WF 0001193125-23-212893 6-K as filed: Aug 15, 2023

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Exhibit 99.1

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2023

WOORI FINANCIAL GROUP INC.


	Page(s)
Independent Auditor’s Review Report		1-2

Consolidated Interim Financial Statements

Consolidated Interim Statements of Financial Position		4

Consolidated Interim Statements of Comprehensive Income		5-6

Consolidated Interim Statements of Changes in Equity		7

Consolidated Interim Statements of Cash Flows		8-9

Notes to the Consolidated Interim Financial Statements		10-134

Independent Auditor’s Review Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of Woori Financial Group Inc. and its subsidiaries (collectively the “Group”), which comprise the consolidated interim statement of financial position as of June 30, 2023, the consolidated interim statement of comprehensive income for the three-month and six-month periods ended June 30, 2023, the consolidated interim statement of changes in equity and cash flows for the six-month period ended June 30, 2023 and notes, comprising a summary of material accounting policy information and other explanatory information.

Management’s Responsibility

Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No.1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of the condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s review responsibility

Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

- 1 -

Other Matter

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

The accompanying condensed consolidated interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2022, changes in equity and cash flows for the six-month periods ended June 30, 2022, were reviewed by other auditors whose report thereon, dated August 12, 2022, expressed that nothing came to their attention that caused them to believe that those condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting. The condensed consolidated interim financial statements that other auditors reviewed are those before reflecting the adjustments described in Note 2. The accompanying condensed consolidated interim financial statements for the six-month periods ended June 30, 2022, presented for comparative purposes, are those after reflecting such adjustments.

The consolidated statement of financial position of the Group as of December 31, 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by other auditors in accordance with Korean Standards on Auditing and their report thereon, dated March 7, 2023, expressed an unqualified opinion. The accompanying consolidated statement of financial position of the Group as of December 31, 2022, presented for comparative purposes, is consistent, in all material respects, with the audited consolidated statement of financial position from which it has been derived.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

August 14, 2023

This report is effective as of August 14, 2023, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review has not been updated to reflect the impact of such subsequent events or circumstances, if any.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

The accompanying consolidated interim financial statements including all footnote disclosures were prepared by, and are the responsibility of, the management of Woori Financial Group Inc.

Jong Yong Yim

President and Chief Executive Officer

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

(Phone Number) 02-2125-2000

- 3 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2023 (UNAUDITED) AND DECEMBER 31, 2022


	June 30, 2023			December 31, 2022

	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Note 4 and 6)		21,690,361			34,219,148
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11 and 24)		21,408,298			19,860,573
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8 and 11)		34,904,105			33,085,080
Securities at amortized cost (Notes 4, 9 and 11)		25,949,620			28,268,516
Loans and other financial assets at amortized cost (Notes 4, 10, 11 and 39)		369,016,226			355,760,729
Investments in joint ventures and associates (Note 12)		1,621,670			1,305,636
Investment properties (Note 13)		474,333			387,707
Premises and equipment (Note 14)		3,133,215			3,142,930
Intangible assets (Note 15)		989,476			849,114
Assets held for sale (Note 16)		17,796			13,772
Net defined benefit asset (Note 22)		302,581			319,280
Current tax assets		42,965			53,274
Deferred tax assets		75,794			109,299
Derivative assets (Designated for hedging) (Notes 4, 11 and 24)		70,980			37,786
Other assets (Notes 17,39 and 40)		3,214,199			3,061,552

Total assets		482,911,619			480,474,396

LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”) (Notes 4, 11, 18 and 24)		8,533,801			8,952,399
Deposits due to customers (Notes 4, 11, 19 and 39)		333,713,217			342,105,209
Borrowings (Notes 4, 11 and 20)		30,545,104			28,429,603
Debentures (Notes 4, 11 and 20)		42,613,485			44,198,486
Provisions (Notes 21, 38 and 39)		609,311			545,865
Net defined benefit liability (Note 22)		39,723			35,202
Current tax liabilities		155,068			843,555
Deferred tax liabilities		390,767			31,799
Derivative liabilities (Designated for hedging) (Notes 4, 11 and 24)		216,680			202,911
Other financial liabilities (Notes 4, 11, 23, 39 and 40)		32,718,181			22,811,868
Other liabilities (Notes 23 and 39)		685,018			690,157

Total liabilities		450,220,355			448,847,054

EQUITY
Owners’ equity (Note 26)
Capital stock		3,640,303			3,640,303
Hybrid securities		3,411,676			3,112,449
Capital surplus		685,427			682,385
Other equity		(1,944,858	)		(2,423,392	)
Retained earnings		24,452,124			23,750,152

		30,244,672			28,761,897

Non-controlling interests		2,446,592			2,865,445

Total equity		32,691,264			31,627,342

Total liabilities and equity		482,911,619			480,474,396

The accompanying notes are part of these consolidated interim financial statements.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month

	(Korean Won in millions, except per share data)
Interest income		5,048,739			9,977,877			3,272,657			6,213,415
Financial assets at FVTPL		47,642			91,617			21,062			37,735
Financial assets at FVTOCI		228,548			436,796			149,991			291,582
Financial assets at amortized cost		4,772,549			9,449,464			3,101,604			5,884,098
Interest expense		(2,854,567	)		(5,564,884	)		(1,157,001	)		(2,110,093	)

Net interest income (Notes 11, 28 and 39)		2,194,172			4,412,993			2,115,656			4,103,322

Fees and commissions income		642,016			1,261,278			634,683			1,211,603
Fees and commissions expense		(217,845	)		(419,013	)		(193,999	)		(365,219	)

Net fees and commissions income (Notes 11, 29 and 39)		424,171			842,265			440,684			846,384

Dividend income (Notes 11, 30 and 39)		42,925			92,005			31,899			78,922
Net gain on financial instruments at FVTPL (Notes 11, 31 and 39)		122,019			360,517			226,041			341,427
Net loss on financial assets at FVTOCI (Notes 11 and 32)		(729	)		(398	)		(1,921	)		(1,650	)
Net gain on disposals of financial assets at amortized cost (Note 11)		51,402			115,708			18,890			66,958
Impairment losses due to credit loss (Notes 11, 33 and 39)		(556,242	)		(817,815	)		(330,795	)		(496,863	)
General and administrative expense (Notes 34 and 39)		(1,020,936	)		(2,057,916	)		(980,974	)		(1,957,102	)
Other net operating expense (Notes 11, 24, 34 and 39)		(361,344	)		(799,921	)		(315,809	)		(549,285	)

Operating income		895,438			2,147,438			1,203,671			2,432,113

Gain on valuation of joint ventures and associates (Note 12)		63,841			70,983			20,104			7,285
Net other non-operating income(expense)		(81,067	)		(69,888	)		79,059			28,513

Non-operating income(expense) (Note 35)		(17,226	)		1,095			99,163			35,798

Net income before income tax expense		878,212			2,148,533			1,302,834			2,467,911

Income tax expense (Note 36)		(211,022	)		(534,721	)		(316,002	)		(608,607	)

Net income		667,190			1,613,812			986,832			1,859,304

Net gain(loss) on valuation of equity securities at FVTOCI		50,369			130,792			(43,477	)		(42,534	)
Changes in capital due to equity method		(743	)		2,957			(1,502	)		(1,469	)
Remeasurement gain(loss) related to defined benefit plan		32,137			(61,730	)		93,343			128,886

Items that will not be reclassified to profit or loss		81,763			72,019			48,364			84,883

Net gain(loss) on valuation of debt securities at FVTOCI		(46,135	)		190,920			(297,836	)		(521,708	)
Changes in capital due to equity method		(2,055	)		(667	)		2,680			3,182
Gain (loss) on foreign currency translation of foreign operations		(15,560	)		159,990			191,723			250,915
Gain (loss) on valuation of hedges of net investments in foreign operations		(5,724	)		(28,929	)		(40,022	)		(43,971	)
Gain (loss) on valuation of cash flow hedge		(540	)		(10,873	)		1,520			2,924

Items that may be reclassified to profit or loss		(70,014	)		310,441			(141,935	)		(308,658	)

Other comprehensive income(loss), net of tax		11,749			382,460			(93,571	)		(223,775	)

Total comprehensive income		678,939			1,996,272			893,261			1,635,529

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month

	(Korean Won in millions, except per share data)
Net income attributable to:		667,190		1,613,812		986,832		1,859,304
Net income attributable to owners		625,190		1,538,876		922,746		1,761,934
Net income attributable to non-controlling interests		42,000		74,936		64,086		97,370

Total comprehensive income attributable to:		678,939		1,996,272		893,261		1,635,529
Comprehensive income attributable to owners		635,199		1,907,895		825,292		1,532,364
Comprehensive income attributable to non-controlling interests		43,740		88,377		67,969		103,165

Earnings per share (Note 37)
Basic and diluted earnings per share (Unit: In Korean Won)		814		2,028		1,237		2,364

The accompanying notes are part of these consolidated interim financial statements.

