32. REGULATORY RESERVE FOR CREDIT LOSS

In accordance with Paragraph 1 and 2 of Article 29 of the Regulation on Supervision of Banking Business, the Group calculates and discloses the regulatory reserve for credit loss.

(1) Balance of the regulatory reserve for credit loss as of December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Regulatory reserve for credit loss 2,160,089 1,905,354
Planned provision for regulatory reserve for credit loss 239,509 254,735
Ending balance 2,399,598 2,160,089
(2) Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the<br>planned reserves provided for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions, except for EPS amount):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Net income 2,582,099 3,046,936
Required provision for regulatory reserve for credit loss 239,509 254,735
Adjusted net income after the provision for regulatory reserve 2,342,590 2,792,201
Adjusted EPS after the provision for regulatory reserve (Unit: Korean Won)(*) 3,147 3,793
(*) For the years ended December 31, 2025 and 2024, it was calculated by deducting 89,134 million Won and<br>76,249 million Won, respectively, of dividends on hybrid securities from adjusted net income after the provision for regulatory reserve.
--- ---
  • 134 -
33. DIVIDENDS

Dividends for the years ended December 31, 2025 and 2024 are 1,627 Won and 1,889 Won per share, respectively, and the total amount of dividends approved are 1,164,932 million Won and 1,352,524 million Won, respectively. Dividends as of December 31, 2025 will be proposed at the regular shareholders’ meeting scheduled on March 20, 2026.

34. NET INTEREST INCOME
(1) Interest income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Financial assets at FVTPL 144,034 153,055
Financial assets at FVTOCI 1,278,693 1,281,641
Securities at amortized cost 539,833 642,888
Loans and other financial assets at amortized cost:
Interest on due from banks 505,631 549,438
Interest on loans 15,461,086 16,884,040
Interest on other receivables 32,325 39,611
Sub-total 15,999,042 17,473,089
Total 17,961,602 19,550,673
(2) Interest expense recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Interest on deposits due to customers 7,907,331 9,437,205
Interest on borrowings 981,477 1,183,535
Interest on debentures 946,284 977,084
Interest on lease liabilities 16,513 15,386
Other interest expense 293,492 371,222
Total 10,145,097 11,984,432
  • 135 -
35. NET FEES AND COMMISSIONS INCOME
(1) Details of fees and commissions income recognized for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Fees and commissions received for brokerage 225,889 241,762
Fees and commissions received related to credit 138,871 157,226
Fees and commissions received for electronic finance 131,857 130,172
Fees and commissions received on foreign exchange handling 55,653 57,335
Fees and commissions received on foreign exchange 111,348 115,450
Fees and commissions received for guarantee 98,548 104,301
Fees and commissions received on credit card 3,131 3,209
Fees and commissions received on securities business 59,439 48,157
Fees and commissions from trust management 197,678 172,624
Other fees 201,153 185,356
Total 1,223,567 1,215,592
(2) Details of fees and commissions expense incurred for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Fees and commissions paid 223,495 203,790
Credit card commissions 2,250 1,279
Brokerage commissions 24 24
Others 4,579 4,010
Total 230,348 209,103
  • 136 -
36. DIVIDEND INCOME
(1) Details of dividend income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Dividend income related to financial assets at FVTPL
Dividends on equity securities 17,721 14,215
Dividends on capital contributions 76,871 96,918
Dividends on beneficiary certificates 268,510 245,788
Sub-total 363,102 356,921
Dividend income related to financial assets at FVTOCI
Dividends on equity securities 20,327 17,606
Dividends on capital contributions 40 160
Sub-total 20,367 17,766
Total 383,469 374,687
(2) Details of dividend income related to financial assets at FVTOCI for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Dividend income recognized from assets held Equity securities 19,800 17,766
Dividend income generated from assets disposed Equity securities 567 —
Total 20,367 17,766
  • 137 -
37. NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL
(1) Details of net gain or loss on financial instruments at FVTPL for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Net gain on financial instruments at FVTPL 336,560 1,473,568
Net gain (loss) on financial instruments designated to be measured at FVTPL 389 (19,647 )
Total 336,949 1,453,921
(2) Details of net gain or loss on financial instruments at FVTPL for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- --- ---
2025 2024
Financial instruments at FVTPL Securities Gain on transactions and valuation 413,565 607,503
Loss on transactions and valuation (585,086 ) (225,553 )
Sub-total (171,521 ) 381,950
Loans Gain on transactions and valuation — 11,672
Sub-total — 11,672
Other financial instruments Gain on transactions and valuation 29,176 6,084
Loss on transactions and valuation (25,988 ) (5,456 )
Sub-total 3,188 628
Sub-total (168,333 ) 394,250
Derivatives (for trading) Interest rate derivatives Gain on transactions and valuation 2,087,012 2,963,221
Loss on transactions and valuation (1,817,864 ) (2,925,208 )
Sub-total 269,148 38,013
Currency derivatives Gain on transactions and valuation 9,164,256 14,841,469
Loss on transactions and valuation (8,928,447 ) (13,789,059 )
Sub-total 235,809 1,052,410
Equity derivatives Gain on transactions and valuation 111 1,182,989
Loss on transactions and valuation (175 ) (1,194,094 )
Sub-total (64 ) (11,105 )
Sub-total 504,893 1,079,318
Total 336,560 1,473,568
(*) The Group manages currency risk based on a comprehensive position that includes both domestic and international<br>spot and futures foreign exchange positions. Details on gains and losses related to foreign exchange are described in Notes 40. (2) and (3).
--- ---
(3) Details of net gain or loss on financial instruments designated to be measured at FVTPL for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Net gain (loss) on deposit due to customers:
Net gain (loss) on valuation of time deposit 389 (19,647 )
  • 138 -
38. NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

Details of net gain or loss on financial assets at FVTOCI recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Gain on redemption of securities 138,573 96,647
Loss on disposal of securities (24 ) —
Total 138,549 96,647
39. REVERSAL OF (PROVISION FOR) EXPECTED CREDIT LOSS ALLOWANCE
--- ---

Reversal of (provision for) expected credit loss allowance for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Reversal (provision for) of expected credit loss allowance on financial assets measured at<br>FVTOCI (8,387 ) (8,866 )
Reversal (provision for) of expected credit loss allowance on securities measured at amortized<br>cost (330 ) 3,287
Reversal (provision for) of expected credit loss allowance on loans and other financial assets<br>measured at amortized cost (1,149,927 ) (827,485 )
Reversal of (provision for) provision on guarantees (8,364 ) 5,249
Reversal of unused loan commitments 4,105 6,565
Total (1,162,903 ) (821,250 )
  • 139 -
40. GENERAL ADMINISTRATIVE EXPENSES AND OTHER OPERATING INCOME (EXPENSES), NET
(1) Details of general and administrative expenses recognized for the years ended December 31, 2025 and 2024<br>are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- --- ---
2025 2024
Employee benefits Short-term employee benefits Salaries 1,671,335 1,581,947
Employee benefits 636,788 561,023
Share-based payments 50,934 23,261
Retirement benefit service costs 156,902 111,177
Termination benefits 169,013 (3,485 )
Sub-total 2,684,972 2,273,923
Depreciation and amortization 449,197 419,185
Other general and administrative expenses Rent 95,924 95,805
Taxes and public dues 160,748 167,278
Service charges 257,477 244,174
Computer and IT related 213,579 192,317
Telephone and communication 58,857 57,071
Advertising 172,019 145,459
Printing 4,853 5,620
Traveling 11,462 10,673
Supplies 6,573 6,829
Insurance premium 11,160 11,825
Maintenance 19,463 20,676
Water, light and heating 18,377 18,455
Vehicle maintenance 9,379 11,689
Others 119,422 65,937
Sub-total 1,159,293 1,053,808
Total 4,293,462 3,746,916
(2) Details of other operating income recognized for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Gain on transactions of foreign exchange (*) 1,427,054 720,989
Gain on derivatives (designated for hedging) 102,915 40,843
Gain on fair value hedged items 12,013 25,469
Others 29,050 14,773
Total 1,571,032 802,074
(*) The Group manages currency risk based on a comprehensive position that includes both domestic and international<br>spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).
--- ---
  • 140 -
(3) Details of other operating expenses recognized for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Loss on transactions of foreign exchange (*1) 1,059,987 1,561,619
KDIC deposit insurance premium 485,054 495,308
Contribution to miscellaneous funds 524,126 528,484
Loss on derivatives (designated for hedging) 9,532 24,252
Loss on fair value hedged items 92,138 64,571
Others (*2) 119,966 153,543
Total 2,290,803 2,827,777
(*1) The Group manages currency risk based on a comprehensive position that includes both domestic and international<br>spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).
--- ---
(*2) ‘Others’ for the years ended December 31, 2025 and 2024, include 32,495 million Won and<br>28,509 million Won, respectively, of amortization expenses for intangible assets.
--- ---
(4) Share-based payment
--- ---

Details of performance condition share-based payment granted to executives as of December 31, 2025 and 2024 are as follows:

1) Performance condition share-based payment
Subject to Shares granted for the year 2021 (*4)
--- --- --- --- ---
Type of payment Cash-settled
Vesting period January 1, 2021 ~ December 31, 2024
Date of payment January 1, 2025
Fair value (Unit: Korean Won) (*1) —
Valuation method —
Dividend yield —
Expected maturity —
Number of shares measured as of the closing date (*2),(*3) As of December 31, 2025 —
As of December 31, 2024 865,494 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 January 1, 2026
Fair value (Unit: Korean Won) (*1) 27,713
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 0 year
Number of shares measured as of the closing date (*2),(*3) As of December 31, 2025 737,601 shares
As of December 31, 2024 737,601 shares
  • 141 -
Subject to Shares granted for the year 2023
Type of payment Cash-settled
Vesting period January 1, 2023 ~ December 31, 2026
Date of payment January 1, 2027
Fair value (Unit: Korean Won) (*1) 25,763
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 1 year
Number of shares measured as of the closing date (*2),(*3) As of December 31, 2025 755,920 shares
As of December 31, 2024 755,920 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 January 1, 2028
Fair value (Unit: Korean Won) (*1) 23,949
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 2 years
Number of shares measured as of the closing date (*2),(*3) As of December 31, 2025 1,189,935 shares
As of December 31, 2024 1,189,935 shares
Subject to Shares granted for the year 2025
Type of payment Cash-settled
Vesting period January 1, 2025 ~ December 31, 2028
Date of payment January 1, 2029
Fair value (Unit: Korean Won) (*1) 22,263
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 3 years
Number of shares measured as of the closing date (*2),(*3) As of December 31, 2025 875,569 shares
As of December 31, 2024 — shares
(*1) As of December 31, 2025, the fair value calculated using the Black-Scholes model was used to measure<br>liabilities by reflecting the average dividend rate for the past four years to the stock price of the weighted average of Woori Financial Group’s trading volume for the past week, month and two months.
--- ---
(*2) At the initial point in time (January 1st of each fiscal year), the maximum number of shares granted is<br>determined. The final number of shares to be paid is confirmed based on the evaluation results of long-term performance indicators over a total of four years, including the current year. The final compensation is then paid in cash, reflecting the<br>stock price at the time of payment. The long-term performance indicators include relative shareholder returns, common Equity Tier 1 capital ratio, net income, return on equity (ROE),<br>cost-to-income ratio (C/I ratio), non-performing loan ratio, and performance in assigned duties.
--- ---
(*3) As of December 31, 2025, the remaining quantity and granted quantity are the same.
--- ---
(*4) It has been fully paid during the year ended December 31, 2025.
--- ---
2) The Group accounts for performance condition share-based payments according to the cash-settled method and the<br>fair value of the liabilities is reflected in the compensation costs by re-measuring per every closing period. As of December 31, 2025 and 2024, the book value of the liabilities related to the<br>performance condition share-based payments recognized by the Group is 87,906 million Won and 50,674 million Won, respectively.
--- ---
  • 142 -
41. OTHER NON-OPERATING INCOME (EXPENSES)
(1) Details of gains or losses on valuation of investments in associates recognized for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Gains on valuation of investments in associate 52,494 50,359
Losses on valuation of investments in associate (6,566 ) (6,292 )
Total 45,928 44,067
(2) Details of other non-operating income and expenses recognized for the<br>years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Other non-operating income 112,494 77,117
Other non-operating expenses (319,974 ) (181,505 )
Total (207,480 ) (104,388 )
(3) Details of other non-operating income recognized for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Rental fee income 32,778 33,288
Gains on disposal of assets held for sale 33,598 —
Gains on disposal of investments in associates — 11,053
Gains on disposal of properties and equipment, intangible assets and other assets 7,126 622
Others 38,992 32,154
Total 112,494 77,117
(4) Details of other non-operating expenses recognized for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Depreciation on investment properties 6,397 8,768
Interest expenses of rent leasehold deposits 1,113 1,631
Losses on disposal of investments in associates 167 36
Losses on disposal of properties and equipment, intangible assets and other assets 1,725 1,661
Impairment loss of properties and equipment, intangible assets and other assets 46,073 217
Donation 143,797 111,891
Others (*) 120,702 57,301
Total 319,974 181,505
(*) Other special losses related to other provisions for the years ended December 31, 2025 and 2024 are<br>98,913 million Won and 31,023 million Won, respectively.
--- ---
  • 143 -
42. INCOME TAX EXPENSE
(1) Details of income tax expenses for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Current tax expense
Current tax expense in respect of the current year 1,075,894 527,971
Adjustments recognized in the current period in relation to the current tax of prior<br>periods 8,735 (32,584 )
Current tax charged to other equity directly (8,006 ) 41,188
Sub-total 1,076,623 536,575
Deferred tax expense
Changes in deferred tax assets (liabilities) relating to the temporary differences (326,076 ) 397,378
Deferred tax charged to other equity directly 26,544 28,098
Sub-total (299,532 ) 425,476
Income tax expense 777,091 962,051
(2) Income tax expense reconciled to net income before income tax expense for the years ended December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Net income before income tax expense 3,359,190 4,008,987
Tax calculated at statutory tax rate (*) 866,102 1,037,649
Adjustments
Effect of income that is exempt from taxation (29,990 ) (30,868 )
Effect of expense not deductible in determining taxable profit 50,925 47,822
Adjustments recognized in the current period in relation to the current tax of prior<br>periods 8,735 (32,584 )
Effect of income tax expense that is resulting from consolidated tax return (111,659 ) (66,172 )
Others (7,022 ) 6,204
Sub-total (89,011 ) (75,598 )
Income tax expense 777,091 962,051
Effective tax rate 23.1 % 24.0 %
(*) The applicable income tax rate; 1) 9.9% for below 200 million Won, 2) 20.9% for above 200 million Won<br>and below 20 billion Won, 3) 23.1% for above 20 billion Won and below 300 billion Won, 4) 26.4% for above 300 billion Won.
--- ---
  • 144 -
(3) Changes in cumulative temporary differences for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Beginning balance Recognized as income<br>(expense) Recognized as other<br>comprehensive income<br>(expense) Ending balance
Gain (loss) on financial assets (240,476 ) 88,838 12,797 (138,841 )
Gain (loss) on valuation using the equity method of accounting (11,365 ) (12,976 ) 1,243 (23,098 )
Gain (loss) on valuation of derivatives (227,075 ) 46,882 — (180,193 )
Accrued income (111,437 ) (7,421 ) — (118,858 )
Provision for loan losses 52,147 16,339 — 68,486
Loan and receivables written off 4,494 210 — 4,704
Loan origination costs and fees (158,895 ) 33,996 — (124,899 )
Defined benefit liability 440,994 45,831 9,216 496,041
Deposits with employee retirement insurance trust (463,300 ) (68,765 ) — (532,065 )
Provision for guarantee 5,593 1,413 — 7,006
Other provision 107,612 15,509 — 123,121
Others (*) (230,973 ) 139,678 3,288 (88,007 )
Net deferred tax assets (liabilities) (832,681 ) 299,534 26,544 (506,603 )
(*) The deferred tax assets arising from tax loss carryforwards among other deferred tax assets and liabilities<br>amount to 12,188 million Won.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Beginning balance Recognized as income<br>(expense) Recognized as other<br>comprehensive income<br>(expense) Ending balance
Gain (loss) on financial assets (145,585 ) (112,057 ) 17,166 (240,476 )
Gain (loss) on valuation using the equity method of accounting (9,884 ) (4,401 ) 2,920 (11,365 )
Gain (loss) on valuation of derivatives 49,556 (276,631 ) — (227,075 )
Accrued income (128,508 ) 17,071 — (111,437 )
Provision for loan losses (3,366 ) 55,513 — 52,147
Loan and receivables written off 4,382 112 — 4,494
Loan origination costs and fees (145,464 ) (13,431 ) — (158,895 )
Defined benefit liability 373,503 46,253 21,238 440,994
Deposits with employee retirement insurance trust (445,731 ) (17,569 ) — (463,300 )
Provision for guarantee 7,803 (2,210 ) — 5,593
Other provision 150,961 (43,349 ) — 107,612
Others (*) (142,969 ) (74,778 ) (13,226 ) (230,973 )
Net deferred tax assets (liabilities) (435,302 ) (425,477 ) 28,098 (832,681 )
(*) The deferred tax assets arising from tax loss carryforwards among other deferred tax assets and liabilities<br>amount to 7,940 million Won.
--- ---
(4) Unrealizable temporary differences as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Deductible temporary differences 299,321 297,083
Taxable temporary differences (2,496,928 ) (2,414,711 )
Total (2,197,607 ) (2,117,628 )

No deferred income tax asset has been recognized for the deductible temporary difference of 299,321 million Won associated with investments in subsidiaries and associates as of December 31, 2025, because it is not probable that the temporary differences will be reversed in the foreseeable future.

  • 145 -

No deferred income tax liability has been recognized for the taxable temporary difference of 2,496,928 million Won associated with investment in subsidiaries as of December 31, 2025, due to the following reasons:

• The Group can control the timing of the reversal of the temporary difference, and the temporary difference is not<br>subject to reversal through dividends.
• It is probable that the temporary difference will not be reversed in the foreseeable future.<br>
--- ---
(5) Details of accumulated deferred tax charged directly to other equity as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Net gain (loss) on valuation of financial assets at FVTOCI 3,425 (9,372 )
Net loss on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL (483 ) (483 )
Net gain on evaluation of investment stocks by equity method 1,425 182
Net loss on foreign currency translation of foreign operations (5,805 ) (9,093 )
Net gain on evaluation of hedges of net investments in foreign operations 46,073 54,079
Remeasurement gain related to defined benefit plan 35,850 26,634
Total 80,485 61,947
(6) Current tax assets and liabilities as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Current tax assets 51,168 47,653
Current tax liabilities 694,344 94,655
(7) Impact of Pillar Two income taxes
--- ---

Under the Pillar 2 legislation, the Group is required to pay top-up taxes on the difference between the GloBE effective tax rate of each constituent entity’s jurisdiction and the minimum tax rate of 15%. The Group recognized income tax expense amounting to 1,569 million Won for the year ended December 31, 2025. The Group applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income Taxes.

  • 146 -
43. EARNINGS PER SHARE (“EPS”)
(1) Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding for the<br>years ended December 31, 2025 and 2024. (Unit: Korean Won in millions, except for EPS and number of shares):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Net income for the period attributable to common shareholders 2,589,646 3,039,372
Dividends to hybrid securities (89,134 ) (76,249 )
Net income attributable to common shareholders 2,500,512 2,963,123
Weighted average number of common shares outstanding (Unit: million shares) 716 716
Basic EPS (Unit: Korean Won) 3,492 4,138
(2) The weighted average number of common shares outstanding for the years ended December 31, 2025 and 2024<br>are as follows:
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Period Number of<br>shares Days Accumulated number<br>of shares outstanding<br>during period
Common shares issued at the beginning of the period 2025-01-01 ~ 2025-12-31 716,000,000 365 261,340,000,000
Sub-total (①) 261,340,000,000
Weighted average number of common shares outstanding (②=(①/365)) 716,000,000
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Period Number of<br>shares Days Accumulated number<br>of shares outstanding<br>during period
Common shares issued at the beginning of the period 2024-01-01 ~ 2024-12-31 716,000,000 366 262,056,000,000
Sub-total (①) 262,056,000,000
Weighted average number of common shares outstanding (②=(①/366)) 716,000,000

Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2025 and 2024.

  • 147 -
44. CONTINGENT LIABILITIES AND COMMITMENTS
(1) Details of guarantees as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 (*) December 31, 2024 (*)
--- --- --- --- --- --- ---
Confirmed guarantees
Guarantee for loans 69,961 60,571
Acceptances 495,942 617,599
Guarantees in acceptances of imported goods 66,879 75,265
Other confirmed guarantees 10,831,666 10,337,061
Sub-total 11,464,448 11,090,496
Unconfirmed guarantees
Local letter of credit 161,120 167,580
Letter of credit 2,615,813 3,213,170
Other unconfirmed guarantees 1,331,305 1,558,188
Sub-total 4,108,238 4,938,938
Commercial paper purchase commitments and others 497,394 581,039
Total 16,070,080 16,610,473
(*) Includes financial guarantees of 5,032,789 million Won and 4,156,000 million Won as of<br>December 31, 2025 and 2024, respectively.
--- ---
(2) Details of loan commitments and others as of December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Loan commitments 88,699,685 90,311,327
Other commitments 5,636,343 6,039,793
(3) Litigation case
--- ---

Legal cases where the Group is involved as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions except for number of cases):

December 31, 2025 December 31, 2024
As plaintiff As defendant As plaintiff As defendant
Number of cases (*) 32 cases 192 cases 28 cases 196 cases
Amount of litigation 286,147 217,645 260,653 232,073
Provisions for litigations 46,594 14,383
(*) The number of cases as of December 31, 2025 and 2024 does not include cases such as loan-related execution<br>or simple extension of loan prescription, litigation where the substantive party is not the Group, or fraudulent lawsuits.
--- ---
  • 148 -
45. RELATED PARTY TRANSACTIONS

Related parties of the Group as of December 31, 2025 and its assets and liabilities recognized as of December 31, 2025 and 2024 and major transactions with related parties for the years ended December 31, 2025 and 2024 and compensation to key management are as follows:

(1) Related parties
Related parties
--- --- ---
Parent company Woori Financial Group Inc.
Associates W Service Networks Co., Ltd., Korea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., LOTTE CARD Co., Ltd., K BANK Co., Ltd., and others (Dongwoo C & C Co., Ltd. and 40 associates)
Other related parties Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates (*1), Woori Card Co., Ltd. and its subsidiaries, Woori Financial Capital Co., Ltd. and its subsidiaries and associates, Woori Investment Securities Co., Ltd. and<br>its subsidiaries and associates (*2), ABL Life Insurance Co.,Ltd. and its subsidiaries and associates (*1), Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Financial F&I Co., Ltd. and its subsidiaries and associates, Woori Asset<br>Management Co., Ltd. and its subsidiaries and associates, Woori Venture Partners Co., Ltd. and its subsidiaries and associates, Woori Private Equity Asset Management Co., Ltd. and its associates, Woori Credit Information Co., Ltd., Woori Fund<br>Service Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Godo Kaisha Oceanos No. 1, JC Assurance Private Equity Partnership No. 2, IGEN 2022 Private Equity Fund No. 1, etc.
(*1) Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates and ABL Life Insurance Co.,Ltd. and its<br>subsidiaries and associates were incorporated into Woori Financial Group for the year ended December 31, 2025.
--- ---
(*2) Woori Investment Bank Co., Ltd. was renamed to Woori Investment Securities Co., Ltd. following a merger with<br>Korea Foss Securities Co., Ltd. for the year ended December 31, 2024.
--- ---
(2) Major assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in<br>millions):
--- ---
Related parties A title of account December 31,<br>2025 December 31,<br>2024
--- --- --- --- --- --- --- --- --- --- --- ---
Parent company Woori Financial Group Inc. Other assets 27,364 33,632
Deposits due to customers 489,321 1,285,912
Other liabilities 652,362 63,893
Associates W Service Networks Co., Ltd. Deposits due to customers 3,009 3,054
Other liabilities 316 309
Korea Credit Bureau Co., Ltd. Deposits due to customers 2,615 780
Other liabilities 10 —
Korea Finance Security Co., Ltd. Loans 3,400 3,200
Expected credit loss allowance (23 ) (42 )
Deposits due to customers 2,138 1,145
Other liabilities 1 3
LOTTE CARD Co., Ltd. Loans 26,880 27,913
Expected credit loss allowance (295 ) (297 )
Derivative assets 564 1,075
Other assets 85 49
Deposits due to customers 22,869 20,207
Derivative liabilities 807 —
Other liabilities 289 273
K BANK Co., Ltd. Other assets 43 —
Other liabilities 158,668 193,719
  • 149 -
Related parties A title of account December 31,<br>2025 December 31,<br>2024
Others (*) Loans — 41
Deposits due to customers 1,830 1,993
Other liabilities 541 232
Other related parties Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates Derivative assets 31,821 —
Other assets 266,487 —
Deposits due to customers 94,371 —
Derivative liabilities 827 —
Other liabilities 8,328 —
Woori Card Co., Ltd. and its subsidiaries Loans 13,224 5,880
Expected credit loss allowance (66 ) (39 )
Derivative assets 102 315
Other assets 14,047 12,943
Deposits due to customers 67,095 48,509
Borrowings 22,733 25,482
Derivative liabilities 32,449 69,580
Other liabilities 23,537 26,262
Woori Investment Securities Co., Ltd. and its subsidiaries and associates Deposits due to customers 399,312 990,946
Other liabilities 1,942 2,811
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates Deposits due to customers 8,286 —
Other liabilities 70 —
Woori FIS Co., Ltd. Other assets 177 111
Deposits due to customers 9,082 6,968
Other liabilities 15,682 18,324
Woori Private Equity Asset Management Co., Ltd. and its associates Derivative assets — 255
Deposits due to customers 15,408 12,730
Other liabilities 18 1
Woori Finance Research Institute Co., Ltd. Deposits due to customers 1,301 1,839
Other liabilities 553 534
Woori Credit Information Co., Ltd. Other assets 6 7
Deposits due to customers 14,039 9,469
Other liabilities 9,852 9,857
Woori Fund Service Co., Ltd. Deposits due to customers 20,939 17,910
Other liabilities 1,619 1,707
Woori Asset Management Co., Ltd. and its subsidiaries and associates Deposits due to customers 33,797 21,302
Woori Asset Trust Co., Ltd. Deposits due to customers 93,370 198,773
Other liabilities 116 253
Woori Financial Capital Co., Ltd. and its subsidiaries and associates Deposits due to customers 79,619 473,951
Other liabilities 8,084 6,177
Woori Financial F&I Co., Ltd. and its subsidiaries and associates Loans — 4,900
Expected credit loss allowance — (9 )
Deposits due to customers 10,185 13,984
Other liabilities 86 178
  • 150 -
Related parties A title of account December 31<br>2025 December 31<br>2024
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-1 and its subsidiaries Derivative liabilities — 1
Woori Savings Bank Other assets 18 14
Woori Venture Partners Co., Ltd. and its subsidiaries and associates Deposits due to customers 56,120 78,494
Other liabilities 189 359
Godo Kaisha Oceanos No. 1 Loans — 38,770
Expected credit loss allowance — (272 )
Other assets — 63
JC Assurance Private Equity Partnership No. 2 Deposits due to customers 1 28
IGEN 2022 Private Equity Fund No. 1 Deposits due to customers 428 427

(*) Others include Partner One Value Up I Private Equity Fund, Dongwoo C & C Co., Ltd. and others as of December 31, 2025 and December 31, 2024.

(3) Major gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):<br>
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- --- ---
Related parties A title of account 2025 2024
Parent company Woori Financial Group Inc. Fees income 19 19
Other income 4,400 4,277
Interest expenses 27,356 51,778
Fees expenses 1,815 1,625
Associates W Service Networks Co., Ltd. Other income 37 35
Interest expenses 30 37
Korea Credit Bureau Co., Ltd. Interest expenses 10 —
Korea Finance Security Co., Ltd. Interest income 152 142
Interest expenses 2 3
Reversal of impairment losses due to credit loss (22 ) (30 )
LOTTE CARD Co., Ltd. Interest income 1,525 1,586
Fees income 3,416 3,739
Gain on derivatives 248 1,075
Interest expenses 2,593 4,127
Loss on derivatives 1,318 457
Provision of impairment losses due to credit loss 15 11
K BANK Co., Ltd. Other expenses 2 —
Others (*) Interest expenses 14,016 18,044
Other related parties Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates Fees income 8,809 —
Gain on derivatives 20,410 —
Other income 3,716 —
Interest expenses 1,221 —
Other expenses 2,513 —
  • 151 -
For the years ended December 31
Related parties A title of account 2025 2024
Woori Card Co., Ltd. and its subsidiaries Interest income 1,701 1,635
Fees income 70,655 89,354
Gain on derivatives 1,924 2,865
Other income 1,212 1,119
Interest expenses 357 163
Fees expenses 821 684
Loss on derivatives 589 45,027
Provision (Reversal) of impairment losses due to credit loss 35 (35 )
Other expenses 7 —
Woori Investment Securities Co., Ltd. and its subsidiaries and associates Interest income 156 5
Fees income 3,410 2,874
Other income — 1,098
Interest expenses 138 108
Fees expenses 40 47
Provision (Reversal) of impairment losses due to credit loss 9 (14 )
Other expenses 577 123
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates Fees income 8,036 —
Interest expenses 23 —
Provision of impairment losses due to credit loss 70 —
Woori FIS Co., Ltd. Fees income 355 681
Other income 8,150 7,725
Other expenses 135,202 138,151
Woori Private Equity Asset Management Co., Ltd. and its associates Fees income 22 23
Gain on derivatives — 255
Interest expenses 316 553
Loss on derivatives 109 268
Woori Finance Research Institute Co., Ltd. Fees income 23 20
Other income 818 806
Interest expenses 62 78
Woori Credit Information Co., Ltd. Fees income 95 91
Other income 447 765
Interest expenses 347 507
Fees expenses 14,081 17,249
Woori Fund Service Co., Ltd. Fees income 51 51
Other income 295 384
Interest expenses 519 587
Fees expenses 245 257
Woori Asset Management Co., Ltd. and its subsidiaries and associates Fees income 100 89
Interest expenses 84 25
Woori Asset Trust Co., Ltd. Fees income 216 262
Interest expenses 3,006 5,538
Fees expenses 5,360 11,905
  • 152 -
Woori Financial Capital Co., Ltd. and its subsidiaries and associates Fees income 4,405 3,965
Interest expenses 58 47
Loss on derivatives — 6
Provision (Reversal) of impairment losses due to credit loss 11 (6 )
Other expenses 5,297 1,857
Woori Savings Bank Fees income 482 925
Woori Venture Partners Co., Ltd. and its subsidiaries and associates Fees income 143 —
Interest expenses 1,968 1,523
Woori Financial F&I Co., Ltd. and its subsidiaries and associates Interest income 1,672 9,739
Fees income 908 576
Interest expenses 17 15
Reversal of impairment losses due to credit loss (100 ) (707 )
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-1 and its subsidiaries Interest income — 196
Provision of impairment losses due to credit loss — 465
Loss on derivatives — (14 )
Godo Kaisha Oceanos No. 1 Interest income 354 702
Provision (Reversal) of impairment losses due to credit loss (272 ) 214
IGEN 2022 Private Equity Fund No. 1 Interest expenses — 1
Woori Zip 1 Interest income — 59
Reversal of impairment losses due to credit loss — (1 )
Woori Zip 2 Interest income — 84
Reversal of impairment losses due to credit loss — (1 )
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 2-1 Loss on derivatives — 44
(*) Others include Partner One Value Up I Private Equity Fund, Dongwoo C & C Co., Ltd. and others as of<br>December 31, 2025 and 2024.
--- ---
  • 153 -
(4) Major loan transactions with related parties for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Loan Collection Others Ending<br>balance<br>(*)
Associates LOTTE CARD Co., Ltd. 27,913 12,531 13,213 (351 ) 26,880
Korea Finance Security Co., Ltd. 3,200 1,600 1,400 — 3,400
Others 41 — 41 — —
Other related parties Woori Card Co., Ltd. and its subsidiaries 5,880 14,882 7,509 (29 ) 13,224
Woori Financial F&I Co., Ltd. and its subsidiaries and associates 4,900 189,900 194,800 — —
Godo Kaisha Oceanos No. 1 38,770 22,921 64,002 2,311 —
(*) Settlement payment from normal operation among the related parties were excluded, and in the case of a limited<br>loan, it was presented as a net increase or decrease.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Loan Collection Others Ending<br>balance<br>(*)
Associates LOTTE CARD Co., Ltd. 12,209 288,794 274,484 1,394 27,913
Korea Finance Security Co., Ltd. 3,197 2,300 2,297 — 3,200
Others 41 — — — 41
Other related parties Woori Financial Capital Co., Ltd. and its subsidiaries and associates — 50,000 50,000 — —
Woori Card Co., Ltd. and its subsidiaries 12,138 4,632 11,973 1,083 5,880
Woori Financial F&I Co., Ltd. and its subsidiaries and associates 165,800 856,300 1,017,200 — 4,900
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its<br>subsidiaries 19,589 — 19,784 195 —
Godo Kaisha Oceanos No. 1 38,122 — — 648 38,770
WOORI ZIP 1 11,317 — 11,227 (90 ) —
WOORI ZIP 2 16,063 — 15,936 (127 ) —
(*) Settlement payment from normal operation among the related parties were excluded, and in the case of a limited<br>loan, it was presented as a net increase or decrease.
--- ---
  • 154 -
(5) Changes in major deposits due to customers with related parties for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowings Repayment<br>and others<br>(*2) Ending<br>balance (*1)
Parent company Woori Financial Group Inc. 1,274,000 6,245,000 7,054,000 465,000
Associates W Service Networks Co., Ltd. 1,000 — — 1,000
Korea Credit Bureau Co., Ltd. — 1,000 — 1,000
Win Mortgage Co., Ltd. 1,387 3,529 3,564 1,352
Other related parties Woori Credit Information Co., Ltd. 5,599 8,502 4,002 10,099
Woori Fund Service Co., Ltd. 15,500 4,000 — 19,500
Woori Investment Securities Co., Ltd. and its subsidiaries and associates 2,431 2,000 3,000 1,431
Woori Finance Research Institute Co., Ltd. 800 8,700 8,500 1,000
Woori Asset Trust Co., Ltd. 175,000 569,720 654,720 90,000
Woori Private Equity Asset Management Co., Ltd. And its subsidiaries 10,000 87,000 87,000 10,000
Woori Venture Partners Co., Ltd. and its subsidiaries and associates 76,000 239,000 261,000 54,000
Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates (*3) — 90,045 (2,505 ) 92,550
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates (*3) — 1,055 1,000 55
(*1) The details of payments made between related parties and the deposits due to customers that can be taken in and<br>out easily are excluded.
--- ---
(*2) It includes the gain (loss) on valuation of the financial liabilities designated to be measured at FVTPL of<br>Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates.
--- ---
(*3) It includes the transactions that occurred prior to the inclusion of the related party.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowings Repayment<br>and others Ending<br>balance (*)
Parent company Woori Financial Group Inc. 1,354,000 4,703,000 4,783,000 1,274,000
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
Other related parties Woori Credit Information Co., Ltd. 6,199 4,500 5,100 5,599
Woori Fund Service Co., Ltd. 17,000 15,500 17,000 15,500
Woori Investment Securities Co., Ltd. and its subsidiaries and associates 2,000 2,431 2,000 2,431
Woori Finance Research Institute Co., Ltd. — 9,600 8,800 800
Woori Asset Trust Co., Ltd. 56,000 874,816 755,816 175,000
Woori Private Equity Asset Management Co., Ltd. and its associates 22,000 114,000 126,000 10,000
Woori Venture Partners Co., Ltd. 23,000 201,000 148,000 76,000
(*) The details of payments made between related parties and the deposits due to customers that can be taken in and<br>out easily are excluded.
--- ---
  • 155 -
(6) Major borrowing transactions with related parties for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowing Repayment Others Ending<br>balance
Other related parties Woori Card Co., Ltd. and its subsidiaries 25,482 312,656 315,405 — 22,733
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowing Repayment Others Ending<br>balance
Other related parties Woori Card Co., Ltd. and its subsidiaries 24,002 282,802 281,322 — 25,482
Woori Investment Securities Co., Ltd. and its subsidiaries and associates 39 20,000 20,039 — —
(7) Guarantees with the related parties are as follows:
--- ---
1) The amount of guarantees provided to the related parties by the Group as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
Warranty December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
LOTTE CARD Co. Ltd. Confirmed guarantees in foreign currencies 1,650 1,691
2) The amount of guarantees and unused loan commitments provided by the related parties to the Group as<br>of December 31, 2025 and December 31, 2024 are as follows (Unit: Korean Won in millions):
--- ---
Warranty December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Woori Card Co., Ltd. and its subsidiaries Loan commitment in local currency 149,960 122,847
  • 156 -
(8) The amount of commitments of derivatives and other commitments to the related parties as of December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
Warranty December 31,<br>2025 December 31,<br>2024
--- --- --- --- --- --- --- --- ---
Woori Private Equity Asset Management Co., Ltd. and its associates Derivatives — 9,719
Woori Card Co., Ltd. and its subsidiaries Derivatives 293,490 484,000
Unsettled commitment 505,356 500,000
Woori Investment Securities Co., Ltd. and its subsidiaries and associates Unsettled commitment 150,000 150,000
Woori Financial Capital Co., Ltd. and its subsidiaries and associates Unsettled commitment 200,000 200,000
Woori Financial F&I Co., Ltd. and its subsidiaries and associates Unsettled commitment 150,000 345,100
Tong Yang Life Insurance Co.,Ltd. Derivatives 472,165 —
ABL Life Insurance Co.,Ltd. Unsettled commitment 20,000 —
Korea Finance Security Co., Ltd. Unsettled commitment 200 400
LOTTE CARD Co., Ltd. Unsettled commitment 478,300 498,400
Derivatives 440,000 350,000
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership Securities purchase commitment 4,664 4,664
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund Securities purchase commitment 50 148
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] Securities purchase commitment 990,000 990,000
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures Securities purchase commitment 1,500 3,000
NH Woori Newdeal Growth Alpha Private Equity Fund 1 Securities purchase commitment 611 11,379
BTS 2nd Private Equity Fund Securities purchase commitment 1,234 1,854
Woori Corporate Turnaround No. 1 Private Equity Fund Securities purchase commitment 17,391 21,639
Green ESG Growth No. 1 Private Equity Fund Securities purchase commitment 7,048 19,136
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 Securities purchase commitment 14,235 16,835
Woori GP Commitment Loan Private Placement Investment Trust No. 1 Securities purchase commitment — 1,294
Woori GP Commitment Loan Private Placement Investment Trust No. 2 Securities purchase commitment 2,480 2,640
Woori GP Commitment Loan Private Placement Investment Trust No. 3 Securities purchase commitment 9,450 12,165
Woori Global Mid-market Secondaries Private Placement<br>Investment Trust No. 1 Securities purchase commitment 6,794 6,162
Woori Renewable New Deal Private Placement Investment Trust No. 1 Securities purchase commitment 10,888 15,574
Woori Woori Bank Partners Private Placement Investment Trust No. 1 Securities purchase commitment 327,861 327,861
Woori Woori Bank Partners Private Placement Investment Trust No. 2 Securities purchase commitment 386,165 386,165
Woori Private Real Estate Investment Trust No. 1 Securities purchase commitment 35,137 75,137
Woori Private Real Estate Investment Trust No. 5 Securities purchase commitment 49,214 72,712
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries Derivatives — 72
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 Securities purchase commitment 324 331
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1 Securities purchase commitment 5,312 5,312
Woori Equity Investment General Type Private Investment Trust No.1 Securities purchase commitment 456 456
Woori Fund Financing General Type Private Investment Trust Securities purchase commitment — 14,056
Woori Natixis Partnership Global Private Debt Fund No.<br>1-1() Securities purchase commitment 65,588 117,236
Woori Seoul Beltway Private Special Asset Fund No. 1 Securities purchase commitment 27,103 30,949

All values are in US Dollars.

  • 157 -
Warranty December 31,<br>2025 December 31,<br>2024
JC Assurance Private Equity Partnership No. 2 Securities purchase commitment — 859
Woori Asset Global Partnership Fund No. 5 Securities purchase commitment 75,000 97,500
Woori New Growth Credit Fund 1 Securities purchase commitment 2,044 23,050
Woori Clean Energy General Type Private Placement Investment Trust No.2 Securities purchase commitment 551 5,390
Woori Innovative Growth (Infrastructure) General Type Private Investment Trust No.2 Securities purchase commitment 23,341 27,429
Woori General Type Private Real Estate Investment Trust No. 6 Securities purchase commitment 58,698 81,265
Woori ESG Infrastructure Development General Type Private Investment Trust No. 2 Securities purchase commitment 6,958 7,359
Synaptic Future Growth Private Equity<br>Fund I Securities purchase commitment 1,249 2,649
Woori Dongbu Underground Expressway General Type Private Special Asset Investment Trust Securities purchase commitment 14,816 15,178
Woori PE Secondary Private Placement Investment Trust No. 1 Securities purchase commitment 25,537 30,496
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 Securities purchase commitment 93 12,523
Woori Bank Partners General Type Private Investment Trust No.3 Securities purchase commitment 165,776 320,230
Woori Private Real Estate Investment Trust No. 7 Securities purchase commitment 61,387 152,541
Woori Senior Loan General Type Private Investment Trust No.3 Securities purchase commitment 87,939 229,008
Woori Natixis Partnership Global Private Debt Fund No.<br>1-2() Securities purchase commitment 128,115 140,643
Woori Future Energy Private Special Asset Investment Trust (General) No.1 Securities purchase commitment 33,600 33,600
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 Securities purchase commitment 64,844 —
Woori Productive Financing Education Infrastructure General Private Special Asset Investment Trust<br>No.1 Securities purchase commitment 3,000 —
Woori Baran-Namyang Expressway Private Special Asset Investment Trust Securities purchase commitment 44,349 —
Woori Future Co-Growth High-tech Strategic Industries<br>Private Investment Trust Securities purchase commitment 130,000 —

All values are in Euros.