- 6 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)


	Capital Stock		Hybrid securities		Capital surplus			Other equity			Retained earnings			Controlling interests			Non- controlling interests			Total equity

	(Korean Won in millions)
January 1, 2022		3,640,303		2,294,381		682,385			(2,167,614	)		21,392,564			25,842,019			3,008,176			28,850,195
Total comprehensive income
Net income		—		—		—			—			1,761,934			1,761,934			97,370			1,859,304
Net loss on valuation of financial instruments at FVTOCI		—		—		—			(563,756	)		—			(563,756	)		(486	)		(564,242	)
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—			(63	)		63			—			—			—
Changes in capital due to equity method		—		—		—			1,713			—			1,713			—			1,713
Gain on foreign currency translation of foreign operations		—		—		—			244,646			—			244,646			6,269			250,915
Loss on valuation of hedges of net investments in foreign operations		—		—		—			(43,971	)		—			(43,971	)		—			(43,971	)
Gain on valuation of cash flow hedge		—		—		—			2,924			—			2,924			—			2,924
Capital related to non-current assets held for sale		—		—		—			(279	)		279			—			—			—
Remeasurement of the net defined benefit liability		—		—		—			128,874			—			128,874			12			128,886
Transactions with owners and others
Dividends to common stocks		—		—		—			—			(545,787	)		(545,787	)		(9,931	)		(555,718	)
Issuance of hybrid securities		—		299,363		—			—			—			299,363			—			299,363
Dividends to hybrid securities		—		—		—			—			(41,375	)		(41,375	)		(61,890	)		(103,265	)
Redemption of hybrid securities		—		—		—			(60,491	)		—			(60,491	)		(559,565	)		(620,056	)
Changes in subsidiaries’ capital		—		—		—			27,365			(27,365	)		—			—			—

June 30, 2022 (Unaudited)		3,640,303		2,593,744		682,385			(2,430,652	)		22,540,313			27,026,093			2,479,955			29,506,048

January 1, 2023		3,640,303		3,112,449		682,385			(2,423,392	)		23,750,152			28,761,897			2,865,445			31,627,342
Total comprehensive income
Net income		—		—		—			—			1,538,876			1,538,876			74,936			1,613,812
Net gain on valuation of financial instruments at FVTOCI		—		—		—			321,529			—			321,529			183			321,712
Net gain(loss) due to disposal of equity securities at FVTOCI		—		—		—			(149	)		149			—			—			—
Changes in capital due to equity method		—		—		—			2,321			(50	)		2,271			19			2,290
Gain on foreign currency translation of foreign operations		—		—		—			146,735			—			146,735			13,255			159,990
Loss on valuation of hedges of net investments in foreign operations		—		—		—			(28,929	)		—			(28,929	)		—			(28,929	)
Loss on valuation of cash flow hedge		—		—		—			(10,873	)		—			(10,873	)		—			(10,873	)
Capital related to non-current assets held for sale		—		—		—			—			—			—			—			—
Remeasurement of the net defined benefit liability		—		—		—			(61,714	)		—			(61,714	)		(16	)		(61,730	)
Transactions with owners and others
Dividends to common stocks		—		—		—			—			(713,111	)		(713,111	)		(11,489	)		(724,600	)
Acquisition of treasury stocks		—		—		—			(23,637	)		—			(23,637	)		—			(23,637	)
Issuance of hybrid securities		—		299,227		—			—			—			299,227			—			299,227
Dividends to hybrid securities		—		—		—			—			(63,153	)		(63,153	)		(55,319	)		(118,472	)
Redemption of hybrid securities		—		—		—			(525	)		—			(525	)		(499,287	)		(499,812	)
Changes in subsidiaries’ capital		—		—		(1,869	)		60,491			(60,491	)		(1,869	)		(79,613	)		(81,482	)
Changes in non-controlling interests related to business combinations		—		—		4,911			73,037			—			77,948			138,478			216,426
Others		—		—		—			248			(248	)		—			—			—

June 30, 2023 (Unaudited)		3,640,303		3,411,676		685,427			(1,944,858	)		24,452,124			30,244,672			2,446,592			32,691,264

The accompanying notes are part of these consolidated interim financial statements.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month periods ended June 30
	2023			2022

	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,613,812			1,859,304
Adjustments to net income:
Income tax expense		534,721			608,607
Interest income		(9,977,877	)		(6,213,415	)
Interest expense		5,564,884			2,110,093
Dividend income		(92,005	)		(78,922	)

		(3,970,277	)		(3,573,637	)

Additions of expenses not involving cash outflows:
Loss on financial instruments at FVTPL		—			699,378
Loss on financial assets at FVTOCI		7,160			3,115
Impairment loss due to credit loss		817,815			496,863
Loss related to other provisions		59,768			1,796
Retirement benefit		56,429			82,285
Depreciation and amortization		489,010			449,935
Loss on foreign currency translation		400,189			114,568
Loss on derivatives (designated for hedge)		31,384			183,355
Loss on fair value hedge		10,033			—
Loss on valuation of investments in joint ventures and associates		3,609			31,872
Loss on disposal of investments in joint ventures and associates		—			116
Loss on disposal of premises and equipment, intangible assets and other assets		1,174			1,487
Impairment loss on premises and equipment, intangible assets and other assets		6			335
Other losses		—			62,196

		1,876,577			2,127,301

Deductions of income not involving cash inflows:
Gain on financial instruments at FVTPL		366,972			—
Gain on financial assets at FVTOCI		6,762			1,465
Gain on other provisions		2,596			52,219
Gain on derivatives (designated for hedge)		62,328			69,151
Gain on fair value hedges		28,071			198,984
Gain on valuation of investments in joint ventures and associates		74,592			39,158
Gain on disposal of investments in joint ventures and associates		22,985			560
Gain on disposal of premises and equipment, intangible assets and other assets		3,372			41,719
Reversal of impairment loss on premises and equipment, intangible assets and other assets		263			168
Other incomes		16,972			15,880

		584,913			419,304

Changes in operating assets and liabilities:
Financial instruments at FVTPL		(499,873	)		(677,954	)
Loans and other financial assets at amortized cost		(12,469,043	)		(11,960,061	)
Other assets		(407,581	)		(846,756	)
Deposits due to customers		(9,604,576	)		14,497,529
Provisions		(9,347	)		(5,815	)
Net defined benefit liability		(118,778	)		(3,105	)
Other financial liabilities		8,706,870			2,633,176
Other liabilities		(31,945	)		(41,769	)

		(14,434,273	)		3,595,245

Interest income received		9,843,046			5,906,023
Interest expense paid		(4,409,693	)		(1,770,748	)
Dividends received		92,229			79,174
Income tax paid		(925,629	)		(605,666	)

Net cash inflow(outflow) from operating activities		(10,899,121	)		7,197,692

(Continued)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)

(CONTINUED)


	For the six-month periods ended June 30
	2023			2022

	(Korean Won in millions)
Cash flows from investing activities:
Net cash out-flows from obtaining control		(209,643	)		—
Disposal of financial instruments at FVTPL		5,987,268			3,549,922
Acquisition of financial instruments at FVTPL		(6,860,470	)		(2,893,949	)
Disposal of financial assets at FVTOCI		10,728,661			11,812,784
Acquisition of financial assets at FVTOCI		(11,628,165	)		(9,414,426	)
Redemption of securities at amortized cost		4,842,587			3,165,261
Acquisition of securities at amortized cost		(2,333,300	)		(6,037,378	)
Changes in subsidiaries		(228,760	)		—
Disposal of investments in joint ventures and associates		132,913			109,666
Acquisition of investments in joint ventures and associates		(144,822	)		(128,636	)
Disposal of investment properties		—			2,021
Acquisition of investment properties		(99,234	)		—
Disposal of premises and equipment		12,399			42,794
Acquisition of premises and equipment		(53,755	)		(82,330	)
Disposal of intangible assets		186			1,160
Acquisition of intangible assets		(109,196	)		(74,347	)
Disposal of assets held for sale		3,238			35,937
Net decrease of other assets		7,814			49,206

Net cash inflow(outflow) from investing activities		47,721			137,685

Cash flows from financing activities:
Net cash in-flows from hedging activities		200			11,139
Net increase in borrowings		1,460,163			5,575,778
Issuance of debentures		14,247,045			14,286,117
Redemption of debentures		(16,116,250	)		(12,327,529	)
Redemption of lease liabilities		(47,793	)		(86,931	)
Net increase of other liabilities		423			1,014
Acquisition of treasury stocks		(23,637	)		—
Dividends paid to common stocks		(713,111	)		(545,787	)
Issuance of hybrid securities		299,227			299,363
Redemption of hybrid securities		(500,011	)		(643,000	)
Dividends paid to hybrid securities		(118,472	)		(103,265	)
Dividends paid to non-controlling interest		(11,489	)		(9,931	)
Changes in non-controlling interests		(180,514	)		—
Net increase of liabilities for non-controlling interests		1,216			854

Net cash inflow(outflow) from financing activities		(1,703,003	)		6,457,822

Effects of exchange rate changes on cash and cash equivalents		25,616			1,128,238
Net increase(decrease) in cash and cash equivalents		(12,528,787	)		14,921,437
Cash and cash equivalents, beginning of the period		34,219,148			20,613,073

Cash and cash equivalents, end of the period (Note 6)		21,690,361			35,534,510

The accompanying notes are part of these consolidated interim financial statements.

- 9 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

1.	GENERAL

(1)	Summary of the Parent company

Woori Financial Group, Inc. (hereinafter referred to as the “Parent company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to as the “Bank”), Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. The headquarters of the Parent company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital stock is 3,640,303 million Won as of June 30, 2023. The Parent company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

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


Stock transfer company	Total number of issued shares		Exchange ratio per share		Number of Parent company’s stocks
Woori Bank		676,000,000		1.0000000		676,000,000
Woori FIS Co., Ltd.		4,900,000		0.2999708		1,469,857
Woori Finance Research Institute Co., Ltd.		600,000		0.1888165		113,289
Woori Credit Information Co., Ltd.		1,008,000		1.1037292		1,112,559
Woori Fund Service Co., Ltd.		2,000,000		0.4709031		941,806
Woori Private Equity Asset Management Co., Ltd.		6,000,000		0.0877992		526,795

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

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

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

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

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

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

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

- 10 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

As of March 23, 2023 the Parent company acquired a 53.9% interest (excluding treasury stocks, 52% interest including treasury stocks) in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.), and added it as a consolidated subsidiary. As of May 30, 2023, the Parent company additionally acquired treasury stock (3.5%) which Woori Venture Partners Co., Ltd. possessed.