As of December 31, 2025 and 2024, the recognized provisions for guarantees and commitments are 865 million Won and 843 million Won, respectively, in relation to the guarantees provided to the related parties above.

  • 158 -
(9) The details of major investment and recovery transactions with related parties for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31,<br>2025
--- --- --- --- --- --- ---
The same parent company and its<br>associates Investment and<br>others (*) Recovery and<br>others (*)
Green ESG Growth NO.1 Private Equity Fund 12,088 2,675
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust — 96
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 2,600 32,019
Woori GP Commitment Loan Private Placement Investment Trust No.1 691 5,516
Woori GP Commitment Loan Private Placement Investment Trust No.2 160 9,086
Woori GP Commitment Loan Private Placement Investment Trust No.3 2,716 1,174
Woori Global Mid-market Secondaries Private<br>Placement Investment Trust No. 1 — 2,133
Woori Senior Loan Private Placement Investment Trust No. 2 — 70,564
Woori Renewable New Deal Private Placement Investment Trust No. 1 4,686 299
Woori Woori Bank Partners Private Placement Investment Trust No. 1 — 227,137
Woori Private Real Estate Investment Trust No. 1 40,000 174,927
Woori Private Real Estate Investment Trust No. 5 23,498 —
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 — 13,734
Woori Equity Investment General Type Private Investment Trust No.1 — 1,666
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 — 4,631
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1 — 17,727
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2 — 8,487
IGEN 2022 Private Equity Fund No. 1 — 1,328
Woori Seoul Beltway Private Special Asset Fund No. 1 3,847 —
Japanese Hotel Real Estate Private Equity Fund No.2 — 36
Woori New Growth Credit Fund 1 — 14,748
Woori Clean Energy General Type Private Placement Investment Trust No.2 4,838 —
Woori Innovative Growth (Infrastructure) General Type Private Investment Trust No.2 4,088 3,006
Woori General Type Private Real Estate Investment Trust No. 6 22,567 —
Woori ESG Infrastructure Development General Type Private Investment Trust No. 2 401 —
Woori Asset Global Partnership Fund No. 5 22,500 2,727
Synaptic Future Growth Private Equity Fund I 1,399 1,096
Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust 362 —
Woori PE Secondary Private Placement Investment Trust No. 1 4,959 661
Woori General Private Equity Investment Trust 7 (Bond) — 41,114
Woori Natixis Partnership Global Private Debt Fund No.<br>1-1() 47,998 229
Woori Private Real Estate Investment Trust No. 7 91,154 —
Woori Senior Loan Private Placement Investment Trust No. 3 141,069 19,405
Woori Natixis Partnership Global Private Debt Fund<br>No. 1-2 () 26,703 —
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 25,156 151
Woori Real Estate Blind Investment Private Placement Trust No.1 17,500 —
Woori Top-Class Senior Junior Private Placement Investment<br>Trust 114,939 16,876
Woori Eugene Energy Link Private Equity Fund 5,000 —
Woori IMM Green Net Zero General type Private Special Asset Investment Trust 5,859 —
Woori Senior Loan Private Placement Investment Trust No.1 — 4,448
Woori General Private Equity Investment Trust 8 40,000 —
Woori NH Co-Growth Private Equity Fund I 4,576 —

All values are in US Dollars.

(*) Investment and recovery transactions of associates are described in Note 13.(2).
  • 159 -
For the year ended December 31,<br>2024
The same parent company and its<br>associates Investment and<br>others (*) Recovery and<br>others (*)
Green ESG Growth NO.1 Private Equity Fund 5,128 5,813
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust 13,099 7
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 48,491 36,104
Woori GP Commitment Loan Private Placement Investment Trust No.1 9,918 12,956
Woori GP Commitment Loan Private Placement Investment Trust No.2 15,625 18,755
Woori GP Commitment Loan Private Placement Investment Trust No.3 4,835 726
Woori Global Mid-market Secondaries Private<br>Placement Investment Trust No. 1 2,897 1,065
Woori Senior Loan Private Placement Investment Trust No. 2 228,019 215,818
Woori Renewable New Deal Private Placement Investment Trust No. 1 16,792 —
Woori Woori Bank Partners Private Placement Investment Trust No. 1 4,591 —
Woori Woori Bank Partners Private Placement Investment Trust No. 2 45,061 —
Woori Private Real Estate Investment Trust No. 1 12,026 25,501
Woori Private Real Estate Investment Trust No. 2 19,662 19,590
Woori Private Real Estate Investment Trust No. 5 34,046 —
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-2 16,335 19,514
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 87,028 79,930
Woori Policy-Type New Deal (Infra Investment) Private Placement Investment Trust No.1 14,744 18,726
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 27,300 —
Dream Company Growth no.1 PEF — 4,510
Midas No. 8 Private Equity Joint Venture Company — 119
Synaptic Green No.1 PEF 5,000 4,780
IGEN 2022 Private Equity Fund No. 1 4,600 5,026
Woori Senior Loan Private Placement Investment Trust No. 1 63,348 117,541
Woori Seoul Beltway Private Special Asset Fund No. 1 3,487 25
Woori Safe Plus General Type Private Investment Trust<br>S-8(Bond) — 10,327
Woori General Private Equity Investment Trust 1 (Bond) — 51,672
Woori General Private Equity Investment Trust 2 (Bond) — 30,821
Japanese Hotel Real Estate Private Equity Fund No.2 6,347 5,382
Woori New Growth Credit Fund 1 26,950 25,194
Woori Clean Energy General Type Private Placement Investment Trust No.2 3,257 —
Woori Innovative Growth (Infrastructure) General Type Private Investment Trust No.2 843 —
Woori General Type Private Real Estate Investment Trust No. 6 194,675 3,132
Woori ESG Infrastructure Development General Type Private Investment Trust No. 2 1,335 —
Woori General Private Equity Investment Trust 3 (Bond) — 60,398
Woori Asset Global Partnership Fund No. 5 30,000 —
Synaptic Future Growth Private Equity Fund I 7,401 7,976
Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust 2,022 —
Woori PE Secondary Private Placement Investment Trust No. 1 17,851 8,660
Woori Short Term Government and Special Bank Bond Active ETF — 12,287
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 37,477 274
Woori General Private Equity Investment Trust 5 (Bond) 60,000 —
Woori Big Satisfaction Private 3(Bond) 10,000 —
Woori General Private Equity Investment Trust 6 (Bond) 40,000 —
Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks) 1,000 1,000
Woori Big Satisfaction Money Market Fund 1 (Government & Agency Bonds) 700,666 1,254,670
Woori Korea Ultra Short-term Bond Securities Investment Trust (Bond) 50,000 50,000
Woori General Private Equity Investment Trust 7 (Bond) 40,000 —
Woori Fund Financing General Type Private Investment Trust 134,945 15,281
Woori Natixis Partnership Global Private Debt Fund No.<br>1-1() 28,882 428
Woori Private Real Estate Investment Trust No. 7 47,459 180
Woori Senior Loan Private Placement Investment Trust No. 3 70,992 —
Woori Smart General Private Equity Investment Trust No.1 (Bond) 40,000 —
Woori Real Estate Investment No. 1 Limited Liability Company 10,000 —

All values are in US Dollars.

(*) Investment and recovery transactions of associates are described in Note 13.(2).
  • 160 -
(10) Compensation to key management is as follows (Unit: Korean Won in millions):
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Short-term employee benefits 11,943 14,655
Share-based payment 12,141 7,569
Retirement benefit service costs 431 833
Total 24,515 23,057

Key management includes registered executives and non-registered executives. Outstanding assets from transactions with key management amount to 3,203 million Won and 3,523 million Won, as of December 31, 2025 and 2024, respectively. Also, liabilities from transaction with key management amount to 11,562 million Won and 69,372 million Won, respectively, as of December 31, 2025 and 2024.

(11) The Group, Woori Card Co., Ltd. and its subsidiaries are liable to jointly reimburse the Group’s debts<br>before the split.
(12) During the year ended December 31, 2025, Woori Investment Securities Co., Ltd. underwrote<br>40,000 million Won of bonds issued by the Group and sold the entire underwritten amount on the issuance date. During the year ended December 31, 2024, Woori Investment Securities Co., Ltd. underwrote 40,000 million Won of hybrid<br>securities issued by the Group and sold the entire underwritten amount on the issuance date.
--- ---
(13) The Group purchased and sold the bonds of 500,000 million Won and 440,000 million Won, respectively,<br>through Woori Investment Securities Co., Ltd. during the year ended December 31, 2025. In addition, the Group sold the bonds of 80,000 million Won through Tong Yang Life Insurance Co., Ltd.
--- ---
(14) As of December 31, 2025, the plan assets deposited in the defined benefit (DB) retirement pension plan<br>managed and administered by Tong Yang Life Insurance Co., Ltd. amount to 266,169 million Won.
--- ---
  • 161 -
46. TRUST ACCOUNTS
(1) Trust accounts of the Group as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
Total assets Operating income
--- --- --- --- --- --- --- --- --- --- --- --- ---
For the years ended December 31
December 31, 2025 December 31, 2024 2025 2024
Trust accounts 94,330,961 85,894,740 3,043,016 2,544,969
(2) Receivables and payables from the transactions between the Group and trust accounts as of December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Receivables
Trust fees receivables 48,172 46,273
Payables
Deposits due to customers 119,733 265,364
Borrowings from trust accounts 6,047,905 5,214,906
Total 6,167,638 5,480,270
(3) Significant transactions between the Group and trust accounts for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Revenue:
Trust fees 180,515 156,911
Termination fees 19,249 3,345
Total 199,764 160,256
Expense:
Interest expenses on deposits due to customers 791 955
Interest expenses on borrowings from trust accounts 126,767 148,498
Total 127,558 149,453
  • 162 -
(4) Principal guaranteed trusts and principal and interest guaranteed trusts

As of December 31, 2025 and 2024, the carrying of principal guaranteed trusts and principal and interest guaranteed trusts are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Partial principal guaranteed trusts:
Household money 7,456 7,823
Corporate money 193 189
Installment plan purpose 1,465 1,544
Sub-total 9,114 9,556
Principal guaranteed trusts:
Old-age pension trusts 2,455 2,450
Personal pension trusts 369,257 399,860
Pension trusts 542,034 592,533
Retirement trusts 26,043 26,159
New personal pension trusts 5,579 6,084
New old-age pension trusts 753 815
Sub-total 946,121 1,027,901
Principal and interest guaranteed trusts:
Development trusts 19 19
Unspecified money trusts 333 334
Sub-total 352 353
Total 955,587 1,037,810
47. LEASES
--- ---
(1) The future lease payments under the lease contracts as of December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Lease payments
Within one year 167,128 168,195
After one year but within five years 255,895 262,872
After five years 19,382 50,353
Total 442,405 481,420
(2) Total cash outflows from lease for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
For the year ended<br>December 31, 2025 For the year ended<br>December 31, 2024
--- --- --- --- --- --- ---
Cash outflows for leases 210,536 213,326
(3) There are no lease payments that are not included in the measurement of lease liabilities due to the fact that<br>they are short-term leases or leases for which the underlying asset is low value for the years ended December 31, 2025 and 2024. The variable lease fee not included in the measurement of lease liability for the years ended December 31,<br>2025 and 2024 are 32,530 million Won and 24,373 million Won, respectively.
--- ---
48. EVENT AFTER THE REPORTING PERIOD
--- ---

In January, 2026, the Group decided to implement a voluntary retirement program through labor-management agreement. As a result, the termination benefits to be recognized by the Group in the first quarter of 2026 amount to 181,305 million Won.

  • 163 -

EX-99.2

Exhibit 99.2

LOGO

WOORI BANK

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARSENDED

DECEMBER 31, 2025 and 2024

WOORI BANK

Page(s)
INDEPENDENT AUDITORS’ REPORT 1-3
Separate Financial Statements
Separate Statements of Financial Position 5-6
Separate Statements of Comprehensive Income 7
Separate Statements of Changes in Equity 8
Separate Statements of Cash Flows 9-10
Notes to the Separate Financial Statements 11-157
Independent Auditors’ Review Report on Internal Control over Financial Reporting 158

INDEPENDENT AUDITORS’ REPORT

(Based on a report originally issued in Korean)

The Board of Directors and Shareholder of

Woori Bank

Opinion

We have audited the separate financial statements of Woori Bank (the “Bank”), which comprise the separate statement of financial position as of December 31, 2025 and 2024, 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 Bank as of December 31, 2025 and 2024, and its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis forOpinion

We conducted our audits in accordance with Korean Standards on Auditing (“KSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Bank in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in the 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 opinion.

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.

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

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with K-IFRS, and for such internal control as management

determines is necessary to enable the preparation of the 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 Bank’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 Bank or to cease operations, or has no realistic alternative but to do so.

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

  • 1 -

Auditors’ 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 auditors’ 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<br>or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.
--- ---
• Evaluate the appropriateness of accounting policies used in the preparation of the separate financial statements<br>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<br>the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are<br>required to draw attention in our auditors’ 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<br>the date of our auditors’ report. However, future events or conditions may cause the Bank to cease to continue as a going concern.
--- ---
• Evaluate the overall presentation, structure and content of the separate financial statements, including the<br>disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
--- ---

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.

  • 2 -

/s/ KPMG Samjong Accounting corp.

Seoul, Korea

March 3, 2026

This report is effective as of March 3, 2026, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

  • 3 -

WOORI BANK

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2025 AND 2024

The accompanying separate financial statements including all footnote disclosures were prepared

by and are the responsibility of, the management of Woori Bank.

Jin Wan Jung

Presidentand Chief Executive Officer

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

(Phone Number)    02-2002-3000

  • 4 -

WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025 AND 2024

December 31,2025 December 31,2024
(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 4, 6 and 45) 35,070,209 23,772,681
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12,<br>18, 26 and 45) 22,126,764 25,420,003
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4,<br>8, 11, 12 and 18) 47,136,304 42,307,565
Securities at amortized cost (Notes 4, 9, 11 and 18) 18,445,064 18,719,264
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45) 348,003,249 342,465,297
Investments in subsidiaries and associates (Note 13) 4,445,482 4,422,532
Investment properties (Note 14) 429,551 455,621
Properties and equipment (Note 15) 2,760,879 2,812,324
Intangible assets (Note 16) 364,984 365,004
Assets held for sale (Note 17) 125,068 31,266
Current tax assets (Note 42) 26,747 33,122
Derivative assets (Designated for hedging) (Notes 4, 11, 12, 26 and 45) 37,010 10,102
Net defined benefit assets (Note 24) 160,337 137,916
Other assets (Notes 19 and 45) 317,090 272,126
Total assets 479,448,738 461,224,823
LIABILITIES
Financial liabilities at FVTPL (Notes 4, 11, 12, 20, 26 and 45) 5,998,588 9,746,647
Deposits due to customers (Notes 4, 11, 21 and 45) 355,117,074 347,165,137
Borrowings (Notes 4, 11, 12, 22 and 45) 26,056,653 21,887,868
Debentures (Notes 4, 11 and 22) 28,535,472 25,530,318
Provisions (Notes 23, 44 and 45) 638,047 531,131
Current tax liabilities (Note 42) 676,845 76,361
Deferred tax liabilities (Note 42) 478,169 777,072
Derivative liabilities (Designated for hedging) (Notes 4, 11, 12, 26 and 45) 27,050 102,634
Other financial liabilities (Notes 4, 11, 12, 25 and 45) 34,134,277 28,449,451
Other liabilities (Notes 25 and 45) 256,839 230,894
Total liabilities 451,919,014 434,497,513
  • 5 -

WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025, AND 2024 (CONTINUED)

December 31,2025 December 31,2024
(Korean Won in millions)
EQUITY
Share capital (Note 28) 3,581,392 3,581,392
Hybrid securities (Note 29) 1,406,513 1,645,947
Capital surplus (Note 28) 1,068,420 1,068,420
Other equity (Note 30) (78,910 ) (55,215 )
Retained earnings (Notes 31 and 32) 21,552,309 20,486,766
(Regulatory reserve for credit loss) (1,952,942 ) (1,767,408 )
(Regulatory reserve for credit loss to be reversed (provisioned for)) (224,576 ) (185,534 )
(Planned reversal of (provision for) regulatory reserve for credit loss) (224,576 ) (185,534 )
Total equity 27,529,724 26,727,310
Total liabilities and equity 479,448,738 461,224,823

The accompanying notes are part of these separate financial statements.

  • 6 -

WOORI BANK

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

For the years ended<br>December 31
2025 2024
(Korean Won in millions, except for per share data)
Interest income 6,954,521 6,741,783
Financial assets at FVTPL 16,390,014 17,982,378
Financial assets at FVTOCI 111,864 120,688
Financial assets at amortized cost 1,227,532 1,227,748
Interest expense (15,050,618 ) (16,633,942 )
Net interest income (Notes 11, 34 and 45) 6,954,521 6,741,783
Fees and commissions income 1,163,844 1,153,366
Fees and commissions expense (200,068 ) (180,203 )
Net fees and commissions income (Notes 11, 35 and 45) 963,776 973,163
Dividend income (Notes 11, 36 and 45) 454,618 457,409
Net gain on financial instruments at FVTPL (Notes 11, 37 and 45) 307,917 1,509,161
Net gain on financial assets at FVTOCI (Notes 11 and 38) 137,515 92,107
Net gain on financial assets at amortized cost (Note 11) 28,187 165,192
Net gain on disposals of loans and other financial assets at amortized cost 28,187 165,192
Provision for expected credit loss allowance (Notes 11, 39 and 45) (827,120 ) (698,265 )
General and administrative expenses (Notes 40 and 45) (3,857,462 ) (3,327,224 )
Other net operating income (expenses), net (Notes 40 and 45) (722,417 ) (2,219,561 )
Operating income 3,439,535 3,693,765
Impairment loss on investments in subsidiaries and associates (Note 13) (5,368 ) (2,386 )
Other non-operating expenses (125,566 ) (28,840 )
Non-operating expenses (Notes 13 and 41) (130,934 ) (31,226 )
Net income before income tax expense 3,308,601 3,662,539
Income tax expense (Note 42) (749,741 ) (867,987 )
Net income (Net income after the provision of regulatory reserve for credit loss for the years<br>ended December 31, 2025 and 2024 are 2,334,284 million Won and 2,609,018 million Won, respectively) (Note 32) 2,558,860 2,794,552
Net gain (loss) on valuation of equity securities at FVTOCI 116,265 (142,223 )
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL (74 ) 1,348
Remeasurement loss related to defined benefit plan (20,877 ) (57,385 )
Items that will not be reclassified to profit or loss 95,314 (198,260 )
Net gain (loss) on valuation of debt securities at FVTOCI (163,461 ) 172,040
Gain (loss) on foreign currency translation of foreign operations (9,168 ) 33,520
Gain (loss) on evaluation of hedge of net investment in foreign operations 2,377 (12,217 )
Items that may be reclassified to profit or loss (170,252 ) 193,343
Other comprehensive income (loss), net of tax (Note 30) (74,938 ) (4,917 )
Total comprehensive income 2,483,922 2,789,635
Earnings per share (Note 43)
Basic and diluted earnings per share (Unit: In Korean Won) 3,449 3,797

The accompanying notes are part of these separate financial statements.

  • 7 -

WOORI BANK

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Capital<br>stock Hybridsecurities Capital<br>surplus Other<br>equity Retainedearnings Total<br>equity
(Korean Won in millions)
January 1, 2024 3,581,392 1,546,447 1,068,420 51,880 18,848,614 25,096,753
Net income — — — — 2,794,552 2,794,552
Dividends on common stocks — — — — (1,131,996 ) (1,131,996 )
Net gain on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL — — — 1,348 — 1,348
Net gain on valuation of financial assets at FVTOCI — — — 29,817 — 29,817
Net gain (loss) due to disposal of financial assets at FVTOCI — — — (53,539 ) 53,539 —
Gain on foreign currency translation of foreign operations — — — 33,520 — 33,520
Loss on evaluation of hedges of net investment in foreign operations — — — (12,217 ) — (12,217 )
Remeasurement loss related to defined benefit plan — — — (57,385 ) — (57,385 )
Appropriation of retained earnings — — — 1,694 (1,694 ) —
Business combination under the common control — — — (590 ) — (590 )
Dividends on hybrid securities — — — — (76,249 ) (76,249 )
Issuance of hybrid securities — 757,970 — — — 757,970
Redemption of hybrid securities — (658,470 ) — (49,743 ) — (708,213 )
December 31, 2024 3,581,392 1,645,947 1,068,420 (55,215 ) 20,486,766 26,727,310
January 1, 2025 3,581,392 1,645,947 1,068,420 (55,215 ) 20,486,766 26,727,310
Net income — — — — 2,558,860 2,558,860
Dividends to common stocks — — — — (1,352,524 ) (1,352,524 )
Net loss on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL — — — (74 ) — (74 )
Net loss on valuation of financial assets at FVTOCI — — — (47,196 ) — (47,196 )
Net gain (loss) on disposal of financial assets at FVTOCI — — — 1,326 (1,326 ) —
Loss on foreign currency translation of foreign operations — — — (9,168 ) — (9,168 )
Gain on evaluation of hedge of net investment in foreign operations — — — 2,377 — 2,377
Remeasurement loss related to defined benefit plan — — — (20,877 ) — (20,877 )
Appropriation of retained earnings — — — 50,333 (50,333 ) —
Dividends to hybrid securities — — — — (89,134 ) (89,134 )
Redemption of hybrid securities — (239,434 ) — (416 ) — (239,850 )
December 31, 2025 3,581,392 1,406,513 1,068,420 (78,910 ) 21,552,309 27,529,724

The accompanying notes are part of these separate financial statements.

  • 8 -

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

For the years ended<br>December 31
2025 2024
(Korean Won in millions)
Cash flows from operating activities:
Net income 2,558,860 2,794,552
Adjustments:
Income tax expense 749,741 867,987
Interest income (16,390,014 ) (17,982,378 )
Interest expense 9,435,493 11,240,595
Dividend income (497,805 ) (530,748 )
(6,702,585 ) (6,404,544 )
Additions of expenses not involving cash outflows:
Loss on financial assets at FVTOCI 4,497 4,583
Provision for expected credit loss allowance 827,120 698,265
Impairment losses on investments in subsidiaries and associates 5,368 2,386
Loss on derivatives (designated for hedging) 9,532 24,252
Loss on fair value hedge 92,138 64,571
Loss on other provisions 103,671 40,605
Retirement benefits 154,041 109,088
Depreciation and amortization 415,905 387,730
Loss on disposal of properties and equipment, intangible asset and other assets 1,379 1,435
Impairment loss on properties and equipment, intangible asset and other assets 360 217
Loss on foreign currency translation — 1,181,071
Other losses — 10,888
Other operating expenses — 8,627
1,614,011 2,533,718
Deductions of incomes not involving cash inflows:
Gain on financial instruments at FVTPL 509,909 1,266,813
Gain on financial assets at FVTOCI 142,012 96,690
Gain on disposal of investments in subsidiaries and associates — 12,609
Gain on derivatives (designated for hedging) 102,915 40,843
Gain on fair value hedge 12,013 25,469
Gain related to other provisions 39 2,752
Gain on disposal of properties and equipment, intangible assets and other assets 6,177 337
Reversal of impairment loss on properties and equipment, intangible asset and other<br>assets 300 —
Gain on disposal of assets held for sale 33,598 —
Gain on foreign currency translation 278,740 —
1,085,703 1,445,513
Changes in operating assets and liabilities:
Financial instruments at FVTPL 1,171,785 907,516
Loans and other financial assets at amortized cost (6,893,012 ) (19,333,275 )
Other assets (48,826 ) (8,198 )
Deposits due to customers 11,849,990 4,413,557
Provisions (11,147 ) (209,556 )
Net defined benefit liability (206,752 ) (103,436 )
Other financial liabilities 2,898,763 4,631,721
Other liabilities 30,034 (5,974 )
8,790,835 (9,707,645 )
  • 9 -

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (CONTINUED)

For the years ended<br>December 31
2025 2024
(Korean Won in millions)
Cash received (paid) from operating activities:
Interest income received 16,266,227 18,178,160
Interest expense paid (9,739,921 ) (10,742,146 )
Dividends received 497,805 530,748
Income tax paid (413,201 ) (297,011 )
Net cash inflow (outflow) from operating activities 11,786,328 (4,559,681 )
Cash flows from investing activities:
Disposal of financial instruments at FVTPL 19,593,569 13,414,415
Acquisition of financial instruments at FVTPL (20,687,433 ) (13,410,068 )
Disposal of financial assets at FVTOCI 30,394,302 25,622,712
Acquisition of financial assets at FVTOCI (35,167,708 ) (30,557,886 )
Redemption of securities at amortized cost 5,525,516 7,616,152
Acquisition of securities at amortized cost (5,149,914 ) (2,494,615 )
Disposal of investments in subsidiaries and associates 29,360 33,161
Acquisition of investments in subsidiaries and associates (57,679 ) (710,964 )
Disposal of properties and equipment 34,274 129
Acquisition of properties and equipment (258,276 ) (166,448 )
Disposal of intangible assets 2,754 613
Acquisition of intangible assets (126,932 ) (134,379 )
Disposal of assets held for sale 82,411 —
Net increase in other assets 37,954 18,348
Business combination under common control — 2,627
Net cash outflow from investing activities (5,747,802 ) (766,203 )
Cash flows from financing activities:
Net increase of derivatives (designated for hedging) (9,109 ) (25,442 )
Net increase (decrease) in borrowings 4,466,273 (1,327,778 )
Issuance of debentures 12,702,236 16,756,011
Redemption of debentures (9,793,897 ) (13,378,345 )
Redemption of lease liabilities (171,528 ) (171,368 )
Net decrease of other liabilities (51 ) (17,690 )
Dividends paid to common stocks (1,352,524 ) (1,131,996 )
Issuance of hybrid securities — 757,970
Redemption of hybrid securities (240,000 ) (726,055 )
Dividends paid to hybrid securities (89,134 ) (76,249 )
Net cash inflow from financing activities 5,512,266 659,058
Effects of exchange rate changes on cash and cash equivalents (253,264 ) 1,373,399
Net increase (decrease) in cash and cash equivalents 11,297,528 (3,293,427 )
Cash and cash equivalents, the beginning of the year **** 23,772,681 **** **** 27,066,108 ****
Cash and cash equivalents, the end of the year (Note 6) **** 35,070,209 **** **** 23,772,681 ****

The accompanying notes are part of these separate financial statements.

  • 10 -

WOORI BANK

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL
(1) Summary of the Company
--- ---

Woori Bank (the “Bank”) was established in 1899 and is engaged in the commercial banking business under the Banking Act, trust business and foreign exchange business under the Financial Investment Services and Capital Market Act (the “Capital Market Act”).

As of December 31, 2025, the Bank’s shares are wholly owned by Woori Financial Group Inc. (“Woori Financial Group”) which was established in accordance with the Financial Holding Companies Act on January 11, 2019. The Bank has 716 million shares and common stocks amounting to 3,581,392 million Won.

The headquarters of the Bank is located at 51, Sogong-ro, Jung-gu, Seoul, Korea. The Bank has 656 branches and offices in Korea, and 16 branches, 8 branch offices and 4 offices overseas as of December 31, 2025.

2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES
(1) Basis of preparation
--- ---

The Bank 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 separate financial statements have been 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 Bank’s financial position, financial performance or cash flows, is not presented in the accompanying separate financial statements.

The separate financial statements of the Bank 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 material accounting policies applied in the preparation of financial statements are stated below, and the accounting policies applied are identical to ones used in the preparation of previous period’s financial statements, except for the effects of adopting new standards or interpretations as explained below.

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 Bank were initially approved by the Board of Directors on February 5, 2026, subsequently amended and approved on February 27, 2026, and are scheduled be approved at the annual shareholder’s meeting on March 20, 2026.

1) From the accounting period beginning on January 1, 2025, the Bank has newly applied the following<br>amendments and interpretations.
i) Amendments to K-IFRS No.1021 ‘ The Effectsof Changes in Foreign Exchange Rates ’ and K-IFRS No.1101 ‘ First-time Adoption of International Financial Reporting Standards ’ – Lack<br>of Exchangeability
--- ---
  • 11 -

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments do not have a significant impact on the separate financial statements.

2) The details of K-IFRS that have been issued and published as of<br>January 1, 2025 but have not yet reached the effective date, and which the Bank has not applied at an earlier date are as follows :
i) Amendments to K-IFRS No.1109 ‘FinancialInstruments’, K-IFRS No.1107 ‘Financial Instruments: Disclosures’
--- ---

When an entity K-IFRS No.1109 ‘Financial Instruments’ and K-IFRS No.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 Bank is in review for the impact of these amendments on the financial statements. These amendments

• permit to deem the financial liability to be settled (discharged) through an electronic payment system before the<br>settlement date in cases of meeting certain conditions;
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal<br>and interest (SPPI) criterion;
--- ---
• add new disclosures of impact on the entity and the extent to which the entity is exposed for each class of<br>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<br>(FVTOCI).
--- ---
ii) Annual Improvements to K-IFRS
--- ---

Annual Improvements to K-IFRS should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Bank is in review for the impact of these amendments on the financial statements.

• K-IFRS No.1101 ‘First-time Adoption of International Financial Reporting Standards’: Hedgeaccounting by a first-time adopter
• K-IFRS No.1107 ‘Financial Instruments: Disclosures’: Gain or loss on derecognition andimplementation guidance
--- ---
• K-IFRS No.1109 ‘Financial Instruments’: Derecognition of lease liabilities and definition oftransaction price
--- ---
• K-IFRS No.1110 ‘Consolidated Financial Statements’: Determination of a ‘de factoagent’
--- ---
• K-IFRS No.1007 ‘Statement of Cash Flows’: Cost method
--- ---
iii) Standards to K-IFRS No.1118 ‘Presentation and Disclosure in Financial Statements’<br>
--- ---

K-IFRS No.1118 ‘Presentation and Disclosure in Financial Statements’ replaces K-IFRS No.1001 ‘Presentation of Financial Statements’. The new presentation requirements introduced in K-IFRS No.1118 will increase the comparability of the financial performance of similar entities, especially with respect to how ‘operating profit or loss’ is defined. The new disclosure requirements for ‘management-defined performance measures’ will enhance transparency. The amendments should be applied for annual periods beginning on or after January 1, 2027, and earlier application is permitted. In accordance with the retrospective application requirements, comparative information for the year ended December 31, 2026, shall be restated under K-IFRS No.1118 .

  • 12 -

The Bank has not yet adopted K-IFRS No.1118 and is in the process of determining the impact of its adoption. The Bank has prepared a transition plan and is on track to report its first K-IFRS No.1118 -compliant interim financial statements for the period ending March 31, 2027 and annual financial statements for the period ending December 31, 2027.

Management is currently reviewing the impact of adopting K-IFRS No.1118 on the Bank’s financial statements. While the adoption of the new standard is not expected to affect the Bank’s net profit or loss, it will require revenues and expenses in the statement of profit or loss to be classified into new categories, consequently affecting the calculation and presentation of operating profit.

(2) 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 Bank in exchange for control of the acquiree, liabilities assumed by the Bank and the equity interests issued by the Bank. Acquisition-related costs are generally recognized in profit or loss as incurred.

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

• deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are<br>recognized and measured in accordance with K-IFRS No.1012 ‘Income Taxes’ and K-IFRS No.1019 ‘Employee Benefits’, respectively;<br>
• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based<br>payment arrangements of the Bank entered into to replace share-based payment arrangements of the acquiree are measured in accordance with K-IFRS No.1102 ‘Share-based Payment’ at the<br>acquisition date; and
--- ---
• non-current assets (or disposal groups) that are classified as held for<br>sale in accordance with K-IFRS No.1105 ‘Non-current Assets Held for Sale and Discontinued Operations’ are measured at the lower of their previous<br>carrying amounts and fair value less costs to sell.
--- ---

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 Bank’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 which is included in intangible assets.

If, after reassessment, the Bank’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 (or other comprehensive income, if applicable) identical to the treatment assuming interests are sold directly.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable.

When the consideration transferred by the Bank 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

  • 13 -

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 Bank’s previously held equity interest in the acquiree is remeasured at fair value at the acquisition date (i.e., the date when the Bank 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.

In cases where i) a common entity ultimately controls over all participating entities, or businesses, in a business combination transaction, prior to and after the transaction continuously, and ii) the control is not temporary, the transaction meets the definition of “business combination under common control” and it is deemed that the transaction only results in the changes in legal substance, and not economic substance, from the perspective of the ultimate controlling party. Thus, in such transactions, the acquirer recognizes the assets and liabilities of the acquiree in its financial statements at the book values as recognized in the ultimate controlling party’s consolidated financial statements, and the difference between the book value of consideration transferred to and the book value of net assets transferred in is recognized as equity.

(3) 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 Bank 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; and
--- ---
• its expenses, including its share of any expenses incurred jointly.
--- ---

The Bank accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with K-IFRS applicable to the particular assets, liabilities, revenues and expenses.

When a bank that is a joint operator engages in transactions such as selling or contributing assets to the joint operation, the transaction is regarded as one conducted with the other parties to the joint operation. Accordingly, the bank recognizes the resulting gains or losses only to the extent of the other parties’ interests.

When the Bank enters into 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.

(4) Revenue recognition

K-IFRS No.1115 requires the recognition of revenues based on transaction price allocated to the performance obligation when or as the Bank performs that obligation to the customer. Revenues other than those from contracts with customers, such as interest revenue and loan origination fee (cost), are measured through effective interest rate method.

i) Revenue from contracts with customers

The Bank recognizes revenue when the Bank satisfies a performance obligation by transferring a promised good or service to a customer. When a performance obligation is satisfied, the Bank recognizes 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 Bank expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

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The Bank recognizes revenue by major sources as shown below:

① Fees and commission received for brokerage

The fees and commission received for brokerage 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 Bank acting as an agency, such as in the case of sales of bancassurance and beneficiary certificates. The majority of these fees and commission received for brokerage are from the business activities relevant to Consumer 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. The majority of these fees and commission received related to credit are from the business activities relevant to Consumer banking and Corporate banking segment.

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. The majority of these fees and commission received for electronic finance are from the business activities relevant to Consumer banking and Corporate 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 Corporate 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 Corporate 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 Corporate banking segment.

⑦ 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 credit card are substantially attributable to Consumer banking segment.

⑧ 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. The majority of these fees and commission received for brokerage are from the business activities relevant to Consumer banking segment.

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⑨ Other fees

Other fees are usually fees related to remittances, but include fees related to various other services provided to customers by the Bank. These fees are recognized when transactions occur at the customers’ request and services are provided, at the same time when commissions are received. These other fees occur across all operating segments and no single operating segment represents majority of other fees.

ii) Other revenue from contracts with customers
① Interest income
--- ---

Interest income on financial assets measured at FVTPL, 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.

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 costs and is being added or deducted to/from interest income on loans using effective interest rate method.

(5) Accounting for foreign currencies

The Bank’s separate financial statements are presented in Korean Won, which is the functional currency of the Bank. 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 are measured by average exchange rate, with foreign exchange differences recognized as other comprehensive income and added to equity. 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.

(6) Cash and cash equivalents

The Bank 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.

(7) Financial assets and financial liabilities
1) Financial assets
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A regular way purchase or sale of financial assets is recognized or derecognized on the trade 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 Bank 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<br>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,<br>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<br>evaluation is being reported to the management
--- ---
• The risk affecting the performance of the business model (and financial assets held under the business model),<br>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<br>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<br>activities
--- ---
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 Bank 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 Bank considers the following elements when evaluating the following:

• Conditions that lead to modification of timing or amount of cash flows
• Contractual terms that adjust contractual nominal interest, including floating rate features<br>
--- ---
• Early payment features and maturity extension features
--- ---
• Contractual terms that limit the Bank’s claim on cash flows arising from certain assets (e.g., non-recourse feature)
--- ---
• Terms of holding multiple contractually linked financial tranche that concentrate credit risk In such case,<br>credit risk comparison information of the instrument itself, the contractual cash flow characteristics of underlying financial instrument group and the underlying financial instrument group
--- ---
① Financial assets at FVTPL
--- ---

The Bank 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.

The Bank may, at initial recognition, irrevocably designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

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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. 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 instruments), 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 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 Bank 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. Gain or loss arising from financial liabilities at FVTPL is recognized in profit or loss 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 Bank’s financial instrument group (a group composed of a combination of financial asset or liability) according to the Bank’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 No.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 Bank modifies the business model used to manage financial assets. When the Bank 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
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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 Bank 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 Bank recognizes financial assets to the extent of its continuing involvement. If the Bank 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 book value 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 Bank 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 Bank derecognizes financial liabilities when, and only when, the Bank’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 Bank exchanges with the existing lender one debt instrument into another one with 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 Bank 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 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 Bank 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,

  • 19 -

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 Bank uses the fair value determined by independent appraisers, the Bank 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 Bank uses the amount determined by the independent appraiser. The Bank 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 reappraisal done by employees who have knowledge of valuation models and assumptions that appraisers used.

b) Derivatives

The Bank’s transactions involving derivatives such as futures and exchange traded options are measured at market value. A portion of 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 Bank 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 Bank earns income through 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 Bank’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 Bank’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.

6) Expected credit losses on financial assets

The Bank 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 No.1115
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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 do not belong to below two models and unused loan commitments<br>
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• Simplified approach: When financial assets are either trade receivables, contract assets or lease receivables<br>
• 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 are not individually significant, they are included in a group of financial assets with similar credit risk characteristics and expected credit losses of the Bank 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. Changes in loss allowance due to subsequent recoveries of amounts previously written off are recognized in profit or loss.

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 other comprehensive income to net income.

(8) Offsetting financial instruments

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

(9) Investment properties

The Bank 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 Bank and the cost of an asset can be measured reliably, and the book value 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 properties 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 separate 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 from 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 of the period.

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(10) Properties and equipment

Properties and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of properties 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 Bank 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 properties 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 40 years
Structures in leased office 5 years
Properties for business purpose 5 years

The Bank reassesses the depreciation method, the estimated useful lives and residual values of properties 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 properties and equipment item exceeds the estimated recoverable amount, the carrying amount of such asset is reduced to the recoverable amount.

(11) Intangible assets and goodwill

The Bank is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and accumulated impairment losses. The Bank’s intangible asset are amortized over the following economic lives using the straight-line method. The estimated useful life and amortization method 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
Other intangible assets 5 years or contract period

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 is not amortized, but is subject to an impairment test every year, and whenever there is an indicator that goodwill is impaired.

Goodwill is allocated to each of the Bank’s cash-generating unit (or groups of cash-generating units) that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. 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 cannot be reversed in subsequent periods.

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(12) 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 profit or loss.

(13) Leases

The Bank determines whether the agreement is a lease or includes a lease at the time of the agreement. In exchange for consideration in the contract, if the control over the use of the identified asset is transferred for a period of time, the contract is a lease or includes a lease. In determining whether a contract transfers control of the use of the identified asset, the Bank uses the definition of a lease in K-IFRS No.1116.

1) The Bank as a lessee

The Bank 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, but if that cannot be readily determined, the Bank uses its incremental borrowing rate. The Bank generally uses the incremental borrowing rate.

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

• Fixed payments (including in-substance fixed payments)<br>
• Variable lease payments that depend on an index (or a rate), initially measured using the index or rate as at the<br>commencement date
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• Amounts expected to be payable by the lessee under residual value guarantees
--- ---
• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, lease<br>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<br>
--- ---

The lease liability is subsequently increased by 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.

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

  • 23 -

Most extension options in offices and vehicles leases have not been included in the lease liability, because the Bank could replace the assets without significant cost or business disruption.

The lease term is reassessed if an option is actually exercised (or not exercised) or the Bank becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee.

During the current financial year, the financial effect of revising lease terms to reflect the effect of exercising extension and termination options was an increase in recognized lease liabilities and right-of-use assets of 1,308 million Won.

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

The Bank 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 Bank recognizes the lease payments associated with those leases as an expense on a straight-line basis over the lease term.

  • 24 -
2) The Bank as a lessor

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

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

The Bank 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 Bank applies K-IFRS No.1115 to allocate the consideration of the contract.

The Bank applies derecognition and impairment provisions of K-IFRS No.1109 to its net investment in the lease. The Bank also carries out regular review of the unguaranteed residual value used to calculate total lease investment.

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

The accounting policy that the Bank has applied as a lessor is not different from K-IFRS No.1116.

(14) 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 and 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.

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 No.1109 is 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 No.1109 (e.g., financial liability), then these are treated as separate derivatives if embedded derivatives meet the definition of a derivative, characteristics and 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 Bank is applying K-IFRS No.1109 in regard to hedge accounting. The Bank designates 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 Bank documents the relationship between hedging instruments and hedged items at the commencement of hedging in accordance with their purpose and strategy. Also, the Bank 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.
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• When the effect of credit risk is not stronger than the change in value due to the economic relationship between<br>the hedged items and hedging instruments.
• When the hedge ratio is equal to the proportion and the number of hedged items to those of the hedging<br>instruments.
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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 Bank designated only the part of derivative financial instruments except for the foreign currency basis spread. Changes in value due to the corresponding foreign currency basis spread are recognized in other comprehensive income and accumulated in equity items. If the hedged item relates to a transaction, the accumulated other comprehensive income is reclassified to profit or loss when the hedged item affects profit or loss.

However, if the hedged item subsequently recognizes a non-financial item, the accumulated amount in the equity item is removed directly from equity and included in the initial carrying amount of the recognized non-financial item. This transfer does not affect other comprehensive income.

However, if all or some of the accumulated equity items are not expected to recover in a future period, the amounts that are not expected to recover are immediately reclassified to profit or loss. If the hedged item relates to a period, the portion of the foreign currency basis spread at the date the derivative is designated as a hedging instrument is reclassified to profit or loss over the period of the hedge.

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 book value 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, book value 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 book value. 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.

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 book value of hedged item due to hedged risk is amortized from the date of discontinuance of hedge accounting and is recognized in profit or loss.

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

The Bank classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered 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.

(16) Provisions

The Bank recognizes provision if (a) it has present or contractual obligations as a result of the past event, (b) it is probable that an outflow of resources will be required to settle the obligation and (c) the amount of the obligation is reliably estimated. Provision is not recognized for the future operating losses.

The Bank recognizes provision related to the unused membership points, payment guarantees, loan commitment and litigations. Where the Bank is required to restore a leased property that is used as a branch to an agreed condition after the contractual term expires, the present value of expected amounts to be used to dispose, decommission or repair the facilities is recognized as an asset retirement obligation.

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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.

(17) Capital and compound financial instruments

The Bank 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.

If the Bank 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.

(18) Financial guarantee liabilities

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 No.1109
• Initial book value less accumulated profit measured in accordance with<br>K-IFRS No.1115
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(19) Employee benefits and pensions
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The Bank recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by the employees. Also, the Bank 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 Bank recognizes expenses and liabilities for customary profit distribution or bonuses when the employees render services, even though the Bank does not have legal obligation to do so because it can be construed as constructive obligation.

The Bank 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 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 as 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 Bank 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 Bank’s defined benefit plans. Any surplus resulting from this calculation is recognized

  • 27 -

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 Bank is no longer able to cancel its proposal for termination benefits or 2) the date when the Bank has recognized the cost of restructuring that accompanies the payment of termination benefits.

(20) Financial liabilities designated as hedge of a net investment in a foreign operation

When applying hedge accounting of net investment in a foreign operation, the effective portion of changes in fair value of the hedging instrument is recognized in other comprehensive income and the ineffective portion of the hedge is recognized as current profit or loss in order to offset changes in the fair value of the hedged item caused by the hedging with changes in the fair value of the hedging instrument. The effective portion of hedge recognized in other comprehensive income will be reclassified from other comprehensive income to current profit or loss in accordance with K-IFRS No.1021 ‘The Effects of Changes’ in Foreign Exchange Rates at the time of disposal of a foreign operation or disposal of a portion of its foreign operations in the future.

(21) 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.

Deferred income tax assets and liabilities are offset if, and only if, the Bank 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 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 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 the refund litigation for the amount of tax levied by the tax authority due to differences in tax law analysis

In response, the Bank paid taxes in accordance with K-IFRS No.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.

(22) 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.

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3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The significant accounting estimates and assumptions are continuously evaluated based on a number of factors, including historical experience and expectations for future events that are reasonably considered probable. Accounting estimates based on these definitions may not match the actual occurrence results. Accounting estimates and assumptions that include significant risks that could significantly alter the carrying amount of assets and liabilities currently accounted for in the next accounting period are as follows:

(1) Income taxes

The Bank has recognized current and deferred taxes based on best estimates of expected future income tax effect arising from the Bank’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 Bank’s evaluation considers various factors such as estimated future taxable profit based on forecasted operating results, which are based on historical financial performance. The Bank 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 (7) 5), ‘Fair value of financial assets and liabilities’, 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 Bank 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.

The Bank uses forward-looking information to estimate expected credit losses in accordance with K-IFRS No.1109 ‘Financial Instruments’. Considering the potential for increased insolvency due to rising domestic and international economic uncertainties, the Bank estimates the probability of default (PD) and loss given default (LGD) using forward-looking information on key variables such as GDP growth rate, producer price index, apartment sales price index (KB, Seoul), and unemployment rate (original series), and accordingly recognizes additional expected credit loss provisions.

The Bank used a modeling technique based on GDP growth rate to estimate expected credit losses at the end of the current period.

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The Bank will continuously monitor the impact of domestic and international political and economic uncertainties on the economy and continue to evaluate the appropriateness of related forward-looking information.

The measurement of expected credit loss is described in 4. Risk management (1) 3) Measurement of expected credit loss.

(4) Defined benefit plan

The Bank 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.

4. RISK MANAGEMENT

The Bank’s operating activity is exposed to various financial risks. The Bank is required to analyze and assess the level of complex risks and determine the permissible level of risks and manage such risks. The Bank’s risk management procedures have been established to improve the quality of assets for holding or investment purposes by making decisions on how to avoid or mitigate risks through the identification of the source of the potential risks and their impact.

The Bank has established an approach to manage the acceptable level of risks and reduce the excessive risks in financial instruments in order to maximize the profit given risks present, for which the Bank has implemented risk management processes of identification, measurement, assessment, control, monitoring and reporting of risk.

The risk is managed in accordance with the Bank’s risk management policy. The Board Risk Management Committee, at the top decision-making level, makes decisions on the risk strategies such as the allocation of internal capital and the establishment of acceptable level of risk.

(1) Credit risk

Credit risk represents the potential financial losses that may incur in the future when the counterparty refuses to fulfill or lose the ability to fulfill its contractual obligations. The goal of credit risk management is to maintain the Bank’s credit risk exposure to a permissible degree and to optimize its rate of return considering such credit risk.

i) Credit risk management
a. Credit facilities limit management
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The Bank calculates and manages the appropriate borrowing limits by aggregation, business and industry through management of aggregation, total exposure, and portfolio.

b. Credit risk monitoring organization and role
① Large Corporate Credit Analysis & Approval Dept.
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• Examination, approval, and maintenance of loans to large enterprises (including small- and medium-sized<br>enterprises affiliated with major debt group)
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• Examination, approval, and maintenance of loans to government agencies, public institutions (50% or more of<br>government investments and contributions) and other corporations
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• Examination, approval, and maintenance of relevant real estate PF (Project Financing) (large or non-confirmed construction enterprises)
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• Operation controls over the ‘Credit Management for Affiliate Enterprise Groups’ as specified by the<br>Regulation on Supervision of Bank Business, etc.
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• Establishing and managing total exposure limits for affiliated companies
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• Management of approved loans (delinquency, asset quality, portfolios, etc.)
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• Credit limit management designated by the Banking Act for the affiliated companies
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② IB/Global Investment Banking Credit Analysis & Approval Dept.
• Examination, approval and maintenance of loans related to IB Group Investment Banking (including Principal<br>Investment excluding blind funds, structured securities of foreign currency bonds, real estate project financing, and branch-linked IB deals)
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• Examination, approval and maintenance of overseas branches or subsidiaries of local companies, foreign companies.<br>
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• Support for related tasks such as credit screening and maintenance of overseas review centers<br>
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• Management of approved loans (delinquency, asset quality, portfolios, etc.)
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• Establishing and managing total exposure limits for affiliated companies
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• Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies<br>
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• Credit research and credit rating for affiliated companies
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• Derivative-related risk examination and management for affiliated customers
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③ SME Credit Analysis & Approval Dept.
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• Examination, approval, and maintenance of loans to small and medium-sized<br>enterprises (excluding SMEs affiliated with major debt group) (including credit-related securities, credit derivatives, and credit-related deposits)
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• Examination, approval, and maintenance of loans to public institutions (less than 50% of government investments<br>and contributions) and other corporations
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• Consultation on loan examination, and agreement on the approval (including<br>follow-up) of overseas branches and local corporations of the enterprises
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• Examination, approval, and maintenance of relevant real estate PF (small and medium-sized construction<br>enterprises)
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• Examination, approval, and maintenance, etc. of business loans related to National Housing and Urban Fund<br>
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• Develop and maintain examination techniques
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• Management of approved loans (delinquency, asset quality, portfolios, etc.)
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• Establishing and managing total exposure limits for affiliated companies
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• Credit research and credit rating for affiliated companies
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• Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies<br>
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• Derivative-related risk examination and management for affiliated customers
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④ Retail Credit Analysis & Approval Dept.
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• Examination, approval, and maintenance of personal and individual business loans
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• Examination and approval of collective loans (including cases where construction enterprise is subject to<br>workout)
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⑤ Corporate Restructuring Dept.
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• General management of enterprises subject to workout, etc.
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• General management of enterprises subject to pre-workout, etc.<br>
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• General management on the borrower in the course of corporate rehabilitation procedures
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• Workout activities such as the establishment and implementation of corporate workout plans performed for<br>affiliated companies
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• Pre-workout activities such as the establishment and implementation of<br>corporate management diagnosis and management plans performed for affiliated companies
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• Credit examination, approval, setting total exposure limit and follow-up<br>management for affiliated companies
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• Examination and execution of loans for sound post-management of rehabilitation loans
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c. Credit screening and post monitoring or post management
① Objective
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• To maintain appropriate credit ratings and improve asset quality
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② Main activities
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• Review the adequacy of credit and credit ratings, and maintain the consistency in application of ratings<br>
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• Review the appropriateness of asset classification by quality and the provision for credit losses<br>
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• Overall analysis of loan portfolio quality
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• Inspection of compliance with loan policies and relevant regulations, and recommendation for modification of<br>policies
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• Review the appropriateness of loan approval and compliance with loan commitments
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• Assessing the accuracy of the identification of bad loans and the timeliness of actions taken by the person in<br>charge of the loan
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• Post-inspection of the branches’ discretionary decision for loans
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• Reporting management on audit results and follow-up actions, and follow-up management
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• Monitoring results of inspections of branches for unauthorized use
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• Continuous assessment of corporate credit risk
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• Review of the adequacy of management activities for Watch List companies
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• Support and overall management of audit activities for overseas branches
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ii) Current status by measurement method
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a. Method of calculating risk-weighted assets
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① The Bank calculates the risk-weighted assets of the credit risk by obtaining approval of the internal<br>rating-based approach.
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② The internal rating-based approach meets the qualitative and quantitative requirements set by the Financial<br>Supervisory Service, including the use of advanced techniques in risk measurement, as well as the establishment of an internal control and risk management system. It enables more accurate measurement and management of credit risk than the standard<br>method.
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• The internal rating-based approach
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Risk-weighted assets are calculated by applying self-estimated risk measurement factors such as probability of default (PD), loss given default (LGD), exposure at default (EAD), and effective maturity (M) according to the internal rating of the Bank.

b. Overview and utilization scope of credit rating evaluation model

<Overview of corporate credit rating model>

① Definition of corporate credit rating model

The corporate credit rating is the assessment of the possibility of default by the counterparty. It includes both scoring assessments that are evaluated according to quantitative methods using financial statements, etc., representative assessments that are evaluated according to quantitative methods using loans, deposit transactions, etc. of the representative’s the Bank itself and other financial institutions, and Judgment evaluations that are evaluated by the evaluator’s subjective judgment. This represents that the degree of credit risk assessed is presented in a systematic manner.

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② Operation of corporate credit rating model
• General corporate evaluation model: Classified to external audit based on<br>K-IFRS, external audit based on GAAP, non-external audit 1, non-external audit 2, and personal business based on their total<br>assets, sales volume, accounting standards, whether subject to external audit or not, loan size and type of business, such as individual or corporation.
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• Evaluation model of local governments
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• Evaluation model of public institutions
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• Evaluation model of financial institutions: Banks, insurance companies, financial investment, and other financing<br>
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• Evaluation model of overseas companies
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• Evaluation model of non-profit organization: Private schools, medical<br>institutions, religious organizations, and other organizations
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• Specialized lending evaluation model: PF (Project Finance) (*1), OF (Object Finance) (*2), CF (Commodities<br>Finance) (*3), real estate financing for sale**,** real estate financing for rent**,** fund financing**,** acquisition financing**,** and asset securitization**.**
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(*1) Project Finance (PF)

Credit provided for large-scale facility projects such as power plants and transportation facilities, secured by the project itself and repaid from the cash flow generated by the project.

(*2) Object Finance (OF)

Credit provided for the purchase of tangible assets such as ships and aircraft, secured by the asset itself and repaid from the cash flow generated by the asset.

(*3) Commodities Finance (CF)

Credit secured by reserves, inventories, or receivables related to commodities traded on recognized exchanges, with the proceeds from the sale of these assets used as the source of repayment.

③ Corporate credit rating system

The corporate credit rating system is divided into 14 grades (13 normal, 1 default) system, and each credit rating is presented in English (AAA~D).

<Overview of retail credit rating model>

① Definition of retail credit scoring model

This is a model that determines credit rating of retail loan customers by calculating credit score statistically using the customer information and operates two types of scoring system which are Application Scoring System and Behavior Scoring System according to applicable borrowers’ loan types.

• Application Scoring System (ASS): The model determines credit rating by statistically calculating credit score<br>for new retail loan applications using personal information, transaction information, credit information, and other relevant data.
• Behavior Scoring System (BSS): The model determines credit rating by statistically calculating credit score for<br>existing retail loans using transaction information, credit information, and other relevant data.
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② Operation of retail credit scoring model
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• SOHO (Small Office Home Office) loan credit scoring model: ASS / BSS scoring model
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• Household loan credit scoring model: ASS / BSS scoring model
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③ Retail credit scoring model evaluation system: Presented in number from grade 1 to 10
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<Utilization scope of credit rating evaluation model>

① Utilizes as a key component in calculating BIS credit risk-weighted assets
② Supports prompt loan decision-making by applying for interest rate (pricing), and discretionary<br>decision-making, etc.
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③ Utilizes to measure overall risk such as assets quality and provisions for the credit losses<br>
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④ Utilizes as an indicator of Risk Adjusted Performance Management and relevant performance measurement, etc.<br>
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c. Control structure for credit evaluation system (including content related to grade change)<br>
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① Securing the independence of granting credit rating
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The credit rating is granted through the evaluation department (large enterprise, small and medium-sized enterprise, personal etc.) that is independent from the sales department, but the head of the branch has authority to grant credit ratings to small-scale loans according to the size of the loans. The Bank clearly defines and operates procedures such as override, check list, authority and procedures, and review when granting credit ratings. For credit ratings granted by a sales branch and the evaluation department, regular loan reviews are performed by the credit supervision department to assess the consistency and timeliness of credit ratings.

② Securing independence of credit risk control operations

The Credit Risk Management Dept. within the Risk Management Group that is independent from the sales department is responsible for the design, monitoring/supervision of operation and performance, on-going review, and modification. The Credit Risk Management Dept. conducts self-validation and monitoring of credit ratings, development and implementation of credit rating models, etc.

③ Validation of credit evaluation systems by an independent third party

To secure the adequacy of the credit evaluation system, the Risk Model Validation Dept. within the Risk Management Group, which is independent from the credit evaluation system department, conducts validation of credit evaluation system. The Risk Model Validation Dept. conducts periodic validation to assess the adequacy of the credit evaluation system’s design, to determine whether BIS satisfies with the minimum requirements, and to validate the utilization and calculation methods of risk measurement components (PD, LGD, EAD, etc.).

A third-party review is conducted in the Head Office Audit Dept. for the development/ implementation of Credit Risk Management Dept.’s credit risk model, estimation of risk measurement factors, and the third party’s validation activities of the Risk Model Validation Dept.

④ Strengthen the role of the Board of Directors and management

Major decision-making related to the credit evaluation system and risk measurement factors are carried out in the approval process of the Executive Risk Management Committee and the Board Risk Management Committee (Board of Directors). Issues related to validation and monitoring of credit evaluation systems and risk measurement elements are regularly reported to the Executive Risk Management Committee and the Board Risk Management Committee (Board of Directors).

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d. Scope of application of internal rating-based approach
BIS Ratio calculation method Exposure category Date of approval
--- --- --- --- --- --- ---
Standard method Permanent standard method Government, public institutions, and banks October 30, 2008
Standard method Subsidiaries, overseas branches, and other assets October 30, 2008
Internal rating-based approach Large/small and medium-sized enterprise exposure<br>(external audit IFRS, external audit GAAP, non-external audit1, non-external audit2, personal business model), retail exposure, and asset-backed exposure (Credit<br>rating-based approach) October 30, 2008<br> <br>February 13, 2015
Stepwise application Special financing, financial institutions and<br>non-profit organizations October 30, 2008
iii) Measurement of expected credit loss
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K-IFRS No.1109 ‘Financial Instruments’ requires entities to measure loss allowances 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
12-month expected credit losses Lifetime expected credit losses
Loss allowance Expected credit losses that result from those default events on the financial instrument that<br>are possible within 12 months after the reporting date Expected credit losses that result from all possible default events over the life<br>of the financial instrument
(*) If the financial instrument has low credit risk at the end of the reporting period, the Bank may assume that<br>the credit risk has not increased significantly since initial recognition.
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At the end of each reporting period, the Bank assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality, early warning system, days past due, and others. For financial assets whose contractual cash flows have been modified, the Bank assesses whether there is a significant increase in credit risk on the same basis. The Bank performs the assessment above 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<br>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 -
  • 35 -

The Bank 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<br>
• For loans overdue within 90 days, when it is determined that not even a portion of the loan will be recovered<br>unless claim actions such as disposal of collaterals are taken
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• When other objective indicators of impairment have been noted for the financial asset
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In addition, the Bank reflects the future economic forecast adjustment coefficient in the probability of default and loss given default and recognizes additional provisions for expected credit losses by adjusting the future economic forecast adjustment coefficient in consideration of the potential for insolvency due to increase in domestic and international economic uncertainty.

The Bank has estimated the expected credit loss allowances using an estimation model that additionally reflects the forward-looking information based on the past experience loss rate data.

Probability of default (PD) and loss given default (LGD) for each category of financial asset are calculated considering factors such as debtor type, credit rating and portfolio, etc. The estimates are regularly being reviewed in order to reduce discrepancies with actual losses.

In measuring the expected credit losses, the Bank is using reasonably supportable macroeconomic indicators such as Gross Domestic Product (real, original series) growth rate, average manufacturing utilization rate, apartment sales price index (KB, Seoul), unemployment rate (original series), etc., in order to forecast forward-looking information conditions.

  • 36 -

The Bank applies the following forward-looking model and reviews the results regularly.

• Development of estimation models through regression analysis of<br>borrower(corporate/retail)/probability of default by point in time and collateral (credit, collateral)/ default recovery rate by point in time (1-loss given default) and macroeconomic indicator data by year
Major macroeconomic variables Correlation between credit risk<br><br><br>and macroeconomic indicators
--- --- ---
Gross Domestic Product (real, original series) growth rate Negative (-) Correlation
Average manufacturing utilization rate 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
Housing transaction price index (KB, Nationwide) Negative (-) Correlation
KOSDAQ Negative (-) Correlation
• Calculation of estimated probability of default and estimated default recovery rate by incorporating<br>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<br>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.<br>
--- ---
• Probability weight
--- ---

As of December 31, 2025, 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 45.58 5.69 28.73 20.00
  • 37 -
• When reflecting the predicted probability of default and default recovery rates, the increase rate is used<br>as a future economic forecast adjustment coefficient and reflected in the estimate applied for the current year.

The Bank has additionally applied a Worst scenario to the three macroeconomic variable scenarios (Normal, Good, and Bad) considering internal and external uncertainties. Assuming all other conditions remain the same and assigning a probability weight of 100% to each scenario, the results of the Bank’s sensitivity analysis of expected credit loss allowance are as follows(Forecast period: 2026) (Unit: Korean Won in millions):

Scenarios Probability weight Assuming 100% Difference from<br>book value
Good 5.69 % 1,280,714 (675,757 )
Normal 45.58 % 1,394,081 (562,390 )
Bad 28.73 % 1,796,726 (159,745 )
Worst 20.00 % 4,255,128 2,298,657
  • 38 -
iv) Maximum exposure to credit risk

The Bank’s maximum exposure to credit risk refers to net book value of financial assets net of expected credit loss allowances, which shows the uncertainties of maximum changes of net value of financial assets attributable to a particular risk without considering collateral and other credit enhancements obtained. However, the maximum exposure is the fair value amount (recorded on the books) for derivatives, maximum contractual obligation for payment guarantees loan commitment. Additionally, loan commitments are the unused commitment amounts that represent the maximum exposure to credit risk for each loan.

The maximum exposure to credit risk as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Loans and other financial assets at amortized cost Korean treasury and government agencies 151,916 189,416
Banks 20,938,253 20,954,225
Corporates 150,854,458 148,116,648
Retail 176,058,622 173,205,008
Sub-total 348,003,249 342,465,297
Financial assets at FVTPL (*1) Due from banks 261,470 73,951
Debt securities 3,218,978 3,642,795
Derivative assets 5,792,257 10,067,381
Sub-total 9,272,705 13,784,127
Financial assets at FVTOCI Debt securities 46,251,080 41,569,907
Securities at amortized cost Debt securities 18,445,064 18,719,264
Derivative assets (Designated for hedging) 37,010 10,102
Off-balance accounts Guarantees (*2) 18,448,946 18,703,691
Loan commitments 86,157,613 88,385,611
Sub-total 104,606,559 107,089,302
Total 526,615,667 523,637,999
(*1) Puttable financial instruments are not included.
--- ---
(*2) As of December 31, 2025 and 2024, the financial guarantee amount of 7,911,285 million Won and<br>6,978,786 million Won are included, respectively.
--- ---
  • 39 -
a) Credit risk exposure by geographical areas

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

December 31, 2025
Korea U.S.A U.K Japan Others (*) Total
Loans and other financial assets at amortized cost 338,873,371 2,069,001 773,798 1,259,028 5,028,051 348,003,249
Securities at amortized cost 17,720,610 707,789 — — 16,665 18,445,064
Financial assets at FVTPL 6,713,611 1,040,587 502,905 277,765 737,837 9,272,705
Financial assets at FVTOCI 42,866,080 2,175,952 309,244 — 899,804 46,251,080
Derivative assets (Designated for hedging) — 30,719 — 6,291 — 37,010
Off-balance accounts 99,705,376 992,117 756,252 35,333 3,117,481 104,606,559
Guarantees 16,333,218 372,400 261,870 13,746 1,467,712 18,448,946
Loan commitments 83,372,158 619,717 494,382 21,587 1,649,769 86,157,613
Total 505,879,048 7,016,165 2,342,199 1,578,417 9,799,838 526,615,667
(*) Others consist of financial assets in China, Hong Kong, Germany, Australia and other countries.<br>
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Korea U.S.A U.K Japan Others (*) Total
Loans and other financial assets at amortized cost 331,602,881 2,609,745 584,060 850,835 6,817,776 342,465,297
Securities at amortized cost 18,042,879 650,578 — — 25,807 18,719,264
Financial assets at FVTPL 9,392,994 1,824,414 553,842 430,341 1,582,536 13,784,127
Financial assets at FVTOCI 37,736,177 3,015,615 190,793 22,112 605,210 41,569,907
Derivative assets (Designated for hedge) — 3,216 — 6,886 — 10,102
Off-balance accounts 103,814,908 1,253,700 87,755 20,758 1,912,181 107,089,302
Guarantees 16,904,726 677,133 87,755 20,758 1,013,319 18,703,691
Loan commitments 86,910,182 576,567 — — 898,862 88,385,611
Total 500,589,839 9,357,268 1,416,450 1,330,932 10,943,510 523,637,999
(*) Others consist of financial assets in Hong Kong, Germany, Australia, and other countries.<br>
--- ---
  • 40 -
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, 2025 and 2024 (Unit: Korean Won in millions):

December 31, 2025
Service Manufacturing Finance and<br>insurance Construction Individuals Others Total
Loans and other financial assets at amortized cost 81,263,553 47,872,354 32,082,343 3,898,202 173,589,894 9,296,903 348,003,249
Securities at amortized cost 89,611 — 7,906,995 39,968 — 10,408,490 18,445,064
Financial assets at FVTPL 65,673 429,913 5,572,276 4,392 100 3,200,351 9,272,705
Financial assets at FVTOCI 113,729 178,602 33,373,410 50,694 — 12,534,645 46,251,080
Derivative assets (Designated for hedging) — — 37,010 — — — 37,010
Off-balance accounts 21,226,123 27,854,749 14,514,096 2,983,678 33,237,222 4,790,691 104,606,559
Guarantees 5,009,861 10,083,803 1,482,143 681,857 2,119 1,189,163 18,448,946
Loan commitments 16,216,262 17,770,946 13,031,953 2,301,821 33,235,103 3,601,528 86,157,613
Total 102,758,689 76,335,618 93,486,130 6,976,934 206,827,216 40,231,080 526,615,667
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Service Manufacturing Finance and<br>insurance Construction Individuals Others Total
Loans and other financial assets at amortized cost 85,796,324 44,742,153 28,656,365 4,231,975 170,567,627 8,470,853 342,465,297
Securities at amortized cost 169,352 — 10,059,175 59,866 — 8,430,871 18,719,264
Financial assets at FVTPL 129,606 578,507 9,429,339 9,471 693 3,636,511 13,784,127
Financial assets at FVTOCI 282,766 391,261 29,657,215 153,624 — 11,085,041 41,569,907
Derivative assets (Designated for hedge) — — 10,102 — — — 10,102
Off-balance accounts 20,167,915 30,992,940 14,759,589 2,730,178 33,476,894 4,961,786 107,089,302
Guarantees 4,384,434 10,546,091 1,506,565 842,558 5,704 1,418,339 18,703,691
Loan commitments 15,783,481 20,446,849 13,253,024 1,887,620 33,471,190 3,543,447 88,385,611
Total 106,545,963 76,704,861 92,571,785 7,185,114 204,045,214 36,585,062 523,637,999
  • 41 -
v) 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, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Stage 1 Stage 2 Stage 3 Total Expected<br>credit loss<br>allowances Total, net
Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Loans and other financial assets at amortized cost 301,886,486 22,499,123 12,341,750 11,415,691 1,780,054 349,923,104 (1,919,855 ) 348,003,249
Korean treasury and government agencies 152,414 — — — — 152,414 (498 ) 151,916
Banks 20,958,419 — — — — 20,958,419 (20,166 ) 20,938,253
Corporates 126,054,837 18,179,544 2,349,527 4,840,358 817,709 152,241,975 (1,387,517 ) 150,854,458
General business 92,748,296 11,808,039 2,020,587 3,639,279 722,998 110,939,199 (1,136,338 ) 109,802,861
Small- and medium-sized enterprise 22,466,262 6,054,610 320,696 1,197,879 94,195 30,133,642 (211,591 ) 29,922,051
Project financing and others 10,840,279 316,895 8,244 3,200 516 11,169,134 (39,588 ) 11,129,546
Retails 154,720,816 4,319,579 9,992,223 6,575,333 962,345 176,570,296 (511,674 ) 176,058,622
Securities at amortized cost 18,455,854 — — — — 18,455,854 (10,790 ) 18,445,064
Financial assets at FVTOCI (*3) 46,177,626 73,454 — — — 46,251,080 (27,987 ) 46,251,080
Total 366,519,966 22,572,577 12,341,750 11,415,691 1,780,054 414,630,038 (1,958,632 ) 412,699,393
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Collateral value
Stage 1 Stage 2 Stage 3 Total
Loans and other financial assets at amortized cost 233,674,781 21,697,429 1,008,679 256,380,889
Korean treasury and government agencies 103,817 — — 103,817
Banks 1,815,479 — — 1,815,479
Corporates 92,469,723 6,504,152 556,479 99,530,354
General business 61,019,342 5,128,816 475,788 66,623,946
Small- and medium-sized enterprise 23,442,962 1,375,336 80,691 24,898,989
Project financing and others 8,007,419 — — 8,007,419
Retails 139,285,762 15,193,277 452,200 154,931,239
Securities at amortized cost — — — —
Financial assets at FVTOCI (*3) — — — —
Total 233,674,781 21,697,429 1,008,679 256,380,889
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporates are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
(*3) Financial assets at FVTOCI are disclosed as the amount before deducting allowances for credit losses as it does<br>not reduce the carrying amount.
--- ---
  • 42 -
December 31, 2024
Stage 1 Stage 2 Stage 3 Total Expected<br>credit loss<br>allowances Total, net
Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Loans and other financial assets at amortized cost 296,872,036 20,955,733 12,456,496 12,756,686 1,486,677 344,527,628 (2,062,331 ) 342,465,297
Korean treasury and government agencies 190,038 — — — — 190,038 (622 ) 189,416
Banks 20,908,352 — 66,150 — — 20,974,502 (20,277 ) 20,954,225
Corporates 124,864,682 15,909,050 2,654,852 5,552,972 610,334 149,591,890 (1,475,242 ) 148,116,648
General business 87,833,338 9,840,595 2,271,381 3,960,010 482,323 104,387,647 (1,112,581 ) 103,275,066
Small- and medium-sized enterprise 26,599,385 5,725,164 373,513 1,498,926 128,011 34,324,999 (297,570 ) 34,027,429
Project financing and others 10,431,959 343,291 9,958 94,036 — 10,879,244 (65,091 ) 10,814,153
Retails 150,908,964 5,046,683 9,735,494 7,203,714 876,343 173,771,198 (566,190 ) 173,205,008
Securities at amortized cost 18,729,732 — — — — 18,729,732 (10,468 ) 18,719,264
Financial assets at FVTOCI (*3) 41,506,811 63,096 — — — 41,569,907 (26,596 ) 41,569,907
Total 357,108,579 21,018,829 12,456,496 12,756,686 1,486,677 404,827,267 (2,099,395 ) 402,754,468
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Collateral value
Stage 1 Stage 2 Stage 3 Total
Loans and other financial assets at amortized cost 232,052,490 22,420,577 818,518 255,291,585
Korean treasury and government agencies 55,775 — — 55,775
Banks 2,474,302 — — 2,474,302
Corporates 94,374,525 7,209,853 433,447 102,017,825
General business 59,099,372 5,578,709 328,666 65,006,747
Small- and medium-sized enterprise 27,647,198 1,570,506 104,781 29,322,485
Project financing and others 7,627,955 60,638 — 7,688,593
Retails 135,147,888 15,210,724 385,071 150,743,683
Securities at amortized cost — — — —
Financial assets at FVTOCI (*3) — — — —
Total 232,052,490 22,420,577 818,518 255,291,585
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporates are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
(*3) Financial assets at FVTOCI are disclosed as the amount before deducting allowances for credit losses as it does<br>not reduce the carrying amount.
--- ---
  • 43 -
b) Guarantees and loan commitments

The credit quality of the guarantees and loan commitments as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Financial assets Stage 1 Stage 2 Stage 3 Total
Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Off-balance accounts 17,922,313 434,273 18,603 50,649 23,108 18,448,946
Guarantees
Loan commitments 81,862,333 1,925,126 2,179,026 190,895 233 86,157,613
Total 99,784,646 2,359,399 2,197,629 241,544 23,341 104,606,559
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporates are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial assets Stage 1 Stage 2 Stage 3 Total
Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2) Above<br>appropriate<br>credit rating<br>(*1) Lower than a<br>limited credit<br>rating<br>(*2)
Off-balance accounts 18,165,791 421,822 41,866 52,059 22,153 18,703,691
Guarantees
Loan commitments 84,038,949 2,046,212 2,080,131 220,319 — 88,385,611
Total 102,204,740 2,468,034 2,121,997 272,378 22,153 107,089,302
(*1) Credit grade of corporates are AAA ~ BBB, and retails are grades 1 ~ 6.
--- ---
(*2) Credit grade of corporates are BBB- ~ C, and retails are grades 7 ~ 10.<br>
--- ---
vi) Collateral and other credit enhancements
--- ---

For the year ended December 31, 2025, there have been no significant decreases in the value of collateral or other credit enhancements held by the Bank or significant changes in collateral or other credit enhancements due to changes in the collateral policy of the Bank.

vii) Among the financial assets that have measured expected credit loss allowances in terms of lifetime expected<br>credit losses, amortized costs before changes in contractual cash flows for the year ended December 31, 2025 is 56,978 million Won, with net losses recognized along with the changes 9,244 million Won and for the year end<br>December 31, 2024 is 52,420 million Won, with net losses recognized along with the changes 1,500 million Won, respectively.
viii) The Bank determines which loan is subject to write-off in accordance<br>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<br>and Bankruptcy Act, and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation or when it is not possible to recover the loan amount through legal means such as selling debtor’s assets via<br>auctions or through any other means available. Notwithstanding the write-off, the Bank may still exercise its right of collection after the asset has been written off in accordance with its collection<br>policies.
--- ---

As the Bank 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, 2025 and 2024 is 7,653,568 million Won and 7,357,330 million Won, respectively. In addition, the contractual uncollected amount of financial assets written off during the year ended December 31, 2025, but still in the process of recovery is 668,476 million Won.

  • 44 -
(2) Market risk

Market risk is the possible risk of loss arising from trading activities and non-trading activities in the volatility of market factors such as interest rates, stock prices and foreign exchange rates. Market risk arises from changes in the interest rates and foreign exchange rates for financial instruments that are not yet settled, and all contracts are exposed to a certain level of volatility according to changes in the interest rates, credit spreads, foreign exchange rates, price of equity securities, etc.

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 in the trading and non-trading activities and measuring its level and evaluating the appropriateness of the level of accepted market risks.

i) Market risk management for trading activities

The Bank has introduced and applied the Basel III standard method according to Detailed Enforcement Regulations for Supervision of Banking Business <Appendix 3-2> as a measurement method of market risk since 2023. On a consolidated basis, the market risk capital requirements used for calculating the BIS ratio are determined by aggregating the capital required for sensitivity-based methods, default risk, and residual risk, and are managed within the established internal capital limit.

The sensitivity-based method measures linear and nonlinear losses that may occur due to unfavorable fluctuations such as interest rates, credit spreads, stock prices, exchange rates, and general commodity prices, and measures losses that may occur due to sudden bankruptcy not considered in the sensitivity method. Other losses not considered in the sensitivity method and default risk are measured in the residual risk required equity capital.

The foreign exchange positions intentionally opened to mitigate the impact of exchange rate fluctuations on the capital ratio, specifically for overseas business investments in key operating currencies such as IDR, VND, and CNY, are excluded from the calculation of market risk capital requirements with the approval of structural foreign exchange positions from the financial regulatory authorities. However, they are managed within market internal capital, among others.

In addition, in the event of extreme situations such as the IMF crisis and the global financial crisis, stress tests are conducted every month to measure the size of losses to prepare for crises.

Market risk limits, including internal capital, loss and VaR limits, are allocated annually by the Board Risk Management Committee and Executive Risk Management Committee based on business groups, departments, teams and risk factors, while the position management department sets limits for business units excluding the derivatives book. Compliance with limits is independently monitored by both the operation department and the Risk Management Dept. And the details of the limit monitoring are regularly reported to the Executive Risk Management Committee and the Board Risk Management Committee.

  • 45 -
a) Trading activities

The market risk required equity capital at the end of the reporting period by risk group is as follows (Unit: Korean Won in millions):

Risk group December 31, 2025 December 31, 2024
Sensitivity-based risk General interest rate risk 34,292 29,029
Equity risk 3,152 3,006
General commodity risk 3 51
Foreign exchange risk (*) 110,144 114,174
Non-securitization credit spread risk 23,797 18,258
Securitization (excluding correlation trading portfolio, CTP) credit spread risk — —
CTP credit spread risk — —
Default risk Non- Securitization bankruptcy risk 9,207 8,604
Securitization (excluding CTP) default risk — —
CTP default risk — —
Residual risk Residual risk 1,106 1,182
Total 181,701 174,304
(*) The structural foreign exchange positions approved by the Financial Supervisory Service Governor are excluded<br>from the calculation of the foreign exchange capital requirements.
--- ---
ii) Market risk management for non-trading activities<br>
--- ---

For non-trading sectors of the Bank, NII (Net Interest Income) and NPV (Net Present Value) simulations are operated through the ALM (Asset Liability Management) system, and interest rate risks are managed and measured by various analysis methods, such as calculating ΔNII (change in Net Interest Income) and ΔEVE (change in Economic Value of Equity).

NII is primarily an indicator of changes in profit from short-term changes in interest rates and is measured by deducting the interest expenses on the liability from the interest income from the asset. NPV is primarily an indicator of the risk of an economic value perspective resulting from fluctuations in interest rates and is measured by subtracting the present value of the liability from the present value of the asset. ΔNII indicates a change in net interest income over a specified future period (e.g., 1 year) due to fluctuations in interest rates, and ΔEVE indicates the economic value changes in equity capital resulting from changes in interest rates affecting the present value of asset, liabilities, and off-balance-sheet items.

Applying six scenarios of interest rate risk shocks (parallel increase and decrease, steepener, flattener and short-term interest rate increase and decrease), the interest rate risks of IRRBB (Interest Rate Risk in the Banking Book) are calculated. Based on the six scenarios above, the change in economic value of equity (ΔEVE) is measured, the maximum of which is the final ΔEVE. Also, the maximum calculated based on the two scenarios (parallel increase and decrease) is the final ΔNII.

For assets and liabilities as of December 31, 2025 and 2024, ΔEVE and ΔNII calculated based on interest rate risk in banking book (IRRBB) are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
ΔEVE (*1) ΔNII (*2) ΔEVE (*1) ΔNII (*2)
333,874 720,920 783,172 710,685
(*1) ΔEVE: change in Economic Value of Equity
--- ---
(*2) ΔNII: change in Net Interest Income
--- ---
  • 46 -

The Bank measures and manages the risks resulting from interest rate fluctuations caused by mismatches in interest rates and maturities of assets and liabilities. 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, 2025
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Asset:
Loans and other financial assets at amortized cost 222,967,995 48,006,581 18,694,642 11,277,382 62,215,480 2,644,980 365,807,060
Financial assets at FVTPL 21,445 — — — — — 21,445
Financial assets at FVTOCI 15,422,275 3,781,877 2,489,062 1,978,694 23,307,523 1,239,784 48,219,215
Securities at amortized cost 944,068 1,049,537 2,193,501 2,125,125 11,904,679 1,142,341 19,359,251
Total 239,355,783 52,837,995 23,377,205 15,381,201 97,427,682 5,027,105 433,406,971
Liability:
Deposits due to customers 162,727,753 52,523,051 41,694,291 41,100,872 60,356,306 29,217 358,431,490
Borrowings 18,800,947 2,341,629 1,058,369 942,171 2,644,443 518,214 26,305,773
Debentures 3,722,023 1,689,439 1,919,818 1,950,739 18,909,791 2,555,145 30,746,955
Total 185,250,723 56,554,119 44,672,478 43,993,782 81,910,540 3,102,576 415,484,218
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Asset:
Loans and other financial assets at amortized cost 209,754,801 48,861,282 22,091,076 13,766,595 59,663,804 2,972,722 357,110,280
Financial assets at FVTPL 22,850 — — — — — 22,850
Financial assets at FVTOCI 6,759,630 4,833,724 2,346,824 2,567,298 25,857,015 1,357,034 43,721,525
Securities at amortized cost 1,168,747 1,550,614 1,742,034 628,917 12,898,211 1,817,296 19,805,819
Total 217,706,028 55,245,620 26,179,934 16,962,810 98,419,030 6,147,052 420,660,474
Liability:
Deposits due to customers 160,594,127 50,075,938 43,055,529 38,700,998 58,603,669 34,242 351,064,503
Borrowings 14,915,413 2,125,771 1,066,941 1,089,172 2,460,850 513,870 22,172,017
Debentures 2,623,670 3,528,439 2,602,985 1,633,304 14,766,804 2,611,435 27,766,637
Total 178,133,210 55,730,148 46,725,455 41,423,474 75,831,323 3,159,547 401,003,157
  • 47 -
iii) Currency risk

The Bank manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. The Risk Management Committee sets market internal capital limits for each group to manage market risks, including currency risk. The trading desks and dealers manage the comprehensive position by operating spot foreign exchange and currency derivatives within the set market risk and foreign exchange position limits.

Financial instruments in foreign currencies exposed to currency risk as of December 31, 2025 and 2024 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):

December 31, 2025
CNY Others Total
Foreigncurrency Korean<br>Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Foreign<br>currency Korean<br>Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Korean<br>Won<br>equivalent Korean<br>Won<br>equivalent
Asset Cash and cash equivalents 10,249 14,706,248 161,769 1,484,439 83 16,951 130 219,225 260,730 16,687,593
Loans and other financial assets at amortized cost 15,756 22,607,837 98,422 903,147 1,352 276,962 2,069 3,487,143 2,357,272 29,632,361
Financial assets at FVTPL 1,089 1,562,783 4,835 44,367 — — 190 320,823 51,258 1,979,231
Financial assets at FVTOCI 2,363 3,390,995 — — — — 271 456,846 617,732 4,465,573
Securities at amortized cost 557 799,783 — — — — — — 16,846 816,629
Total 30,014 43,067,646 265,026 2,431,953 1,435 293,913 2,660 4,484,037 3,303,838 53,581,387
Liability Financial liabilities at FVTPL 62 88,508 — 1 — — — 774 137 89,420
Deposits due to customers 17,855 25,619,863 214,343 1,966,873 1,704 348,876 5,664 9,548,682 1,861,231 39,345,525
Borrowings 8,380 12,024,145 34,754 318,915 99 20,303 596 1,004,852 382,934 13,751,149
Debentures 3,093 4,438,023 — — — — — — — 4,438,023
Other financial liabilities 2,889 4,146,049 12,113 111,154 234 47,949 60 101,901 186,070 4,593,123
Total 32,279 46,316,588 261,210 2,396,943 2,037 417,128 6,320 10,656,209 2,430,372 62,217,240
Off-balance accounts 9,630 13,818,579 19,704 180,807 1,274 260,767 681 1,148,038 436,653 15,844,844

All values are in US Dollars.

December 31, 2024
CNY Others Total
Foreigncurrency Korean<br>Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Foreign<br>currency Korean<br>Won<br>equivalent Foreigncurrency Korean<br>Won<br>equivalent Korean<br>Won<br>equivalent Korean<br>Won<br>equivalent
Asset Cash and cash equivalents 7,669 11,273,774 76,878 719,944 230 46,231 84 127,877 229,820 12,397,646
Loans and other financial assets at amortized cost 14,895 21,895,927 103,400 968,320 4,227 850,810 2,212 3,382,452 2,474,288 29,571,797
Financial assets at FVTPL 966 1,420,278 6,655 62,327 — — 154 234,683 46,882 1,764,170
Financial assets at FVTOCI 3,303 4,854,847 — — — — 14 21,472 544,105 5,420,424
Securities at amortized cost 718 1,055,442 — — — — — — 25,821 1,081,263
Total 27,551 40,500,268 186,933 1,750,591 4,457 897,041 2,464 3,766,484 3,320,916 50,235,300
Liability Financial liabilities at FVTPL 112 164,400 2 15 — — 1 1,766 687 166,868
Deposits due to customers 18,752 27,565,607 249,024 2,332,060 2,526 508,444 1,944 2,972,155 1,771,311 35,149,577
Borrowings 7,936 11,666,633 48,801 457,012 284 57,146 814 1,243,829 594,472 14,019,092
Debentures 3,379 4,967,433 — — — — — — — 4,967,433
Other financial liabilities 1,895 2,786,006 20,479 191,786 2,315 466,007 240 366,260 314,329 4,124,388
Total 32,074 47,150,079 318,306 2,980,873 5,125 1,031,597 2,999 4,584,010 2,680,799 58,427,358
Off-balance accounts 8,295 12,194,238 23,861 223,454 1,371 275,934 653 997,941 1,393,216 15,084,783

All values are in US Dollars.