(2)	Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of June 30, 2023 and December 31, 2022 are as follows:

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

Held by Woori Financial Group Inc.

Woori Bank

Bank

100.0

Korea

June 30

Woori Card Co., Ltd.

Finance

100.0

Korea

June 30

Woori Financial Capital Co., Ltd.

Finance

100.0

Korea

June 30

Woori Investment Bank Co., Ltd.

Other credit finance business

58.7

Korea

June 30

Woori Asset Trust Co., Ltd.(*1)

Real estate trust

95.3

67.2

Korea

June 30

Woori Savings Bank

Mutual saving bank

100.0

Korea

June 30

Woori Financial F&I Co., Ltd.

Finance

100.0

Korea

June 30

Woori Asset Management Corp.

Finance

73.0

Korea

June 30

Woori Venture Partners(*1)

Other financial services

55.5

—

Korea

June 30

Woori Global Asset Management Co., Ltd.

Finance

100.0

Korea

June 30

Woori Private Equity Asset Management Co., Ltd.

Finance

100.0

Korea

June 30

Woori Credit Information Co., Ltd.

Credit information

100.0

Korea

June 30

Woori Fund Service Co., Ltd.

Financial support service business

100.0

Korea

June 30

Woori FIS Co., Ltd.

System software development & maintenance

100.0

Korea

June 30

Woori Finance Research Institute Co., Ltd.

Other service business

100.0

Korea

June 30

Held by Woori Bank

Woori America Bank

Finance

100.0

America

June 30

Woori Global Markets Asia Limited

Finance

100.0

Hong Kong

June 30

Woori Bank China Limited

Finance

100.0

China

June 30

AO Woori Bank (*7)

Finance

100.0

Russia

June 30

PT Bank Woori Saudara Indonesia 1906 Tbk

Finance

84.2

Indonesia

June 30

Banco Woori Bank do Brasil S.A.

Finance

100.0

Brazil

June 30

Korea BTL Infrastructure Fund

Finance

99.9

Korea

June 30

Woori Finance Myanmar Co., Ltd.

Finance

100.0

Myanmar

June 30

Wealth Development Bank

Finance

51.0

Philippines

June 30

Woori Bank Vietnam Limited

Finance

100.0

Vietnam

June 30

Woori Bank (Cambodia) PLC

Finance

100.0

Cambodia

June 30

Woori Bank Europe

Finance

100.0

Germany

June 30

Kumho Trust First Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

Asiana Saigon Inc. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

15.0

Korea

June 30

Jeonju IWon Ltd. (*2)

Asset securitization

0.0

Korea

June 30

Wonju I one Inc. (*2)

Asset securitization

0.0

Korea

June 30

Heitz Third Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

Woorihansoop 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

Wibihansoop 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

—

- 11 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

Woori KC No.1 Co., Ltd. (*5)

Asset securitization

0.0

Korea

—

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

Asset securitization

0.0

Korea

June 30

ATLANTIC TRANSPORTATION 1 S.A. (*5)

Asset securitization

0.0

Marshall islands

—

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

Asset securitization

0.0

Korea

June 30

HD Project Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

—

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

Woori Hub The 1st Co., Ltd. (*2)

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Asset securitization

0.0

Korea

June 30

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

Securities investment and others

98.8

Korea

June 30

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

Securities investment and others

97.3

England

June 30

Multi Asset Global Real Estate Investment Trust No. 5-2 (*3)

Securities investment and others

99.0

Korea

June 30

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

Securities investment and others

99.4

Korea

June 30

INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*5)

Securities investment and others

97.7

Korea

—

IGIS Global General Type Private Real Estate Feeder Investment Trust No. 316-1 (*5)

Securities investment and others

99.3

Korea

—

- 12 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

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

Securities investment and others

98.4

98.3

Korea

June 30

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

Securities investment and others

97.0

Korea

June 30

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

Securities investment and others

97.2

97.1

Korea

June 30

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

Securities investment and others

97.4

97.2

Korea

June 30

Kiwoom Frontier Private Investment Trust No.23[Bond] (*3)

Securities investment and others

99.8

Korea

June 30

Principal Guaranteed Trust (*4)

Trust

0.0

Korea

June 30

Principal and Interest Guaranteed Trust (*4)

Trust

0.0

Korea

June 30

Held by Multi Asset Global Real Estate Investment Trust No. 5-2 MAGI No.5 LuxCo S.a.r.l.

Asset securitization

54.6

Luxembourg

June 30

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

Asset securitization

100.0

Belgium

June 30

Held by Woori Card Co., Ltd. TUTU Finance –WCI Myanmar Co., Ltd.

Finance

100.0

Myanmar

June 30

PT Woori Finance Indonesia Tbk.

Finance

84.5

82.0

Indonesia

June 30

Woori Card 2019-1 Securitization Specialty Co., Ltd. (*5)

Asset securitization

—

0.5

Korea

—

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

Korea

June 30

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

Asset securitization

0.5

Korea

June 30

Held by Woori Financial Capital Co., Ltd.

Specified Money Market Trust

Trust

100.0

Korea

June 30

Held by Woori Investment Bank Co., Ltd.

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

- 13 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

WJ2008 Securitization Specialty Co., Ltd. (*5)

Asset securitization

—

5.0

Korea

—

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

Held by Woori Asset Management Corp.

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

Securities investment and others

84.1

88.0

Korea

June 30

Woori Together TDF 2035 (*3)

Securities investment and others

54.9

57.1

Korea

June 30

Woori Together TDF 2040 (*3)

Securities investment and others

56.2

58.3

Korea

June 30

Woori Together TDF 2045 (*3)

Securities investment and others

67.0

69.3

Korea

June 30

Woori Together TDF 2050 (*3)

Securities investment and others

60.9

66.3

Korea

June 30

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

Securities investment and others

92.5

91.1

Korea

June 30

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

Securities investment and others

63.8

71.8

Korea

June 30

Woori Together OCIO Target Return Master fund (*3) (*8)

Securities investment and others

100.0

Korea

June 30

Woori Together OCIO Target Return Feeder fund (*3)

Securities investment and others

70.0

81.2

Korea

June 30

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

Securities investment and others

77.0

Korea

June 30

Woori Multi Return Private Equity 2 (*3)

Securities investment and others

30.9

Korea

June 30

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

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

Korea

June 30

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

Asset securitization

5.0

—

Korea

June 30

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

Asset securitization

5.0

—

Korea

June 30

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

Securities investment and others

99.0

—

Korea

June 30

Held by Woori Venture Partners Co., Ltd. (*1)

Woori Venture Partners US

Other financial services

100.0

—

America

June 30

Held by Woori Global Asset Management Co., Ltd.

Woori G Global Multi Asset Income Private Placement Investment Trust_Class Cs (*3)

Securities investment and others

37.7

37.9

Korea

June 30

Woori G Happy Retirement Lifetime Income TIF Mixed Asset Investment Trust[FoF] C(Y) (*3)

Securities investment and others

99.3

Korea

June 30

- 14 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

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

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

Securities investment and others

30.3

—

Korea

June 30

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

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

Securities investment and others

100.0

Korea

June 30

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

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

Securities investment and others

90.0

Korea

June 30

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

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

Securities investment and others

85.0

Korea

June 30

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

Securities investment and others

94.3

Korea

June 30

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

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

Securities investment and others

100.0

Korea

June 30

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

Securities investment and others

80.0

Korea

June 30

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

Securities investment and others

100.0

Korea

June 30

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

Securities investment and others

100.0

—

Korea

June 30

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

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

Securities investment and others

70.0

Korea

June 30

- 15 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

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

Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust No.1 (*3)

Securities investment
and others

100.0

Korea

June 30

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

Securities investment
and others

100.0

Korea

June 30

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

Securities investment
and others

100.0

Korea

June 30

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

Securities investment
and others

30.1

Korea

June 30

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

Securities investment
and others

100.0

Korea

June 30

Held by Woori bank (*6)

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

Securities investment
and others

92.6

Korea

June 30

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

Securities investment
and others

81.5

80.0

Korea

June 30

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

Securities investment
and others

80.0

Korea

June 30

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

Securities investment
and others

90.9

Korea

June 30

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

Securities investment
and others

87.0

86.8

Korea

June 30

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

Securities investment
and others

50.0

Korea

June 30

Woori G Government Bond MMF C/I (*3)

Securities investment
and others

40.5

46.0

Korea

June 30

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

Securities investment
and others

98.8

Korea

June 30

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

Securities investment
and others

99.9

Korea

June 30

Woori Short Term Government and Special Bank Bond Active ETF(*3)

Securities investment
and others

49.9

—

Korea

June 30

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

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

Securities investment
and others

60.0

Korea

June 30

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

Securities investment
and others

100.0

Korea

June 30

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

Securities investment
and others

100.0

Korea

June 30

- 16 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Percentage of ownership
(%)

Financial
statements date
of use

Subsidiaries

Main business

June 30, 2023

December 31,
2022

Location

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

June 30

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

Securities investment
and others

63.2

Korea

June 30

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

Woori FG Digital Investment Fund 1st (*3)

Securities investment
and others

100.0

Korea

June 30

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

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

Securities investment
and others

100.0

Korea

June 30

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

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

Securities investment
and others

100.0

Korea

June 30

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

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

Securities investment
and others

100.0

Korea

June 30

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

GK OK Chatan (*3)

Other financial services

99.9

Japan

April 30 (*9)

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

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

Securities investment
and others

77.3

76.5

Korea

June 30

Held by Woori G Private Placement Investment Trust No. 3

GK Woorido (*3)

Other financial services

100.0

Japan

June 30

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

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

Securities investment
and others

48.0

Korea

June 30

(*1)	Additional investment of Woori Asset Management Corp. And newly investment of Woori Venture Partners occurred during the six-month periods ended June 30, 2023

(*2)

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

- 17 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*3)

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

(*4)

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

(*5)	Companies are excluded from the consolidation as of June 30, 2023

(*6)

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

(*7)

The Russia – Ukraine conflict has been escalated in February 2022, and international sanctions were imposed on Russia. Due to the sanctions, the lack of liquidity in the Russian foreign exchange market as well as the significant decline in value of the Rubles and the decline in value of Russian companies’ securities are in progress. As a result, the Group may experience situations such as a decrease in value of financial assets or operating assets owned by the Group regarding the conflict, an increase in receivable payment terms, limitation to transfer funds, decrease in the profit. As of June 30, 2023, the Group expects such conflict and sanctions would have financial impacts on the business of AO Woori Bank, one of the subsidiaries, in the future. However, the Group cannot reasonably predict the financial impacts because it is very uncertain to estimate the impact on the Group’s financial position and business performance.