  • 48 -
(3) Liquidity risk

Liquidity risk management prevents financial institutions from incurring losses due to lack of funds by effectively managing liquidity shortages that can occur due to inconsistent maturity of assets and liabilities or an unexpected outflow of funds. The entire assets and liabilities within the financial statements and off-balance sheet accounts that can generate cash-flow are subject to liquidity risk management.

i) Liquidity risk management
a) Basel III regulatory response
--- ---

Through the standard ALM system, liquidity risks are managed by dividing them into short-term (liquidity coverage ratio, within 30 days) and mid- to long-term (net stabilization fund procurement ratio, over one year). Daily Liquidity Coverage Ratio (LCR) and quarterly Net Stable Funding Ratio (NSFR) are calculated and monitored, and relevant information is provided in accordance with the disclosure standards of the Basel Committee on Banking Supervision (BCBS).

b) Analysis of financing and operation status by maturity

As assets and liabilities are grouped into ALM account (COA; Chart of account) according to their account characteristics, and the gap ratio is identified through cash flow reports by various time and segment (e.g., by remaining period, contract period, etc.), the Bank manages the liquidity risk by keeping the target ratio (limited) set this year. In addition, the Bank established and manages the target ratio of concentration of funding for specific funding sources that are highly likely to withdraw. The Bank also provides a function through daily ALM system to search relevant maturity report by business group so that related departments (e.g., the Financial Planning Department, the Treasury Department, each business group, etc.) can identify liquidity risk management indicators and status.

c) Establishment and implementation of Contingency Plan

Various inspection items related to liquidity risk are monitored on a daily or weekly basis by establishing and regularly inspecting the preceding Contingency Plan in order to effectively cope with the risk of capital outflow and procurement due to rapid and unexpected changes in market conditions. In addition, the Bank has strengthened monitoring related to foreign currency liquidity by operating a foreign currency contingency plan separately from January 2012.

• Inspection items related to liquidity risk on the Contingency Plan checklist
• The amount of Won and foreign currency and insufficiency of funds
--- ---
• Liquidity coverage ratio (monthly average balance, daily balance)
--- ---
• The amounts of deposits and withdrawals (saving deposit in Korean Won, depository)
--- ---
• Overdraft limit exhaustion rate
--- ---
• Percentage of reduction in the balance of deferred deposits
--- ---
• Percentage of concentration of funding by subject and period
--- ---
• Won and foreign currency funding spread
--- ---
  • 49 -
ii) Maturity analysis of non-derivative financial liabilities<br>
a) Cash flows of principals and interests by remaining contractual maturities of<br>non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over<br>5 years Total
Financial liabilities at FVTPL 436,572 53,234 52,655 32,389 324,118 17,501 916,469
Deposits due to customers 233,660,615 41,102,090 30,260,029 41,996,265 12,762,148 358,819 360,139,966
Borrowings 12,300,740 4,139,382 3,554,313 2,863,089 3,134,120 518,214 26,509,858
Debentures 3,398,896 1,691,707 1,922,086 2,277,982 18,909,791 2,555,145 30,755,607
Lease liabilities 43,138 34,587 31,232 26,941 200,293 900 337,091
Other financial liabilities 22,199,582 — — — — 3,782,829 25,982,411
Total 272,039,543 47,021,000 35,820,315 47,196,666 35,330,470 7,233,408 444,641,402
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over<br>5 years Total
Financial liabilities at FVTPL 74,205 — — — — — 74,205
Deposits due to customers 228,817,183 39,365,840 32,087,428 39,540,677 12,352,715 501,541 352,665,384
Borrowings 6,708,466 5,063,765 4,078,088 3,160,313 2,890,869 513,870 22,415,371
Debentures 2,073,670 3,683,287 2,606,561 2,036,919 14,766,804 2,611,435 27,778,676
Lease liabilities 44,324 35,462 32,238 28,552 205,258 26,898 372,732
Other financial liabilities 17,005,872 — — — — 4,220,186 21,226,058
Total 254,723,720 48,148,354 38,804,315 44,766,461 30,215,646 7,873,930 424,532,426
b) Cash flows of principals and interests by expected maturities of<br>non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Financial liabilities at FVTPL 445,949 60,227 57,368 36,549 296,086 17,501 913,680
Deposits due to customers 240,545,185 43,137,608 29,780,153 36,183,335 9,922,050 194,819 359,763,150
Borrowings 12,300,740 4,139,382 3,554,313 2,863,089 3,134,120 518,214 26,509,858
Debentures 3,398,896 1,691,707 1,922,086 2,277,982 18,909,791 2,555,145 30,755,607
Lease liabilities 43,142 35,729 32,388 28,106 200,534 900 340,799
Other financial liabilities 22,199,582 — — — — 3,782,829 25,982,411
Total 278,933,494 49,064,653 35,346,308 41,389,061 32,462,581 7,069,408 444,265,505
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
Financial liabilities at FVTPL 74,205 — — — — — 74,205
Deposits due to customers 234,475,073 41,162,636 31,796,373 34,635,657 9,853,396 217,074 352,140,209
Borrowings 6,708,466 5,063,765 4,078,088 3,160,313 2,890,869 513,870 22,415,371
Debentures 2,073,670 3,683,287 2,606,561 2,036,919 14,766,804 2,611,435 27,778,676
Lease liabilities 44,327 36,607 33,438 29,753 209,570 26,898 380,593
Other financial liabilities 17,005,872 — — — — 4,220,186 21,226,058
Total 260,381,613 49,946,295 38,514,460 39,862,642 27,720,639 7,589,463 424,015,112
  • 50 -
iii) Maturity analysis of derivative financial liabilities

Derivatives held for trading are not managed in accordance with their contractual maturity, since the Bank holds such financial instruments with the purpose of disposing or redeeming them before their maturity. As such, those derivatives are classified as “within 3 months” in the table below. The cash flows from derivatives designated for hedging are estimated by offsetting cash inflows and cash outflows.

The cash flow by the maturity of derivative financial liabilities as of December 31, 2025 and 2024 is as follows (Unit: Korean Won in millions):

Within 3<br>months 4 to 6<br>months 7 to 9<br>months 10 to 12<br>months 1 to 5<br>years Over 5<br>years Total
December 31, 2025 Fair value hedge 4,867 11,239 (3,279 ) 13,407 1,247 (10,613 ) 16,868
Trading 5,107,538 — — — — — 5,107,538
December 31, 2024 Fair value hedge (6,816 ) 46,231 (11,740 ) 44,950 35,764 (5,834 ) 102,555
Trading 9,124,626 — — — — — 9,124,626
iv) Maturity analysis of off-balance accounts (guarantees, loan commitments<br>and others)
--- ---

A guarantee represents an irrevocable undertaking that the Bank should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Bank has promised credit to the customers. Loan commitments include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits, and utilized overdraft facilities. The maximum payment limit by the Bank in accordance with guarantees and loan commitment only applies to principal amounts. In the case of payment guarantees, which correspond to financial guarantees such as debenture issuance, loan collateral, loan commitments and other credit offerings provided by the Bank, there is a contract maturity date; however, payment must be executed immediately upon the counterparty’s request. Details of off-balance accounts as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Guarantees 18,448,946 18,703,691
Loan commitments 86,157,613 88,385,611
Other 7,520,384 6,871,259
  • 51 -
(4) Operational risk
i) Definition
--- ---

The Bank defines the operational risk as the risk of potential losses arising from inadequate or incorrect internal procedures, human resource and system, and/or external factors.

ii) Operational risk measurement and management

The Bank 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 of Risk Management Committee. The Bank regularly calculates the operational risk capital and reports to the management, the Board of Risk Management Committee, and others.

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 Bank 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.

(5) Capital management

The Bank 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 which has been 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 Bank.

According to the above regulations, the Bank is required to meet the following minimum requirements: Common Equity Tier 1 capital ratio of 9.0% , a Tier 1 capital ratio of 10.5% , a minimum total capital ratio of 12.5% as of December 31, 2025, respectively.

Details of the Bank’s capital adequacy ratio as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 (*) December 31, 2024
Risk-weighted assets for credit risk 165,110,790 171,533,503
Risk-weighted assets for market risk 2,271,256 2,178,805
Risk-weighted assets for operational risk 18,761,441 18,296,422
Total risk-weighted assets 186,143,487 192,008,730
Common Equity Tier 1 capital 26,296,573 25,060,125
Other Tier 1 capital 1,412,550 1,652,581
Tier 2 capital 3,581,401 3,717,491
Total risk-adjusted capital 31,290,524 30,430,197
Common Equity Tier 1 ratio 14.13 % 13.05 %
Tier 1 capital ratio 14.89 % 13.91 %
Total capital ratio 16.81 % 15.85 %
(*) Tier 1 capital ratio as of December 31, 2025 is estimation.
--- ---
  • 52 -
5. OPERATING SEGMENTS

In evaluating the results of the Bank and allocating resources, the Bank’s Chief Operation Decision Maker (the “CODM”) utilizes the information per type of customers. This financial information of the segments is regularly reviewed by the CODM.

(1) Segment by type of customers

The Bank’s reporting segments comprise the following customers: consumer banking, corporate banking, investment banking, capital market and headquarters and others. The reportable segments are classified based on the target customers for whom the service is being provided.

• Consumer banking: Loans/deposits and financial services for retail and individual consumers, etc.<br>
• Corporate banking: Loans/deposits and export/import, Financial services for corporations, etc.<br>
--- ---
• Investment banking: Domestic/foreign investment, Structured finance, M&A, Equity & fund investment<br>related business, Venture advisory related tasks, Real estate SOC development practices, etc.
--- ---
• Capital market: Investment in securities and derivatives, etc.
--- ---
• Headquarters and others: Segments that do not belong to operating segments above
--- ---

The details of operating income by each segment for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2025
Consumer<br>banking Corporate<br>banking Investment<br>banking Capital market Headquarters<br>and others Sub-total Adjustments (*) Total
Net interest income(expense) 2,073,271 3,134,469 (221,612 ) (41,276 ) 1,008,050 5,952,902 1,001,619 6,954,521
Interest income 5,887,905 7,127,115 444,641 120,150 2,146,050 15,725,861 664,153 16,390,014
Interest expense (2,338,283 ) (6,169,595 ) (29 ) 16,162 (1,281,214 ) (9,772,959 ) 337,466 (9,435,493 )
Inter-segment (1,476,351 ) 2,176,949 (666,224 ) (177,588 ) 143,214 — — —
Net non-interest income 484,596 643,090 548,876 172,300 284,502 2,133,364 (963,768 ) 1,169,596
Non-interest income 401,231 644,892 783,327 11,720,595 1,249,548 14,799,593 (12,707,511 ) 2,092,082
Non-interest expense (28,489 ) (99,705 ) (234,451 ) (11,548,295 ) (755,289 ) (12,666,229 ) 11,743,743 (922,486 )
Inter-segment 111,854 97,903 — — (209,757 ) — — —
Other expense (1,972,820 ) (1,694,632 ) (41,890 ) (16,377 ) (921,012 ) (4,646,731 ) (37,851 ) (4,684,582 )
Administrative expense (1,942,080 ) (1,210,708 ) (40,019 ) (32,194 ) (632,461 ) (3,857,462 ) — (3,857,462 )
Reversal of (provision for) expected credit loss allowance (30,740 ) (483,924 ) (1,871 ) 15,817 (288,551 ) (789,269 ) (37,851 ) (827,120 )
Operating income 585,047 2,082,927 285,374 114,647 371,540 3,439,535 — 3,439,535
Non-operating income(expense) (2,822 ) (23,511 ) 33,454 (32,211 ) (105,844 ) (130,934 ) — (130,934 )
Impairment loss on investments in subsidiaries and associates — — (273 ) — (5,095 ) (5,368 ) — (5,368 )
Other non-operating income (expense) (2,822 ) (23,511 ) 33,727 (32,211 ) (100,749 ) (125,566 ) — (125,566 )
Net income before income tax expense 582,225 2,059,416 318,828 82,436 265,696 3,308,601 — 3,308,601
Income tax expense (income) (153,708 ) (549,578 ) (84,171 ) (21,763 ) 59,479 (749,741 ) — (749,741 )
Net income 428,517 1,509,838 234,657 60,673 325,175 2,558,860 — 2,558,860
(*) Adjustments were made for the presentation of profit or loss in accordance with<br>K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.
--- ---
  • 53 -
For the year ended December 31, 2024
Consumer<br>banking Corporate<br>banking Investment<br>banking Capital market Headquarters<br>and others Sub-total Adjustments (*) Total
Net interest income (expense) 2,347,537 3,236,304 (268,845 ) (61,738 ) 469,538 5,722,796 1,018,987 6,741,783
Interest income 6,072,087 8,459,406 462,395 118,247 2,156,385 17,268,520 713,858 17,982,378
Interest expense (3,225,417 ) (6,906,235 ) (58 ) 11,696 (1,425,710 ) (11,545,724 ) 305,129 (11,240,595 )
Inter-segment (499,133 ) 1,683,133 (731,182 ) (191,681 ) (261,137 ) — — —
Net non-interest income 435,555 611,386 584,626 206,750 7,526 1,845,843 (868,372 ) 977,471
Non-interest income 413,213 657,790 798,762 19,470,420 631,981 21,972,166 (18,594,932 ) 3,377,234
Non-interest expense (67,906 ) (130,075 ) (214,136 ) (19,263,670 ) (450,536 ) (20,126,323 ) 17,726,560 (2,399,763 )
Inter-segment 90,248 83,671 — — (173,919 ) — — —
Other expense (1,967,867 ) (1,580,876 ) (24,618 ) (54,003 ) (247,510 ) (3,874,874 ) (150,615 ) (4,025,489 )
Administrative expense (1,893,526 ) (1,097,939 ) (32,348 ) (33,495 ) (269,916 ) (3,327,224 ) — (3,327,224 )
Reversal of (provision for) expected credit loss allowance (74,341 ) (482,937 ) 7,730 (20,508 ) 22,406 (547,650 ) (150,615 ) (698,265 )
Operating income 815,225 2,266,814 291,163 91,009 229,554 3,693,765 — 3,693,765
Non-operating income (expense) (63,998 ) (6,900 ) 49,216 — (9,544 ) (31,226 ) — (31,226 )
Impairment loss on investments in subsidiaries and associates — — (1,107 ) — (1,279 ) (2,386 ) — (2,386 )
Other non-operating income (expense) (63,998 ) (6,900 ) 50,323 — (8,265 ) (28,840 ) — (28,840 )
Net income before income tax expense 751,227 2,259,914 340,379 91,009 220,010 3,662,539 — 3,662,539
Income tax expense (income) (198,324 ) (583,029 ) (89,860 ) (24,026 ) 27,252 (867,987 ) — (867,987 )
Net income 552,903 1,676,885 250,519 66,983 247,262 2,794,552 — 2,794,552
(*) Adjustments were made for the presentation of profit or loss in accordance with<br>K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.
--- ---
(2) Information about products and services
--- ---

The products of the Bank are classified as interest-bearing products such as loans, deposits and debt securities and non-interest-bearing products such as loan commitment, credit commitment, equity securities, and credit card service. This classification of products has been reflected in the segment information presenting interest income and non-interest income.

(3) Information about geographical area

Among the Bank’s revenue (interest income and non-interest income) from services, revenue from the domestic customers for the years ended December 31, 2025 and 2024 amounted to 17,210,777 million Won and 19,832,897 million Won, respectively, and revenue from the foreign customers amounted to 1,271,319 million Won and 1,526,715 million Won, respectively. Among the Bank’s non-current assets (investments in subsidiaries and associates, investment properties, Properties and equipment and intangible assets), non-current assets attributed to domestic customers as of December 31, 2025 and 2024 are 7,972,807 million Won and 8,021,004 million Won, respectively, and non-current assets attributed to foreign customers are 28,089 million Won and 34,477 million Won, respectively.

(4) Information about major customers

The Bank does not have any single customer that generates 10% or more of the Bank’s total revenue for the years ended December 31, 2025 and 2024, respectively.

  • 54 -
6. CASH AND CASH EQUIVALENTS
(1) Details of cash and cash equivalents as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Cash 1,825,654 1,661,098
Foreign currencies 533,684 697,455
Demand deposits 32,595,874 21,386,723
Time deposits 114,997 27,405
Total 35,070,209 23,772,681
(2) Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
Counterparty December 31, 2025 Reason of restriction
--- --- --- --- --- --- --- ---
Due from banks in local currency:
Due from Bank of Korea (BOK) BOK 16,555,802 Reserve deposits under the BOK Act
Due from banks in foreign currencies:
Due from banks on demand BOK and others 6,737,243 Reserve deposits and others
Total 23,293,045
Counterparty December 31, 2024 Reason of restriction
Due from banks in local currency:
Due from Bank of Korea (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 2,679,127 Reserve deposits and others
Total 12,391,321
  • 55 -
(3) Among the investing and financing activities, significant transactions not involving cash inflows and outflows<br>for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended<br>December 31, 2025 For the year ended<br>December 31, 2024
--- --- --- --- --- --- --- --- ---
Changes in other comprehensive income (loss) due to valuation of financial assets at<br>FVTOCI (45,871 ) (23,722 )
Changes in accounts payable related to acquisition of financial assets at FVTOCI 29,307 —
Changes in financial assets at FVTOCI due to debt—equity swap — 13,536
Changes in other comprehensive income (loss) of foreign operations translation (9,168 ) 33,520
Changes in other comprehensive income (loss) related to hedges of net investment in foreign<br>operations 2,377 (12,217 )
Reclassification investment property to properties and equipment — 65,280
Reclassification properties and equipment to investment properties 14,440 —
Reclassification properties and equipment to assets held for sale 107,479 19,692
Reclassification investment properties to assets held for sale 35,137 —
Increase in the<br>right-of-use assets and lease liabilities 116,468 294,255
Changes in accounts payable related to acquisition of intangible assets (6,808 ) 24,134
(4) Adjustments of liabilities from financing activities for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
January 1, 2025 Cash flow Not involving cash inflows and outflows December 31,<br>2025
Foreign<br>exchange Changed in<br>value of<br>hedged items Others
Borrowings 21,887,868 4,466,273 (297,493 ) — 5 26,056,653
Debentures 25,530,318 2,908,339 (126,685 ) 80,760 142,740 28,535,472
Lease liabilities 349,797 (171,528 ) (538 ) — 125,608 303,339
Net Derivative Liability (Hedging Purpose 92,532 (9,109 ) — (93,549 ) 166 (9,960 )
Rental deposit 39,414 (51 ) — — — 39,363
Total 47,899,929 7,193,924 (424,716 ) (12,789 ) 268,519 54,924,867
For the year ended December 31, 2024
January 1, 2024 Cash flow Not involving cash inflows and outflows December 31,<br>2024
Foreign<br>exchange Changed in<br>value of<br>hedged items Others
Borrowings 21,461,867 (1,327,778 ) 1,753,756 — 23 21,887,868
Debentures 21,273,027 3,377,666 683,588 17,417 178,620 25,530,318
Lease liabilities 205,854 (171,368 ) 2,524 — 312,787 349,797
Net Derivative Liability (Hedging Purpose 134,565 (25,442 ) — (5,265 ) (11,326 ) 92,532
Rental deposit 57,104 (17,690 ) — — — 39,414
Total 43,132,417 1,835,388 2,439,868 12,152 480,104 47,899,929
  • 56 -
7. FINANCIAL ASSETS AT FVTPL

Details of financial assets at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Due from banks:
Gold banking assets 261,470 73,951
Securities:
Debt securities
Korean treasury and government agencies 3,199,025 3,630,434
Financial institutions 19,953 —
Securities loaned — 12,361
Equity securities 280,408 283,961
Capital contributions 2,417,984 2,231,904
Beneficiary certificates 9,926,494 8,882,787
Others 181,982 188,878
Sub-total 16,025,846 15,230,325
Derivatives assets 5,792,257 10,067,381
Others 47,191 48,346
Total 22,126,764 25,420,003

Financial assets designated to be measured at FVTPL upon initial recognition is nil as of December 31, 2025 and 2024.

8. FINANCIAL ASSETS AT FVTOCI
(1) Details of financial assets at FVTOCI as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Debt securities:
Korean treasury and government agencies 6,333,111 7,776,569
Financial institutions 27,980,461 25,266,162
Corporates 3,248,996 3,032,609
Bonds denominated in foreign currencies 4,429,706 5,406,920
Mortgage-backed debt securities 4,020,400 87,647
Securities loaned 238,406 —
Sub-total 46,251,080 41,569,907
Equity securities 885,224 737,658
Total 47,136,304 42,307,565
(2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
Purpose of acquisition December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Investment for strategic business partnership purpose 788,429 636,031
Debt-equity swap 96,795 101,627
Total 885,224 737,658
  • 57 -
(3) Changes in the expected credit loss allowance and gross carrying amount of financial assets at FVTOCI for the<br>years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
i) Credit loss allowances
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (26,596 ) — — (26,596 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net provision for expected credit loss allowance (8,595 ) — — (8,595 )
Disposal 6,644 — — 6,644
Others (*) 560 — — 560
Ending balance (27,987 ) — — (27,987 )
(*) Others consist of foreign currencies translation, etc.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (24,714 ) — — (24,714 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net provision for expected credit loss allowance (8,865 ) — — (8,865 )
Disposal 6,788 — — 6,788
Others (*) 195 — — 195
Ending balance (26,596 ) — — (26,596 )
(*) Others consist of foreign currencies translation, etc.
--- ---
ii) Gross carrying amount
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 41,569,907 — — 41,569,907
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 35,197,016 — — 35,197,016
Disposal/Redemption (30,245,895 ) — — (30,245,895 )
Loss on fair value valuation (231,088 ) — — (231,088 )
Amortization on the effective interest method 127,128 — — 127,128
Others (*) (165,988 ) — — (165,988 )
Ending balance 46,251,080 — — 46,251,080
(*) Others consist of foreign currencies translation, etc.
--- ---
  • 58 -
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance 35,303,429 — — 35,303,429
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 30,557,870 — — 30,557,870
Disposal/Redemption (25,376,177 ) — — (25,376,177 )
Gain on fair value valuation 224,885 — — 224,885
Amortization on the effective interest method 133,211 — — 133,211
Others (*) 726,689 — — 726,689
Ending balance 41,569,907 — — 41,569,907
(*) Others consist of foreign currencies translation, etc.
--- ---
(4) The reason for the disposal of equity securities designated as financial assets at FVTOCI during the years<br>ended December 31, 2025 and 2024 include the disposal of stocks acquired through debt-equity swaps, etc. The fair values at disposal dates and the cumulative gains or losses are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31,
--- --- --- --- --- --- --- ---
2025 2024
Fair value at disposal date 10,907 155,637
Cumulative losses (1,800 ) 72,744
9. SECURITIES AT AMORTIZED COST
--- ---
(1) Details of securities at amortized cost as of December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Korean treasury and government agencies 9,698,695 7,646,463
Financial institutions 3,352,648 4,004,011
Corporates 4,587,882 5,997,996
Bond denominated in foreign currencies 816,629 1,081,262
Credit loss allowances (10,790 ) (10,468 )
Total 18,445,064 18,719,264
(2) Changes in the expected credit loss allowance and gross carrying amount of securities at amortized cost for the<br>years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
i) Credit loss allowances
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (10,468 ) — — (10,468 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net provision for expected credit loss allowance (335 ) — — (335 )
Others (*) 13 — — 13
Ending balance (10,790 ) — — (10,790 )
(*) Others consist of foreign currencies translation, etc.
--- ---
  • 59 -
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance (13,626 ) — — (13,626 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net reversal of expected credit loss allowance 3,233 — — 3,233
Others (*) (75 ) — — (75 )
Ending balance (10,468 ) — — (10,468 )
(*) Others consist of foreign currencies translation, etc.
--- ---
ii) Gross carrying amount
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 18,729,732 — — 18,729,732
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 5,149,914 — — 5,149,914
Disposal / Redemption (5,525,516 ) — — (5,525,516 )
Amortization on the effective interest method 112,417 — — 112,417
Others (*) (10,693 ) — — (10,693 )
Ending balance 18,455,854 — — 18,455,854
(*) Others consist of foreign currencies translation, etc.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 23,598,234 — — 23,598,234
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Acquisition 2,494,615 — — 2,494,615
Disposal / Redemption (7,616,152 ) — — (7,616,152 )
Amortization on the effective interest method 91,116 — — 91,116
Others (*) 161,919 — — 161,919
Ending balance 18,729,732 — — 18,729,732
(*) Others consist of foreign currencies translation, etc.
--- ---
  • 60 -
10. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST
(1) Details of loans and other financial assets at amortized cost as of December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Due from banks 695,395 857,811
Loans 337,941,453 332,871,221
Other financial assets 9,366,401 8,736,265
Total 348,003,249 342,465,297
(2) Details of due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Due from banks in local currency:
Others 16,249 256
Expected credit loss allowance (27 ) —
Sub-total 16,222 256
Due from banks in foreign currencies:
Due from banks on demand 18,938 23,935
Due from banks on time 156,670 72,194
Others 506,626 766,027
Expected credit loss allowance (3,061 ) (4,601 )
Sub-total 679,173 857,555
Total 695,395 857,811
(3) Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
Counterparty December 31, 2025 Reason of restriction
--- --- --- --- --- --- --- ---
Due from banks in local currency:
Others MSBI LIMITED Seoul and others 16,246 Credit Support Annex (CSA) collateral and others
Sub-total 16,246
Due from banks in foreign currencies:
Due from banks on demand Reserve Bank of India and others 18,938 Local capital requirements regulation (CRR) and others
Due from banks on time TORONTO DOMINION BANK, NEW YORK and others 129,141 Federal Reserve Discount Window
Others Goldman Sachs Intl., LON and others 506,626 Credit Support Annex (CSA) collateral and others
Sub-total 654,705
Total 670,951
  • 61 -
Counterparty December 31, 2024 Reason of restriction
Due from banks in local currency:
Others Korea Exchange Co., Ltd. and others 253 Accumulated amount for Joint Compensation Fund and others
Sub-total 253
Due from banks in foreign currencies:
Due from banks on demand Reserve Bank of India and others 23,935 Local capital requirements regulation (CRR) and others
Others BNP-PARIBAS, PAR and others 759,348 Credit Support Annex (CSA) collateral and others
Sub-total 783,283
Total 783,536
(4) Changes in the expected credit loss allowances and gross carrying amount of due from banks for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
i) Credit loss allowances
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (4,601 ) — — (4,601 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net reversal of expected credit loss allowance 1,513 — — 1,513
Ending balance (3,088 ) — — (3,088 )
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (3,327 ) — — (3,327 )
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net provision for expected credit loss allowance (1,274 ) — — (1,274 )
Ending balance (4,601 ) — — (4,601 )
  • 62 -
ii) Gross carrying amount
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 862,412 — — 862,412
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net decrease (163,929 ) — — (163,929 )
Ending balance 698,483 — — 698,483
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 926,001 — — 926,001
Transfer to 12-month expected credit losses — — — —
Transfer to lifetime expected credit losses — — — —
Transfer to credit-impaired financial assets — — — —
Net decrease (63,589 ) — — (63,589 )
Ending balance 862,412 — — 862,412
(5) Details of loans as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Loans in local currency 300,758,900 299,968,927
Loans in foreign currencies 16,591,089 16,909,942
Domestic banker’s usance 2,602,802 2,763,613
Bills bought in foreign currencies 4,331,586 4,115,225
Bills bought in local currency 5,231 5,965
Factoring receivables 130 237
Advances for customers on guarantees 11,909 4,880
Private placement bonds 32,350 47,300
Call loans 1,238,633 697,083
Bonds purchased under resale agreements 13,470,200 9,609,800
Loan origination costs and fees 684,950 668,530
Discounted present value — 1
Expected credit loss allowance (1,786,327 ) (1,920,282 )
Total 337,941,453 332,871,221
  • 63 -
(6) Changes in the expected credit loss allowance of loans for the years ended December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance (131,935 ) (105,857 ) (92,334 ) (826,093 ) (538,035 ) (226,028 )
Transfer to 12-month expected credit losses (29,760 ) 29,061 699 (68,501 ) 68,078 423
Transfer to lifetime expected credit losses 13,001 (13,874 ) 873 34,736 (36,538 ) 1,802
Transfer to credit-impaired financial assets 5,612 10,585 (16,197 ) 102,050 110,868 (212,918 )
Net reversal of (provision for) expected credit loss allowance 24,224 (28,998 ) (154,185 ) (27,248 ) 20,655 (647,621 )
Recovery — — (33,216 ) — — (39,418 )
Write-off — — 158,938 — — 517,422
Disposal 23 1,638 18,519 24 3,736 259,609
Interest income from impaired loans — — 11,970 — — 26,717
Others 2 1 2 8,427 5,641 7,093
Ending balance (118,833 ) (107,444 ) (104,931 ) (776,605 ) (365,595 ) (312,919 )
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total (*)
Stage 1 Stage 2 Stage 3
Beginning balance (958,028 ) (643,892 ) (318,362 )
Transfer to 12-month expected credit losses (98,261 ) 97,139 1,122
Transfer to lifetime expected credit losses 47,737 (50,412 ) 2,675
Transfer to credit-impaired financial assets 107,662 121,453 (229,115 )
Net reversal of (provision for) expected credit loss allowance (3,024 ) (8,343 ) (801,806 )
Recovery — — (72,634 )
Write-off — — 676,360
Disposal 47 5,374 278,128
Interest income from impaired loans — — 38,687
Others 8,429 5,642 7,095
Ending balance (895,438 ) (473,039 ) (417,850 )
(*) Additional loss reserves are included for borrowers who have been subject to government support policies<br>related to COVID-19.
--- ---
  • 64 -
For the year ended December 31, 2024
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance (105,367 ) (84,202 ) (76,070 ) (809,271 ) (517,124 ) (217,322 )
Transfer to 12-month expected credit losses (21,416 ) 21,157 259 (63,848 ) 62,682 1,166
Transfer to lifetime expected credit losses 10,032 (10,632 ) 600 56,598 (57,801 ) 1,203
Transfer to credit-impaired financial assets 3,397 11,699 (15,096 ) 126,738 86,209 (212,947 )
Net provision for expected credit loss allowance (18,592 ) (45,287 ) (103,468 ) (129,038 ) (115,836 ) (282,514 )
Recovery — — (52,318 ) — — (26,462 )
Write-off — — 135,229 — — 263,969
Disposal 12 1,409 8,728 23 6,675 237,439
Interest income from impaired loans — — 9,815 — — 19,240
Others (1 ) (1 ) (13 ) (7,295 ) (2,840 ) (9,800 )
Ending balance (131,935 ) (105,857 ) (92,334 ) (826,093 ) (538,035 ) (226,028 )
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total (*)
Stage 1 Stage 2 Stage 3
Beginning balance (914,638 ) (601,326 ) (293,392 )
Transfer to 12-month expected credit losses (85,264 ) 83,839 1,425
Transfer to lifetime expected credit losses 66,630 (68,433 ) 1,803
Transfer to credit-impaired financial assets 130,135 97,908 (228,043 )
Net provision for expected credit loss allowance (147,630 ) (161,123 ) (385,982 )
Recovery — — (78,780 )
Write-off — — 399,198
Disposal 35 8,084 246,167
Interest income from impaired loans — — 29,055
Others (7,296 ) (2,841 ) (9,813 )
Ending balance (958,028 ) (643,892 ) (318,362 )
(*) Additional loss reserves are included for borrowers who have been subject to government support policies<br>related to COVID-19.
--- ---
(7) Changes in the gross carrying amount of loans for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance 129,837,224 14,717,839 386,623 178,693,489 10,437,028 719,300
Transfer to 12-month expected credit losses 4,494,100 (4,479,906 ) (14,194 ) 2,635,643 (2,633,229 ) (2,414 )
Transfer to lifetime expected credit losses (6,233,979 ) 6,260,503 (26,524 ) (4,188,151 ) 4,192,619 (4,468 )
Transfer to credit-impaired financial assets (177,659 ) (224,971 ) 402,630 (921,607 ) (589,646 ) 1,511,253
Write-off — — (158,938 ) — — (517,422 )
Disposal (149 ) (3,986 ) (169,663 ) (199 ) (11,067 ) (905,584 )
Net increase (decrease) 7,894,626 (1,471,415 ) 45,677 2,586,373 (2,485,645 ) 133,669
Ending balance 135,814,163 14,798,064 465,611 178,805,548 8,910,060 934,334
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total
Stage 1 Stage 2 Stage 3
Beginning balance 308,530,713 25,154,867 1,105,923
Transfer to 12-month expected credit losses 7,129,743 (7,113,135 ) (16,608 )
Transfer to lifetime expected credit losses (10,422,130 ) 10,453,122 (30,992 )
Transfer to credit-impaired financial assets (1,099,266 ) (814,617 ) 1,913,883
Write-off — — (676,360 )
Disposal (348 ) (15,053 ) (1,075,247 )
Net increase (decrease) 10,480,999 (3,957,060 ) 179,346
Ending balance 314,619,711 23,708,124 1,399,945
  • 65 -
For the year ended December 31, 2024
Consumers Corporates
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Beginning balance 122,208,011 14,287,856 341,838 163,705,402 9,010,221 524,251
Transfer to 12-month expected credit losses 4,488,306 (4,478,522 ) (9,784 ) 2,113,183 (2,110,200 ) (2,983 )
Transfer to lifetime expected credit losses (6,231,603 ) 6,255,185 (23,582 ) (5,348,943 ) 5,354,718 (5,775 )
Transfer to credit-impaired financial assets (166,956 ) (203,099 ) 370,055 (779,607 ) (417,653 ) 1,197,260
Write-off — — (135,229 ) — — (263,969 )
Disposal (128 ) (21,525 ) (155,855 ) (134 ) (38,464 ) (759,391 )
Net increase (decrease) 9,539,594 (1,122,056 ) (820 ) 19,003,588 (1,361,594 ) 29,907
Ending balance 129,837,224 14,717,839 386,623 178,693,489 10,437,028 719,300
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Total
Stage 1 Stage 2 Stage 3
Beginning balance 285,913,413 23,298,077 866,089
Transfer to 12-month expected credit losses 6,601,489 (6,588,722 ) (12,767 )
Transfer to lifetime expected credit losses (11,580,546 ) 11,609,903 (29,357 )
Transfer to credit-impaired financial assets (946,563 ) (620,752 ) 1,567,315
Write-off — — (399,198 )
Disposal (262 ) (59,989 ) (915,246 )
Net increase (decrease) 28,543,182 (2,483,650 ) 29,087
Ending balance 308,530,713 25,154,867 1,105,923
(8) Details of other financial assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Receivables 6,760,146 5,923,026
Accrued income 1,331,704 1,364,352
Telex and telephone subscription rights and refundable deposits 716,756 721,513
Other assets 688,235 864,822
Expected credit loss allowance (130,440 ) (137,448 )
Total 9,366,401 8,736,265
  • 66 -
(9) Changes in the expected credit loss allowance on other financial assets for the years ended December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance (3,229 ) (4,463 ) (129,756 ) (137,448 )
Transfer to 12-month expected credit losses (254 ) 228 26 —
Transfer to lifetime expected credit losses 121 (138 ) 17 —
Transfer to credit-impaired financial assets 34 189 (223 ) —
Net reversal of (provision for) expected credit loss allowance 713 816 (4,142 ) (2,613 )
Write-off — — 9,154 9,154
Disposal — — 467 467
Ending balance (2,615 ) (3,368 ) (124,457 ) (130,440 )
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance (3,656 ) (4,533 ) (113,192 ) (121,381 )
Transfer to 12-month expected credit losses (274 ) 257 17 —
Transfer to lifetime expected credit losses 234 (253 ) 19 —
Transfer to credit-impaired financial assets 23 73 (96 ) —
Net reversal of (provision for) expected credit loss allowance 444 (11 ) (11,613 ) (11,180 )
Write-off — — 429 429
Disposal — 4 1,130 1,134
Other increase (decrease) — — (6,450 ) (6,450 )
Ending balance (3,229 ) (4,463 ) (129,756 ) (137,448 )
(10) Changes in the gross carrying amount of other financial assets for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 8,434,645 58,314 380,754 8,873,713
Transfer to 12-month expected credit losses 13,166 (13,135 ) (31 ) —
Transfer to lifetime expected credit losses (18,862 ) 18,881 (19 ) —
Transfer to credit-impaired financial assets (1,958 ) (1,834 ) 3,792 —
Write-off — — (9,154 ) (9,154 )
Disposal — — (606 ) (606 )
Net increase (decrease) and others 640,424 (12,909 ) 5,373 632,888
Ending balance 9,067,415 49,317 380,109 9,496,841
For the year ended December 31, 2024
Stage 1 Stage 2 Stage 3 Total
Beginning balance 11,556,403 68,025 116,673 11,741,101
Transfer to 12-month expected credit losses 15,829 (15,809 ) (20 ) —
Transfer to lifetime expected credit losses (30,096 ) 30,117 (21 ) —
Transfer to credit-impaired financial assets (1,786 ) (1,053 ) 2,839 —
Write-off — — (429 ) (429 )
Disposal — (7 ) (1,599 ) (1,606 )
Net increase (decrease) and others (3,105,705 ) (22,959 ) 263,311 (2,865,353 )
Ending balance 8,434,645 58,314 380,754 8,873,713
  • 67 -
11. THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
(1) The fair value hierarchy
--- ---

The fair value hierarchy is determined by the level of market observable inputs. The market observable inputs reflect unique characteristics of a financial instrument or market condition (including transparency and whether there are transactions among market participants), and when a financial instrument is traded in an active market, the best estimate of its fair value is the quoted price in the active market. The Bank maximizes the use of market observable inputs and minimizes the use of unobserved firm-specific inputs to selected valuation techniques. Fair value of the Bank is measured based on the perspective of a market participant. As such, even when market observable inputs are not readily available, firm-specific inputs reflect factors that market participants would use for measuring the fair value of assets or liabilities.

The fair value measurement is described in 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<br>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<br>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<br>traded in active markets and derivatives traded in OTC but which do not require significant judgment.
--- ---
• Level 3— fair value measurements are those derived from valuation techniques that include inputs for<br>the asset or liability 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<br>derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.
--- ---

The inputs used to measure fair value may be categorized 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 Bank’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.

  • 68 -
(2) Fair value hierarchy of financial assets and liabilities measured at fair value as of December 31, 2025<br>and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Level 1 (*) Level 2 (*) Level 3 Total
Financial assets:
Financial assets at FVTPL
Due from banks 261,470 — — 261,470
Debt securities 3,180,311 38,667 — 3,218,978
Equity securities 4,283 — 276,125 280,408
Capital contributions — 325 2,417,659 2,417,984
Beneficiary certificates 287,676 2,939,563 6,699,255 9,926,494
Derivative assets — 5,791,337 920 5,792,257
Other financial assets in foreign currencies — — 47,191 47,191
Others — — 181,982 181,982
Sub-total 3,733,740 8,769,892 9,623,132 22,126,764
Financial assets at FVTOCI
Debt securities 13,495,614 32,755,466 — 46,251,080
Equity securities 359,601 — 525,623 885,224
Sub-total 13,855,215 32,755,466 525,623 47,136,304
Derivative assets (designated for hedging) — 37,010 — 37,010
Total 17,588,955 41,562,368 10,148,755 69,300,078
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers 263,251 — — 263,251
Derivative liabilities — 5,107,538 — 5,107,538
Securities sold 70,298 — — 70,298
Sub-total 333,549 5,107,538 — 5,441,087
Financial liabilities designated to be measured at FVTPL
Deposits due to customers — 557,501 — 557,501
Derivative liabilities (designated for hedging) — 27,050 — 27,050
Total 333,549 5,692,089 — 6,025,638
(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at<br>fair value. The Bank recognizes transfers among levels at the end of the reporting period in which events have occurred or conditions have changed.
--- ---
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December 31, 2024
Level 1 (*) Level 2 (*) Level 3 Total
Financial assets:
Financial assets at FVTPL
Due from banks 73,951 — — 73,951
Debt securities 3,614,390 28,405 — 3,642,795
Equity securities — — 283,961 283,961
Capital contributions — — 2,231,904 2,231,904
Beneficiary certificates 121,298 2,502,671 6,258,818 8,882,787
Derivative assets — 10,066,195 1,186 10,067,381
Other financial assets in foreign currencies — — 48,346 48,346
Others — — 188,878 188,878
Sub-total 3,809,639 12,597,271 9,013,093 25,420,003
Financial assets at FVTOCI
Debt securities 14,117,594 27,452,313 — 41,569,907
Equity securities 315,639 — 422,019 737,658
Sub-total 14,433,233 27,452,313 422,019 42,307,565
Derivative assets (designated for hedging) — 10,102 — 10,102
Total 18,242,872 40,059,686 9,435,112 67,737,670
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers 74,205 — — 74,205
Derivative liabilities — 9,123,225 1,401 9,124,626
Sub-total 74,205 9,123,225 1,401 9,198,831
Financial liabilities designated to be measured at FVTPL
Deposits due to customers — 547,816 — 547,816
Derivative liabilities (designated for hedging) — 102,634 — 102,634
Total 74,205 9,773,675 1,401 9,849,281
(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at<br>fair value. The Bank recognizes transfers among levels at the end of the reporting period in which events have occurred or conditions have changed.
--- ---

Financial assets and liabilities at FVTPL, financial assets and liabilities designated to be measured at FVTPL, 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.