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

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

(3)	The Group has not consolidated the following entities as of June 30, 2023 and December 31, 2022 despite having more than 50% ownership interest:


	As of June 30, 2023
Subsidiaries	Location	Main Business	Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)	Korea	Securities Investment	59.7
Kiwoom Yonsei Private Equity Investment Trust (*1)	Korea	Securities Investment	88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)	Korea	Securities Investment	97.9
IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)	Korea	Securities Investment	75.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)	Korea	Securities Investment	75.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)	Korea	Securities Investment	66.7
Hangkang Sewage Treatment Plant Fund (*1)	Korea	Securities Investment	55.6
Korea Investment Pocheon-Hwado Highway Infra Private Placement Special Asset Fund (*1)	Korea	Securities Investment	55.1
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)	Korea	Securities Investment	58.3
Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3)	Korea	Securities Investment	100.0
INMARK France Private Placement Investment Trust No. 18-1 (*1)	Korea	Securities Investment	93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2)	Korea	Securities Investment	99.5
KOTAM Global 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
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)	Korea	Securities Investment	77.3
Consus Solar Energy Private Placement Investment Truns No.1(*1)	Korea	Securities Investment	50.0
IGIS ESG General Private Investment Trust No.1(*1)	Korea	Securities Investment	60.0
Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2(*1)	Korea	Securities Investment	60.0
NH-Amundi WSCP VIII Private Fund 2 (*1)	Korea	Securities Investment	65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2)	Korea	Securities Investment	100.0
Hangang new deal infra BTL fund 4 (HNBF4) (*1)	Korea	Securities Investment	60.0
IGIS Global Private Placement Real Estate Fund No. 316-1(*2)	Korea	Securities Investment	99.3
INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2)	Korea	Securities Investment	97.7
Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*1)	Korea	Securities Investment	55.0

(*1)

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

(*2)

The investment target for the fund was determined in advance, and the disposition of investment assets cannot be determined by the Group, and as a fund of funds, the Group does not have the power to participate in decision-making 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 ownership interest.

- 18 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*3)

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


	As of December 31, 2022
Subsidiaries	Location	Main Business	Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*1)	Korea	Securities Investment	57.6
Kiwoom Yonsei Private Equity Investment Trust (*1)	Korea	Securities Investment	88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)	Korea	Securities Investment	97.8
IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)	Korea	Securities Investment	75.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)	Korea	Securities Investment	75.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)	Korea	Securities Investment	66.7
Hangkang Sewage Treatment Plant Fund (*1)	Korea	Securities Investment	55.6
Korea Investment Pocheon Hwado Expressway Professional Investment Fund (*1)	Korea	Securities Investment	55.2
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)	Korea	Securities Investment	58.3
Together-Korea Government Private Pool Private Securities Investment Trust No.3 (*3)	Korea	Securities Investment	100.0
INMARK France Private Placement Investment Trust No. 18-1 (*1)	Korea	Securities Investment	93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*2)	Korea	Securities Investment	99.5
KOTAM Global Infra Private Fund 1-4 (*2)	Korea	Securities Investment	99.7
UBSHana Class 1 Special Asset Investment Trust 3 Class C 2 (*1)	Korea	Securities Investment	51.0
Consus GyeongJu Green Specialized Private Special Asset Investment Trust 1 (*1)	Korea	Securities Investment	50.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)	Korea	Securities Investment	77.4
Consus Solar Energy Private Placement Investment Truns No.1(*1)	Korea	Securities Investment	50.0
IGIS ESG General Private Investment Trust No.1(*1)	Korea	Securities Investment	60.0
Kiwoom Aurora Geneal Type Private Placement Investment Trust No. 2(*1)	Korea	Securities Investment	60.0
NH-Amundi WSCP VIII Private Fund 2 (*1)	Korea	Securities Investment	65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (*2)	Korea	Securities Investment	100.0
Hangang new deal infra BTL fund 4 (HNBF4) (*1)	Korea	Securities Investment	60.0
Rifa Qualified Investors Private Real Estate Investment Trust No.40 (*2)	Korea	Securities Investment	55.0

(*1)

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

(*3)

- 19 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

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


	As of June 30, 2023				For the six-month period ended June 30, 2023
Subsidiaries	Assets		Liabilities		Operating revenue		Net income(loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		445,294,200		419,597,515		21,251,376		1,471,973			1,852,380
Woori Card Co., Ltd.		16,504,719		14,050,995		1,063,560		81,900			72,280
Woori Financial Capital Co., Ltd.		12,304,348		10,733,981		755,079		71,278			70,838
Woori Investment Bank Co., Ltd.		5,407,267		4,740,429		222,858		12,167			12,162
Woori Asset Trust Co., Ltd.		331,373		66,669		68,778		38,404			38,324
Woori Savings Bank		1,596,775		1,394,297		61,566		(25,955	)		(25,955	)
Woori Financial F&I Co., Ltd.		424,766		223,660		9,939		527			527
Woori Asset Management Corp.		212,408		85,813		22,110		3,806			3,774
Woori Venture Partners Co., Ltd.(*)		328,586		31,482		6,294		2,410			3,052
Woori Global Asset Management Co., Ltd.		34,332		6,065		7,030		369			369
Woori Private Equity Asset Management Co., Ltd.		94,275		3,536		5,236		1,014			976
Woori Credit Information Co., Ltd.		43,792		8,986		21,152		1,968			1,750
Woori Fund Service Co., Ltd.		25,312		1,981		8,416		2,102			2,102
Woori FIS Co., Ltd.		96,834		50,984		161,507		(11,140	)		(11,622	)
Woori Finance Research Institute Co., Ltd.		6,186		2,419		3,447		(40	)		(85	)

(*)	Additional investment occurred and added it as a consolidated subsidiary during the six-month periods ended June 30, 2023.


	As of December 31, 2022				For the six-month period ended June 30, 2022
Subsidiaries	Assets		Liabilities		Operating revenue		Net income(loss) attributable to owners			Comprehensive income(loss) attributable to owners
Woori Bank		443,340,979		417,583,793		20,883,969		1,554,466			1,314,111
Woori Card Co., Ltd.		16,118,967		13,692,456		946,525		134,333			152,025
Woori Financial Capital Co., Ltd.		12,581,473		11,040,754		638,526		125,518			126,139
Woori Investment Bank Co., Ltd.		5,657,191		4,982,410		193,628		45,337			45,306
Woori Asset Trust Co., Ltd.		322,098		94,573		69,896		40,231			40,216
Woori Savings Bank		1,786,495		1,556,679		51,189		9,008			9,008
Woori Asset Management Corp.		185,389		62,568		14,971		(157	)		(79	)
Woori Financial F&I Co., Ltd.		336,141		135,562		2,036		(197	)		(197	)
Woori Credit Information Co., Ltd.		42,832		9,240		18,744		1,091			1,320
Woori Fund Service Co., Ltd.		25,094		2,691		8,164		2,142			2,142
Woori Private Equity Asset Management Co., Ltd.		94,434		4,672		2,759		1,451			1,439
Woori Global Asset Management Co., Ltd.		34,988		7,090		6,207		(165	)		(165	)
Woori FIS Co., Ltd.		112,117		54,645		139,902		(11,541	)		(11,741	)
Woori Finance Research Institute Co., Ltd.		6,456		2,604		3,216		(234	)		(243	)

- 20 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

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

•

Structured entity for asset securitization

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

•

Structured entity for the investments in securities

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

•

Money trust under the Financial Investment Services and Capital Markets Act

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

As of June 30, 2023 and December 31, 2022, the Group provides 2,548,574 million Won and 231,309 million Won of credit facilities, respectively, for the structured entities mentioned above. As of June 30, 2023 and December 31, 2022, the purchase commitment amount is 2,259,803 million Won and 2,545,164 million Won.

(6)

The Group has entered into various agreements with structured entities such as asset securitization, structured finance, investment fund, and monetary trust. 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 1110 are as follows:

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

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

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

Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds finances money required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit

- 21 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

distributed to the investors. The Group recognizes pro rata amount of valuation gain or loss on investment and dividend income as an investor and may be exposed to losses due to reduction in investment value. Investments in MMF(Money Market Funds) as of June 30, 2023 and December 31, 2022 are 1,002,659 million Won and 875,470 million Won, respectively, and there is no additional commitments for MMF.

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

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

(unit : Korean Won in millions))


	June 30, 2023
	Asset securitization vehicle	Structured Finance	Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities	15,299,987	99,117,835		156,201,146		1,593,608
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities	9,988,628	5,689,187		6,177,274		55,751
Financial assets at FVTPL	271,340	127,384		5,485,211		10,322
Financial assets at FVTOCI	3,868,253	45,461		—		—
Financial assets at amortized cost	5,849,035	5,516,342		31,004		45,429
Investments in joint ventures and associates	—	—		658,664		—
Derivative assets	—	—		2,395		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities	1,454	4,595		1,343		6,214
Derivative liabilities	314	2,191		1,343		—
Other liabilities(provisions)	1,140	2,404		—		6,214
The maximum exposure to risks	10,132,399	6,833,410		10,042,690		106,470
Investment assets	9,988,628	5,689,187		6,177,274		55,751
Purchase commitment	—	—		3,860,595		—
Credit facilities and others	143,771	1,144,223		4,821		50,719
Loss recognized on unconsolidated structured entities	217	23,578		15,880		655

(unit : Korean Won in millions))


	December 31, 2022
	Asset securitization vehicle		Structured Finance		Investment Funds		Real-estate trust
Total asset of the unconsolidated structured entities		14,856,750		82,724,618		132,264,383		1,316,930
Assets recognized in the consolidated financial statements related to the unconsolidated structured entities		8,051,144		5,537,836		4,964,712		40,073
Financial assets at FVTPL		258,552		6,642		4,397,416		10,480
Financial assets at FVTOCI		3,213,331		45,735		—		—
Financial assets at amortized cost		4,579,261		5,485,336		31,124		29,593
Investments in joint ventures and associates		—		—		535,427		—
Derivative assets		—		123		745		—
Liabilities recognized in the consolidated financial statements related to the unconsolidated structured entities		824		6,606		2,091		5,760

- 22 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


Derivative liabilities	729	4,975	2,091	—
Other liabilities (provisions)	95	1,631	—	5,760
The maximum exposure to risks	8,153,111	6,086,831	9,322,308	92,856
Investment assets	8,051,144	5,537,836	4,964,712	40,073
Purchase commitment	—	—	4,352,518	—
Credit offerings and others	101,967	548,995	5,078	52,783
Loss recognized on unconsolidated structured entities	—	17,388	113,976	1,040

(7)	As of June 30, 2023 and December 31, 2022, the share of non-controlling interests on the net income and equity of subsidiaries in which non-controlling interests are significant are as follows (Unit: Korean Won in millions):

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


	June 30, 2023	December 31, 2022
Woori Bank(*1)	1,845,529	2,344,816
Woori Investment Bank Co., Ltd.	280,171	283,221
Woori Asset Trust Co., Ltd.(*2)	12,959	78,434
Woori Asset Management Corp	35,027	34,073
Woori Venture Partners Co., Ltd.	132,947	—
PT Bank Woori Saudara Indonesia 1906 Tbk	105,580	92,118
Wealth Development Bank	22,121	20,759
PT Woori Finance Indonesia Tbk.	14,198	13,964

(*1)	Hybrid securities issued by Woori Bank

(*2)	The non-controlling interests decreased by 71,240 million Won in accordance with additional investment during the six-month period ended June 30, 2023.

Net income attributable to non-controlling interests


	For the six-month periods ended June 30
	2023		2022
Woori Bank(*)		55,320		61,890
Woori Investment Bank Co., Ltd.		5,255		18,934
Woori Asset Trust Co., Ltd.		6,144		12,265
Woori Asset Management Corp		962		(40	)
Woori Venture Partners Co., Ltd.		880		—
PT Bank Woori Saudara Indonesia 1906 Tbk		5,449		3,738
Wealth Development Bank		460		565
PT Woori Finance Indonesia Tbk.		447		—

(*)	Distribution of the hybrid securities issued by Woori Bank

Dividends to non-controlling interests


	For the six-month periods ended June 30
	2023		2022
Woori Bank (*)		55,320		61,890
Woori Investment Bank Co., Ltd.		8,302		7,219
Woori Asset Trust Co., Ltd		365		365
PT Bank Woori Saudara Indonesia 1906 Tbk		2,802		2,330

(*)	Distribution of the hybrid securities issued by Woori Bank

- 23 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

2.	BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

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 interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements. The Group’s condensed consolidated interim financial statements are condensed interim financial statements prepared in applying International Financial Reporting Standards as adopted by the Republic of Korea (“K-IFRS”) 1034 Interim Finance Reporting for some of periods in which the annual consolidated financial statements belong. It is necessary to use the Group’s annual consolidated financial statements for the year ended December 31, 2022 for understanding of the accompanying condensed consolidated interim financial statements.

(1)	From the accounting period beginning on January 1, 2023, the Group has newly applied the following standards and interpretations.

Amendments to K-IFRS No.1001 ‘Presentation of Financial Statements’ and IFRS2 ‘Determination of Importance’ – Accounting Policy Disclosure

IFRS Practice Statement 2 has been amended to define and disclose important accounting policies and to provide guidance on how to apply the concept of importance. The Group does not expect that these amendments have a significant impact on the financial statements.

Amendments to K-IFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ – Definition of Accounting Estimates

The amendments have defined accounting estimates and clarified how to distinguish them from changes in accounting policies. The Group does not expect that these amendments have a significant impact on the financial statements.

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of valuation gains or losses on financial liabilities with condition to adjust exercise price

The amendments require disclosure of valuation gains or losses (limited to those recognized in the profit or loss) of the conversion options or warrants (or financial liabilities including them), if all or part of the financial instrument with exercise price that is adjusted depending on the issuer’s share price change is classified as financial liability as defined in paragraph 11 (2) of K-IFRS 1032. The Group does not expect that these amendments have a significant impact on the financial statements.

Amendments to K-IFRS 1012 ‘Income Taxes’ – deferred tax related to assets and liabilities arising from a single transaction

Additional phrase ‘the temporary difference to be added and the temporary difference to be deducted do not occur in the same amount’ has been added to initial recognition exception for a transaction in which an asset or liability is initially recognized. The Group does not expect that these amendments have a significant impact on the financial statements.

New Standard: Korean IFRS 1117 Insurance Contract

Korean IFRS 1117 Insurance Contracts replaces Korean IFRS 1104 Insurance Contracts. This Standard estimates future cash flows of an insurance contract and measures insurance liabilities using discount rates applied with assumptions and risks at the measurement date. The entity recognizes insurance revenue on an accrual basis including services (insurance coverage) provided to the policyholder by each annual period. In addition, investment components (Refunds due to termination/maturity) repaid to a policyholder even if an insured event does not occur, are excluded from insurance revenue, and insurance financial income or expense and the investment income or expense are presented separately to enable users of the information to understand the sources of income or expenses. There is no significant impact on the financial statement of the Group due to this amendment.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	The details of K-IFRSs that have been issued and published since January 1, 2023 but have not yet reached the effective date are as follows:

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability include the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Group does not expect that these amendments have a significant impact on the financial statements.

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

(3)	Significant accounting policies and method of computation used in the preparation of the condensed consolidated interim financial statements are consistent with those of the consolidated financial statements for the year ended December 31, 2022 except for the one described below.

•

Income tax expense

Income tax expense for the interim period is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate is applied to the pre-tax income.

(4)	K-IFRS 1007‘Statement of cash flow’ – Cash and cash equivalents

The Group did not classify deposits with restrictions under relevant regulations, such as reserve deposits, as cash and cash equivalents. However, in accordance of the IFRS Interpretation Committee’s agenda decision in April 2022 ‘Demand deposits restricted on use under contracts with third parties’ and reply to IFRS inquiries ‘whether the reserve deposit should be classified as cash and cash equivalents’ the policy was changed to classifying the reserve deposits with restrictions under relevant regulations which meet the criteria of demand deposits as cash and cash equivalent and applied the modification retrospectively.

The impact of this change in accounting policy is as follows (Unit: Korean Won in millions):

Impact on the statements of financial position


	June 30, 2022
Increase in cash and cash equivalents		25,518,774
Decrease in loans and other financial assets at amortized cost		(25,518,774	)

Impact on the statements of cash flow


	June 30, 2022
Increase in cash flows from operating activities		12,391,148
Increase in exchange rate changes on cash and cash equivalents denominated in foreign currencies		80,371
Net increase in cash and cash equivalents		12,391,148
Increase in cash and cash equivalents, as of January 31, 2022		13,047,255
Increase in cash and cash equivalents, as of June 30, 2022		25,518,774

- 25 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

3.	MATERIAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

Material accounting estimates and assumptions are continuously evaluated based on numerous factors, including historical experience and expectations of future events that are considered reasonably possible. Actual results can differ from those estimates based on such definitions. The accounting estimates and assumptions that contain significant risk of materially changing current book values of assets and liabilities in the next accounting periods are as follows.

The South Korean government is implementing support measures such as loan repayment deferment to mitigate the negative impact of COVID-19. The Group determined that the credit risk of loans affected by the loan deferment has significantly increased and evaluated that the possibility of default is high.

The Group will continue to assess the adequacy of forward-looking information related to the duration of the aftermath of COVID-19 on economy and government policies

Woori Bank’s total loans (loan receivables, payment guarantees) that are subject to loan deferment and interest deferment, total loans that changed its stage from 12-month to lifetime expected credit losses (Stage 2), and the expected credit loss allowances recognized additionally are as follows. (Unit: Korean Won in millions):


				June 30, 2023		December 31, 2022
Total loans that changed its stage from 12-month to lifetime (Stage 2) expected credit losses	Repayment	Loans	Corporate		1,501,021		1,774,717
	suspended		Retail		135,233		169,851
		Off-balance accounts			2,362		2,392

			Total		1,638,616		1,946,960

Total loans (loan receivables, payment guarantees) that are subject to loan deferment and interest deferment	Repayment	Loan	Corporate		1,628,416		1,958,133
	suspended		Retail		175,614		216,487
		Off-balance accounts			2,390		2,392

			Total		1,806,420		2,177,012

The expected credit loss allowances that be additionally recognized	Repayment	Loan	Corporate		212,427		312,054
	suspended		Retail		10,544		12,643
		Off-balance accounts			351		317

			Total		223,322		325,014

In addition, as of June 30, 2023, the Group reflects the forward-looking information in the estimated probability of default rate recognizes additional expected credit loss allowance appropriations by adjusting the forward-looking information in consideration of the Korean government financial providing policies, increased economic uncertainty, and potential insolvency due to market interest rate hikes.