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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 Bank 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 used for the fair value measurement of financial assets and liabilities<br>classified into level 2 as of December 31, 2025 and 2024 are as follows:
Valuation methods Input variables
--- --- --- --- ---
Debt securities Fair value is measured by discounting the future cash flows of debt securities applying the<br>risk-free rate with credit spread. Risk-free rate and Credit spread
Capital contributions and beneficiary certificates The capital contributions and beneficiary certificates are measured with Net Asset Value. Values of underlying assets such as bond
Derivatives The fair value is measured through Option pricing model etc. Discount rate, Volatility of underlying assets, Exchange rate etc.
Deposit due to customers The fair value is measured through Hull-White model. Swaption volume etc.
② Valuation methods and input variables used for the fair value measurement of financial assets and liabilities<br>classified into level 3 as of December 31, 2025 and 2024 are as follows:
--- ---
Valuation techniques Input variables
--- --- --- --- ---
Equity securities, capital contributions, beneficiary certificates and others The fair value is measured by considering the characteristics of the subject being evaluated,<br>using methods such as the 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, Least-Squares Monte Carlo and<br>Binomial Tree. Risk-free rate, Market risk premium, Corporate Beta, Stock price, Volatility of underlying assets,<br>etc.
Derivatives The fair value is measured through Option pricing model, etc. Correlation coefficient, Stock price, Volatility of underlying assets, etc.
Others The fair value of the underlying asset, after calculating the fair value using the DCF model,<br>etc., considering the price and volatility of the calculated underlying asset, is calculated using the Binomial Tree which is commonly used valuation technique in the market. Stock price, Volatility of underlying <br>assets, etc.
  • 71 -

Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and significant but unobservable inputs as of December 31, 2025 and 2024 are as follows:

① December 31, 2025
Fair value<br><br><br>measurement<br> <br>technique Type Significant but<br>unobservable input<br><br><br>variable Range Impact of changes in significant<br>unobservable inputs on fair<br>value<br>measurement
--- --- --- --- --- --- ---
Derivative assets Option valuation model and others Equity related Stock price, Volatility of underlying asset 22.55% Variation of fair value increases as stock price and volatility of underlying assets<br>increases.
Discount rate 16.88% Fair value increases as discount rate decreases.
Liquidation value 0.00% Fair value increases as liquidation value increases.
Equity securities, capital contributions and beneficiary certificates Binominal Tree Stock price, Volatility of underlying asset 14.91%~34.34% Variation of fair value increases as stock price and volatility of underlying asset<br>increases.
DCF model and others Discount rate 4.21%~18.15% 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.
Others Binominal Tree and others Stock price, Volatility of underlying asset 14.91%~42.44% Variation of fair value increases as stock price and volatility of underlying asset<br>increases.
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② December 31, 2024
Fair value<br><br><br>measurement<br> <br>technique Type Significant but<br>unobservable input<br><br><br>variable Range Impact of changes in significant<br>unobservable inputs on fair<br>value<br>measurement
--- --- --- --- --- --- ---
Derivative Option valuation model and others Equity related Correlation coefficient 0.29~0.65 Variation of fair value increases as correlation coefficient increases.
Stock price, Volatility of underlying asset 25.71% Variation of fair value increases as stock price and volatility 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.
Equity securities, capital contributions and beneficiary certificates Binominal Tree Stock price, Volatility of underlying asset 18.76%~36.37% Variation of fair value increases as stock price and volatility of underlying asset<br>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.
Others Binominal Tree and others Stock price, Volatility of underlying asset 18.36%~36.90% Variation of fair value increases as stock price and volatility of underlying asset<br>increases.

Fair value of financial assets and liabilities classified into Level 3 is measured by the Bank 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 Bank and the appropriateness of inputs is reviewed regularly.

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(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 for the years<br>ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
January 1,<br>2025 Net income<br>(loss)<br>(*1) Other<br>comprehensive<br>income Purchases/<br>issuances Disposals/<br>settlements Transfer to or<br>out of Level 3<br>(*2) December 31,<br>2025
Financial assets:
Financial assets at FVTPL
Equity securities 283,961 4,618 — 11,300 (12,263 ) (11,491 ) 276,125
Capital contributions 2,231,904 45,628 — 383,395 (241,669 ) (1,599 ) 2,417,659
Beneficiary certificates 6,258,818 14,810 — 1,682,484 (1,256,857 ) — 6,699,255
Derivative assets 1,186 (123 ) — — (143 ) — 920
Other financial assets in foreign currency 48,346 (1,155 ) — — — — 47,191
Others 188,878 7,279 — — (14,175 ) — 181,982
Sub-total 9,013,093 71,057 — 2,077,179 (1,525,107 ) (13,090 ) 9,623,132
Financial assets at FVTOCI
Equity securities 422,019 — 104,327 15 (738 ) — 525,623
Total 9,435,112 71,057 104,327 2,077,194 (1,525,845 ) (13,090 ) 10,148,755
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities 1,401 — — — (1,401 ) — —
Total 1,401 — — — (1,401 ) — —
(*1) The losses that increase the financial liabilities are presented as positive amounts, and the gains that<br>decrease the financial liabilities are presented as negative amounts. The profit amount to 64,805 million Won for year ended December 31, 2025, which is from financial assets and liabilities that the Bank holds as of December 31,<br>2025.
--- ---
(*2) Changes in the availability of observable market data for the financial instrument have resulted in transfer<br>between fair value hierarchy level, and the Bank recognizes changes in levels at the end of reporting period that result in changes in events or circumstances that result in transfer between fair value hierarchy level.
--- ---
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For the year ended December 31, 2024
January 1,<br>2024 Net income<br>(loss)<br>(*1) Other<br>comprehensive<br>income Purchases/<br>issuances Disposals/<br>settlements Transfer to or<br>out of Level 3<br>(*2) December 31,<br>2024
Financial assets:
Financial assets at FVTPL
Equity securities 254,337 9,732 — 19,251 (1,306 ) 1,947 283,961
Capital contributions 1,839,972 113,396 — 468,095 (189,559 ) — 2,231,904
Beneficiary certificates 4,933,773 134,739 — 1,815,487 (625,181 ) — 6,258,818
Derivative assets 128,335 (970 ) — 327 (126,506 ) — 1,186
Other financial assets in foreign currency 42,406 5,940 — — — — 48,346
Others 180,690 13,335 — 12,011 (17,158 ) — 188,878
Sub-total 7,379,513 276,172 — 2,315,171 (959,710 ) 1,947 9,013,093
Financial assets at FVTOCI
Equity securities 422,552 — 5,404 15 (5,952 ) — 422,019
Total 7,802,065 276,172 5,404 2,315,186 (965,662 ) 1,947 9,435,112
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities 1,994 1,114 — — (1,707 ) — 1,401
Total 1,994 1,114 — — (1,707 ) — 1,401
(*1) The losses that increase the financial liabilities are presented as positive amounts, and the gains that<br>decrease the financial liabilities are presented as negative amounts. The profit amount to 272,164 million Won for year ended December 31, 2024, which is from financial assets and liabilities that the Bank holds as of December 31, 2024.<br>
--- ---
(*2) Changes in the availability of observable market data for the financial instrument have resulted in transfer<br>between fair value hierarchy level, and the Bank recognize changes in levels at the end of each report that result in changes in events or circumstances that result in transfer between fair value hierarchy level.
--- ---
(4) The results of a sensitivity analysis on the rational fluctuation in the unobservable inputs used for measuring<br>Level 3 financial instruments are as follows:
--- ---

Sensitivity analysis of financial instruments is performed by classifying the effect of changes in unobservable inputs on changes in the value of financial instruments into favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable input, the below table presents the most favorable or the most unfavorable circumstances. 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 10,148,755 million Won and 9,436,513 million Won as of December 31, 2025 and 2024, respectively, equity investments of 9,300,157 million Won and 8,977,473 million Won are excluded from the sensitivity analysis.

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The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility on the fair value of a Level 3 financial instruments as of December 31, 2025 and 2024 (Unit: Korean Won in millions):

December 31, 2025
Net income (loss) Other comprehensive income (loss)
Favorable Unfavorable Favorable Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (*1)(*2) 19 (19 ) — —
Equity securities (*2)(*3) 16,040 (11,738 ) — —
Beneficiary certificates (*3)(*4) 835 (835 ) — —
Others (*2) 2,731 (2,458 ) — —
Financial assets at FVTOCI
Equity securities (*3) — — 24,554 (17,814 )
Total 19,625 (15,050 ) 24,554 (17,814 )
(*1) Fair value changes in equity related derivatives assets and liabilities are calculated by increasing or<br>decreasing liquidation value or discount rate, which are major unobservable variables, by 1%p.
--- ---
(*2) The change in fair value is calculated by increasing or decreasing the stock price (-10% to 10%) and volatility<br>(-10% to 10%), the major unobservable inputs.
--- ---
(*3) Fair value changes in equity securities are calculated by increasing or decreasing terminal growth rate (-1%p ~<br>1%p) and discount rate (-1%p ~ 1%p) or liquidation value (-1%p ~ 1%p), which are major unobservable variables.
--- ---
(*4) Even if the sensitivity analysis of the beneficiary certificates is not possible in practice, fair value<br>changes of the financial assets whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation of real estate which is underlying assets by 1%p.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Net income (loss) Other comprehensive income (loss)
Favorable Unfavorable Favorable Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (*1) 50 (51 ) — —
Equity securities (*2)(*3) 19,338 (13,996 ) — —
Beneficiary certificates (*4) 706 (705 ) — —
Others (*2)(*4) 2,554 (2,402 ) — —
Financial assets at FVTOCI
Equity securities (*3)(*4) — — 34,080 (22,698 )
Total 22,648 (17,154 ) 34,080 (22,698 )
(*1) Fair value changes in equity related derivatives assets and liabilities are calculated by increasing or<br>decreasing correlation coefficient or volatility, which are major unobservable variables, by 10%.
--- ---
(*2) The change in fair value is calculated by increasing or decreasing the stock price (-10% to 10%) and volatility<br>(-10%p to 10%p), the major unobservable inputs.
--- ---
(*3) Fair value changes in equity securities are calculated by increasing or decreasing growth rate (-1%p ~ 1%p) and<br>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<br>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 of real estate which is underlying assets<br>by 1%p.
--- ---
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(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions): Fair value information for cash that is not measured at fair value because the carrying amount is a reasonable approximation of fair value is not included.<br>
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Fair value Book<br>value
Level 1 Level 2 Level 3 Total
Financial assets:
Securities at amortized cost 6,900,334 11,488,177 — 18,388,511 18,445,064
Loans and other financial assets at amortized cost — 6,951,301 342,779,672 349,730,973 348,003,249
Financial liabilities:
Deposits due to customers — 355,266,522 — 355,266,522 355,117,074
Borrowings — 26,022,034 — 26,022,034 26,056,653
Debentures — 28,410,784 — 28,410,784 28,535,472
Other financial liabilities (*) — 33,830,875 — 33,830,875 33,830,938
(*) Lease liabilities are excluded as of December 31, 2025.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Fair value Book<br>value
Level 1 Level 2 Level 3 Total
Financial assets:
Securities at amortized cost 3,242,385 15,420,653 — 18,663,038 18,719,264
Loans and other financial assets at amortized cost — 6,264,152 339,903,462 346,167,614 342,465,297
Financial liabilities:
Deposits due to customers — 347,481,161 — 347,481,161 347,165,137
Borrowings — 21,924,229 — 21,924,229 21,887,868
Debentures — 25,484,901 — 25,484,901 25,530,318
Other financial liabilities (*) — 28,098,616 — 28,098,616 28,099,654
(*) Lease liabilities are excluded as of December 31, 2024.
--- ---

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 Bank determines the fair value using valuation techniques. Valuation techniques and input variables for financial assets and liabilities that are measured at amortized costs are given as follows:

Valuation techniques Input variables
Securities at amortized cost The fair value is measured by discounting the projected cash flows of debt securities by applying<br>risk-free rate plus a credit spread. Risk-free 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<br>the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor. Risk-free rate, credit spread and expected 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<br>the market discount rate that is reflecting credit rating of the Bank. Risk-free rate and credit spread
  • 77 -
(6) Financial instruments by category

Carrying amounts of financial assets and liabilities by each category as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Financial<br>assets at<br>FVTPL Financial<br>assets at<br>FVTOCI Financial<br>assets at<br>amortized cost Derivative<br>assets<br>(designated<br>for hedging) Total
Financial assets:
Due from banks 261,470 — 695,395 — 956,865
Securities 16,025,846 47,136,304 18,445,064 — 81,607,214
Loans — — 337,941,453 — 337,941,453
Derivative assets 5,792,257 — — 37,010 5,829,267
Other financial assets 47,191 — 9,366,401 — 9,413,592
Total 22,126,764 47,136,304 366,448,313 37,010 435,748,391
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial<br>liabilities at<br>FVTPL Financial<br>liabilities<br>designated to<br>be measured<br>at FVTPL Financial<br>liabilities at<br>amortized cost Derivative<br>liabilities<br>(designated<br>for hedging) Total
Financial liabilities:
Deposits due to customers 263,251 557,501 355,117,074 — 355,937,826
Borrowings 70,298 — 26,056,653 — 26,126,951
Debentures — — 28,535,472 — 28,535,472
Derivative liabilities 5,107,538 — — 27,050 5,134,588
Other financial liabilities (*) — — 33,830,938 — 33,830,938
Total 5,441,087 557,501 443,540,137 27,050 449,565,775
(*) Lease liabilities are excluded as of December 31, 2025.
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial<br>assets at<br>FVTPL Financial<br>assets at<br>FVTOCI Financial<br>assets at<br>amortized cost Derivative<br>assets<br>(designated<br>for hedging) Total
Financial assets:
Due from banks 73,951 — 857,811 — 931,762
Securities 15,230,325 42,307,565 18,719,264 — 76,257,154
Loans — — 332,871,221 — 332,871,221
Derivative assets 10,067,381 — — 10,102 10,077,483
Other financial assets 48,346 — 8,736,265 — 8,784,611
Total 25,420,003 42,307,565 361,184,561 10,102 428,922,231
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Financial<br>liabilities at<br>FVTPL Financial<br>liabilities<br>designated to<br>be measured<br>at FVTPL Financial<br>liabilities at<br>amortized cost Derivative<br>liabilities<br>(designated<br>for hedging) Total
Financial liabilities:
Deposits due to customers 74,205 547,816 347,165,137 — 347,787,158
Borrowings — — 21,887,868 — 21,887,868
Debentures — — 25,530,318 — 25,530,318
Derivative liabilities 9,124,626 — — 102,634 9,227,260
Other financial liabilities (*) — — 28,099,654 — 28,099,654
Total 9,198,831 547,816 422,682,977 102,634 432,532,258
(*) Lease liabilities are excluded as of December 31, 2024.
--- ---
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(7) Income or expense from financial instruments by category

Income or expense from financial instruments by category for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2025
Interest income<br>(expense) Fees and<br>commissions<br>income Provision for<br>credit loss Gain<br>on valuation<br>and<br>transaction Dividend<br>income Total
Financial assets at FVTPL 111,864 90 — 307,528 434,293 853,775
Financial liabilities designated to be measured at FVTPL(*) — — — 389 — 389
Financial assets at FVTOCI 1,227,532 280 (8,595 ) 137,515 20,325 1,377,057
Securities at amortized cost 526,918 — (335 ) — — 526,583
Loans and other financial assets at amortized cost 14,523,700 — (814,273 ) 28,187 — 13,737,614
Financial liabilities at amortized cost (9,423,762 ) — — — — (9,423,762 )
Net derivatives (designated for hedging) — — — 13,257 — 13,257
Total 6,966,252 370 (823,203 ) 486,876 454,618 7,084,913
(*) The amount recognized as other comprehensive income in regard to financial liabilities designated to be<br>measured at FVTPL for the year ended December 31, 2025 is 74 million Won.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest<br>income<br>(expense) Fees and<br>commissions<br>income Reversal of<br>(Provision for)<br>credit loss Gain (Loss)<br>on valuation<br>and<br>transaction Dividend<br>income Total
Financial assets at FVTPL 120,688 864 — 1,528,808 439,683 2,090,043
Financial liabilities designated to be measured at FVTPL(*) — — — (19,647 ) — (19,647 )
Financial assets at FVTOCI 1,227,748 951 (8,865 ) 92,107 17,726 1,329,667
Securities at amortized cost 628,637 — 3,233 — — 631,870
Loans and other financial assets at amortized cost 16,005,305 — (707,189 ) 165,192 — 15,463,308
Financial liabilities at amortized cost (11,227,703 ) — — — — (11,227,703 )
Net derivatives (designated for hedging) — — — (22,511 ) — (22,511 )
Total 6,754,675 1,815 (712,821 ) 1,743,949 457,409 8,245,027
(*) The amount recognized as other comprehensive income in regard to financial liabilities designated to be<br>measured at FVTPL for the year ended December 31, 2024 is 1,831 million Won.
--- ---
  • 79 -
12. DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS
(1) Derecognition of financial instruments
--- ---
i) Transferred financial assets that do not meet the condition of derecognition
--- ---
a) Bonds sold under repurchase agreements
--- ---

The financial instruments that were disposed but the Bank agreed to repurchase at the fixed amounts at the same time, so that they did not meet the conditions of derecognition, as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31,<br>2025 December 31,<br>2024
Asset transferred Financial assets at FVTOCI 4,020,400 87,647
Related liabilities Bonds sold under repurchase agreements 3,832,036 86,733
b) Securities loaned
--- ---

When the Bank 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 Bank does not derecognize them from the financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amounts of the securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31,<br>2025 Loaned to
Financial assets at FVTOCI Korea treasury and government bonds and others 238,406 Korea Securities Finance Corporation
December 31,<br>2024 Loaned to
Financial assets at FVTPL Korea treasury and government bonds and others 12,361 Korea Securities Finance Corporation

The details of the transferred financial assets that do not meet the condition of derecognition in their entirety, such as disposal of securities under repurchase agreement or securities loaned, are also explained in Note 18.

(2) The offset of financial assets and liabilities

The Bank holds both the uncollected domestic exchange receivables and the unpaid domestic exchange payable, which satisfy offsetting criteria of K-IFRS No.1032. Therefore, the total amount of uncollected domestic exchange receivables (or unpaid domestic exchange payables) has been offset with part of unpaid domestic exchange payables (or uncollected domestic exchange receivables) and has been disclosed in loans and other financial assets at amortized cost and other financial liabilities of the Bank’s statements of financial position, respectively.

The Bank also holds the derivative assets, derivative liabilities, receivable spot exchange and payable spot exchange that do not meet the offsetting criteria of K-IFRS No.1032, but provide the Bank under the circumstances of the trading party’s defaults, insolvency or bankruptcy, with the right of offsetting. Items such as cash collateral cannot satisfy the offsetting criteria of K-IFRS No.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, derivative liabilities, receivable spot exchange and payable spot exchange can be offset.

  • 80 -

The Bank has entered into a sale and repurchase agreement and accounted it as a collateralized borrowing. The Bank has also entered into a purchase and resale agreement and accounted it as a secured loan. The Bank under the repurchase agreements has 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 No.1032. The Bank disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loans and other financial assets at amortized cost.

As of December 31, 2025 and 2024, the financial instruments to be offset and covered by master netting agreements and similar agreements are as follows (Unit: Korean Won in millions):

December 31, 2025
Gross<br>amounts of<br>recognized<br>financial<br>assets Gross<br>amounts of<br>recognized<br>financial<br>assets setoff Net<br>amounts of<br>financial<br>assets<br>presented Related amounts not setoff in<br>the statement of financial<br>position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>received
Financial assets:
Derivative assets (*1) 5,811,220 — 5,811,220 10,072,762 67,406 1,963,000
Receivable spot exchange (*2) 6,291,948 — 6,291,948
Bonds purchased under resale agreements (*2) 13,470,200 — 13,470,200 13,470,200 — —
Domestic exchanges settlement credits (*2) (*5) 37,873,998 37,601,886 272,112 — — 272,112
Total 63,447,366 37,601,886 25,845,480 23,542,962 67,406 2,235,112
December 31, 2025
Gross<br>amounts of<br>recognized<br>financial<br>liabilities Gross<br>amounts of<br>recognized<br>financial<br>liabilities<br>setoff Net<br>amounts of<br>financial<br>liabilities<br>presented Related amounts not setoff in<br>the statement of financial<br>position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>pledged
Financial liabilities:
Derivative liabilities (*1) 5,131,753 — 5,131,753 9,581,052 294,611 1,551,661
Payable spot exchange (*3) 6,295,571 — 6,295,571
Bonds sold under repurchase agreements (*4) 3,832,036 — 3,832,036 3,832,036 — —
Domestic exchanges settlement debits (*3) (*5) 49,342,824 37,601,886 11,740,938 — — 11,740,938
Total 64,602,184 37,601,886 27,000,298 13,413,088 294,611 13,292,599
(*1) The items include derivatives held for trading and derivatives designated for hedging.
--- ---
(*2) The items are included in loans and other financial assets at amortized cost.
--- ---
(*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.
--- ---
  • 81 -
December 31, 2024
Gross<br>amounts of<br>recognized<br>financial<br>assets Gross<br>amounts of<br>recognized<br>financial<br>assets setoff Net<br>amounts of<br>financial<br>assets<br>presented Related amounts not setoff in<br>the statement of financial<br>position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>received
Financial assets:
Derivative assets (*1) 10,059,218 — 10,059,218 12,082,628 235,654 3,290,742
Receivable spot exchange (*2) 5,549,806 — 5,549,806
Bonds purchased under resale agreements (*2) 9,609,800 — 9,609,800 9,609,800 — —
Domestic exchanges settlement credits (*2)(*5) 33,347,374 32,915,242 432,132 — — 432,132
Total 58,566,198 32,915,242 25,650,956 21,692,428 235,654 3,722,874
December 31, 2024
Gross<br>amounts of<br>recognized<br>financial<br>liabilities Gross<br>amounts of<br>recognized<br>financial<br>liabilities<br>setoff Net<br>amounts of<br>financial<br>liabilities<br>presented Related amounts not setoff in<br>the statement of financial<br>position Net<br>amounts
Netting<br>agreements<br>and others Cash<br>collateral<br>pledged
Financial liabilities:
Derivative liabilities (*1) 9,216,515 — 9,216,515 11,832,708 533,052 2,400,362
Payable spot exchange (*3) 5,549,607 — 5,549,607
Bonds sold under repurchase agreements (*4) 86,733 — 86,733 86,733 — —
Domestic exchanges settlement debits (*3)(*5) 40,505,570 32,915,242 7,590,328 7,590,328 — —
Total 55,358,425 32,915,242 22,443,183 19,509,769 533,052 2,400,362
(*1) The items include derivatives held for trading and derivatives designated for hedging.
--- ---
(*2) The items are included in loans and other financial assets at amortized cost.
--- ---
(*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.
--- ---
  • 82 -
13. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
(1) The Bank has the following subsidiaries as of December 31, 2025 and 2024 (Unit: Korean Won in<br>100 million, USD in 10 thousand, CNY in 100 million, RUB in 100 million, IDR in 100 million, BRL in 10 thousand, PHP in 100 million, VND in trillions, MMK in 100 million, EUR in 10 thousand):<br>
--- ---
Subsidiaries Location Share capital Main<br>business
--- --- --- --- --- --- --- ---
Woori America Bank U.S.A USD 29,250 Finance
PT Bank Woori Saudara Indonesia 1906 Tbk Indonesia IDR 14,692 Finance
Woori Global Markets Asia Limited Hong Kong USD 10,000 Finance
Woori Bank China Limited China CNY 21.6 Finance
AO Woori Bank (*1) Russia RUB 14.5 Finance
Banco Woori Bank do Brasil S.A. Brazil BRL 7,709 Finance
Korea BTL Infrastructure Fund Korea 7,659 Finance
Woori Finance Myanmar Co., Ltd. Myanmar MMK 162 Finance
Wealth Development Bank Philippines PHP 7.7 Finance
Woori Bank Vietnam Limited Vietnam VND 12.5 Finance
Woori Bank (Cambodia) PLC Cambodia USD 27,239 Finance
Woori Bank Europe Germany EUR 10,000 Finance
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Subsidiaries Number of<br>shares<br>owned Percentage<br>of ownership<br>(%) Financial<br><br><br>statements<br> <br>as of Number of<br>shares<br>owned Percentage<br>of ownership<br>(%) Financial<br><br><br>statements<br> <br>as of
Woori America Bank 58,500,000 100.0 December 31, 2025 58,500,000 100.0 December 31, 2024
PT Bank Woori Saudara Indonesia 1906 Tbk 13,333,457,836 90.8 December 31, 2025 13,333,457,836 90.8 December 31, 2024
Woori Global Markets Asia Limited 78,000,000 100.0 December 31, 2025 78,000,000 100.0 December 31, 2024
Woori Bank China Limited — 100.0 December 31, 2025 — 100.0 December 31, 2024
AO Woori Bank 57,999,999 100.0 December 31, 2025 57,999,999 100.0 December 31, 2024
Banco Woori Bank do Brasil S.A. 77,093,999 100.0 December 31, 2025 77,093,999 100.0 December 31, 2024
Korea BTL Infrastructure Fund 153,012,509 99.9 December 31, 2025 146,625,975 99.9 December 31, 2024
Woori Finance Myanmar Co., Ltd. 1,200,000 100.0 December 31, 2025 1,200,000 100.0 December 31, 2024
Wealth Development Bank 3,931,365 51.0 December 31, 2025 3,931,365 51.0 December 31, 2024
Woori Bank Vietnam Limited — 100.0 December 31, 2025 — 100.0 December 31, 2024
Woori Bank (Cambodia) PLC 11,035,803 100.0 December 31, 2025 11,035,803 100.0 December 31, 2024
Woori Bank Europe 100,000,000 100.0 December 31, 2025 100,000,000 100.0 December 31, 2024
(*1) Following Russia’s further invasion of Ukraine in February 2022, various countries, including the United<br>States, have imposed additional sanctions on a number of Russian individuals and entities, and restricted or prohibited certain activities relating to Russia such as making new investments or the provision of certain services. These sanctions may<br>result in a decrease in the value of financial or operating assets held by banks in relation to the disputed country, an increase in the collection period, restrictions on capital transfers, and a decrease in profits. As a result, the Bank expect<br>future financial impacts on the business of its subsidiary, AO Woori Bank of Russia, as of December 31, 2025, but it is difficult to assess the maximum potential exposure or the ultimate adverse impact with any degree of certainty.<br>
--- ---
  • 83 -
(2) As for the structured entities in accordance with K-IFRS No.1110 and K-IFRS No.1112, it is determined that the<br>Bank controls the entity after considering facts and circumstances, such as the Bank’s power over the entity’s related business activities, the Bank’s exposure to variable returns from its involvement with the entity and the<br>Bank’s ability to affect the returns through its power over the entity.
1) Details of structured entities that the Bank controls as of December 31, 2025 and 2024 are as follows:<br>
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- ---
Structured entities Location Main<br>business Percentage<br>of ownership<br>(%) Financial<br>statements as of
Structured entities established for securitization of financial assets (*1)
Jeonju Iwon Ltd. and 41 structured entities Korea Asset securitization — December 31, 2025
KAMCO Value Recreation First Securitization Specialty Co., Ltd. Korea Asset securitization 15.0 December 31, 2025
Money trust under the FISCM Act (*2)
Principal Guaranteed Trust and Principal and Interest Guaranteed Trust Korea Trust — December 31, 2025
Structured entities for the investments in securities
IGIS Australia Investment Trust No. 209-1 Korea Securities investment 99.4 December 31, 2025
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 Korea Securities investment 99.0 December 31, 2025
AI Partners UK Water Supply Private Placement Investment Trust No. 2 Korea Securities investment 97.3 December 31, 2025
Heungkuk Global Private Placement Investment Trust No. 1 Korea Securities investment 98.8 December 31, 2025
Woori Global Development Infrastructure Synergy Company Private Placement Investment<br>Trust Korea Securities investment 99.9 December 31, 2025
Woori Infrastructure New Deal Private Placement Investment Trust No. 1 Korea Securities investment 99.5 December 31, 2025
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1 Korea Securities investment 99.3 December 31, 2025
Woori Global Secondary Private Placement Investment Trust No. 1 Korea Securities investment 98.8 December 31, 2025
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1 Korea Securities investment 95.2 December 31, 2025
Kiwoom Harmony Private Placement Investment Trust No. 1 Korea Securities investment 97.7 December 31, 2025
JB Airline Private Placement Investment Trust No. 8 Korea Securities investment 97.0 December 31, 2025
Kiwoom Harmony Private Placement Investment Trust No. 4 Korea Securities investment 96.2 December 31, 2025
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 Korea Securities investment 93.5 December 31, 2025
Woori Fund Financing General Type Private Investment Trust Korea Securities investment 99.0 December 31, 2025
Kiwoom Harmony Private Placement Investment Trust No. 9 Korea Securities investment 100.0 December 31, 2025
Woori Bank Partners General Type Private Investment Trust No.4 Korea Securities investment 99.0 December 31, 2025
(*1) It is determined that the Bank controls the entity after considering all the facts and circumstances, such as<br>the Bank’s power over the entity’s related business activities, the Bank’s exposure to variable returns from its involvement with the entity, and the Bank’s ability to affect the returns through its power over the entity,<br>even though the Bank holds less than 50% ownership interest of the entity.
--- ---
(*2) The Bank controls the trust because it has power that determines the management performance over the trust, and<br>is exposed to variable returns to absorb losses through the guarantees of payment of principal and fixed rate of return.
--- ---
  • 84 -
December 31, 2024
Structured entities Location Main<br>business Percentage<br>of ownership<br>(%) Financial<br>statements as of
Structured entities established for securitization of financial assets (*1)
Jeonju Iwon Ltd. and 44 structured entities Korea Asset securitization — December 31, 2024
KAMCO Value Recreation First Securitization Specialty Co., Ltd. Korea Asset securitization 15.0 December 31, 2024
Money trust under the FISCM Act (*2)
Principal Guaranteed Trust and Principal and Interest Guaranteed Trust Korea Trust — December 31, 2024
Structured entities for the investments in securities
IGIS Australia Investment Trust No. 209-1 Korea Securities investment 99.4 December 31, 2024
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 Korea Securities investment 99.0 December 31, 2024
AI Partners UK Water Supply Private Placement Investment Trust No. 2 Korea Securities investment 97.3 December 31, 2024
Heungkuk Global Private Placement Investment Trust No. 1 Korea Securities investment 98.8 December 31, 2024
Woori Global Development Infrastructure Synergy Company Private Placement Investment<br>Trust Korea Securities investment 99.9 December 31, 2024
Woori Infrastructure New Deal Private Placement Investment Trust No. 1 Korea Securities investment 99.5 December 31, 2024
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1 Korea Securities investment 99.3 December 31, 2024
Woori Global Secondary Private Placement Investment Trust No. 1 Korea Securities investment 98.8 December 31, 2024
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1 Korea Securities investment 95.2 December 31, 2024
Kiwoom Harmony Private Placement Investment Trust No. 1 Korea Securities investment 97.4 December 31, 2024
Kiwoom Harmony Private Placement Investment Trust No. 2 Korea Securities investment 97.3 December 31, 2024
JB Airline Private Placement Investment Trust No. 8 Korea Securities investment 97.0 December 31, 2024
Kiwoom Harmony Private Placement Investment Trust No. 4 Korea Securities investment 96.2 December 31, 2024
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 Korea Securities investment 93.5 December 31, 2024
Woori Fund Financing General Type Private Investment Trust Korea Securities investment 99.3 December 31, 2024
(*1) It is determined that the Bank controls the entity after considering all the facts and circumstances, such as<br>the Bank’s power over the entity’s related business activities, the Bank’s exposure to variable returns from its involvement with the entity, and the Bank’s ability to affect the returns through its power over the entity,<br>even though the Bank holds less than 50% ownership interest of the entity.
--- ---
(*2) The Bank controls the trust because it has power that determines the management performance over the trust, and<br>is exposed to variable returns to absorb losses through the guarantees of payment of principal and fixed rate of return.
--- ---
  • 85 -
2) The following companies have been excluded from the consolidation scope despite the Bank’s majority<br>ownership interest as of December 31, 2025 and 2024:
December 31, 2025
--- --- --- --- --- --- --- ---
Structured entities Location Main<br><br><br>business Percentage of<br>ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*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 69.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1) Korea Securities investment 69.0
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
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1<br>(*1) Korea Securities investment 55.0
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
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2<br>(*1) Korea Securities investment 55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1) Korea Securities investment 92.6
Woori Private Real Estate Investment Trust No. 1 (*1) Korea Securities investment 86.8
INMARK France Private Placement Real Estate Investment Trust No. 18-1 (*1) Korea Securities investment 93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W () (*2) Korea Securities investment 99.5
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1 (*1) Korea Securities investment 80.0
KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*2) Korea Securities investment 99.7
Hana UBS Class One Private Equity No. 3 C2 (*1) Korea Securities investment 51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1) Korea Securities investment 50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1) Korea Securities investment 90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1) Korea Securities investment 65.0
Woori Private Real Estate Investment Trust No. 5 (*1) Korea Securities investment 87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) Korea Securities investment 76.7
Woori Innovative Growth New Deal Private Placement Investment Trust No. 3 (*1) Korea Securities investment 79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1) Korea Securities investment 55.0
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No. 1<br>(*1) Korea Securities investment 66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1) Korea Securities investment 80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 () (*1) Korea Securities investment 60.0

All values are in Euros.

  • 86 -
December 31, 2025
Structured entities Location Main<br><br><br>business Percentage of<br>ownership (%)
NH-Amundi WSCP VIII Private Placement Investment Trust No. 2 () (*1) Korea Securities investment 65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2<br>() (*2) Korea Securities investment 98.0
Woori Equity Investment General Type Private Investment Trust No. 1 (*1) Korea Securities investment 93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1) Korea Securities investment 60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1) Korea Securities investment 66.7
Woori Financial Digital Investment Association No. 1 (*1) Korea Securities investment 88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1) Korea Securities investment 85.0
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 Japan Blind General Type Private Real Estate Feeder Investment Trust No. 1 (*2) Korea Securities investment 99.9
Woori Private Real Estate Investment Trust No. 6 (*1) Korea Securities investment 85.0
Woori New Growth Credit Fund 1 (*1) Korea Securities investment 70.9
Woori Asset Global Partnership Fund No. 5 (*1) Korea Securities investment 57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1) Korea Securities investment 82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1) Korea Securities investment 76.9
CHILLE PMGD Solar PV Investment Project Fund II (*2) Korea Securities investment 75.2
Woori Financial Dino Lab Investment Association No. 1 (*1) Korea Securities investment 70.0
Woori Bank Partners General Type Private Investment Trust No. 3 (*1) Korea Securities investment 90.9
Woori Natixis Partnership Global Private Debt Fund No. 1-1 () (*1) Korea Securities investment 80.0
NH-Amundi BXD Private Placement Real Estate Investment Trust No. 2 () (*2) Korea Securities investment 77.8
Woori Private Real Estate Investment Trust No. 7 (*1) Korea Securities investment 87.0
Woori Junior Equity General Type Private Investment Trust (*1) Korea Securities investment 85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1) Korea Securities investment 50.0
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 (*1) Korea Securities investment 92.8
Woori Financial Dino Lab Investment Association No. 2 (*1) Korea Securities investment 60.0
Woori Top-Class Senior and Junior Loan Private Investment Trust (*1) Korea Securities investment 85.0
Woori Real Estate Blind Investment General Type Private Investment Trust No.1 (*2) Korea Securities investment 70.0
Woori Natixis Partnership Global Private Debt Fund No. 1-2 () (*1) Korea Securities investment 80.0

All values are in US Dollars.

(*1) Since the investee is a discretionary funds, the Bank does not have power over the investee because the fund<br>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 Bank, but also for other investors as well. The Bank does not have the power over the<br>fund’s activities even though it holds more than 50% of ownership interest.
  • 87 -
(*2) The investment target for the fund was determined in advance, and the disposition of investment assets cannot<br>be determined by the Bank, and as a fund of funds, the Bank does not have the power to participate in decision-making regarding investment assets in parent funds. The Bank does not have the power over the fund’s activities even though it holds<br>more than 50% of ownership interest.
(*3) Since the investee is a Stock market stabilization fund, the Bank does not have power over such fund as the<br>fund’s relevant activities are determined by the management committee, over which the Bank does not have substantial control. The Bank does not have the power over the fund’s activities even though it holds more than 50% of ownership<br>interest.
--- ---
December 31, 2024
--- --- --- --- --- --- --- ---
Structured entities Location Main<br><br><br>business Percentage of<br>ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*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 69.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1) Korea Securities investment 69.0
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
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1<br>(*1) Korea Securities investment 55.0
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
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2<br>(*1) Korea Securities investment 55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1) Korea Securities investment 92.6
Woori Private Real Estate Investment Trust No. 1 (*1) Korea Securities investment 84.9
INMARK France Private Placement Real Estate Investment Trust No. 18-1 (*1) Korea Securities investment 93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W () (*2) Korea Securities investment 99.5
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1 (*1) Korea Securities investment 80.0
KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*2) Korea Securities investment 99.7
Hana UBS Class One Private Equity No. 3 C2 (*1) Korea Securities investment 51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1) Korea Securities investment 50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1) Korea Securities investment 90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1) Korea Securities investment 65.0
Woori Private Real Estate Investment Trust No. 5 (*1) Korea Securities investment 87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1) Korea Securities investment 76.7
Consus Solar Energy Private Placement Investment Trust No. 1 (*1) Korea Securities investment 50.0
Woori Innovative Growth New Deal Private Placement Investment Trust No. 3 (*1) Korea Securities investment 79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1) Korea Securities investment 55.0

All values are in Euros.

  • 88 -
December 31, 2024
Structured entities Location Main<br><br><br>business Percentage of<br>ownership (%)
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No. 1<br>(*1) Korea Securities investment 66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1) Korea Securities investment 80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 () (*1) Korea Securities investment 60.0
NH-Amundi WSCP VIII Private Placement Investment Trust No. 2 () (*1) Korea Securities investment 65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund TrustNo. 2<br>() (*2) Korea Securities investment 98.0
Woori Equity Investment General Type Private Investment Trust No.1 (*1) Korea Securities investment 93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1) Korea Securities investment 60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1) Korea Securities investment 66.7
Woori Financial Digital Investment Association No. 1 (*1) Korea Securities investment 88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1) Korea Securities investment 85.0
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 Japan General Type Private Real Estate Feeder Investment Trust No. 1-2 (*2) Korea Securities investment 98.8
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No. 1 (*2) Korea Securities investment 99.9
Woori Private Real Estate Investment Trust No. 6 (*1) Korea Securities investment 85.0
Woori New Growth Credit Fund 1 (*1) Korea Securities investment 70.9
Woori Asset Global Partnership Fund No. 5 (*1) Korea Securities investment 57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1) Korea Securities investment 82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1) Korea Securities investment 76.9
Project Chile PMGD Solar (*2) Korea Securities investment 75.2
Woori Financial Dino Lab Investment Association No. 1 (*1) Korea Securities investment 70.0
Woori Bank Partners General Type Private Investment Trust No. 3 (*1) Korea Securities investment 90.9
Woori Natixis Partnership Global Private Debt Fund No. 1-1 () (*1) Korea Securities investment 80.0
NH-Amundi BXD Private Placement Real Estate Investment Trust No. 2 () (*2) Korea Securities investment 77.8
Woori Private Real Estate Investment Trust No. 7 (*1) Korea Securities investment 87.0
Woori Junior Equity General Type Private Investment Trust (*1) Korea Securities investment 85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1) Korea Securities investment 50.0

All values are in US Dollars.