Woori Card Co., Ltd. determined that the credit risk of obligors receiving financial support due to COVID-19 significantly increased, and transferred the loss allowance at the amount equivalent to lifetime expected credit

- 26 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

loss. As of June 30, 2023, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 6,736 million Won, and the cumulative expected credit loss allowance have increased for 175 million Won.

Woori Financial Capital Co., Ltd. determined that the credit risk of obligors receiving financial support due to COVID-19 significantly increased; and evaluated that the possibility of default is high. As a result, as of June 30, 2023, financial assets at amortized cost of obligors subject to loan deferment and interest deferment amount to 38,795 million Won and cumulative expected credit loss allowance have increased for 8,582 million Won.

Management shall make judgments, estimates and assumptions that affect the application of accounting policies and application of assets, liabilities and revenues and expenses in preparing condensed consolidated interim financial statements. Therefore, the actual results may differ from these estimates.

The significant judgements by the management on accounting policies and the main sources of estimation uncertainty for preparing condensed consolidated interim financial statements, except for the following matters, are identical to ones used in the Company’s annual consolidated financial statements for the year ended December 31, 2022.

The impact of changes including methodology for estimating the probability of default (PD) during the current period is as follows:


		Impact of changes in estimates
Expected credit loss allowances	Loans and other financial assets at amortized cost		220,835
	Guarantees and unused commitments		32,316
	Financial assets at FVTOCI		10,032
	Securities at amortized cost		6,134

Total			269,317


		Impact of changes in estimates
Expected credit loss allowances	Loans and other financial assets at amortized cost		7,260
	Guarantees and unused commitments		3,000
	Financial assets at FVTOCI		—
	Securities at amortized cost		—

Total			10,260


		Impact of changes in estimates
Expected credit loss allowances	Loans and other financial assets at amortized cost		5,013
	Guarantees and unused commitments		(456	)
	Financial assets at FVTOCI		—
	Securities at amortized cost		—

Total			4,557

- 27 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

4.	RISK MANAGEMENT

The Group’s operating activity is exposed to various financial risks and the and the main types of risks are credit risk, market risk, liquidity risk, etc. The risk management department analyze and assess the level of complex risks in order to manage the risks and the risk management standards such as policies, regulations, management systems and decision-making have been established and operated for sound management of the Group.

The risk management organization is operated by risk management committee, risk management responsible, and risk management department. The Board of Directors operates a risk management committee comprised of outside directors for professional risk management. The risk management committee plays a role as the top decision-making body in risk management by establishing basic policies for risk management that are in line with the Group’s management strategy and determining the risk level that the Group is willing to take. The risk management officer (CRO) assists the risk management committee and operates a group risk management council comprised of risk management managers of subsidiaries to periodically check and improve the risk burden of external environments and the Group. The risk management department is independent and is in charge of risk management of the Group. It also supports reporting and decision-making of key risk-related issues.

(1)	Credit risk

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

Credit risk management

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

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

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

Measurement of expected credit loss

K-IFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, depends 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:
Loss allowance	Expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date	Expected credit losses that result from all possible default events over the life of the financial instrument

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

Loss allowance under credit impairment model is measured as the cumulative change in lifetime expected credit loss since initial recognition.

- 28 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

At the end of each reporting period, the Group assesses whether the credit risk has increased significantly since initial recognition by using credit rating, assets soundness, early warning system, days past due and other. 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

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


	Credit rating	Significant increased indicator of the credit rating
Corporate	AAA ~ A+	More than or equal to 4 steps
	A- ~ BBB	More than or equal to 3 steps
	BBB- ~ BB+	More than or equal to 2 steps
	BB ~ BB-	More than or equal to 1 step
Retail	1 ~ 3	More than or equal to 3 steps
	4 ~ 5	More than or equal to 2 steps
	6 ~ 10	More than or equal to 1 step

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

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

•

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

•

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

•

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

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

Probability of default (PD) and Loss given default (LGD) for each category of financial asset is 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 also using reasonable and supportable macroeconomic indicators such as GDP growth rate, Personal consumption expenditures increase/decrease rate, consumer price index change rate in order to forecast future economic conditions.

The Group is conducting the following procedures to estimate and apply future economic forecast information.

- 29 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

•

Development of estimation models by analyzing the correlation between default rates of corporate and retail exposures per year and macroeconomic indicators


Major macroeconomic indicators		Correlation between credit risk and macroeconomic indicators
GDP growth rate		Negative(-) Correlation

Personal consumption expenditures increase/decrease rate		Negative(-) Correlation

Won-dollar exchange rate		Positive(+) Correlation

•

Calculation of estimated default rate incorporating future economic forecasts by applying estimated macroeconomic indicators provided by verified institutions such as Bank of Korea and National Assembly Budget Office to the estimation model developed

•

Disclosure of economic variable forecasts

Probability weight

As of June 30, 2023, the probability weights applied to the scenarios of the forecasts of macroeconomic variables is as follows (Unit: %):


	Basic Scenario		Upside Scenario		Downside Scenario		Worst Scenario
Probability weight		42.06		10.02		27.92		20.00

Economic forecast of each major economic variables by scenario (forecast period: 2023)

As of June 30, 2023, the forecasts of major macroeconomic variables by scenario is as follows (Unit: Won,%)


	Basic Scenario		Upside Scenario		Downside Scenario		Worst Scenario
GDP growth rate		1.70		1.89		1.36		(-)5.10
Personal consumption expenditures increase/decrease rate		2.70		3.08		2.01		(-)10.98
Won-dollar exchange rate		1,365		1,349		1,393		1,928

The results of Woori Bank’s sensitivity analysis on expected credit loss provisions due to changes in macroeconomic indicators as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


			June 30, 2023(*)
Corporate	Personal consumption expenditures increase/decrease rate	Increase by 1% point		(123,998	)
		Decrease by 1% point		140,169
Retail	Consumer price index increase/decrease rate	Increase by 1% point		—
		Decrease by 1% point		—

			December 31, 2022(*)
Corporate	Personal consumption expenditures increase/decrease rate	Increase by 1% point		(59,987	)

		Decrease by 1% point		68,036

Retail	Consumer price index increase/decrease rate	Increase by 1% point		(24,164	)

		Decrease by 1% point		28,042

- 30 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*)

The sensitivity of GDP growth rate and won-dollar exchange rate to the bank’s expected credit loss allowance is not significant.

•

The increase rate between the measured default rate and the predicted default rate is used as a future economic forecast adjustment coefficient and reflected to the applicable estimate for the current year.

Maximum exposure

The Group’s maximum exposure to credit risk refers to net book value of financial assets net of 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.

The maximum exposure to credit risk as of June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


		June 30, 2023		December 31, 2022
Loans and other financial assets at amortized cost(*1)	Korean treasury and government agencies		2,925,976		2,877,685
	Banks		33,443,982		21,571,097
	Corporates		147,914,841		143,507,852
	Consumers		184,731,427		187,804,095

	Sub-total		369,016,226		355,760,729

Financial assets at FVTPL(*2)	Deposits		32,893		34,995
	Debt securities		4,628,277		4,270,532
	Loans		952,072		899,228
	Derivative assets		8,088,541		8,206,181
	Others		2,544		1,505

	Sub-total		13,704,327		13,412,441

Financial assets at FVTOCI	Debt securities		33,760,356		32,145,758
	Loans		30,807		—
	Sub-total		33,791,163		32,145,758
Securities at amortized cost	Debt securities		25,949,620		28,268,516
Derivative assets	Derivative assets (Designated for hedging)		70,980		37,786
Off-balance accounts	Payment guarantees(*3)		13,152,389		11,921,586
	Loan commitments		123,631,166		118,172,070

	Sub-total		136,783,555		130,093,656

	Total		579,315,871		559,718,886

(*1)	Cash and cash equivalents are not included.

(*2)	Financial instruments available for put are not included.

(*3)	As of June 30, 2023 and December 31, 2022, the financial guarantee amount of 3,871,057 million Won and 3,095,091 million Won are included, respectively.

- 31 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Credit risk exposure by geographical areas

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


	June 30, 2023
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		343,088,819		5,397,632		5,068,679		211,389		623,512		14,626,195		369,016,226
Securities at amortized cost		24,490,142		122,684		998,819		18,184		—		319,791		25,949,620
Financial assets at FVTPL		10,060,048		3,118		1,958,961		376,907		183,110		1,122,183		13,704,327
Financial assets at FVTOCI		28,697,015		871,739		2,971,891		7		42,681		1,207,830		33,791,163
Derivative assets (Designated for hedging)		70,980		—		—		—		—		—		70,980
Off-balance accounts		132,968,838		1,023,486		341,817		26,826		24,306		2,398,282		136,783,555

Total		539,375,842		7,418,659		11,340,167		633,313		873,609		19,674,281		579,315,871

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


	December 31, 2022
	Korea		China		USA		UK		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		331,572,328		5,188,826		4,721,440		215,174		719,301		13,343,660		355,760,729
Securities at amortized cost		26,883,967		642,089		421,248		16,658		—		304,554		28,268,516
Financial assets at FVTPL		9,272,673		2,607		2,210,580		318,322		168,013		1,440,246		13,412,441
Financial assets at FVTOCI		27,780,323		806,320		2,297,076		1,726		41,421		1,218,892		32,145,758
Derivative assets (Designated for hedging)		37,786		—		—		—		—		—		37,786
Off-balance accounts		126,531,020		981,139		380,209		25,644		16,987		2,158,657		130,093,656

Total		522,078,097		7,620,981		10,030,553		577,524		945,722		18,466,009		559,718,886

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

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 June 30, 2023 and December 31, 2022 (Unit: Korean Won in millions):


	June 30, 2023
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		79,845,556		41,447,635		42,161,899		5,334,898		180,095,099		20,131,139		369,016,226
Securities at amortized cost		209,142		—		15,148,691		159,711		—		10,432,076		25,949,620
Financial assets at FVTPL		363,283		270,956		9,488,250		65,448		1,247		3,515,143		13,704,327
Financial assets at FVTOCI		424,834		309,344		22,725,555		129,535		—		10,201,895		33,791,163
Derivative assets (Designated for hedging)		—		—		70,980		—		—		—		70,980
Off-balance accounts		21,370,575		21,970,441		12,437,207		3,270,003		72,067,431		5,667,898		136,783,555

Total		102,213,390		63,998,376		102,032,582		8,959,595		252,163,777		49,948,151		579,315,871


	December 31, 2022
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		78,173,716		37,013,486		31,485,795		5,613,480		183,167,572		20,306,680		355,760,729
Securities at amortized cost		239,141		—		16,198,175		199,924		—		11,631,276		28,268,516
Financial assets at FVTPL		200,678		184,019		9,776,234		51,244		1,167		3,199,099		13,412,441
Financial assets at FVTOCI		417,877		231,132		22,249,839		48,225		—		9,198,685		32,145,758
Derivative assets (Designated for hedging)		—		—		37,786		—		—		—		37,786
Off-balance accounts		18,661,383		22,492,863		10,523,731		3,143,673		69,404,456		5,867,550		130,093,656

Total		97,692,795		59,921,500		90,271,560		9,056,546		252,573,195		50,203,290		559,718,886

- 32 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Credit risk exposure

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 June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


	June 30, 2023
	Stage 1				Stage 2
	Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Stage 3		Credit impairment model		Total		Loss allowance			Total, net
Loans and other financial assets at amortized cost		318,640,182		25,443,681		12,621,919		12,912,514		1,807,629		389,066		371,814,991		(2,798,765	)		369,016,226
Korean treasury and government agencies		2,928,045		33		—		—		—		—		2,928,078		(2,102	)		2,925,976
Banks		32,954,051		531,241		2,763		—		14,657		—		33,502,712		(58,730	)		33,443,982
Corporates		122,494,063		18,377,932		2,359,237		5,240,884		767,116		389,066		149,628,298		(1,713,457	)		147,914,841
General business		79,632,413		11,038,683		1,502,878		3,824,387		450,320		—		96,448,681		(1,108,851	)		95,339,830
Small- and medium-sized enterprise		34,574,598		6,687,552		796,412		1,270,028		226,192		—		43,554,782		(445,522	)		43,109,260
Project financing and others		8,287,052		651,697		59,947		146,469		90,604		389,066		9,624,835		(159,084	)		9,465,751
Consumers		160,264,023		6,534,475		10,259,919		7,671,630		1,025,856		—		185,755,903		(1,024,476	)		184,731,427
Securities at amortized cost		25,964,042		—		—		—		—		—		25,964,042		(14,422	)		25,949,620
Financial assets at FVTOCI (*3)		33,571,778		219,385		—		—		—		—		33,791,163		(25,035	)		33,791,163

Total		378,176,002		25,663,066		12,621,919		12,912,514		1,807,629		389,066		431,570,196		(2,838,222	)		428,757,009


	June 30, 2023
	Collateral value
	Stage1		Stage2		Stage3		Credit impairment model		Total
Loans and other financial assets at amortized cost		212,243,737		20,848,691		880,069		—		233,972,497
Korean treasury and government agencies		23,570		—		—		—		23,570
Banks		1,739,164		—		—		—		1,739,164
Corporates		85,225,271		5,751,987		413,404		—		91,390,662
General business		47,707,408		4,026,496		228,815		—		51,962,719
Small- and medium-sized enterprise		32,066,524		1,587,266		121,192		—		33,774,982
Project financing and others		5,451,339		138,225		63,397		—		5,652,961
Consumers		125,255,732		15,096,704		466,665		—		140,819,101
Securities at amortized cost		—		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—		—

Total		212,243,737		20,848,691		880,069		—		233,972,497

(*1)	Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)	Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3)	Financial assets at FVTOCI has been disclosed as the amount before deducting allowance for credit losses because allowance for credit losses does not reduce the carrying amount.

- 33 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Stage 1				Stage 2
	Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Stage 3		Credit impairment model		Total		Loss allowance			Total, net
Loans and other financial assets at amortized cost		308,498,799		23,391,187		13,061,081		11,533,632		1,447,967		313,717		358,246,383		(2,485,654	)		355,760,729
Korean treasury and government agencies		2,879,057		39		—		—		—		—		2,879,096		(1,411	)		2,877,685
Banks		21,182,445		393,181		2,125		—		18,053		—		21,595,804		(24,707	)		21,571,097
Corporates		120,407,588		16,680,863		2,556,885		4,429,148		637,187		313,717		145,025,388		(1,517,536	)		143,507,852
General business		74,939,770		9,291,691		1,754,620		3,083,232		421,659		—		89,490,972		(1,016,039	)		88,474,933
Small- and medium-sized enterprise		34,965,279		6,751,297		754,668		1,257,741		173,818		—		43,902,803		(400,328	)		43,502,475
Project financing and others		10,502,539		637,875		47,597		88,175		41,710		313,717		11,631,613		(101,169	)		11,530,444
Consumers		164,029,709		6,317,104		10,502,071		7,104,484		792,727		—		188,746,095		(942,000	)		187,804,095
Securities at amortized cost		28,276,901		—		—		—		—		—		28,276,901		(8,385	)		28,268,516
Financial assets at FVTOCI (*3)		31,914,193		231,565		—		—		—		—		32,145,758		(11,805	)		32,145,758

Total		368,689,893		23,622,752		13,061,081		11,533,632		1,447,967		313,717		418,669,042		(2,505,844	)		416,175,003


	December 31, 2022
	Collateral value
	Stage1		Stage2		Stage3		Credit impairment model		Total
Loans and other financial assets at amortized cost		213,228,740		19,354,919		607,614		313,717		233,504,990
Korean treasury and government agencies		24,276		—		—		—		24,276
Banks		1,858,595		—		—		—		1,858,595
Corporates		82,314,488		4,982,087		316,085		313,717		87,926,377
General business		44,465,799		3,390,139		194,597		—		48,050,535
Small- and medium-sized enterprise		32,503,289		1,537,173		84,798		—		34,125,260
Project financing and others		5,345,400		54,775		36,690		313,717		5,750,582
Consumers		129,031,381		14,372,832		291,529		—		143,695,742
Securities at amortized cost		—		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—		—

Total		213,228,740		19,354,919		607,614		313,717		233,504,990

(*1)	Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)	Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.

(*3)	Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance does not reduce the carrying amount.

- 34 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Guarantees and commitments

The credit quality of the guarantees and loan commitments as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
Financial assets	Stage 1				Stage 2				Stage3		Total
Financial assets	Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Stage3		Total
Off-balance accounts:
Payment Guarantees		12,038,238		949,727		51,124		98,192		15,108		13,152,389
Loan Commitments		117,869,359		3,096,545		1,974,266		690,606		390		123,631,166

Total		129,907,597		4,046,272		2,025,390		788,798		15,498		136,783,555

(*1)	Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)	Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.


	December 31, 2022
Financial assets	Stage 1				Stage 2				Stage3		Total
Financial assets	Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Above appropriate credit rating (*1)		Lower than a limited credit rating (*2)		Stage3		Total
Off-balance accounts
Guarantees		10,790,470		846,997		25,826		245,061		13,232		11,921,586
Loan Commitments		113,169,542		2,610,173		1,638,982		753,139		234		118,172,070

Total		123,960,012		3,457,170		1,664,808		998,200		13,466		130,093,656

(*1)	Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.

(*2)	Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.

Collateral and other credit enhancements

For the six-month period ended June 30, 2023 and for the year ended December 31, 2022, there have been no significant changes 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

(2)	Market risk

Market risk is the possible risk of loss arising from trading position and non-trading activities in the volatility of market factors such as interest rates, stock prices and foreign exchange rates.

Market risk management

Market risk management refers to the process of making and implementing decisions for the avoidance, acceptance or mitigation of risks by identifying the underlying source of the risks and measuring its level, and evaluating the appropriateness of the level of accepted market risks.

Trading activities

The Group uses the standard method and the internally developed model (the Bank) in measuring market risk for trading positions, and allocates market risk capital through the Risk Management Committee. Risk management departments of the Group and its subsidiaries manage limits in detail including those on risk and loss with their management result regularly reported to the Risk Management Committee.

- 35 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Subsidiaries such as Woori Bank manage market internal capital limits using the Basel III standard method, and other subsidiaries manage market risks by applying the simple method.

The Basel III standard method consists of a sensitivity method that measures linear and nonlinear losses that may occur due to unfavorable fluctuations in market risk factors, bankruptcy risks that may occur due to sudden bankruptcy, and residual risk-bearing equity capital for other losses.