(*1) Since the investee is a discretionary funds, the Bank does not have power over the investee because the fund<br>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 Bank, but also for other investors as well. The Bank does not have the power over the<br>fund’s activities even though it holds more than 50% of ownership interest.
  • 89 -
(*2) The investment target for the fund was determined in advance, and the disposition of investment assets cannot be<br>determined by the Bank, and as a fund of funds, the Bank does not have the power to participate in decision-making regarding investment assets in parent funds. The Bank does not have the power over the fund’s activities even though it holds<br>more than 50% of ownership interest.
(*3) Since the investee is a Stock market stabilization fund, the Bank does not have power over such fund as the<br>fund’s relevant activities are determined by the management committee, over which the Bank does not have substantial control. The Bank does not have the power over the fund’s activities even though it holds more than 50% of ownership<br>interest.
--- ---
(3) Investments in associates as of December 31, 2025 and 2024 are as follows:
--- ---
Investees Main<br><br><br>business Percentage of<br>ownership (%) Location Financial<br>statements<br>as of
--- --- --- --- --- --- --- --- --- --- --- --- ---
December 31,<br>2025 December 31,<br>2024
W Service Networks Co., Ltd. (*1) Freight & staffing services 4.9 4.9 Korea November 30, 2025 (*4)
Korea Credit Bureau Co., Ltd. (*2) Credit information 9.9 9.9 Korea December 31, 2025
Korea Finance Security Co., Ltd. (*2) Security service 15.0 15.0 Korea November 30, 2025 (*4)
Dongwoo C & C Co., Ltd. (*3) Construction 23.2 23.2 Korea —
SJCO Co., Ltd. (*3) Aggregate transportation and wholesale 27.5 27.5 Korea —
G2 collection Co., Ltd. (*3) Wholesale and retail sales 28.9 28.9 Korea —
Kyesan Engineering Co., Ltd. (*3) Construction 23.2 23.2 Korea —
Good Software Lab Co., Ltd. (*3) Service 28.9 28.9 Korea —
Wongwang Co., Ltd. (*3) Wholesale and real estate 29.0 29.0 Korea —
Sejin Construction Co., Ltd. (*3) Construction 29.6 29.6 Korea —
DAEA SNC Co., Ltd. (*3) Wholesale and retail sales 24.0 24.0 Korea —
ARES-TECH Co., Ltd. (*3) Electronic component manufacturing 23.4 23.4 Korea —
PREXCO Co., Ltd. (*3) Manufacturing 28.1 28.1 Korea —
Jiwon Plating Co., Ltd. (*3) Plating 20.5 20.5 Korea —
NK Eng Co., Ltd. (*5) Manufacturing — 23.1 Korea —
Youngdong Sea Food Co., Ltd. (*3) Processed sea food manufacturing 24.0 24.0 Korea —
Beomgyo Co., Ltd. (*3) Telecommunication equipment retail sales 23.1 23.1 Korea —
K BANK Co., Ltd. (*2) Finance 12.0 12.0 Korea November 30, 2025 (*4)
Partner One Value Up I Private Equity Fund Other financial services 23.3 23.3 Korea December 31, 2025
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership (*3) Other financial services 20.0 20.0 Korea December 31, 2025
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund Other financial services 25.0 25.0 Korea December 31, 2025
Woori-Shinyoung Growth-Cap Private Equity Fund I Other financial services 24.5 24.5 Korea December 31, 2025
LOTTE CARD Co., Ltd. Credit card and installment financing 20.0 20.0 Korea September 30, 2025 (*4)
Woori-Q Corporate Restructuring Private Equity Fund (*7) Trust and collective investment 19.7 20.4 Korea December 31, 2025
PCC-Woori LP Secondary Fund Other financial services 26.9 26.9 Korea December 31, 2025
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] Other financial services 100.0 100.0 Korea December 31, 2025
Union Technology Finance Investment Association Other financial services 29.7 29.7 Korea December 31, 2025
KUM HWA Co., Ltd. (*3) Telecommunication equipment retail sales 20.0 20.0 Korea December 31, 2025
Paratus Woori Material Component Equipment joint venture company Other financial services 20.8 20.8 Korea December 31, 2025
Jinmyung Plus Co., Ltd. (*3) Manufacturing 20.2 20.2 Korea September 30, 2025 (*4)
Orient Shipyard Co., Ltd. (*3) Manufacturing of ship components 22.7 22.7 Korea September 30, 2025 (*4)
BTS 2nd Private Equity Fund Other financial services 20.0 20.0 Korea December 31, 2025
Woori Financial Digital Investment Association No. 1 Other financial services 88.0 88.0 Korea December 31, 2025
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures Other financial services 28.3 28.3 Korea December 31, 2025
KG Fashion Co., Ltd. (*3) Manufacturing 20.8 20.8 Korea November 30, 2025 (*4)
Win Mortgage Co., Ltd. (*1) Other financial services 4.5 4.5 Korea September 30, 2025 (*4))
NH Woori Newdeal Growth Alpha Private Equity Fund 1 Other financial services 22.3 22.4 Korea December 31, 2025
SF CREDIT PARTNERS, LLC (*2) Other financial services 10.0 10.0 U.S.A. December 31, 2025
  • 90 -
Investees Main<br><br><br>business Percentage of<br>ownership (%) Location Financial<br>statements<br>as of
December 31,<br>2025 December 31,<br>2024
Rea Company Ltd. (*3) Manufacturing 24.5 24.5 Korea —
Aram CMC Co., Ltd. (*3) Manufacturing 20.0 20.0 Korea —
Woori Financial Dino Lab Investment Association No. 1 Other financial services 70.0 70.0 Korea December 31, 2025
Woori Corporate Turnaround No. 1 Private Equity Fund Other financial services 27.3 27.3 Korea December 31, 2025
Market & Farm Co., Ltd. (*3) Wholesale and commodity brokerage business 23.7 23.7 Korea December 31, 2025
SAMJI TEXTILE CO., LTD. (*3) Wholesale and commodity brokerage business 29.4 29.4 Korea —
Woori Financial Dino Lab Investment Association No. 2 (*6) Other financial services 60.0 — Korea December 31, 2025
TH International Co., Ltd. (*3) (*6) Cosmetics wholesale business and general travel business 21.3 — Korea —
(*1) Most of the significant business transactions of associates are with the Bank as of December 31, 2025 and<br>2024.
--- ---
(*2) The Bank has significant influence over the creditors’ council, which makes the financial and operating<br>policy decisions.
--- ---
(*3) There is no investment amount as of December 31, 2025 and 2024.
--- ---
(*4) The equity method was applied using the most recent financial statements available because financial statement<br>at the end of the reporting period cannot be obtained, and any 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 Bank were appropriately reflected.<br>
--- ---
(*5) It was excluded from associates due to the sale liquidation and others for the year ended December 31,<br>2025.
--- ---
(*6) It was added to associates through acquisition for the year ended December 31, 2025.<br>
--- ---
(*7) The entity was classified as an associate based on the voting rights in proportion to the initial capital<br>commitment ratio.
--- ---
(4) The entities excluded from associates, although the Bank’s shareholding ratio of common stock is higher<br>than 20% as of December 31, 2025 and 2024 are as follows:
--- ---
December 31, 2025
--- --- --- --- --- --- ---
Associate (*) Number of shares owned (shares) Percentage of ownership(%)
CL Tech Co., Ltd. 10,191 28.6
CT INTERNATIONAL CO.,LTD. 1,741 26.7
Happy Home Co.,Ltd. 14,924 22.7
(*) Although the Bank’s ownership interest in the entity is more than 20%, it is determined that the Bank<br>does not have significant influence over the entity since it is going through workout process under receivership; accordingly, it is excluded from the investment in associates.
--- ---
December 31, 2024
--- --- --- --- --- --- ---
Associate (*) Number of shares owned (shares) Percentage of ownership(%)
CL Tech Co., Ltd. 10,191 28.6
TH International Co.,Ltd. 6,737 21.3
WORK-LIFE BALANCE CO.,LTD 209 21.3
(*) Although the Bank’s ownership interest in the entity is more than 20%, it is determined that the Bank<br>does not have significant influence over the entity since it is going through workout process under receivership; accordingly, it is excluded from the investment in associates.
--- ---
  • 91 -
(5) Changes in carrying value of investments in subsidiaries and associates for the years ended December 31,<br>2025 and 2024 are as follows (Korean Won in millions). As the investments associated with structured entities were classified as financial assets at FVTPL for the years ended December 31, 2025 and 2024, they were excluded from the carrying<br>value of investments in subsidiaries and associates.
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investees January 1,<br>2025 Acquisition Disposal<br>and others Reversal<br>(Impairment) December 31,<br>2025
Woori America Bank 399,831 — — — 399,831
PT Bank Woori Saudara Indonesia 1906 Tbk 704,244 — — — 704,244
Woori Global Markets Asia Limited 113,858 — — — 113,858
Woori Bank China Limited 427,802 — — — 427,802
AO Woori Bank 51,780 — — — 51,780
Banco Woori Bank do Brasil S.A. 21,043 — — (5,096 ) 15,947
Korea BTL Infrastructure Fund 736,911 32,000 — — 768,911
Woori Finance Myanmar Co., Ltd. 13,649 — — — 13,649
Wealth Development Bank 24,355 — — — 24,355
Woori Bank Vietnam Limited 644,590 — — — 644,590
Woori Bank (Cambodia) PLC 386,672 — — — 386,672
Woori Bank Europe 131,442 — — — 131,442
W Service Networks Co., Ltd. 108 — — — 108
Korea Credit Bureau Co., Ltd. 3,313 — — — 3,313
Korea Finance Security Co., Ltd. 3,267 — — — 3,267
K BANK Co., Ltd. 224,657 — — — 224,657
Partner One Value Up I Private Equity Fund 2,146 — — (273 ) 1,873
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund 4,532 98 — — 4,630
Woori-Shinyoung Growth-Cap Private Equity Fund I 8,237 — (4,599 ) — 3,638
LOTTE CARD Co., Ltd. 346,810 — — — 346,810
Woori-Q Corporate Restructuring Private Equity Fund 17,446 — (1,260 ) — 16,186
PCC-Woori LP Secondary Fund 7,000 — — — 7,000
Union Technology Finance Investment Association 13,449 — — — 13,449
Paratus Woori Material Component Equipment joint venture company 12,300 — (5,813 ) — 6,487
BTS 2nd Private Equity Fund 8,146 620 — — 8,766
Woori Financial Digital Investment Association No. 1 44,000 — (2,300 ) — 41,700
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 12,000 1,500 — — 13,500
Win Mortgage Co., Ltd. 23 — — — 23
NH Woori Newdeal Growth Alpha Private Equity Fund 1 34,001 10,769 (4,498 ) — 40,272
SF CREDIT PARTNERS, LLC 13,059 2,445 — — 15,504
Woori Financial Dino Lab Investment Association No. 1 3,500 — — — 3,500
Woori Corporate Turnaround No. 1 Private Equity Fund 8,361 4,247 (10,890 ) — 1,718
Woori Financial Dino Lab Investment Association No. 2 — 6,000 — — 6,000
Total 4,422,532 57,679 (29,360 ) (5,369 ) 4,445,482
  • 92 -
For the year ended December 31, 2024
Investees January 1,<br>2024 Acquisition Disposal<br>and others Reversal<br>(Impairment) December 31,<br>2024
Woori America Bank 399,831 — — — 399,831
PT Bank Woori Saudara Indonesia 1906 Tbk 444,813 259,431 — — 704,244
Woori Global Markets Asia Limited 113,858 — — — 113,858
Woori Bank China Limited 427,802 — — — 427,802
AO Woori Bank 51,780 — — — 51,780
Banco Woori Bank do Brasil S.A. 22,322 — — (1,279 ) 21,043
Korea BTL Infrastructure Fund 736,911 — — — 736,911
Woori Finance Myanmar Co., Ltd. 13,649 — — — 13,649
Wealth Development Bank 24,355 — — — 24,355
Woori Bank Vietnam Limited 384,430 260,160 — — 644,590
Woori Bank (Cambodia) PLC 248,212 138,460 — — 386,672
Woori Bank Europe 131,442 — — — 131,442
W Service Networks Co., Ltd. 108 — — — 108
Korea Credit Bureau Co., Ltd. 3,313 — — — 3,313
Korea Finance Security Co., Ltd. 3,267 — — — 3,267
K BANK Co., Ltd. 236,232 — (11,575 ) — 224,657
Partner One Value Up I Private Equity Fund 3,253 — — (1,107 ) 2,146
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership 4,356 — (4,356 ) — —
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund 4,436 96 — — 4,532
Woori-Shinyoung Growth-Cap Private Equity Fund I 8,237 — — — 8,237
LOTTE CARD Co., Ltd. 346,810 — — — 346,810
Woori-Q Corporate Restructuring Private Equity Fund 8,435 9,011 — — 17,446
PCC-Woori LP Secondary Fund 7,000 — — — 7,000
Union Technology Finance Investment Association 13,449 — — — 13,449
Paratus Woori Material Component Equipment joint venture company 12,300 — — — 12,300
Dicustody Co., Ltd. 1 — (1 ) — —
BTS 2nd Private Equity Fund 5,226 2,920 — — 8,146
Woori Financial Digital Investment Association No. 1 33,000 11,000 — — 44,000
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures 9,000 3,000 — — 12,000
Win Mortgage Co., Ltd. 23 — — — 23
NH Woori Newdeal Growth Alpha Private Equity Fund 1 23,596 15,025 (4,620 ) — 34,001
SF CREDIT PARTNERS, LLC 13,059 — — — 13,059
Woori Financial Dino Lab Investment Association No. 1 — 3,500 — — 3,500
Woori Corporate Turnaround No.1 Private Equity Fund — 8,361 — — 8,361
Total 3,734,506 710,964 (20,552 ) (2,386 ) 4,422,532
  • 93 -
(6) Changes in the book value of subsidiaries and associated investments classified as financial assets at FVTPL as<br>income securities for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Investees January 1,<br>2025 Acquisition Disposal and<br>others Valuation<br>and others December 31,<br>2025
AI Partners UK Water Supply Private Placement Investment Trust No. 2 27,257 — — 4,273 31,530
IGIS Australia Investment Trust No. 209-1 17,386 — (985 ) 236 16,637
Heungkuk Global Private Placement Investment Trust No. 1 6,667 — (1,658 ) 451 5,460
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 12,964 — — (1,528 ) 11,436
Woori Global Development Infrastructure Synergy Company Private Placement Investment<br>Trust 178,761 — (26,256 ) (3,359 ) 149,146
Woori Infrastructure New Deal Private Placement Investment Trust No. 1 54,323 4,704 (1,314 ) (452 ) 57,261
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1 18,802 942 (1,585 ) 2,710 20,869
Woori Global Secondary Private Placement Investment Trust No. 1 19,257 — (1,475 ) (1,459 ) 16,323
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 10,846 — — 235 11,081
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1 8,083 3,660 — 105 11,848
Kiwoom Harmony Private Investment Trust No. 1 687,769 86,000 (587 ) (979 ) 772,203
Kiwoom Harmony Private Investment Trust No. 2 419,685 16,000 (435,685 ) — —
JB Airline Private Placement Investment Trust No. 8 12,528 — (195 ) 267 12,600
Kiwoom Harmony Private Investment Trust No. 4 414,952 — (99 ) (1,946 ) 412,907
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 38,188 12,430 — (814 ) 49,804
Woori Fund Financing General Type Private Investment Trust 122,014 41,374 (92,523 ) (195 ) 70,670
Kiwoom Harmony Private Investment Trust No. 9 — 425,516 (2,356 ) 4,005 427,165
Woori Bank Partners General Type Private Investment Trust No.4 — 81,394 (2,780 ) 2,985 81,599
Total 2,049,482 672,020 (567,498 ) 4,535 2,158,539
  • 94 -
For the year ended December 31, 2024
Investees January 1,<br>2024 Acquisition Disposal and<br>others Valuation<br>and others December 31,<br>2024
AI Partners UK Water Supply Private Placement Investment Trust No. 2 24,585 — — 2,672 27,257
IGIS Australia Investment Trust No. 209-1 19,391 — — (2,005 ) 17,386
Heungkuk Global Private Placement Investment Trust No. 1 8,558 — (2,142 ) 251 6,667
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2 12,904 — — 60 12,964
Woori Global Development Infrastructure Synergy Company Private Placement Investment<br>Trust 133,634 35,257 (9,772 ) 19,642 178,761
Woori Infrastructure New Deal Private Placement Investment Trust No. 1 72,898 4,053 (24,869 ) 2,241 54,323
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1 13,060 4,449 (2,911 ) 4,204 18,802
Woori Global Secondary Private Placement Investment Trust No. 1 14,009 3,597 (571 ) 2,222 19,257
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] 10,538 — — 308 10,846
Woori ESG Infrastructure Development Private Placement Investment Trust No.1 7,134 1,171 (504 ) 282 8,083
Kiwoom Harmony Private Investment Trust No. 1 718,430 — (31,979 ) 1,318 687,769
Kiwoom Harmony Private Investment Trust No. 2 609,680 28,000 (218,434 ) 439 419,685
JB Airline Private Placement Investment Trust No. 8 11,084 — (270 ) 1,714 12,528
Kiwoom Harmony Private Investment Trust No. 4 58,250 354,690 (7,743 ) 9,755 414,952
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 — 37,477 (274 ) 985 38,188
Woori Fund Financing General Type Private Investment Trust — 134,945 (15,281 ) 2,350 122,014
Total 1,714,155 603,639 (314,750 ) 46,438 2,049,482
  • 95 -
14. INVESTMENT PROPERTIES
(1) Details of investment properties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Acquisition cost 503,706 528,669
Accumulated depreciation (74,155 ) (73,048 )
Net carrying value 429,551 455,621
(2) Changes in investment properties for the years ended December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 455,621 528,615
Depreciation (5,355 ) (7,810 )
Classification as asset held for sale (35,137 ) —
Transfer (*) 14,440 (65,280 )
Foreign currencies translation adjustments (18 ) 96
Ending balance 429,551 455,621
(*) This is the reclassification amount between property and equipment, and investment properties for land and<br>buildings for the years ended December 31, 2025 and 2024.
--- ---
(3) Fair value of investment properties amounted to 789,836 million Won and 806,103 million Won as of<br>December 31, 2025 and 2024, 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<br>classified as Level 3 on the fair value hierarchy.
--- ---
(4) Rental fee earned from investment properties amounted to 27,216 million Won and 27,707 million Won<br>for the years ended December 31, 2025 and 2024, respectively. The operating expenses directly related to the investment property where rental fee was earned are 5,355 million Won and 7,810 million Won for the years ended<br>December 31, 2025 and 2024, respectively.
--- ---
(5) The minimum lease payments expected to be received in the future under non-refundable lease agreement as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Lease payments
Within a year 9,363 7,328
More than 1 year and within 2 years 4,802 2,621
More than 2 years and within 3 years 3,251 338
More than 3 years and within 4 years 3,233 52
More than 4 years and within 5 years 1,966 3
More than 5 years 6 7
Total 22,621 10,349
  • 96 -
15. PROPERTIES AND EQUIPMENT
(1) Details of properties and equipment as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Properties and equipment (owned) 1,527,004 571,876 218,665 49,140 44,666 2,411,351
Right-of-use assets — 333,196 16,332 — — 349,528
Carrying value 1,527,004 905,072 234,997 49,140 44,666 2,760,879
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Properties and equipment (owned) 1,526,036 606,322 171,209 40,700 67,314 2,411,581
Right-of-use assets — 380,404 20,339 — — 400,743
Carrying value 1,526,036 986,726 191,548 40,700 67,314 2,812,324
(2) Details of properties and equipment (owned) as of December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Acquisition cost 1,527,004 924,372 910,156 402,853 44,666 3,809,051
Accumulated depreciation — (352,445 ) (691,491 ) (353,713 ) — (1,397,649 )
Accumulated impairment losses — (51 ) — — — (51 )
Net carrying value 1,527,004 571,876 218,665 49,140 44,666 2,411,351
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Acquisition cost 1,526,036 953,641 843,262 399,723 67,314 3,789,976
Accumulated depreciation — (347,319 ) (672,053 ) (359,023 ) — (1,378,395 )
Net carrying value 1,526,036 606,322 171,209 40,700 67,314 2,411,581
(3) Details of changes in properties and equipment (owned) for the years ended December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Beginning balance 1,526,036 606,322 171,209 40,700 67,314 2,411,581
Acquisition 26,291 28,057 107,125 24,593 72,210 258,276
Disposal (148 ) — (147 ) (902 ) (31,355 ) (32,552 )
Depreciation — (29,169 ) (59,455 ) (15,168 ) — (103,792 )
Impairment loss — (51 ) — — — (51 )
Classification to held for sale (78,582 ) (28,897 ) — — — (107,479 )
Transfer (*) 53,424 (4,370 ) — — (63,494 ) (14,440 )
Foreign currencies translation adjustments (17 ) (1 ) (78 ) (82 ) (9 ) (187 )
Others — (15 ) 11 (1 ) — (5 )
Ending balance 1,527,004 571,876 218,665 49,140 44,666 2,411,351
(*) This is reclassification amount between properties and equipment, and investment properties for land and<br>buildings for the year ended December 31, 2025.
--- ---
  • 97 -
For the year ended December 31, 2024
Land Building Properties for<br>business use Leasehold<br>improvement Construction<br>in progress Total
Beginning balance 1,480,693 607,765 150,824 28,378 31,560 2,299,220
Acquisition 215 27,803 78,001 24,677 35,752 166,448
Disposal — — (439 ) (600 ) — (1,039 )
Depreciation — (29,737 ) (57,531 ) (11,883 ) — (99,151 )
Classification to held for sale (16,477 ) (3,215 ) — — — (19,692 )
Transfer (*) 61,544 3,736 17 — (17 ) 65,280
Foreign currencies translation adjustments 86 (18 ) 323 128 19 538
Business combination — — 2 — — 2
Others (25 ) (12 ) 12 — — (25 )
Ending balance 1,526,036 606,322 171,209 40,700 67,314 2,411,581
(*) This is the reclassification amount between properties and equipment, and investment properties for land and<br>buildings for the year ended December 31, 2024.
--- ---
(4) Details of right-of-use assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Acquisition cost 662,069 33,834 695,903
Accumulated depreciation (328,873 ) (17,502 ) (346,375 )
Net carrying value 333,196 16,332 349,528
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Acquisition cost 661,591 33,225 694,816
Accumulated depreciation (281,187 ) (12,886 ) (294,073 )
Net carrying value 380,404 20,339 400,743
(5) Details of changes in right-of-use assets for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Beginning balance 380,404 20,339 400,743
New contracts 95,938 6,143 102,081
Changes in contracts 55,035 — 55,035
Termination (12,862 ) (220 ) (13,082 )
Depreciation (179,470 ) (9,907 ) (189,377 )
Others (5,849 ) (23 ) (5,872 )
Ending balance 333,196 16,332 349,528
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Building Properties for<br>business use Total
Beginning balance 236,974 16,216 253,190
New contracts 276,849 14,250 291,099
Changes in contracts 46,097 15 46,112
Termination (9,879 ) (1,001 ) (10,880 )
Depreciation (169,816 ) (9,910 ) (179,726 )
Others 179 769 948
Ending balance 380,404 20,339 400,743
  • 98 -
16. INTANGIBLE ASSETS
(1) Details of intangible assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Industrial<br>property rights Development<br>cost Others Membership Construction<br>in progress Total
Acquisition cost 2,350 713,690 1,052,938 23,244 166 1,792,388
Accumulated amortization (1,970 ) (494,624 ) (896,214 ) — — (1,392,808 )
Accumulated impairment losses — — (33,552 ) (1,044 ) — (34,596 )
Net carrying value 380 219,066 123,172 22,200 166 364,984
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Industrial<br>property rights Development<br>cost Others Membership Construction<br>in progress Total
Acquisition cost 2,245 635,314 1,010,992 23,948 2,751 1,675,250
Accumulated amortization (1,810 ) (432,903 ) (840,888 ) — — (1,275,601 )
Accumulated impairment losses — — (33,552 ) (1,093 ) — (34,645 )
Net carrying value 435 202,411 136,552 22,855 2,751 365,004
(2) Details of changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Industrial<br>property rights Development<br>cost Others Membership Construction<br>in progress Total
Beginning balance 435 202,411 136,552 22,855 2,751 365,004
Acquisition 1 78,384 39,610 2,044 85 120,124
Disposal — — (34 ) (2,682 ) (16 ) (2,732 )
Amortization (*1) (160 ) (61,729 ) (55,492 ) — — (117,381 )
Provision for impairment loss (*2) — — — (9 ) — (9 )
Transfer 104 — 2,550 — (2,654 ) —
Foreign currencies translation adjustment — — (14 ) (8 ) — (22 )
Ending balance 380 219,066 123,172 22,200 166 364,984
(*1) Amortization of other intangible assets amounting to 32,495 million Won is included in other operating<br>expenses.
--- ---
(*2) Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if<br>recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.
--- ---
  • 99 -
For the year ended December 31, 2024
Industrial<br>property rights Development<br>cost Others Membership Construction<br>in progress Total
Beginning balance 489 163,678 121,343 20,032 98 305,640
Acquisition 18 75,890 58,411 3,976 23,402 161,697
Disposal — (113 ) — (500 ) — (613 )
Amortization (*1) (183 ) (50,033 ) (50,827 ) — — (101,043 )
Provision for impairment loss (*2) — — — (217 ) — (217 )
Transfer 110 12,989 7,650 — (20,749 ) —
Foreign currencies translation adjustment — — (26 ) 45 — 19
Business combination — — 1 — — 1
Others 1 — — (481 ) — (480 )
Ending balance 435 202,411 136,552 22,855 2,751 365,004
(*1) Amortization of other intangible assets amounting to 28,509 million Won is included in other operating<br>expenses.
--- ---
(*2) Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if<br>recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.
--- ---
17. ASSETS HELD FOR SALE
--- ---

Assets held for sale as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Properties and equipment (*) 91,480 31,266
Investment properties (*) 33,588 —
Total 125,068 31,266
(*) The Bank classifies above assets as assets held for sale that are highly likely to be sold within one year from<br>December 31, 2025 and 2024, based on the management’s decision.
--- ---
  • 100 -
18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURE
(1) Assets subjected to lien as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- ---
Collateral given to Amount Reason for collateral
Loans and other financial assets at amortized cost Due from banks in local currency Korea Exchange Co., Ltd. 3,362 Margin deposit for CCP
MSBI LIMITED Seoul 12,634 CSA variable margin and others
Due from banks in foreign currencies Goldman Sachs Intl., and others 353,030 CSA variable margin and others
Mortgage-backed securities Public offering 2,067,313 Covered bonds
Financial assets at FVTPL Korean financial institutions debt securities and others ING BANK and others 587,591 CSA variable margin and others
The BOK and others 1,814,134 Settlement risk and others
Financial assets at FVTOCI Korean treasury and government bonds and others The BOK and others 3,056,643 Related to bonds sold under repurchase agreements (*)
The BOK 362,317 Settlement risk and others
Korean financial institutions debt securities and others The BOK and others 927,890 Related to bonds sold under repurchase agreements (*)
The BOK 9,283,095 Settlement risk and others
Foreign financial institutions debt securities CCIL Exchange 35,867 Related to bonds sold under repurchase agreements (*)
SOCIETE GENERALE, PAR 386,609 CSA variable margin and others
Securities at amortized cost Korean treasury and government bonds and others The BOK and others 9,100,505 Settlement risk and others
Korean financial institutions debt securities and others The BOK and others 5,098,911 Settlement risk and others
Total 33,089,901
(*) The financial assets are not derecognized and provided as collaterals because the Bank entered into an<br>agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Bank continuously recognizes the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.<br>
--- ---
December 31, 2024
--- --- --- --- --- --- --- --- --- ---
Collateral given to Amount Reason for collateral
Loans and other financial assets at amortized cost Due from banks in local currency Korea Exchange Co., Ltd 3 Margin deposit for CCP
Due from banks in foreign currencies BNP-PARIBAS, PAR and others 647,782 CSA variable margin and others
Mortgage-backed securities Public offering 1,790,810 Covered Bonds
Financial assets at FVTPL Korean financial institutions debt securities and others DBS BANK LTD, SEL and others 698,231 CSA variable margin and others
Financial assets at FVTOCI Korean financial institutions debt securities and others CITIBANK, N.A. LONDON and others 74,143 Related to bonds sold under repurchase agreements (*)
Korean financial institutions debt securities and others The BOK and others 8,863,286 Settlement risk and others
Foreign financial institutions debt securities SOCIETE GENERALE, PAR 358,781 CSA variable margin
CCIL Exchange 13,504 Related to bonds sold under repurchase agreements (*)
Securities at amortized cost Korean treasury and government bonds and others The BOK and others 11,526,197 Settlement risk and others
Total 23,972,737
(*) The financial assets are not derecognized and provided as collaterals because the Bank entered into an<br>agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Bank continuously recognize the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.<br>
--- ---
(2) As of December 31, 2025 and 2024, there is no asset acquired through foreclosures.
--- ---
  • 101 -
(3) Securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
December 31,<br>2025 Loaned to
--- --- --- --- --- --- --- ---
Financial assets at FVTOCI Korean treasury and government bonds and others 238,406 Korea Securities Finance Corporation
December 31,<br>2024 Loaned to
Financial assets at FVTPL Korean treasury and government bonds and others 12,361 Korea Securities Finance Corporation

Securities loaned are lending of specific securities to borrowers who agree to return the same quantity of the same security at the end of lending period. As the Bank does not derecognize these securities, there are no liabilities recognized through such transactions relates to securities loaned.

(4) Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties<br>

Fair values of collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025
Fair values of collaterals Fair values of collaterals<br>disposed or re-subjected to lien
Securities 14,220,954 —
December 31, 2024
--- --- --- --- --- --- ---
Fair values of collaterals Fair values of collaterals<br>disposed or re-subjected to lien
Securities 10,101,204 —
19. OTHER ASSETS
--- ---

Details of other assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Prepaid expenses 308,768 264,882
Advance payments 1,166 —
Others 7,156 7,244
Total 317,090 272,126
  • 102 -
20. FINANCIAL LIABILITIES AT FVTPL
(1) Financial liabilities at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Financial liabilities at FVTPL 5,441,087 9,198,831
Financial liabilities designated to be measured at FVTPL 557,501 547,816
Total 5,998,588 9,746,647
(2) Details of Financial liabilities at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Deposits due to customers :
Gold banking liabilities 263,251 74,205
Borrowings
Securities sold 70,298 —
Derivative liabilities 5,107,538 9,124,626
Total 5,441,087 9,198,831
(3) Details of financial liabilities designated to be measured at FVTPL as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Deposits due to customers:
Time deposits 557,501 547,816

These contracts are designated as financial liabilities at fair value through profit or loss in accordance with K- IFRS No.1109 ‘Financial Instruments’ because the group of financial instruments is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, in cases where designating financial liabilities as items measured at fair value through profit or loss makes the information more relevant.

(4) Changes in fair value due to fluctuation in credit risk reflected in financial liabilities designated to be<br>measured at FVTPL for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended<br>December 31, 2025 For the year ended<br>December 31, 2024
--- --- --- --- --- --- --- --- ---
Financial liabilities designated to be measured at FVTPL 557,501 547,816
Changes in fair value due to fluctuation in credit risk (*) 74 (1,831 )
Accumulated changes in fair value due to fluctuation in credit risk (*) (1,757 ) (1,831 )
(*) The loss recognized in other comprehensive income for the year ended December 31, 2025 with respect to<br>financial liabilities designated to be measured at FVTPL are 74 million Won, and the cumulative profit are 1,757 million Won. The profit recognized in other comprehensive income for the year ended December 31, 2024 with respect to<br>financial liabilities designated to be measured at FVTPL are 1,831 million Won, and the cumulative profit are 1,831 million Won.
--- ---

When deposits due to customers are measured at fair value, adjustments are made to reflect the credit risk of the Bank. This is a method determined by adjusting the Bank’s credit spread observed in the credit evaluation.

  • 103 -
(5) The difference between financial liabilities designated to be measured at FVTPL’s carrying amount and<br>nominal amount at maturity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Carrying amount 557,501 547,816
Nominal amount at maturity 540,000 530,000
Difference 17,501 17,816
21. DEPOSITS DUE TO CUSTOMERS
--- ---

Details of deposits due to customers by type as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Deposits in local currency:
Demand deposits 8,210,531 8,875,919
Saving deposits with flexible withdrawal options 125,851,088 115,927,248
Other saving deposits 172,747,445 175,594,380
Mutual installment 18,219 19,901
Certificate of deposits 9,083,199 11,742,425
Sub-total 315,910,482 312,159,873
Deposits in foreign currencies
Deposits in foreign currencies 39,345,525 35,149,577
Present value discount (138,933 ) (144,313 )
Total 355,117,074 347,165,137
  • 104 -
22. BORROWINGS AND DEBENTURES
(1) Details of borrowings as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- ---
Lenders Interest rate (%) Amount
Borrowings in local currency:
Borrowings from the BOK The BOK 1.0 1,845,239
Borrowings from government funds Small Enterprise and Market Service and others 0.0 ~ 3.5 2,195,534
Others The Korea Development Bank and others 0.0 ~ 3.7 3,848,953
Sub-total 7,889,726
Borrowings in foreign currencies The Export-Import Bank of Korea and others 0.8 ~ 4.6 12,303,199
Bills sold Others 0.0 ~ 2.0 1,033
Call money Banks and others 2.2 ~ 4.1 2,031,233
Bonds sold under repurchase agreements The BOK and others 1.0 ~ 5.3 3,832,036
Present value discount (574 )
Total 26,056,653
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 ~ 3.6 3,454,951
Sub-total 7,602,136
Borrowings in foreign currencies The Export-Import Bank of Korea and others 0.5 ~ 5.8 13,876,403
Bills sold Others 0.0 ~ 2.7 3,690
Call money Banks and others 1.7 ~ 4.9 319,499
Bonds sold under repurchase agreements Other financial institutions 1.0 ~ 6.7 86,733
Present value discount (593 )
Total 21,887,868
(2) Details of debentures as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Interest rate (%) Amount Interest rate (%) Amount
Face value of bond (*):
Ordinary bonds 0.8 ~ 5.4 24,693,165 0.8 ~ 6.3 22,170,995
Subordinated bonds 1.9 ~ 5.1 3,872,768 1.9 ~ 5.1 3,471,380
Sub-total 28,565,933 25,642,375
Discounts on bonds (30,461 ) (112,057 )
Total 28,535,472 25,530,318
(*) Includes debentures under fair value hedge amounting to 4,046,624 million Won and 3,952,047 million<br>Won as of December 31, 2025 and 2024, respectively.
--- ---
  • 105 -
23. PROVISIONS
(1) Details of provisions as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Provisions for guarantees (*1) 85,214 76,323
Provisions for unused commitments 68,550 73,303
Asset retirement obligation 91,231 87,599
Other provisions (*2) 393,052 293,906
Total 638,047 531,131
(*1) Provisions for guarantees include provisions for financial guarantees of 59,738 million Won and<br>55,136 million Won as of December 31, 2025 and 2024, respectively.
--- ---
(*2) Other provisions consist of provisions for litigation, compensation for loss and others.
--- ---
(2) Changes in provisions for guarantees and unused loan commitments for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
i) Provisions for guarantees
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 62,433 2,264 11,626 76,323
Transfer to 12-month expected credit loss 535 (535 ) — —
Transfer to expected credit loss for the entire period (438 ) 438 — —
Transfer to credit-impaired financial assets (809 ) (39 ) 848 —
Net provision for unused amount 3,968 1,278 3,344 8,590
Others (*) 300 — 1 301
Ending balance 65,989 3,406 15,819 85,214
(*) Includes the impact from change of financial guarantee liabilities.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 76,507 2,779 7,225 86,511
Transfer to 12-month expected credit loss 317 (317 ) — —
Transfer to expected credit loss for the entire period (228 ) 228 — —
Transfer to credit-impaired financial assets (100 ) (90 ) 190 —
Net provision for (reversal of) unused amount (10,894 ) (336 ) 4,210 (7,020 )
Others (*) (3,169 ) — 1 (3,168 )
Ending balance 62,433 2,264 11,626 76,323
(*) Includes the impact from change of financial guarantee liabilities.
--- ---
  • 106 -
ii) Provisions for unused loan commitments
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 63,943 9,360 — 73,303
Transfer to 12-month expected credit loss 2,054 (2,054 ) — —
Transfer to expected credit loss for the entire period (901 ) 901 — —
Transfer to credit-impaired financial assets (51 ) (100 ) 151 —
Net reversal of unused amount (1,500 ) (3,026 ) (147 ) (4,673 )
Others (81 ) 1 — (80 )
Ending balance 63,464 5,082 4 68,550
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Stage 1 Stage 2 Stage 3 Total
Beginning balance 72,043 8,383 — 80,426
Transfer to 12-month expected credit loss 2,385 (2,385 ) — —
Transfer to expected credit loss for the entire period (1,602 ) 1,602 — —
Transfer to credit-impaired financial assets (57 ) (53 ) 110 —
Net provision for (reversal of) unused amount (9,241 ) 1,815 (110 ) (7,536 )
Others 415 (2 ) — 413
Ending balance 63,943 9,360 — 73,303
(3) Changes in asset retirement obligation for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 87,599 86,290
Provisions provided 3,173 3,553
Provisions used (7,825 ) (4,468 )
Reversal — (223 )
Amortization 1,076 1,243
Increase in restoration costs and others 7,208 1,204
Ending balance 91,231 87,599

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 properties as of December 31, 2025, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each premise’s lease period, and the Bank 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 Bank used average amount of actual recovery cost for the past 3 years and the inflation rate for the preceding year in order to estimate future recovery cost.

(4) Changes in other provisions for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 293,906 452,280
Provisions provided 103,671 29,716
Provisions used and others (4,486 ) (185,562 )
Reversal of unused amount (39 ) (2,528 )
Ending balance 393,052 293,906
  • 107 -
(5) Others
① The Bank recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund<br>(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 Bank recognized a provision for the estimated amount of contractual refunds and loss compensations that may<br>be payable in relation to customer losses expected fund redemption delays, with ending balances of 259,168 million Won and 246,422 million Won as of December 31, 2025 and 2024, respectively. In addition, the Bank recognized a<br>provision—comprising estimated compensation for expected customer losses on equity-linked securities and the expected fines and penalties to be imposed by the Financial Services<br>Commission—amounting to 2,847 million Won and 781 million Won as of December 31, 2025 and 2024, respectively.
--- ---
  • 108 -
24. NET DEFINED BENEFIT LIABILITY(ASSET)

The retirement benefit of the Bank is based on the defined 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 actuarial assumptions that are considered to be the most reasonable estimate of future cash flows (the projected unit method, which takes account of projected earnings increases).

The Bank 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 return on<br>high-quality corporate bonds. A deficit may occur if the rate of return of plan assets falls short of the discount rate.
Decrease in return on high quality corporate bonds A decrease in return on high-quality corporate bonds will<br>be partially 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 Most defined benefit obligations are related to inflation rate; the higher the inflation rate is,<br>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) as of December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Present value of defined benefit obligations 1,711,836 1,588,316
Fair value of plan assets (1,872,173 ) (1,726,232 )
Net defined benefit asset (160,337 ) (137,916 )
(2) Changes in the carrying value of defined benefit obligation for the years ended December 31, 2025 and 2024<br>are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 1,588,316 1,356,260
Current service cost 132,826 121,766
Interest cost 64,507 64,530
Remeasurements Financial assumptions (20,119 ) 79,376
Demographic assumptions — (533 )
Experience adjustments 39,583 (14,545 )
Foreign currencies translation adjustments — 9
Retirement benefit paid (120,526 ) (87,193 )
Past service cost 26,469 —
Effect of moving in and out of associates 780 409
Liability acquired through business combination — 68,237
Ending balance 1,711,836 1,588,316
  • 109 -
(3) Changes in the plan assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
For the years ended<br>December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Beginning balance 1,726,232 1,577,806
Employer’s contribution 213,000 100,000
Interest income 69,761 77,208
Remeasurements (10,825 ) (13,670 )
Retirement benefit paid (123,693 ) (83,331 )
Effect of moving in and out of associates 464 2,514
Asset acquired through business combination — 68,237
Other (2,766 ) (2,532 )
Ending balance 1,872,173 1,726,232
(4) The details of plan assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Time deposits and others 1,872,173 1,726,232
(5) Realized returns on plan assets amount to 58,936 million Won and 63,538 million Won for the years<br>ended December 31, 2025 and 2024, respectively, and the contribution expected to be paid in the current accounting year amounts to 65,094 million Won.
--- ---
(6) The amounts recognized in net income and total comprehensive income in relation to defined benefit plans for<br>the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended<br>December 31, 2025 For the year ended<br>December 31, 2024
--- --- --- --- --- --- --- --- ---
Current service cost 132,826 121,766
Past service cost (*) 26,469 —
Net interest income (5,254 ) (12,678 )
Cost recognized in net income 154,041 109,088
Remeasurements 30,289 77,968
Cost recognized in total comprehensive income 184,330 187,056
(*) This occurred due to changes in the criteria for determining ordinary wages during the year ended<br>December 31, 2025.
--- ---

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 2,405 million Won and 2,030 million Won for the years ended December 31, 2025 and 2024, respectively.

(7) Key actuarial assumptions used in defined benefit liability measurement as of December 31, 2025 and 2024<br>are as follows:
December 31, 2025 December 31, 2024
--- --- --- ---
Discount rate 4.46% 4.03%
Future wage growth rate 5.49% 5.19%
Mortality rate Issued by Korea Insurance<br>Development Institute Issued by Korea Insurance<br>Development Institute
Retirement rate Experience rate for each<br>employment classification Experience rate for each<br>employment classification

The weighted average maturity of defined benefit liability is 9.57 years.

  • 110 -
(8) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation as of<br>December 31, 2025 and 2024 is as follows (Unit: Korean Won in millions):
December 31, 2025 (*) December 31, 2024 (*)
--- --- --- --- --- --- --- --- --- --- ---
Discount rate Increase by 1% point (145,339 ) (137,958 )
Decrease by 1% point 167,619 159,621
Future wage growth rate Increase by 1% point 169,126 160,833
Decrease by 1% point (149,127 ) (141,388 )
(*) Although the above sensitivity analyses are based on a change in an assumption while holding all other<br>assumptions constant; in practice, more than one assumption are correlated. The sensitivity of the defined benefit obligation to changes in principal actuarial assumptions is calculated using the projected unit credit method, the same method applied<br>when calculating the defined benefit obligations recognized in the statement of financial position.
--- ---
(9) The details of the maturity of the defined benefit obligation as of December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Within 1 year 71,790 60,056
After 1 year but less than 2 years 101,440 83,523
After 2 years but less than 5 years 427,450 409,094
After 5 years but less than 10 years 525,678 457,362
After 10 years 1,564,105 1,390,927
25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
--- ---

Other financial liabilities and other liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Other financial liabilities:
Accounts payable 7,001,638 6,119,411
Accrued expenses 3,759,657 4,124,197
Borrowings from trust accounts 7,844,068 6,874,714
Agency business revenue 594,684 733,988
Foreign exchange payables 761,462 882,269
Domestic exchanges payables 11,740,938 7,590,328
Lease liabilities 303,339 349,797
Other miscellaneous financial liabilities 2,129,720 1,775,865
Present value discount (1,229 ) (1,118 )
Sub-total 34,134,277 28,449,451
Other liabilities:
Unearned income 47,859 66,853
Other miscellaneous liabilities 208,980 164,041
Sub-total 256,839 230,894
Total 34,391,116 28,680,345
  • 111 -
26. DERIVATIVES
(1) Derivative assets and derivative liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Nominal<br>amount Assets Liabilities
For fair value<br>hedge For<br>trading For fair value<br>hedge For trading
Interest rate:
Futures 49,325 — — — —
Forwards 3,340,000 — 155,174 — 92,925
Swaps 135,834,660 37,010 142,513 27,050 147,844
Written options 320,000 — — — 8,194
Currency:
Forwards 106,417,617 — 2,677,319 — 1,171,597
Swaps 71,157,953 — 2,815,065 — 3,686,151
Purchase options 67,650 — 1,267 — —
Written options 81,999 — — — 827
Equity:
Forwards 163 — 104 — —
Purchase options 1,711 — 815 — —
Total 317,271,078 37,010 5,792,257 27,050 5,107,538
December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Nominal<br>amount Assets Liabilities
For fair value<br>hedge For<br>trading For fair value<br>hedge For trading
Interest rate:
Futures 101,831 — — — —
Forwards 3,530,000 — 52,855 — 274,980
Swaps 139,967,836 10,102 322,586 102,634 204,743
Purchase options 50,000 — 81 — —
Written options 360,000 — — — 10,595
Currency:
Forwards 111,318,517 — 5,630,127 — 1,799,433
Swaps 83,261,241 — 4,055,766 — 6,829,871
Purchase options 175,224 — 4,779 — —
Written options 265,186 — — — 3,603
Equity:
Forwards 1,520 — 182 — —
Swaps 7,698 — — — 1,401
Purchase options 1,767 — 1,005 — —
Total 339,040,820 10,102 10,067,381 102,634 9,124,626

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 20), and derivatives held for hedging are presented as derivative assets and derivative liabilities in the statements of financial position.

  • 112 -
(2) Overview of the Bank’s hedge accounting
1) Fair value hedge
--- ---

As of December 31, 2025, the Bank has applied fair value hedge on fixed interest rate foreign currency denominated debentures amounting to 3,763,978 million Won, and Korean Won denominated debentures amounting to 282,646 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign currency and Korean Won denominated debentures derived from fluctuations of market interest rate, and as such the Bank entered into interest rate swap agreements designated as hedging instruments.

According to the interest rate swap contract, an amount computed by multiplying the difference between the fixed and variable interest rate to the predetermined nominal amount will be exchanged. As a result, the fixed interest rate condition in the foreign currency and Korean Won denominated debentures will practically be converted into variable interest rate, thereby eliminating the risk of fair value fluctuation. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value to the face value of the hedging instrument.

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 Bank expects the 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 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 Bank receives interest at a fixed interest rate and pays interest at a variable interest rate.

2) Hedges of net investment in foreign operations

Foreign currency exposure arises from the Bank’s net investments in New York branch, LA branch, Singapore branch and etc., which use USD as a functional currency. The risk arises from fluctuation in the spot exchange rate between USD and KRW. This may change the net investment amount.

The risk hedged from net investment hedging is the risk of fluctuations in KRW against USD, which could reduce the net investment carrying amount of the Bank in New York branch, LA branch, Singapore branch and etc.

Some of the Bank’s net investments in New York branch, LA branch, Singapore branch are hedged in USD-denominated foreign currency bonds (Carrying amount as of December 31, 2025: USD 92,000,000) and mitigated the exchange risk arising from the net assets of branch. The bond was designated as a hedging instrument for changes in the value of net investment resulting from fluctuations in the spot exchange rate of USD and KRW.

To assess the effectiveness of the hedge, the Bank determines the economic relationship between the hedging instrument and the hedged item by comparing (offsetting) changes in the amount of foreign investments and the carrying amount of liabilities due to spot exchange rate fluctuation. The Bank’s policy is to hedge its net investment only within the principal range of its liabilities.

  • 113 -
(3) The nominal amounts of the hedging instrument as of December 31, 2025 and 2024 are as follows (Unit: USD,<br>and Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- ---
1 year or less 1 year to 5<br>years More than 5<br>years Total
Fair value hedge
Interest rate risk
Interest rate swaps () 550,000,000 2,100,000,000 — 2,650,000,000
Interest rate swaps (KRW) — — 290,000 290,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures () — 92,000,000 — 92,000,000

All values are in US Dollars.

December 31, 2024
1 year or less 1 year to 5<br>years More than 5<br>years Total
Fair value hedge
Interest rate risk
Interest rate swaps () 25,000,000 2,650,000,000 — 2,675,000,000
Interest rate swaps (KRW) — — 155,000 155,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures () 92,000,000 — — 92,000,000

All values are in US Dollars.

(4) The average interest rate and average exchange rate of the hedging instrument as of December 31, 2025 and<br>2024 are as follows:
December 31, 2025
--- --- ---
Fair value hedge
Interest rate risk
Interest rate swaps () Fixed 3.47% receipt and C.SOFR+1.06% floating paid
Interest rate swaps (KRW) Fixed 3.94% receipt and CD 3M+0.01% floating paid
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (/KRW) 1,421.88

All values are in US Dollars.

December 31, 2024
Fair value hedge
Interest rate risk
Interest rate swaps () Fixed 3.47% receipt and C.SOFR+1.06% floating paid
Interest rate swaps (KRW) Fixed 4.52 % receipt and CD 3M+ 0.02% floating paid
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (/KRW) 1,363.09

All values are in US Dollars.

-114-

(5) Fair value hedge
1) The amounts related to items designated as fair value hedging instruments as of December 31, 2025 and 2024<br>are as follows (Unit: USD and Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Nominal amounts of<br>the hedging<br>instrument Carrying amounts of the hedging<br>instrument Line item in the<br><br><br>statement of financial<br><br><br>position where the<br><br><br>hedging instrument is<br><br><br>located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Fair value hedge
Interest rate risk
Derivative assets
Interest rate swaps 2,650,000,000 (Designated for hedging)
37,010 27,050 Derivative liabilities 93,549
290,000 (Designated for hedging)

All values are in US Dollars.

December 31, 2024
Nominal amounts of<br>the hedging<br>instrument Carrying amounts of the hedging<br>instrument Line item in the<br><br><br>statement of financial<br><br><br>position where the<br><br><br>hedging instrument is<br><br><br>located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Fair value hedge
Interest rate risk
Derivative assets
Interest rate swaps 2,675,000,000 (Designated for hedging)
10,102 102,634 Derivative liabilities 5,265
155,000 (Designated for hedging)

All values are in US Dollars.

2) Details of carrying amount to fair value hedged and amount adjusted due to hedge accounting as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Carrying amounts of the<br>hedging item Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of the<br>hedged item (*) Line item in the statement of<br>financial position in which the<br>hedged item is included Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities Assets Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures — 3,763,978 — 29,538 Debentures (91,877 )
Korean Won denominated debentures — 282,646 — 7,354 Debentures 11,117
(*) The accumulated profit on foreign currency denominated debentures was 29,538 million Won, and the<br>accumulated profit on Korean Won denominated debentures was 7,354 million Won as of December 31, 2025.
--- ---
  • 115 -
December 31, 2024
Carrying amounts of the<br>hedging item Accumulated amount of fair<br>value hedge adjustments on<br>the hedged item included in<br>the carrying amount of<br>the<br>hedged item (*) Line item in the statement of<br>financial position in which the<br>hedged item is included Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities Assets Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures — 3,792,388 — 124,647 Debentures (12,758 )
Korean Won denominated debentures — 159,659 — 4,659 Debentures (4,659 )
(*) The accumulated profit on foreign currency denominated debentures was 124,647 million Won, and the<br>accumulated loss on Korean Won denominated debentures was 4,659 million Won as of December 31, 2024.
--- ---
3) Amounts recognized in profit or loss due to the ineffective portion of fair value hedges for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- ---
Hedge ineffectiveness<br>recognized in profit or loss Line item in the profit or loss
Fair value hedge Interest rate risk 12,789 Other operating income, net
For the year ended December 31, 2024
--- --- --- --- --- --- --- ---
Hedge ineffectiveness<br>recognized in profit or loss Line item in the profit or loss
Fair value hedge Interest rate risk (12,152 ) Other operating expense, net
(6) Hedges of net investment in foreign operations
--- ---
1) The amounts related to items designated as hedging instruments of net investments in foreign operations as of<br>December 31, 2025 and 2024 are as follows (Unit: USD and Korean Won in millions):
--- ---
December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Nominal amounts of<br>the hedging<br>instrument Carrying amounts of the hedging<br>instrument Line item in the<br>consolidated statement<br>of financial position<br>where the hedging<br>instrument is located Changing in fair<br>value used for<br>calculating hedge<br>ineffectiveness
Assets Liabilities
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures 92,000,000 — 132,011 Foreign currency<br>denominated<br>debentures 3,230

All values are in US Dollars.

  • 116 -
December 31, 2024
Nominal amounts of<br>the hedging<br>instrument Carrying amounts of the hedging<br>instrument Line item in the consolidated<br>statement of financial position<br>where the hedging instrument<br>is located Changing in<br>fair value used<br>for calculating<br>hedge<br>ineffectiveness
Assets Liabilities
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures 92,000,000 — 135,240 Foreign currency<br>denominated debentures (16,600 )

All values are in US Dollars.

2) The amounts related to items designated as hedged items of net investments in foreign operations as of<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
December 31, 2025
--- --- --- --- --- --- --- ---
Changing in fair value used for<br>calculating hedge ineffectiveness Balance of foreign currency translation<br>reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets (3,230 ) (6,159 )
December 31, 2024
--- --- --- --- --- --- --- ---
Changing in fair value used for<br>calculating hedge ineffectiveness Balance of foreign currency translation<br>reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets 16,600 (8,536 )
3) The amounts recognized in other comprehensive income and profit or loss related to net investment hedges in<br>foreign operations for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Other comprehensive income Profit or loss
Hedge gain or loss<br>recognized in other<br>comprehensive<br>income Income tax<br>effect Sub-total Hedge ineffectiveness<br>recognized in profit<br>or loss Line item<br>recognizing<br>ineffectiveness
Hedges of net investment in foreign operations —
Foreign exchange risk 3,230 (853 ) 2,377 — —
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Other comprehensive income Profit or loss
Hedge gain or loss<br>recognized in other<br>comprehensive<br>income Income tax<br>effect Sub-total Hedge ineffectiveness<br>recognized in profit<br>or loss Line item<br>recognizing<br>ineffectiveness
Hedges of net investment in foreign operations —
Foreign exchange risk (16,600 ) 4,383 (12,217 ) — —
  • 117 -

No amount was reclassified from reserve of hedges of net investment in foreign operations to profit or loss for the years ended December 31, 2025 and 2024.

27. DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Beginning balance 28 7,848
Amounts recognized in profits or losses (28 ) (7,820 )
Ending balance — 28

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 at the transaction price, even though there are differences noted between the transaction price and the fair value price produced by the valuation techniques at the time of acquisition. In addition, the difference between fair value and transaction price is deferred and amortized to maturity and reflected in profit or loss. The table above presents the difference yet to be realized as profit or losses for the years ended December 31, 2025 and 2024.

28. SHARE CAPITAL AND CAPITAL SURPLUS
(1) The number of authorized shares and others as of December 31, 2025 and 2024 are as follows:<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Shares of common stock authorized 5,000,000,000 Shares 5,000,000,000 Shares
Par value per share 5,000 Won 5,000 Won
Shares of common stock issued 716,000,000 Shares 716,000,000 Shares
Share capital 3,581,392 million Won 3,581,392 million Won
(2) Details of capital surplus as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Capital in excess of par value 1,068,420 1,068,420
  • 118 -
29. HYBRID SECURITIES

The bond-type hybrid securities classified as owner’s equity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Issue date Maturity date Interest rate<br>(%) December 31,<br>2025 December 31,<br>2024
Hybrid securities in local currency June 3, 2015 June 3, 2045 4.4 — 240,000
September 21, 2022 — 5.2 320,000 320,000
September 21, 2022 — 5.5 30,000 30,000
October 16, 2023 — 5.4 300,000 300,000
Hybrid securities in foreign currency July 24, 2024 — 6.4 761,805 761,805
Issuance cost (5,292 ) (5,858 )
Total 1,406,513 1,645,947

The hybrid securities mentioned above are either without a maturity date or its maturity can be extended indefinitely at the maturity date without changing terms, and early redemption may be made after 5, 7 or 10 years from the issue date (Issuer Call). In addition, interest payments can be suspended or canceled at the Bank’s discretion.

30. OTHER EQUITY
(1) Details of other equity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Accumulated other comprehensive income:
Net gain on valuation of financial assets at FVTOCI 4,392 50,263
Net gain on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL 1,274 1,348
Gain on foreign currency translation of foreign operations 15,303 24,470
Loss on evaluation of hedges of net investment in foreign operations (6,159 ) (8,536 )
Remeasurement loss related to defined benefit plan (93,304 ) (72,427 )
Sub-total (78,494 ) (4,882 )
Other capital adjustments (416 ) (50,333 )
Total (78,910 ) (55,215 )
  • 119 -
(2) Changes in the accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Beginning<br>balance Increase<br>(decrease) (*) Reclassification<br>adjustments Income tax<br>effect (*) Ending<br>balance
Net gain (loss) on valuation of financial assets at FVTOCI 50,263 18,007 (80,241 ) 16,363 4,392
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL 1,348 (74 ) — — 1,274
Gain (loss) on foreign currency translation of foreign operations 24,470 (12,140 ) — 2,973 15,303
Gain (loss) on evaluation of hedge of net investment in foreign operations (8,536 ) 3,230 — (853 ) (6,159 )
Remeasurement gain (loss) related to defined benefit plan (72,427 ) (30,289 ) — 9,412 (93,304 )
Total (4,882 ) (21,266 ) (80,241 ) 27,895 (78,494 )
(*) Net loss on valuation of financial assets at FVTOCI includes 1,326 million Won which was transferred to<br>retained earnings due to disposal of equity securities.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Beginning<br>balance Increase<br>(decrease) (*) Reclassification<br>adjustments Income tax<br>effect (*) Ending<br>balance
Net gain (loss) on valuation of financial assets at FVTOCI 73,985 (19,001 ) (13,230 ) 8,509 50,263
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL — 1,831 — (483 ) 1,348
Gain (loss) on foreign currency translation of foreign operations (9,050 ) 45,544 — (12,024 ) 24,470
Gain (loss) on evaluation of hedge of net investment in foreign operations 3,681 (16,600 ) — 4,383 (8,536 )
Remeasurement gain (loss) related to defined benefit plan (15,042 ) (77,968 ) — 20,583 (72,427 )
Total 53,574 (66,194 ) (13,230 ) 20,968 (4,882 )
(*) Net gain on valuation of financial assets at FVTOCI includes 53,539 million Won which was transferred to<br>retained earnings due to disposal of equity securities.
--- ---
  • 120 -
31. RETAINED EARNINGS
(1) Details of retained earnings as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- ---
Legal reserve Legal reserves in Korea 3,329,754 3,049,754
Other legal reserve 33,239 33,239
Sub-total 3,362,993 3,082,993
Voluntary reserve Business rationalization reserve 8,000 8,000
Reserve for financial structure improvement 235,400 235,400
Additional reserve 8,576,104 8,576,104
Regulatory reserve for credit loss 1,952,942 1,767,408
Revaluation reserve 701,685 701,685
Sub-total 11,474,131 11,288,597
Retained earnings before appropriation 6,715,185 6,115,176
Total 21,552,309 20,486,766
1) Legal Reserve
--- ---

In accordance with the Article 40, Banking Act of Korea, earned surplus reserve is appropriated at least one tenth of the earnings after tax on every dividend declaration, not exceeding the paid in capital. This reserve may not be used other than for offsetting a deficit or transferring to capital.

2) Other legal reserve

Other legal reserves were appropriated in the branches located in Japan, India and Bangladesh according to the banking laws of Japan, India and Bangladesh, and may be used to offset any deficit incurred in those branches.

3) Business rationalization reserve

Pursuant to the Restriction of Special Taxation Act, the Bank was previously required to appropriate, as a reserve for business rationalization, amounts equal to tax reductions arising from tax exemptions and tax credits up to December 31, 2001. The requirement was no longer effective from 2002.

4) Reserve for financial structure improvement

From 2002 to 2014, the Finance Supervisory Services recommended banks in Korea to appropriate at least 10 percent of net income after accumulated deficit for financial structure improvement, until tangible common equity ratio equals 5.5 percent. This reserve is not available for payment of cash dividends; however, it can be used to reduce a deficit or be transferred to capital. The reserve and appropriation are an autonomous judgment matter of the Bank since 2015.

5) Additional reserve

Additional reserve is a voluntary reserve to retain earnings for capital adequacy and soundness of the Bank’s operation.

6) Regulatory reserve for credit loss

In accordance with paragraph 1 and 2 of Article 29 of the Regulation on Supervision of Banking Business (“RSBB”), if provisions for credit loss under K-IFRS for the accounting purpose are lower than provisions for credit loss under RSBB, the Bank is prohibited to provide dividends with the regulatory reserve.

7) Revaluation reserve

Revaluation reserve is the amount of limited dividends set by the Board of Directors to be recognized as complementary capital when the gains or losses occurred in the property revaluation by adopting K-IFRS.

  • 121 -
(2) Statements of appropriations of retained earnings (plan) for the years ended December 31, 2025 and 2024<br>are as follows (Unit: Korean won in millions):
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Unappropriated retained earnings:
Unappropriated retained earnings carried over from prior years 4,246,785 3,343,333
Disposal gain or loss in FVTOCI financial assets (1,326 ) 53,540
Net income 2,558,860 2,794,552
Dividend on hybrid equity securities (89,134 ) (76,249 )
6,715,185 6,115,176
Transfer from retained earnings:
Regulatory reserve for credit loss 33,737 —
33,737 —
Appropriation of retained earnings:
Legal reserve 256,000 280,000
Regulatory reserve for credit loss 224,576 185,534
Amortization of loss of repayment of hybrid equity securities 416 49,743
Business combination loss — 590
Cash dividend (dividend per share (Dividend rate based on par value)) 1,164,932 1,352,524
(2025: Common shares of 1,627 Won (33%)
2024: Common shares of 1,889 Won (38%))
1,645,924 1,868,391
Unappropriated retained earnings to be carried forward to next year 5,102,998 4,246,785
  • 122 -
32. REGULATORY RESERVE FOR CREDIT LOSS

In accordance with Paragraph 1 and 2 of Article 29 of the Regulation on Supervision of Banking Business, the Bank calculates and discloses the regulatory reserve for credit loss.

(1) Balances of the regulatory reserve for credit loss as of December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
December 31,<br>2025 December 31,<br>2024
--- --- --- --- --- --- ---
Regulatory reserve for credit loss 1,952,942 1,767,408
Planned provision for regulatory reserve for credit loss 224,576 185,534
Ending balance 2,177,518 1,952,942
(2) Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the<br>planned reserves provided for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions, except for EPS amount):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Net income 2,558,860 2,794,552
Required provision for regulatory reserve for credit loss 224,576 185,534
Adjusted net income after the provision for regulatory reserve 2,334,284 2,609,018
Adjusted EPS after the provision for regulatory reserve (Unit: Korean Won) (*) 3,136 3,537
(*) For the years ended December 31, 2025 and 2024, it was calculated by deducting 89,134 million Won and<br>76,249 million Won, respectively, of dividends on hybrid securities from adjusted net income after the provision for regulatory reserve.
--- ---
33. DIVIDENDS
--- ---

Dividends for the years ended December 31, 2025 and 2024 are 1,627 Won and 1,889 Won per share, respectively, and the total amount of dividends approved are 1,164,932 million Won and 1,352,524 million Won, respectively. Dividends as of December 31, 2025 will be proposed at the regular shareholders’ meeting scheduled on March 20, 2026.

  • 123 -
34. NET INTEREST INCOME
(1) Interest income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Financial assets at FVTPL 111,864 120,688
Financial assets at FVTOCI 1,227,532 1,227,748
Securities at amortized cost 526,918 628,637
Loans and other financial assets at amortized cost:
Interest on due from banks 407,663 453,365
Interest on loans 14,085,257 15,516,770
Interest on other receivables 30,780 35,170
Sub-total 14,523,700 16,005,305
Total 16,390,014 17,982,378
(2) Interest expense recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Interest on deposits due to customers 7,396,318 8,904,688
Interest on borrowings 786,620 975,397
Interest on debentures 945,401 977,084
Interest on lease liability 11,731 12,892
Other interest expense 295,423 370,534
Total 9,435,493 11,240,595
  • 124 -
35. NET FEES AND COMMISSIONS INCOME
(1) Details of fees and commissions income recognized for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Fees and commissions received for brokerage 225,889 241,762
Fees and commissions received related to credit 134,366 151,860
Fees and commissions received for electronic finance 131,857 130,172
Fees and commissions received on foreign exchange handling 43,457 44,237
Fees and commissions received on foreign exchange 42,301 47,311
Fees and commissions received for guarantee 118,277 123,333
Fees and commissions received on securities business 59,512 48,230
Fees and commissions from trust management 203,895 178,352
Other fees 204,290 188,109
Total 1,163,844 1,153,366
(2) Details of fees and commissions expense incurred for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Fees and commissions paid 199,785 179,992
Others 283 211
Total 200,068 180,203
  • 125 -
36. DIVIDEND INCOME
(1) Details of dividend income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Dividend income related to financial assets at FVTPL
Dividends on equity securities 11,929 9,947
Dividends on capital contribution 76,871 96,918
Dividends on beneficiary certificates 345,493 332,818
Sub-total 434,293 439,683
Dividend income related to financial assets at FVTOCI
Dividends on equity securities 20,285 17,566
Dividends on capital contributions 40 160
Sub-total 20,325 17,726
Total 454,618 457,409
(2) Details of dividends related to financial assets at FVTOCI for the years ended December 31, 2025 and 2024<br>are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Dividend income recognized from assets held
Equity securities 19,758 17,726
Dividend income generated from assets disposed
Equity securities 567 —
Total 20,325 17,726
  • 126 -
37. NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL
(1) Details of net gain or loss on financial instruments at FVTPL for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Net gain on financial instruments at FVTPL 307,528 1,528,808
Net gain (loss) on financial instruments designated to be measured at FVTPL 389 (19,647 )
Total 307,917 1,509,161
(2) Details of net gain or loss on financial instruments at FVTPL for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- --- ---
2025 2024
Financial assets at FVTPL Securities Gain on transactions and valuation 395,956 604,282
Loss on transactions and valuation (568,897 ) (215,363 )
Sub-total (172,941 ) 388,919
Loans Gain on transactions and valuation — 11,672
Sub-total — 11,672
Other financial instruments Gain on transactions and valuation 28,139 6,083
Loss on transactions and valuation (25,988 ) (5,456 )
Sub-total 2,151 627
Sub-total (170,790 ) 401,218
Derivatives (for trading) Interest rate derivatives Gain on transactions and valuation 2,086,925 2,971,144
Loss on transactions and valuation (1,828,669 ) (2,925,577 )
Sub-total 258,256 45,567
Currency derivatives Gain on transactions and valuation 9,039,116 14,757,417
Loss on transactions and valuation (8,818,990 ) (13,664,289 )
Sub-total 220,126 1,093,128
Equity derivatives Gain on transactions and valuation 111 1,182,989
Loss on transactions and valuation (175 ) (1,194,094 )
Sub-total (64 ) (11,105 )
Sub-total 478,318 1,127,590
Total 307,528 1,528,808
(*) The Bank manages currency risk based on a comprehensive position that includes both domestic and international<br>spot and futures foreign exchange positions. Details on gains and losses related to foreign exchange are described in Notes 40. (2) and (3).
--- ---
  • 127 -
(3) Details of net gain or loss on financial instruments designated to be measured at FVTPL for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Net gain (loss) on deposits due to customers:
Net gain (loss) on valuation of time deposit 389 (19,647 )
38. NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI
--- ---

Details of net gain or loss on financial assets at FVTOCI recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Gain on disposal of securities 137,515 92,107
39. REVERSAL OF (PROVISION FOR) EXPECTED CREDIT LOSS ALLOWANCE
--- ---

Reversal of (provision for) expected credit loss allowance for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Provision for expected credit loss allowance on financial assets measured at FVTOCI (8,595 ) (8,865 )
Reversal of (provision for) expected credit loss allowance on securities at amortized<br>cost (335 ) 3,233
Provision for expected credit loss allowance on loans and other financial assets at amortized<br>cost (814,273 ) (707,189 )
Reversal of (provision for) provision on guarantee (8,590 ) 7,020
Reversal of unused loan commitments 4,673 7,536
Total (827,120 ) (698,265 )
  • 128 -
40. GENERAL ADMINISTRATIVE EXPENSES AND OTHER OPERATING INCOME (EXPENSES), NET
(1) Details of general and administrative expenses recognized for the years ended December 31, 2025 and 2024<br>are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- --- --- --- ---
2025 2024
Employee benefits Short-term employee benefits Salaries 1,474,808 1,396,958
Employee benefits 599,084 524,809
Share-based payments 50,934 23,261
Retirement benefit service costs 156,446 111,117
Termination benefits 169,013 (3,485 )
Sub-total 2,450,285 2,052,660
Depreciation and amortization 378,054 351,410
Other general and administrative expenses Rent 81,158 79,766
Taxes and public dues 148,982 151,414
Service charges 239,268 226,428
Computer and IT related 184,921 168,620
Telephone and communication 47,472 45,041
Advertising 167,316 140,399
Printing 3,447 4,081
Traveling 8,221 7,311
Supplies 4,979 5,087
Insurance premium 2,777 2,639
Maintenance 13,261 13,795
Water, light and heating 14,545 14,723
Vehicle maintenance 6,560 6,783
Others 106,216 57,067
Sub-total 1,029,123 923,154
Total 3,857,462 3,327,224
(2) Details of other operating income recognized for the years ended December 31, 2025 and 2024 are as follows<br>(Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Gain on transactions of foreign exchange 1,386,918 661,501
Gain on derivatives (designated for hedging) 102,915 40,843
Gain on fair value hedged items 12,013 25,469
Others 2,677 881
Total 1,504,523 728,694
(*) The Bank manages currency risk based on a comprehensive position that includes both domestic and international<br>spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).
--- ---
  • 129 -
(3) Details of other operating expenses recognized for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Loss on transactions of foreign exchange (*1) 1,010,813 1,693,920
KDIC deposit insurance premium 479,229 492,443
Contribution to miscellaneous funds 522,390 526,544
Loss on derivatives (designated for hedging) 9,532 24,252
Loss on fair value hedged items 92,138 64,571
Others (*2) 112,838 146,525
Total 2,226,940 2,948,255
(*1) The Bank manages currency risk based on a comprehensive position that includes both domestic and international<br>spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).
--- ---
(*2) ‘Others’ for the years ended December 31, 2025 and 2024, include 32,495 million Won and<br>28,509 million Won, respectively, of amortization expenses for intangible assets.
--- ---
(4) Share-based Payment
--- ---

Details of performance condition share-based payment granted to executives as of December 31, 2025 and 2024 are as follows:

1) Performance condition share-based payment
Subject to Shares granted for the year 2021 (*4)
--- --- --- --- ---
Type of payment Cash-settled
Vesting period January 1, 2021 ~ December 31, 2024
Date of payment January 1, 2025
Fair value (Unit: Korean Won) (*1) —
Valuation method —
Dividend yield —
Expected maturity —
Number of shares measured as of the closing<br>date (*2),(*3) As of December 31, 2025 —
As of December 31, 2024 865,494 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 January 1, 2026
Fair value (Unit: Korean Won) (*1) 27,713
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 0 year
Number of shares measured as of the closing<br>date (*2),(*3) As of December 31, 2025 737,601 shares
As of December 31, 2024 737,601 shares
  • 130 -
Subject to Shares granted for the year 2023
Type of payment Cash-settled
Vesting period January 1, 2023 ~ December 31, 2026
Date of payment January 1, 2027
Fair value (Unit: Korean Won) (*1) 25,763
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 1 year
Number of shares measured as of the closing<br>date (*2),(*3) As of December 31, 2025 755,920 shares
As of December 31, 2024 755,920 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 January 1, 2028
Fair value (Unit: Korean Won) (*1) 23,949
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 2 years
Number of shares measured as of the closing<br>date (*2),(*3) As of December 31, 2025 1,189,935 shares
As of December 31, 2024 1,189,935 shares
Subject to Shares granted for the year 2025
Type of payment Cash-settled
Vesting period January 1, 2025 ~ December 31, 2028
Date of payment January 1, 2029
Fair value (Unit: Korean Won) (*1) 22,263
Valuation method Black-Scholes Model
Dividend yield 7.300%
Expected maturity 3 years
Number of shares measured as of the closing<br>date (*2),(*3) As of December 31, 2025 875,569 shares
As of December 31, 2024 - shares
(*1) As of December 31, 2025, the fair value calculated using the Black-Scholes model was used to measure<br>liabilities by reflecting the average dividend rate for the past four years to the stock price of the weighted average of Woori Financial Group’s trading volume for the past week, month and two months.
--- ---
(*2) At the initial point in time (January 1st of each fiscal year), the maximum number of shares granted is<br>determined. The final number of shares to be paid is confirmed based on the evaluation results of long-term performance indicators over a total of four years, including the current year. The final compensation is then paid in cash, reflecting the<br>stock price at the time of payment. The long-term performance indicators include relative shareholder returns, common Equity Tier 1 capital ratio, net income, return on equity (ROE),<br>cost-to-income ratio (C/I ratio), non-performing loan ratio, and performance in assigned duties.
--- ---
(*3) As of December 31, 2025, the remaining quantity and granted quantity are the same.
--- ---
(*4) It has been fully paid as of December 31, 2025.
--- ---
2) The Bank accounts for performance condition share-based payments according to the cash-settled method and the<br>fair value of the liabilities is reflected in the compensation costs by re-measuring per every closing period. As of December 31, 2025 and 2024, the book value of the liabilities related to the<br>performance condition share-based payments recognized by the Bank is 87,906 million Won and 50,674 million Won, respectively.
--- ---
  • 131 -
41. OTHER NON-OPERATING INCOME (EXPENSES)
(1) Details of gains or losses on valuation of investments in subsidiaries and associates recognized for the years<br>ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Impairment loss 5,368 2,386
(2) Details of other non-operating income and expenses recognized for the<br>years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Other non-operating income 142,432 145,933
Other non-operating expenses (267,998 ) (174,773 )
Total (125,566 ) (28,840 )
(3) Details of other non-operating income recognized for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Rental fee income 28,330 29,338
Dividend gains on investment in subsidiaries and associates 43,187 73,339
Equity method trading income — 12,609
Gains on disposal of assets held for sale 33,598 —
Gains on disposal of properties and equipment, intangible assets and other assets 6,177 337
Others 31,140 30,310
Total 142,432 145,933
(4) Details of other non-operating expenses recognized for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Depreciation on investment properties 5,355 7,810
Interest expenses of rent leasehold deposits 1,113 1,631
Losses on disposal of properties and equipment, intangible assets and other assets 1,379 1,435
Impairment loss of properties and equipment, intangible assets and other assets 360 217
Donation 143,444 111,022
Others (*) 116,347 52,658
Total 267,998 174,773
(*) Other special losses related to other provisions for the years ended December 31, 2025 and 2024 are<br>98,913 million Won and 31,023 million Won, respectively.
--- ---
  • 132 -
42. INCOME TAX EXPENSE
(1) Details of income tax expenses for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean<br>Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Current tax expense
Current tax expense in respect of the current year 1,012,014 474,798
Adjustments recognized in the current period in relation to the current tax of prior<br>periods 8,735 (32,584 )
Current tax charged to other equity directly (853 ) 4,383
Sub-total 1,019,896 446,597
Deferred tax expense
Change in deferred tax assets (liabilities) relating to the temporary differences (298,903 ) 404,805
Deferred tax charged to other equity directly 28,748 16,585
Sub-total (270,155 ) 421,390
Income tax expense 749,741 867,987
(2) Income tax expenses reconciled to net income before income tax expense for the years ended December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- ---
2025 2024
Net income before income tax expense 3,308,601 3,662,539
Tax calculated at statutory tax rate (*) 863,109 956,548
Adjustments
Effect of income that is exempt from taxation (29,990 ) (30,868 )
Effect of expense not deductible in determining taxable profit 22,413 11,816
Adjustments recognized in the current period in relation to the current tax of prior<br>periods 8,735 (32,584 )
Effect of income tax expense that is resulting from consolidated tax return (111,659 ) (66,172 )
Others (2,867 ) 29,247
Sub-total (113,368 ) (88,561 )
Income tax expense 749,741 867,987
Effective tax rate 22.7 % 23.7 %
(*) The applicable income tax rate; 1) 9.9% for below 200 million Won, 2) 20.9% for above 200 million Won<br>and below 20 billion Won, 3) 23.1% for above 20 billion Won and below 300 billion Won, 4) 26.4% for above 300 billion Won.
--- ---
  • 133 -
(3) Changes in cumulative temporary differences for the years ended December 31, 2025 and 2024, are as follows<br>(Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Beginning balance Recognized as income<br>(loss) Recognized as other<br>comprehensive income (loss) Ending balance
Gain (loss) on financial assets (253,137 ) 90,877 16,363 (145,897 )
Gain (loss) on valuation of derivatives (226,996 ) 46,903 — (180,093 )
Accrued income (112,273 ) (7,751 ) — (120,024 )
Provision for loan losses 18,957 10,121 — 29,078
Loans and receivables written off 4,494 210 — 4,704
Loan origination costs and fees (161,273 ) 41,046 — (120,227 )
Defined benefit liability 439,587 46,079 9,412 495,078
Deposits with employee retirement insurance trust (463,300 ) (68,765 ) — (532,065 )
Provision for guarantee 5,594 1,412 — 7,006
Other provision 107,006 15,432 — 122,438
Others (135,731 ) 94,591 2,973 (38,167 )
Net deferred tax assets (liabilities) (777,072 ) 270,155 28,748 (478,169 )
For the year ended December 31, 2024
Beginning balance Recognized as income<br>(loss) Recognized as other<br>comprehensive income (loss) Ending balance
Gain (loss) on financial assets (146,804 ) (114,842 ) 8,509 (253,137 )
Gain (loss) on valuation of derivatives 49,556 (276,552 ) — (226,996 )
Accrued income (128,508 ) 16,235 — (112,273 )
Provision for loan losses 879 18,078 — 18,957
Loans and receivables written off 4,382 112 — 4,494
Loan origination costs and fees (145,464 ) (15,809 ) — (161,273 )
Defined benefit liability 373,503 45,500 20,584 439,587
Deposits with employee retirement insurance trust (445,731 ) (17,569 ) — (463,300 )
Provision for guarantee 7,803 (2,209 ) — 5,594
Other provision 150,961 (43,955 ) — 107,006
Others (92,845 ) (30,379 ) (12,507 ) (135,731 )
Net deferred tax assets (liabilities) (372,268 ) (421,390 ) 16,586 (777,072 )
(4) Unrealizable temporary differences as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Deductible temporary differences 264,208 258,693
Taxable temporary differences (108,055 ) (108,055 )
Total 156,153 150,638

No deferred income tax asset has been recognized for the deductible temporary difference of 264,208 million Won associated with investments in subsidiaries as of December 31, 2025, because it is not probable that the temporary differences will be reversed in the foreseeable future.

  • 134 -

No deferred income tax liability has been recognized for the taxable temporary difference of 108,055 million Won associated with investment in subsidiaries as of December 31, 2025, due to the following reasons:

• The Bank can control the timing of the reversal of the temporary differences.
• It is probable that the temporary differences will not be reversed in the foreseeable future.<br>
--- ---
(5) Details of accumulated deferred tax charged directly to other equity as of December 31, 2025 and 2024 are<br>as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- ---
Net loss on valuation of financial assets at FVTOCI (1,667 ) (18,030 )
Net loss on changes in credit risk of financial liabilities designated to be measured at<br>FVTPL (483 ) (483 )
Net loss on foreign currency translation of foreign operations (5,805 ) (8,778 )
Net gain on evaluation of hedges of net investment in foreign operations 2,102 2,955
Remeasurement gain related to defined benefit plan 35,391 25,979
Total 29,538 1,643
(6) Current tax assets and liabilities as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in<br>millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Current tax assets 26,747 33,122
Current tax liabilities 676,845 76,361
(7) Impact of Pillar Two income taxes
--- ---

Under the Pillar 2 legislation, the Bank is required to pay top-up taxes on the difference between the GloBE effective tax rate of each constituent entity’s jurisdiction and the minimum tax rate of 15%. The Bank recognized income tax expense amounting to 1,569 million Won for the year ended December 31, 2025. The Bank applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income Taxes.

  • 135 -
43. EARNINGS PER SHARE (“EPS”)
(1) Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding for the<br>years ended December 31, 2025 and 2024 (Unit: Korean Won in millions, except for EPS and number of shares):
--- ---
For the years ended December 31
--- --- --- --- --- --- --- --- ---
2025 2024
Net income for the period attributable to common shareholders 2,558,860 2,794,552
Dividends to hybrid securities (89,134 ) (76,249 )
Net income attributable to common shareholders 2,469,726 2,718,303
Weighted average number of common shares outstanding (Unit: million shares) 716 716
Basic EPS (Unit: Korean Won) 3,449 3,797
(2) The weighted average number of common shares outstanding for the years ended December 31, 2025 and 2024<br>are as follows:
--- ---
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Period Number of<br>shares Days Accumulated<br>number of shares<br>outstanding<br>during period
Common shares issued at the beginning of the period 2025-01-01 ~ 2025-12-31 716,000,000 365 261,340,000,000
Sub-total (①) 261,340,000,000
Weighted average number of common shares<br>outstanding (②=(①/365)) 716,000,000
For the year ended December 31, 2024
Period Number of<br>shares Days Accumulated<br>number of shares<br>outstanding<br>during period
Common shares issued at the beginning of the period 2024-01-01 ~ 2024-12-31 716,000,000 366 262,056,000,000
Sub-total (①) 262,056,000,000
Weighted average number of common shares<br>outstanding (②=(①/366)) 716,000,000

Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2025 and 2024.

  • 136 -
44. CONTINGENT LIABILITIES AND COMMITMENTS
(1) Details of guarantees as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):<br>
--- ---
December 31, 2025 (*) December 31, 2024 (*)
--- --- --- --- --- --- ---
Confirmed guarantees
Guarantee for loans 69,961 60,571
Acceptances 241,934 202,342
Guarantees in acceptances of imported goods 66,879 63,488
Other confirmed guarantees 11,419,406 10,893,270
Sub-total 11,798,180 11,219,671
Unconfirmed guarantees
Local letter of credit 146,464 163,053
Letter of credit 2,541,397 3,120,971
Other unconfirmed guarantees 1,277,778 1,465,226
Sub-total 3,965,639 4,749,250
Commercial paper purchase commitments and others 2,685,127 2,734,770
Total 18,448,946 18,703,691
(*) Includes financial guarantees of 7,911,285 million Won and 6,978,786 million Won as of<br>December 31, 2025 and December 31, 2024, respectively.
--- ---
(2) Details of loan commitments and others as of December 31, 2025 and 2024 are as follows (Unit: Korean Won<br>in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Loan commitments 86,157,613 88,385,611
Other commitments 7,520,384 6,871,259
(3) Litigation case
--- ---

Legal cases where the Bank is involved as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions except for number of cases):

December 31, 2025 December 31, 2024
As plaintiff As defendant As plaintiff As defendant
Number of cases (*) 28 cases 187 cases 19 cases 195 cases
Amount of litigation 277,374 216,653 257,936 232,073
Provisions for litigations 46,594 14,383
(*) The number of cases as of December 31, 2025 and 2024 does not include cases such as loan-related execution<br>or simple extension of loan prescription, litigation where the substantive party is not the Bank, or fraudulent lawsuits.
--- ---
  • 137 -
45. RELATED PARTY TRANSACTIONS

Related parties of the Bank as of December 31, 2025 and its assets and liabilities recognized as of December 31, 2025 and 2024 and major transactions with related parties for the years ended December 31, 2025 and 2024 and compensation to key management are as follows:

(1) Related parties
Related parties
--- --- ---
Parent company Woori Financial Group Inc.
Subsidiaries Woori America Bank, PT Bank Woori Saudara Indonesia 1906 Tbk, Woori Global Markets Asia Limited, Woori Bank China Limited, AO Woori Bank, Banco Woori Bank do Brasil S.A., Korea BTL Infrastructure Fund, Woori Bank (Cambodia) PLC,<br>Woori Finance Myanmar Co., Ltd., Wealth Development Bank, Woori Bank Vietnam Limited, Woori Bank Europe, Woori Bank Principal Guaranteed Trust and Woori Bank Principal and Interest Guaranteed Trust (Consolidated Trusts), Jeonju Iwon Ltd. and 42<br>structured entities (Consolidated structured entities), Heungkuk Global Private Placement Investment Trust No. 1 and 15 beneficiary certificates (Consolidated beneficiary certificates)
Associates W Service Networks Co., Ltd., Korea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., LOTTE CARD Co., Ltd., K BANK Co., Ltd., and others (Dongwoo C & C Co., Ltd. and 39 associates)
Other related parties Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates(*1), Woori Card Co., Ltd. and its subsidiaries, Woori Financial Capital Co., Ltd. and its subsidiaries and associates, Woori Investment Securities Co., Ltd. and<br>its subsidiaries and associates (*2), ABL Life Insurance Co.,Ltd. and its subsidiaries and associates(*1), Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Financial F&I Co., Ltd. and its subsidiaries and associates, Woori Asset Management<br>Co., Ltd. and its subsidiaries and associates, Woori Venture Partners Co., Ltd. and its subsidiaries and associates, Woori Private Equity Asset Management Co., Ltd. and its associates, Woori Credit Information Co., Ltd., Woori Fund Service Co.,<br>Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Godo Kaisha Oceanos No. 1, JC Assurance Private Equity Partnership No. 2, IGEN 2022 Private Equity Fund No. 1, etc.
(*1) Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates and ABL Life Insurance Co.,Ltd. and its<br>subsidiaries and associates were incorporated into Woori Financial Group for the year ended December 31, 2025.
--- ---
(*2) Woori Investment Bank Co., Ltd. was renamed to Woori Investment Securities Co., Ltd. following a merger with<br>Korea Foss Securities Co., Ltd. for the year ended December 31, 2024.
--- ---
(2) Major assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in<br>millions):
--- ---
Related parties A title of account December 31, 2025 December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Parent company Woori Financial Group Inc. Other assets 27,364 33,632
Deposits due to customers 489,321 1,285,912
Other liabilities 652,362 63,893
Subsidiaries Woori America Bank Cash and cash equivalents 377,580 528,095
Other assets 6 3
PT Bank Woori Saudara Indonesia 1906 Tbk Cash and cash equivalents 39,297 45,884
Loans 559,611 205,800
Expected credit loss allowance (1,140 ) (412 )
Other assets 411 48
Woori Global Markets Asia Limited Loans 446,142 415,455
Expected credit loss allowance (263 ) (235 )
Other assets 2,517 55
Deposits due to customers 20,712 8,371
Other liabilities 14 —
  • 138 -
Related parties A title of account December 31, 2025 December 31, 2024
Woori Bank China<br> <br>Limited Cash and cash equivalents 47,869 61,263
Other assets 17,377 13,313
Deposits due to customers 188,266 389,395
Borrowings 457,518 43,405
Other liabilities 17,352 13,303
AO Woori Bank Cash and cash equivalents 7,626 74,761
Loans 171,870 155,932
Expected credit loss allowance (1,163 ) (1,110 )
Other assets 23,834 15,459
Deposits due to customers 8,861 6,119
Woori Finance Myanmar Co., Ltd. Loans 15,497 10,114
Expected credit loss allowance (31 ) (19 )
Other assets 120 16
Other liabilities 42 241
Woori Bank Vietnam<br> <br>Limited Cash and cash equivalents 28,660 15,064
Loans 365,866 29,844
Expected credit loss allowance (731 ) (58 )
Derivative assets 4 —
Other assets 1,858 70
Deposits due to customers 8,988 2,423
Borrowings 903,745 44,100
Other liabilities 308 1,175
Woori Bank (Cambodia) PLC Loans 71,745 308,700
Expected credit loss allowance (144 ) (592 )
Other assets 6 3
Other liabilities 403 328
Woori Bank Europe Cash and cash equivalents 124,141 3,426
Loans 432,749 478,495
Expected credit loss allowance (1,309 ) (1,083 )
Other assets 4,093 7,200
Borrowings 29,884 81,327
Banco Woori Bank do Brasil S.A. Loans 7,246 8,232
Expected credit loss allowance (4 ) (5 )
Other assets 43 57
Wealth Development Bank Loans 14,349 —
Expected credit loss allowance (29 ) —
Other assets 314 —
Other liabilities 70 120
Korea BTL Infrastructure Fund Other assets 9 9
Consolidated trusts Other liabilities 151,307 105,332
Consolidated structured entities Loans 6,784 8,759
Expected credit loss allowance (26 ) (27 )
Derivative assets 5,594 14,027
Other assets 585 243
Deposits due to customers 9,136 6,600
Derivative liabilities 3,201 720
Other liabilities 8,875 9,064
  • 139 -
Related parties A title of account December 31, 2025 December 31, 2024
Consolidated beneficiary certificates Derivative liabilities 937 2,003
Associates W Service Networks Co., Ltd. Deposits due to customers 3,009 3,054
Other liabilities 316 309
Korea Credit Bureau Co., Ltd. Deposits due to customers 2,615 780
Other liabilities 10 —
Korea Finance Security Co., Ltd. Loans 3,400 3,200
Expected credit loss allowance (23 ) (42 )
Deposits due to customers 2,138 1,145
Other liabilities 1 3
LOTTE CARD Co., Ltd. Loans 14,349 14,700
Expected credit loss allowance (29 ) (28 )
Derivative assets 564 1,075
Other assets 62 48
Deposits due to customers 22,869 20,207
Derivative liabilities 807 —
Other liabilities 289 273
K BANK Co., Ltd. Other assets 43 —
Other liabilities 158,668 193,719
Others (*) Loans — 41
Deposits due to customers 1,830 1,993
Other liabilities 541 232
Other related parties Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates Derivative assets 31,821 —
Other assets 266,487 —
Deposits due to customers 94,371 —
Derivative liabilities 827 —
Other liabilities 8,328 —
Woori Card Co., Ltd. and its subsidiaries Loans 5,740 5,880
Expected credit loss allowance (40 ) (39 )
Derivative assets 102 315
Other assets 14,047 12,943
Borrowings 22,733 48,464
Deposits due to customers 67,039 25,482
Derivative liabilities 32,449 69,580
Other liabilities 23,537 26,262
Woori Investment Securities Co., Ltd. and its subsidiaries and associates Deposits due to customers 399,312 990,946
Other liabilities 1,942 2,811
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates Deposits due to customers 8,286 —
Other liabilities 70 —
Woori FIS Co., Ltd. Other assets 177 111
Deposits due to customers 9,082 6,968
Other liabilities 15,682 17,631
Woori Private Equity Asset Management Co., Ltd. and its associates Derivative assets — 255
Deposits due to customers 15,408 12,730
Other liabilities 18 1
Woori Finance Research Institute Co., Ltd. Deposits due to customers 1,301 1,839
Other liabilities 553 534
Woori Credit Information Co., Ltd. Other assets 6 7
Deposits due to customers 14,039 9,469
Other liabilities 9,852 9,857
  • 140 -
Related parties A title of account December 31, 2025 December 31, 2024
Woori Fund Service Co., Ltd. Deposits due to customers 20,939 17,910
Other liabilities 1,592 1,681
Woori Asset Management Co., Ltd. and its subsidiaries and associates Deposits due to customers 33,797 21,302
Woori Asset Trust Co., Ltd. Deposits due to customers 93,370 198,773
Other liabilities 116 253
Woori Financial Capital Co., Ltd. and its subsidiaries and associates Deposits due to customers 79,619 473,951
Other liabilities 8,084 6,177
Woori Financial F&I Co., Ltd. and its subsidiaries and associates Loans — 4,900
Expected credit loss allowance — (9 )
Deposits due to customers 10,185 13,984
Other liabilities 86 178
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-1 and its subsidiaries Derivative liabilities — 1
Woori Savings Bank Other assets 18 14
Godo Kaisha Oceanos No. 1 Loans — 38,770
Expected credit loss allowance — (272 )
Other assets — 63
Woori Venture Partners Co., Ltd. and its subsidiaries and associates Deposits due to customers 56,120 78,494
Other liabilities 189 359
JC Assurance Private Equity Partnership No. 2 Deposits due to customers 1 28
IGEN 2022 Private Equity Fund No. 1 Deposits due to customers 428 427
(*) Others include Win Mortgage Co., Ltd., Dongwoo C & C Co., Ltd. and others as of December 31. 2025 and<br>2024.
--- ---
  • 141 -
(3) Major gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):<br>
For the years ended<br>December 31
--- --- --- --- --- --- --- --- --- --- --- ---
Related parties A title of account 2025 2024
Parent company Woori Financial Group Inc. Fees income 19 19
Other income 4,400 4,277
Interest expenses 27,356 51,778
Fees expenses 1,815 1,625
Subsidiaries Woori America Bank Interest income — 347
Fees income 562 432
Other income 198 210
Reversal of impairment losses due to credit loss — (11 )
PT Bank Woori Saudara Indonesia 1906 Tbk Interest income 19,577 17,856
Dividends income 9,451 16,697
Fees income 640 254
Provision of impairment losses due to credit loss 729 213
Woori Global Markets Asia Limited Interest income 21,235 23,387
Fees income 193 150
Interest expenses 149 —
Provision (Reversal) of impairment losses due to credit loss 28 (14 )
Woori Bank China Limited Interest income 71 48
Fees income 660 579
Gain on derivatives 33,057 54,050
Interest expenses 3,171 444
Fees expenses 237 217
Loss on derivatives 47,258 10,824
AO Woori Bank Interest income 7,073 7,306
Fees income 1 1
Provision (Reversal) of impairment losses due to credit loss 53 (2,460 )
Banco Woori Bank do Brasil S.A. Interest income 564 725
Fees income 21 29
Reversal of impairment losses due to credit loss — 2
Wealth Development Bank Interest income 135 —
Fees income 250 13
Provision (Reversal) of impairment losses due to credit loss (34 ) 81
Korea BTL Infrastructure Fund Dividends income 23,669 24,374
Fees income 74 73
Woori Finance Myanmar Co., Ltd. Interest income 768 718
Fees income 186 204
Provision (Reversal) of impairment losses due to credit loss (83 ) 22
  • 142 -
For the years ended<br>December 31
Related parties A title of account 2025 2024
Woori Bank Vietnam Limited Interest income 3,402 1,335
Dividends income — 6,483
Fees income 1,516 515
Gain on derivatives 4 1
Interest expenses 5,011 12,951
Provision (Reversal) of impairment losses due to credit loss 660 (546 )
Woori Bank (Cambodia) PLC Interest income 10,026 30,337
Fees income 484 492
Reversal of impairment losses due to credit loss (374 ) (708 )
Woori Bank Europe Interest income 11,113 20,034
Fees income 400 124
Provision (Reversal) of impairment losses due to credit loss 226 (1,092 )
Consolidated trusts Other income 6,217 5,728
Interest expenses 3,650 3,547
Consolidated beneficiary certificates Gain on derivatives 1,066 —
Loss on derivatives — 988
Consolidated structured entities Interest income 328 573
Fees income 23,912 22,895
Gain on derivatives 361 9,869
Interest expenses 6 5
Loss on derivatives 10,951 909
Provision (Reversal) of impairment losses due to credit loss 92 (1,585 )
Associates W Service Networks Co., Ltd. Dividends income 5 5
Other income 37 35
Interest expenses 30 37
Korea Credit Bureau Co., Ltd. Dividends income 90 90
Interest expenses 10 —
Korea Finance Security Co., Ltd. Interest income 152 142
Interest expenses 2 3
Reversal of impairment losses due to credit loss (22 ) (30 )
LOTTE CARD Co., Ltd. Interest income 1,503 1,581
Fees income 3,416 3,739
Dividends income 7,743 15,591
Gain on derivatives 248 1,075
Interest expenses 2,593 4,127
Loss es on derivatives 1,318 457
Provision of impairment losses due to credit loss 17 12
K BANK Co., Ltd. Other expenses 2 —
Others (*) Dividends income 2,229 10,100
  • 143 -
For the years ended<br>December 31
Related parties A title of account 2025 2024
Interest expenses 14,016 18,044
Other related parties Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates Fees income 8,809 —
Gain on derivatives 20,410 —
Other income 3,716 —
Interest expenses 1,221 —
Other expenses 2,513 —
Woori Card Co., Ltd. and its subsidiaries Interest income 1,082 974
Fees income 70,655 89,354
Gain on derivatives 1,924 2,865
Other income 1,212 1,119
Interest expenses 357 163
Fees expenses 821 684
Loss on derivatives 589 45,027
Provision (Reversal) of impairment losses due to credit loss 9 (12 )
Other expenses 7 —
Woori Investment Securities Co., Ltd. and its subsidiaries and associates Interest income 156 5
Fees income 3,410 2,874
Other income — 1,098
Interest expenses 138 107
Fees expenses 40 47
Provision (Reversal) of impairment losses due to credit loss 9 (14 )
Other expenses 577 91
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates Fees income 8,036 —
Interest expenses 23 —
Other expenses 70 —
Woori FIS Co., Ltd. Fees income 355 681
Other income 8,150 7,725
Interest expenses 135,201 135,264
Woori Private Equity Asset Management Co., Ltd. and its associates Fees income 22 23
Gain on derivatives — 255
Interest expenses 316 553
Loss on derivatives 109 268
Woori Finance Research Institute Co., Ltd. Fees income 23 20
Other income 818 806
Interest expenses 62 78
Woori Credit Information Co., Ltd. Fees income 95 91
Other income 447 765
Interest expenses 347 507
Fees expenses 14,081 17,249
Woori Fund Service Co., Ltd. Fees income 51 51
Other income 295 384
Interest expenses 519 587
Fees expenses 21 35
  • 144 -
For the years ended<br>December 31
Related parties A title of account 2025 2024
Woori Asset Management Co., Ltd. and its subsidiaries and associates Fees income 100 89
Interest expenses 84 25
Woori Asset Trust Co., Ltd. Fees income 216 262
Interest expenses 3,006 5,538
Fees expenses 5,360 11,905
Woori Financial Capital Co., Ltd. and its subsidiaries and associates Fees income 4,405 3,965
Interest expenses 58 47
Loss on derivatives — 6
Provision (Reversal) of impairment losses due to credit loss 11 (6 )
Other expenses 5,297 1,857
Woori Financial F&I Co., Ltd. and its subsidiaries and associates Interest income 1,672 9,739
Fees income 908 576
Interest expenses 17 15
Reversal of impairment losses due to credit loss (100 ) (707 )
Woori Savings Bank Fees income 482 925
Woori Venture Partners Co., Ltd. Fees income 143 —
Interest expenses 1,968 1,523
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries Interest income — 196
Reversal of impairment losses due to credit loss — (14 )
Loss on derivatives — 465
Godo Kaisha Oceanos No. 1 Interest income 354 702
Provision (Reversal) of impairment losses due to credit loss (272 ) 214
IGEN 2022 Private Equity Fund No.1 Interest expenses — 1
WOORI ZIP 1 Interest income — 59
Reversal of impairment losses due to credit loss — (1 )
WOORI ZIP 2 Interest income — 84
Reversal of impairment losses due to credit loss — (1 )
Woori Japan General Type Private Real Estate Feeder Investment Trust No.2-1 Loss on derivatives — 44
(*) Others include Win Mortgage Co., Ltd., Dongwoo C & C Co., Ltd. and others as of December 31, 2025<br>and 2024.
--- ---
  • 145 -
(4) Major loan transactions with related parties for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Loan Collection Others Ending<br>balance (*)
Subsidiaries PT Bank Woori Saudara Indonesia 1906 Tbk 205,800 675,007 329,520 8,324 559,611
Woori Global Markets Asia Limited 415,455 1,281,672 1,244,315 (6,670 ) 446,142
Woori Bank China Limited — 94,580 94,580 — —
AO Woori Bank 155,932 538,208 535,964 13,694 171,870
Banco Woori Bank do Brasil S.A. 8,232 18,487 19,273 (200 ) 7,246
Wealth Development Bank — 15,780 1,465 34 14,349
Woori Finance Myanmar Co., Ltd. 10,114 5,625 — (242 ) 15,497
Woori Bank Vietnam Limited 29,844 1,129,636 791,852 (1,762 ) 365,866
Woori Bank (Cambodia) PLC 308,700 — 229,157 (7,798 ) 71,745
Woori Bank Europe 478,495 658,109 728,207 24,352 432,749
Consolidated structured entities 8,759 1,950 3,925 0 6,784
Associates LOTTE CARD Co., Ltd. 14,700 — — (351 ) 14,349
Korea Finance Security Co., Ltd. 3,200 1,600 1,400 — 3,400
Others 41 — 41 — —
Other related Parties Woori Card Co., Ltd. and its subsidiaries 5,880 5,754 5,866 (28 ) 5,740
Woori Financial F&I Co., Ltd. and its subsidiaries and associates 4,900 189,900 194,800 — —
Godo Kaisha Oceanos No. 1 38,770 22,921 64,002 2,311 —
(*) Settlement payment from normal operation among the related parties were excluded, and in the case of a limited<br>loan, it was presented as a net increase or decrease.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Loan Collection Others Ending<br>balance (*)
Subsidiaries PT Bank Woori Saudara Indonesia 1906 Tbk 322,350 373,520 528,924 38,854 205,800
Woori Global Markets Asia Limited 404,506 757,502 789,077 42,524 415,455
AO Woori Bank 153,741 388,872 387,889 1,208 155,932
Banco Woori Bank do Brasil S.A. 3,739 32,424 28,681 750 8,232
Woori Finance Myanmar Co., Ltd. 8,701 176 — 1,237 10,114
Woori Bank Vietnam Limited 283,251 81,880 337,698 2,411 29,844
Woori Bank (Cambodia) PLC 699,757 52,223 408,820 (34,460 ) 308,700
Woori America Bank 17,119 17,317 34,964 528 —
Woori Bank Europe 571,156 2,470,815 2,557,929 (5,547 ) 478,495
Consolidated structured entities 9,956 1,022 2,219 — 8,759
Associates LOTTE CARD Co., Ltd. — 263,306 250,000 1,394 14,700
Korea Finance Security Co., Ltd. 3,197 2,300 2,297 — 3,200
Others 41 — — — 41
Other related Parties Woori Financial Capital Co., Ltd. and its subsidiaries and associates — 50,000 50,000 — —
Woori Card Co., Ltd. and its subsidiaries 5,158 — — 722 5,880
Woori Financial F&I Co., Ltd. and its subsidiaries and associates 165,800 856,300 1,017,200 — 4,900
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries 19,589 — 19,784 195 —
Godo Kaisha Oceanos No. 1 38,122 — — 648 38,770
WOORI ZIP 1 11,317 — 11,227 (90 ) —
WOORI ZIP 2 16,063 — 15,936 (127 ) —
(*) Settlement payment from normal operation among the related parties were excluded, and in case of a limited<br>loan, it was presented as a net increase or decrease.
--- ---
  • 146 -
(5) Changes in major deposits due to customers with related parties for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowings Repayment<br>and others (*2) Ending<br>balance (*1)
Parent company Woori Financial Group Inc. 1,274,000 6,245,000 7,054,000 465,000
Subsidiary Woori Global Markets Asia Limited 6,525 74,451 66,191 14,785
Associates W Service Networks Co., Ltd. 1,000 — — 1,000
Korea Credit Bureau Co., Ltd. — 1,000 — 1,000
Win Mortgage Co., Ltd. 1,387 3,529 3,564 1,352
Other related parties Woori Credit Information Co., Ltd. 5,599 8,502 4,002 10,099
Woori Fund Service Co., Ltd. 15,500 4,000 — 19,500
Woori Investment Securities Co., Ltd. and its subsidiaries and associates 2,431 2,000 3,000 1,431
Woori Finance Research Institute Co., Ltd. 800 8,700 8,500 1,000
Woori Asset Trust Co., Ltd. 175,000 569,720 654,720 90,000
Woori Private Equity Asset Management Co., Ltd. and its associates 10,000 87,000 87,000 10,000
Woori Venture Partners Co., Ltd. and its subsidiaries and associates 76,000 239,000 261,000 54,000
Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates (*3) — 90,045 (2,505 ) 92,550
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates (*3) — 1,055 1,000 55
(*1) The details of payments made between related parties and the deposits due to customers that can be taken in and<br>out easily are excluded.
--- ---
(*2) It includes the gain (loss) on valuation of the financial liabilities designated to be measured at FVTPL of<br>Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates.
--- ---
(*3) It includes transactions that occurred prior to the inclusion of the related party.
--- ---
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowings Repayment<br>and others Ending<br>balance (*)
Parent company Woori Financial Group Inc. 1,354,000 4,703,000 4,783,000 1,274,000
Subsidiary Woori Global Markets Asia Limited — 51,883 45,358 6,525
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
Other related parties Woori Credit Information Co., Ltd. 6,199 4,500 5,100 5,599
Woori Fund Service Co., Ltd. 17,000 15,500 17,000 15,500
Woori Investment Securities Co., Ltd. and its subsidiaries and associates 2,000 2,431 2,000 2,431
Woori Finance Research Institute Co., Ltd. — 9,600 8,800 800
Woori Asset Trust Co., Ltd. 56,000 874,816 755,816 175,000
Woori Private Equity Asset Management Co., Ltd. and its associates 22,000 114,000 126,000 10,000
Woori Venture Partners Co., Ltd. and its subsidiaries and associates 23,000 201,000 148,000 76,000
(*) The details of payments made between related parties and the deposits due to customers that can be taken in and<br>out easily are excluded.
--- ---
  • 147 -
(6) Major borrowing transactions with related parties for the years ended December 31, 2025 and 2024 are as<br>follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowings Repayment Others Ending<br>balance
Subsidiaries Woori Bank China Limited 43,405 1,059,576 645,594 131 457,518
Woori Bank Vietnam Limited 44,100 2,825,624 1,966,537 558 903,745
Woori Bank Europe 81,327 116,307 168,196 446 29,884
Other related parties Woori Card Co., Ltd. and its subsidiaries 25,482 312,656 315,405 0 22,733
For the year ended December 31, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Related parties Beginning<br>balance Borrowings Repayment Others Ending<br>balance
Subsidiaries Woori Bank China Limited 13,589 127,565 97,749 — 43,405
Woori Bank<br> <br>Vietnam Limited 434,780 180,720 571,400 — 44,100
Woori Bank Europe 66,801 173,284 158,758 — 81,327
Other related parties Woori Card Co., Ltd. and its subsidiaries 24,002 282,802 281,322 — 25,482
(7) Guarantees with the related parties are as follows (Unit: Korean Won in millions):
--- ---
1) The amount of guarantees provided to the related parties by the Bank as of December 31, 2025 and 2024 are<br>as follows:
--- ---
December 31, 2025 December 31, 2024 Warranty
--- --- --- --- --- --- --- --- ---
PT Bank Woori Saudara Indonesia 1906 Tbk 71,193 46,081 Confirmed guarantees in foreign currencies and others
Woori Bank China Limited 176,872 234,196 Confirmed guarantees in foreign currencies and others
AO Woori Bank 11,479 11,811 Confirmed guarantees in foreign currencies and others
Banco Woori Bank do Brasil S.A. 7,879 10,560 Confirmed guarantees in foreign currencies and others
Woori Global Markets Asia Limited 238,566 262,395 Confirmed guarantees in foreign currencies and others
Woori Bank Europe 51,971 56,570 Confirmed guarantees in foreign currencies and others
Woori Bank Vietnam Limited 136,552 95,882 Confirmed guarantees in foreign currencies and others
Woori Finance Myanmar Co., Ltd. 4,305 20,286 Confirmed guarantees in foreign currencies
Wealth Development Bank 64,571 46,599 Confirmed guarantees in foreign currencies
LOTTE CARD Co., Ltd. 1,650 1,691 Confirmed guarantees in foreign currencies
2) The amount of guarantees and unused loan commitments provided by the related parties to the Bank as of<br>December 31, 2025 and 2024 are as follows:
--- ---
December 31, 2025 December 31, 2024 Warranty
--- --- --- --- --- --- --- --- ---
Woori Card Co., Ltd. and its subsidiaries 149,960 122,847 Loan commitment in local currency
Woori Bank Vietnam Limited 158,043 226,515 Confirmed guarantees in foreign currencies and others
Woori Bank China Limited 3,362 3,375 Confirmed guarantees in foreign currencies and others
  • 148 -
(8) The amount of commitments of derivatives and other commitments to the related parties as of December 31,<br>2025 and 2024 are as follows (Unit: Korean Won in millions):
Warranty December 31,<br>2025 December 31,<br>2024
--- --- --- --- --- --- --- --- ---
Woori Private Equity Asset Management Co., Ltd. and its associates Derivatives — 9,719
Woori Card Co., Ltd. and its subsidiaries Derivatives 293,490 484,000
Unsettled commitment 500,000 500,000
Woori Investment Securities Co., Ltd. and its subsidiaries and associates Unsettled commitment 150,000 150,000
Woori Financial Capital Co., Ltd. and its subsidiaries and associates Unsettled commitment 200,000 200,000
Woori Financial F&I Co., Ltd. and its subsidiaries and associates Unsettled commitment 150,000 345,100
Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates. Derivatives 472,165 —
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates. Unsettled commitment 20,000 —
Woori Bank China Limited Derivatives 173 115
Woori Finance Myanmar Co., Ltd. Loan commitment in foreign currency 6,027 —
Woori Bank (Cambodia) PLC Loan commitment in foreign currency 717,450 398,370
Unsettled commitment — 248,430
Wealth Development Bank Unsettled commitment 21,524 —
Korea BTL Infrastructure Fund Securities purchase commitment 208,078 240,078
Woori Bank Vietnam Limited Derivatives 196 —
Unsettled commitment 82,267 117,156
Consolidated beneficiary certificates Derivatives 17,386 15,767
Securities purchase commitment 1,727,021 650,997
Consolidated structured entities Commercial paper purchase commitment and others 2,187,733 2,153,730
Unsettled commitment 12,216 13,141
Derivatives 1,308,000 1,131,500
Korea Finance Security Co., Ltd. Unsettled commitment 200 400
LOTTE CARD Co., Ltd. Unsettled commitment 478,300 498,400
Derivatives 440,000 350,000
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership Securities purchase commitment 4,664 4,664
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund Securities purchase commitment 50 148
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] Securities purchase commitment 990,000 990,000
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures Securities purchase commitment 1,500 3,000
  • 149 -
Warranty December 31,<br>2025 December 31,<br>2024
NH Woori Newdeal Growth Alpha Private Equity Fund 1 Securities purchase commitment 611 11,379
BTS 2nd Private Equity Fund Securities purchase commitment 1,234 1,854
Woori Corporate Turnaround No. 1 Private Equity Fund Securities purchase commitment 17,391 21,639
Green ESG Growth No. 1 Private Equity Fund Securities purchase commitment 7,048 19,136
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 Securities purchase commitment 14,235 16,835
Woori GP Commitment Loan Private Placement Investment Trust No. 1 Securities purchase commitment — 1,294
Woori GP Commitment Loan Private Placement Investment Trust No. 2 Securities purchase commitment 2,480 2,640
Woori GP Commitment Loan Private Placement Investment Trust No. 3 Securities purchase commitment 9,450 12,165
Woori Global Mid-market Secondaries Private Placement<br>Investment Trust No. 1 Securities purchase commitment 6,794 6,162
Woori Renewable New Deal Private Placement Investment Trust No. 1 Securities purchase commitment 10,888 15,574
Woori Woori Bank Partners Private Placement Investment Trust No. 1 Securities purchase commitment 327,861 327,861
Woori Woori Bank Partners Private Placement Investment Trust No. 2 Securities purchase commitment 386,165 386,165
Woori Private Real Estate Investment Trust No. 1 Securities purchase commitment 35,137 75,137
Woori Private Real Estate Investment Trust No. 5 Securities purchase commitment 49,214 72,712
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries Derivatives — 72
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 Securities purchase commitment 324 331
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1 Securities purchase commitment 5,312 5,312
Woori Equity Investment General Type Private Investment Trust No.1 Securities purchase commitment 456 456
Woori Fund Financing General Type Private Investment Trust Securities purchase commitment — 14,056
Woori Natixis Partnership Global Private Debt Fund<br>No. 1-1 () Securities purchase commitment 65,588 117,236

All values are in US Dollars.

  • 150 -
Warranty December 31,<br>2025 December 31,<br>2024
Woori Seoul Beltway Private Special Asset Fund No. 1 Securities purchase commitment 27,103 30,949
JC Assurance Private Equity Partnership No. 2 Securities purchase commitment — 859
Woori Asset Global Partnership Fund No. 5 Securities purchase commitment 75,000 97,500
Woori New Growth Credit Fund 1 Securities purchase commitment 2,044 23,050
Woori Clean Energy General Type Private Placement Investment Trust No.2 Securities purchase commitment 551 5,390
Woori Innovative Growth (Infrastructure) General Type Private Investment Trust No.2 Securities purchase commitment 23,341 27,429
Woori General Type Private Real Estate Investment Trust No. 6 Securities purchase commitment 58,698 81,265
Woori ESG Infrastructure Development General Type Private Investment Trust No. 2 Securities purchase commitment 6,958 7,359
Synaptic Future Growth Private Equity Fund I Securities purchase commitment 1,249 2,649
Woori Dongbu Underground Expressway General Type Private Special Asset Investment Trust Securities purchase commitment 14,816 15,178
Woori PE Secondary Private Placement Investment Trust No. 1 Securities purchase commitment 25,537 30,496
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 Securities purchase commitment 93 12,523
Woori Bank Partners General Type Private Investment Trust No.3 Securities purchase commitment 165,776 320,230
Woori Private Real Estate Investment Trust No. 7 Securities purchase commitment 61,387 152,541
Woori Senior Loan Private Placement Investment Trust No. 3 Securities purchase commitment 87,939 229,008
Woori Natixis Partnership Global Private Debt Fund No. 1-2 () Securities purchase commitment 128,115 140,643
Woori Future Energy Private Special Asset Investment Trust (General) No.1 Securities purchase commitment 33,600 33,600
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 Securities purchase commitment 64,844 —
Woori Productive Financing Education Infrastructure General Private Special Asset Investment Trust<br>No.1 Securities purchase commitment 3,000 —
Woori Baran-Namyang Expressway Private Special Asset Investment Trust Securities purchase commitment 44,349 —

All values are in Euros.

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Warranty December 31,<br>2025 December 31,<br>2024
Woori Future Co-Growth High-tech Strategic Industries<br>Private Investment Trust Securities purchase commitment 130,000 —

As of December 31, 2025 and 2024, the recognized provisions for guarantees and commitments are 8,386 million Won and 8,367 million Won, respectively, in relation to the guarantees provided to the related parties above.

(9) The details of major investment and recovery transactions with related parties for the years ended<br>December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2025
--- --- --- --- --- --- ---
The same parent company and its associates Investment and others<br>(*) Recovery and others<br>(*)
Green ESG Growth NO.1 Private Equity Fund 12,088 2,675
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust — 96
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 2,600 32,019
Woori GP Commitment Loan Private Placement Investment Trust No.1 691 5,516
Woori GP Commitment Loan Private Placement Investment Trust No.2 160 9,086
Woori GP Commitment Loan Private Placement Investment Trust No.3 2,716 1,174
Woori Global Mid-market Secondaries Private<br>Placement Investment Trust No. 1 — 2,133
Woori Senior Loan Private Placement Investment Trust No. 2 — 70,564
Woori Renewable New Deal Private Placement Investment Trust No. 1 4,686 299
Woori Woori Bank Partners Private Placement Investment Trust No. 1 — 227,137
Woori Private Real Estate Investment Trust No. 1 40,000 174,927
Woori Private Real Estate Investment Trust No. 5 23,498 —
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 — 13,734
Woori Equity Investment General Type Private Investment Trust No.1 — 1,666
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 — 4,631
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1 — 17,727
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2 — 8,487
IGEN 2022 Private Equity Fund No. 1 — 1,328
Woori Seoul Beltway Private Special Asset Fund No. 1 3,847 —
Japanese Hotel Real Estate Private Equity Fund No.2 — 36
Woori New Growth Credit Fund 1 — 14,748
Woori Clean Energy General Type Private Placement Investment Trust No.2 4,838 —
Woori Innovative Growth (Infrastructure) General Type Private Investment Trust No.2 4,088 3,006
Woori General Type Private Real Estate Investment Trust No. 6 22,567 —
Woori ESG Infrastructure Development General Type Private Investment Trust No. 2 401 —
Woori Asset Global Partnership Fund No. 5 22,500 2,727
Synaptic Future Growth Private Equity Fund I 1,399 1,096
Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust 362 —
Woori PE Secondary Private Placement Investment Trust No. 1 4,959 661
Woori General Private Equity Investment Trust 7 (Bond) — 41,114
Woori Natixis Partnership Global Private Debt Fund No.<br>1-1() 47,998 229
Woori Private Real Estate Investment Trust No. 7 91,154 —
Woori Senior Loan Private Placement Investment Trust No. 3 141,069 19,405
Woori Natixis Partnership Global Private Debt Fund No. 1-2 () 26,703 —
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 25,156 151
Woori Real Estate Blind Investment Private Placement Trust No.1 17,500 —
Woori Top-Class Senior Junior Private Placement Investment<br>Trust 114,939 16,876
Woori Eugene Energy Link Private Equity Fund 5,000 —
Woori IMM Green Net Zero General type Private Special Asset Investment Trust 5,859 —
Woori Senior Loan Private Placement Investment Trust No.1 — 4,448
Woori General Private Equity Investment Trust 8 40,000 —
Woori NH Co-Growth Private Equity Fund I 4,576 —

All values are in US Dollars.

(*) Investment and recovery transactions of subsidiaries and associates are described in Note 13. (5).<br>
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For the year ended December 31, 2024
The same parent company and its associates Investment and others<br>(*) Recovery and others<br>(*)
Green ESG Growth NO.1 Private Equity Fund 5,128 5,813
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust 13,099 7
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 48,491 36,104
Woori GP Commitment Loan Private Placement Investment Trust No.1 9,918 12,956
Woori GP Commitment Loan Private Placement Investment Trust No.2 15,625 18,755
Woori GP Commitment Loan Private Placement Investment Trust No.3 4,835 726
Woori Global Mid-market Secondaries Private<br>Placement Investment Trust No. 1 2,897 1,065
Woori Senior Loan Private Placement Investment Trust No. 2 228,019 215,818
Woori Renewable New Deal Private Placement Investment Trust No. 1 16,792 —
Woori Woori Bank Partners Private Placement Investment Trust No. 1 4,591 —
Woori Woori Bank Partners Private Placement Investment Trust No. 2 45,061 —
Woori Private Real Estate Investment Trust No. 1 12,026 25,501
Woori Private Real Estate Investment Trust No. 2 19,662 19,590
Woori Private Real Estate Investment Trust No. 5 34,046 —
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-2 16,335 19,514
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 87,028 79,930
Woori Policy-Type New Deal (Infra Investment) Private Placement Investment Trust No.1 14,744 18,726
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 27,300 —
Dream Company Growth no.1 PEF — 4,510
Midas No. 8 Private Equity Joint Venture Company — 119
Synaptic Green No.1 PEF 5,000 4,780
IGEN 2022 Private Equity Fund No. 1 4,600 5,026
Woori Senior Loan Private Placement Investment Trust No. 1 63,348 117,541
Woori Seoul Beltway Private Special Asset Fund No. 1 3,487 25
Woori Safe Plus General Type Private Investment Trust<br>S-8(Bond) — 10,327
Woori General Private Equity Investment Trust 1 (Bond) — 51,672
Woori General Private Equity Investment Trust 2 (Bond) — 30,821
Japanese Hotel Real Estate Private Equity Fund No.2 6,347 5,382
Woori New Growth Credit Fund 1 26,950 25,194
Woori Clean Energy General Type Private Placement Investment Trust No.2 3,257 —
Woori Innovative Growth (Infrastructure) General Type Private Investment Trust No.2 843 —
Woori General Type Private Real Estate Investment Trust No. 6 194,675 3,132
Woori ESG Infrastructure Development General Type Private Investment Trust No. 2 1,335 —
Woori General Private Equity Investment Trust 3 (Bond) — 60,398
Woori Asset Global Partnership Fund No. 5 30,000 —
Synaptic Future Growth Private Equity Fund I 7,401 7,976
Woori Dongbu Underground Expressway General type Private Special Asset Investment Trust 2,022 —
Woori PE Secondary Private Placement Investment Trust No. 1 17,851 8,660
Woori Short Term Government and Special Bank Bond Active ETF — 12,287
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 37,477 274
Woori General Private Equity Investment Trust 5 (Bond) 60,000 —
Woori Big Satisfaction Private 3(Bond) 10,000 —
Woori General Private Equity Investment Trust 6 (Bond) 40,000 —
Woorinara New Growth TOP 20 Securities Investment Trust No. 1 (Stocks) 1,000 1,000
Woori Big Satisfaction Money Market Fund 1 (Government & Agency Bonds) 700,666 1,254,670
Woori Korea Ultra Short-term Bond Securities Investment Trust (Bond) 50,000 50,000
Woori General Private Equity Investment Trust 7 (Bond) 40,000 —
Woori Fund Financing General Type Private Investment Trust 134,945 15,281
Woori Natixis Partnership Global Private Debt Fund No.<br>1-1() 28,882 428
Woori Private Real Estate Investment Trust No. 7 47,459 180
Woori Senior Loan Private Placement Investment Trust No. 3 70,992 —
Woori Smart General Private Equity Investment Trust No.1 (Bond) 40,000 —
Woori Real Estate Investment No. 1 Limited Liability Company 10,000 —

All values are in US Dollars.

(*) Investment and recovery transactions of subsidiaries and associates are described in Note 13. (5).<br>
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(10) Compensation to key management is as follows (Unit: Korean Won in millions):
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Short-term employee benefits 11,943 14,655
Share-based payment 12,141 7,569
Retirement benefit service costs 431 833
Total 24,515 23,057

Key management includes registered executives and non-registered executives. Outstanding assets from transactions with key management amount to 3,203 million Won and 3,523 million Won, as of December 31, 2025 and 2024, respectively. Also, liabilities from transaction with key management amount to 11,562 million Won and 69,372 million Won as of December 31, 2025 and 2024, respectively.

(11) The Bank, Woori Card Co., Ltd. and its subsidiaries are liable to jointly reimburse the Bank’s debts<br>before the split.
(12) During the year ended December 31, 2025, Woori Investment Securities Co., Ltd. underwrote<br>40,000 million Won of bonds issued by the Bank and sold the entire underwritten amount on the issuance date. During the year ended December 31, 2024, Woori Investment Securities Co., Ltd. underwrote 40,000 million Won of hybrid<br>securities issued by the Bank and sold the entire underwritten amount on the issuance date.
--- ---
(13) The Bank purchased and sold the bonds of 500,000 million Won and 440,000 million Won, respectively,<br>through Woori Investment Securities Co., Ltd. during the year ended December 31, 2025. In addition, the Bank sold the bonds of 80,000 million Won through Tong Yang Life Insurance Co., Ltd.
--- ---
(14) As of December 31, 2025, the plan assets deposited in the defined benefit (DB) retirement pension plan<br>managed and administered by Tong Yang Life Insurance Co., Ltd. amount to 266,169 million Won.
--- ---
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46. TRUST ACCOUNTS
(1) Trust accounts of the Bank as of December 31, 2025, and December 31, 2024 are as follows (Unit:<br>Korean Won in millions):
--- ---
Total assets Operating income
--- --- --- --- --- --- --- --- --- --- --- --- ---
December 31, 2025 December 31, 2024 For the years ended December 31
2025 2024
Trust accounts 94,330,961 85,894,740 3,043,016 2,544,969
(2) Receivables and payables from the transactions between the Bank and trust accounts as of December 31, 2025<br>and 2024 are as follows (Unit: Korean Won in millions):
--- ---
December 31, 2025 December 31, 2024
--- --- --- --- --- --- ---
Receivables
Trust fees receivables 48,172 46,273
Payables
Deposits due to customers 119,733 265,364
Borrowings from trust accounts 6,199,212 5,320,238
Total 6,318,945 5,585,602
(3) Significant transactions between the Bank and trust accounts for the years ended December 31, 2025 and<br>2024 are as follows (Unit: Korean Won in millions):
--- ---
For the years ended December 31
--- --- --- --- --- --- ---
2025 2024
Revenue:
Trust fees 186,732 162,639
Termination fees 19,249 3,345
Total 205,981 165,984
Expense:
Interest expenses on deposits due to customers 791 955
Interest expenses on borrowings from trust accounts 130,417 152,045
Total 131,208 153,000
  • 155 -
(4) Principal guaranteed trusts and principal and interest guaranteed trusts

As of December 31, 2025 and 2024, the carrying of principal guaranteed trusts and principal and interest guaranteed trusts are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Partial principal guaranteed trusts:
Household money 7,456 7,823
Corporate money 193 189
Installment plan purpose 1,465 1,544
Sub-total 9,114 9,556
Principal guaranteed trusts:
Old-age pension trusts 2,455 2,450
Personal pension trusts 369,257 399,860
Pension trusts 542,034 592,533
Retirement trusts 26,043 26,159
New personal pension trusts 5,579 6,084
New old-age pension trusts 753 815
Sub-total 946,121 1,027,901
Principal and interest guaranteed trusts:
Development trusts 19 19
Unspecified money trusts 333 334
Sub-total 352 353
Total 955,587 1,037,810
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47. LEASES

The future lease payments under lease contracts as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

December 31, 2025 December 31, 2024
Lease payments
Within one year 135,898 140,576
After one year but within five years 200,293 205,258
After five years 900 26,898
Total 337,091 372,732

Total cash outflows from leases for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the years ended December 31
2025 2024
Cash outflows for leases 171,528 171,368

There are no 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 for the years ended December 31, 2025 and 2024. The variable lease payments not included in the measurement of lease liabilities for the years ended December 31, 2025 and 2024 are 32,530 million Won and 24,373 million Won, respectively.

48. EVENT AFTER THE REPORTING PERIOD

In January, 2026, the Bank decided to implement a voluntary retirement program through labor-management agreement. As a result, the termination benefits to be recognized by the Bank in the first quarter of 2026 amount to 181,305 million Won.

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Independent Auditors’ Review Report on Internal Control overFinancial Reporting

(Based on a report originally issued in Korean)

To the board of directors and shareholder of

Woori Bank :

We have reviewed the accompanying Report on the Operational Status of Internal Controls over Financial Reporting (the “ICFR Report”) of Woori Bank (the “Bank”) as of December 31, 2025. The Bank’s management is responsible for designing and maintaining effective ICFR and for its assessment of the effectiveness of ICFR. Our responsibility is to review management’s assessment and issue a report based on our review. In the accompanying report of management’s assessment of ICFR, it is stated that: “Based on the assessment of the operational status of the ICFR by Company’s Chief Executive Officer and Internal Accounting Manager, the Bank’s ICFR has been effectively designed and is operating as of December 31, 2025, in all material respects, in accordance with the Conceptual Framework for Designing and Operating Internal Control over Financial Reporting (the “Conceptual Framework”) issued by the Operating Committee of Internal Control over Financial Reporting in the Republic of Korea.(the “ICFR Committee”)”

We conducted our review in accordance with ICFR Review Standards issued by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as to whether the Bank’s ICFR Report is free of material misstatement. Our review consists principally of obtaining an understanding of the Bank’s ICFR, inquiries of bank personnel about the details of the report, and tracing to related documents we considered necessary in the circumstances.

A bank’s ICFR 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 bank’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank, (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 Bank are being made only in accordance with authorizations of management and directors of the Bank; and (3) regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Bank’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material 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.

Based on our review of the Bank’s ICFR Report, nothing has come to our attention that causes us to believe that the Bank’s ICFR Report as of December 31, 2025 is not prepared, in all material respects, in accordance with the Standard for Evaluation and Reporting of Internal Control over Financial Reporting issued by the ICFR Committee.

This report applies to the Bank’s ICFR in existence as of December 31, 2025. We did not review the Bank’s ICFR subsequent to December 31, 2025. This report has been prepared for Korean regulatory purposes, pursuant to the Act on External Audit of Stock Companies, Etc. and may not be appropriate for other purposes or for other users.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

Notice to Readers

This report is annexed in relation to the audit of the separate financial statements as of and for the year ended December 31, 2025.

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