Woori Bank, a major subsidiary subject to Basel III standard method of market risk management, has the following equity capital required for market risk.(Unit : Korean Won in millions)


	Risk Group	June 30, 2023
Sensitivity-based risk	General interest rate risk		42,387
	Equity risk		65,357
	General product risk		12
	Foreign exchange risk		181,880
	Non-securitisation credit spread risk		21,422
	Securitisation (excluding CTP) credit spread risk		—
	CTP credit spread risk		—
Default risk	Non-Securitisation bankruptcy risk		13,774
	Securitisation (excluding CTP) default risk		—
	CTP default risk		—
Residual risk	Residual risk		694

Total			325,526

Non-trading activities

From the end of 2019 for Woori Bank and the beginning of 2021 for the other subsidiaries, the Group and its subsidiaries manage and measure interest risk for non-trading activities through ΔNII(Change in Net Interest Income) and ΔEVE(Change in Economic Value of Equity) in accordance with IRRBB(Interest Rate Risk in the Banking Book).

ΔNII represents a change in net interest income that may occur over a certain period (e.g. one year) due to changes in net interest income, and ΔEVE indicates the economic value changes in equity capital that could be caused by changes in interest rates affecting the present value of asset, liabilities, and others.

ΔEVE and ΔNII calculated on Interest Rate Risk in the Banking Book(IRRBB) basis for assets and liabilities by subsidiary as of the end of June 30, 2023 and December 31, 2022 are as follows(Unit: Korean Won in millions):


	June 30, 2023				December 31, 2022
	ΔEVE (*1)		ΔNII (*2)		ΔEVE (*1)		ΔNII (*2)
Woori Bank		530,197		385,081		411,447		448,509
Woori Card Co., Ltd.		110,610		87,656		139,005		185,637
Woori Financial Capital Co., Ltd.		48,248		4,228		43,098		13,814
Woori Investment Bank Co., Ltd.		21,260		1,721		26,311		8,229
Woori Asset Trust Co., Ltd.		1,442		6,603		1,137		6,736
Woori Asset Management Corp.		698		979		913		1,299
Woori Savings Bank		2,404		6,233		6,618		10,348
Woori Private Equity Asset Management Co., Ltd.		650		654		547		886
Woori Global Asset Management Co., Ltd.		331		336		251		538
Woori Financial F&I Co., Ltd.		33,369		1,757		26,069		219
Woori Venture Partners Co., Ltd.(*3)		294		3,152		—		—

- 36 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*1)	ΔEVE: change in Economic Value of Equity

(*2)	ΔNII: change in Net Interest Income

(*3)	Additional investment occurred and added it as a consolidated subsidiary during the six-month period ended June 30, 2023.

At the interest rate re-pricing date, cash flows (both principal and interest) of interest bearing assets and liabilities, which is the basis of non-trading position interest rate risk management are as follows: (Unit: Korean Won in millions):


	June 30, 2023
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost		221,702,325		54,491,590		18,815,722		17,503,725		60,828,492		8,336,788		381,678,642
Financial assets at FVTPL		1,855,241		19,988		49,019		58,045		33,619		96		2,016,008
Financial assets at FVTOCI		5,044,123		3,860,314		3,084,098		2,936,727		19,586,384		576,038		35,087,684
Securities at amortized cost		2,062,364		1,456,544		1,181,431		1,182,549		19,464,493		2,185,386		27,532,767

Total		230,664,053		59,828,436		23,130,270		21,681,046		99,912,988		11,098,308		446,315,101

Liability:
Deposits due to customers		151,333,792		67,707,941		38,306,133		21,698,264		58,128,735		67,230		337,242,095
Borrowings		16,917,956		3,643,858		2,050,924		2,498,501		5,361,378		430,584		30,903,201
Debentures		7,845,376		6,159,118		4,227,210		4,873,527		18,610,170		3,613,851		45,329,252

Total		176,097,124		77,510,917		44,584,267		29,070,292		82,100,283		4,111,665		413,474,548


	December 31, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost		224,863,400		56,669,335		15,469,920		15,108,779		59,454,649		5,963,926		377,530,009
Financial assets at FVTPL		1,888,996		119,725		1,364		4,670		71,620		13,129		2,099,504
Financial assets at FVTOCI		6,093,805		4,224,460		3,014,625		3,550,982		15,409,527		584,203		32,877,602
Securities at amortized cost		2,749,432		1,806,804		1,768,936		1,427,736		20,126,354		2,100,203		29,979,465

Total		235,595,633		62,820,324		20,254,845		20,092,167		95,062,150		8,661,461		442,486,580

Liability:
Deposits due to customers		167,237,029		49,107,093		33,506,265		40,006,233		55,855,781		69,861		345,782,262
Borrowings		14,829,024		4,159,096		1,542,340		1,183,331		6,654,602		472,325		28,840,718
Debentures		9,068,737		4,905,727		4,633,137		4,962,350		19,621,659		3,298,581		46,490,191

Total		191,134,790		58,171,916		39,681,742		46,151,914		82,132,042		3,840,767		421,113,171

- 37 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Currency risk

Currency risk arises from the financial instruments denominated in foreign currencies other than the functional currency. Therefore, no currency risk arises from non-monetary items or financial instruments denominated in the functional currency.

Financial instruments in foreign currencies exposed to currency risk as of June 30, 2023 and December 31, 2022 are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean Won in millions):


		June 30, 2023
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		6,440		8,453,892		79,340		719,588		1,284		232,482		488		696,019		1,276,739		11,378,720
	Loans and other financial assets at amortized cost		22,566		29,625,105		177,330		1,608,328		35,057		6,347,135		3,415		4,871,436		6,151,021		48,603,025
	Financial assets at FVTPL		1,016		1,336,640		31,966		289,918		—		—		399		568,901		29,662		2,225,121
	Financial assets at FVTOCI		3,542		4,650,416		—		—		4,578		828,893		6		8,468		720,759		6,208,536
	Securities at amortized cost		1,173		1,540,193		124		1,127		678		122,708		67		95,327		214,157		1,973,512

Total			34,737		45,606,246		288,760		2,618,961		41,597		7,531,218		4,375		6,240,151		8,392,338		70,388,914

Liability	Financial liabilities at FVTPL		450		590,759		43,084		390,756		—		—		402		573,362		230,064		1,784,941
	Deposits due to customers		20,414		26,799,148		262,299		2,378,971		25,993		4,706,035		2,884		4,114,304		5,076,037		43,074,495
	Borrowings		7,731		10,149,145		45,632		413,868		2,070		430,688		468		667,864		2,830,983		14,492,548
	Debentures		4,750		6,235,980		—		—		—		—		195		277,863		345,435		6,859,278
	Other financial liabilities		4,278		5,616,622		21,276		192,971		14,346		2,597,299		240		342,763		328,136		9,077,791

Total			37,623		49,391,654		372,291		3,376,566		42,409		7,734,022		4,189		5,976,156		8,810,655		75,289,053

Off-balance accounts			7,020		9,215,622		34,674		314,487		1,566		283,511		772		1,100,848		521,044		11,435,512


		December 31, 2022
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		9,041		11,457,194		64,824		617,888		1,542		279,779		484		653,870		1,022,909		14,031,640
	Loans and other financial assets at amortized cost		24,361		30,872,442		116,298		1,108,529		24,637		4,470,059		2,510		3,391,155		4,952,002		44,794,187
	Financial assets at FVTPL		970		1,229,059		25,416		242,260		—		—		358		484,172		176,057		2,131,548
	Financial assets at FVTOCI		3,307		4,191,383		—		—		3,999		725,511		2		2,573		725,271		5,644,738
	Securities at amortized cost		576		729,811		—		—		3,540		642,214		69		93,250		206,497		1,671,772

Total			38,255		48,479,889		206,538		1,968,677		33,718		6,117,563		3,423		4,625,020		7,082,736		68,273,885

Liability	Financial liabilities at FVTPL		415		526,553		26,766		255,128		—		—		322		434,590		274,895		1,491,166
	Deposits due to customers		24,569		31,135,881		227,260		2,166,196		28,125		5,102,886		2,108		2,847,863		5,008,487		46,261,313
	Borrowings		6,894		8,737,229		44,365		422,876		1,023		185,652		431		582,034		2,179,085		12,106,876
	Debentures		4,174		5,289,246		—		—		—		—		195		263,187		339,188		5,891,621
	Other financial liabilities		3,040		3,852,255		8,685		82,783		4,295		779,233		380		513,285		200,249		5,427,805

Total			39,092		49,541,164		307,076		2,926,983		33,443		6,067,771		3,436		4,640,959		8,001,904		71,178,781

Off-balance accounts			6,698		8,488,374		34,512		328,964		1,141		207,012		787		1,063.680		868.470		10,956,500

- 38 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Liquidity risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its financial liabilities.

Liquidity risk management

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 financial liabilities that are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-determined period.

Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in accordance with the characteristics of the account. The Group manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.), while maintaining the gap ratio at or below the target limit.

Maturity analysis of non-derivative financial liabilities

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		32,832		39,561		—		—		10,153		49,812		132,358
Deposits due to customers		217,192,249		54,806,844		28,119,048		23,574,951		15,892,545		1,575,952		341,161,589
Borrowings		11,250,530		4,643,849		3,785,350		5,352,201		5,669,187		430,582		31,131,699
Debentures		6,173,118		6,815,114		5,156,872		4,994,592		18,610,170		3,613,851		45,363,717
Lease liabilities		41,501		35,788		28,791		24,739		152,215		24,291		307,325
Other financial liabilities(*)		22,526,476		106,972		32,986		37,569		867,682		3,853,926		27,425,611

Total		257,216,706		66,448,128		37,123,047		33,984,052		41,201,952		9,548,414		445,522,299

(*) Lease liabilities are excluded.


	December 31, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		35,161		—		—		—		—		12,113		47,274
Deposits due to customers		228,890,427		36,851,103		24,091,740		42,652,679		14,999,516		1,522,830		349,008,295
Borrowings		8,969,648		5,734,715		3,210,812		3,156,211		7,457,240		484,909		29,013,535
Debentures		6,348,064		6,841,379		5,211,032		5,214,942		19,621,659		3,298,581		46,535,657
Lease liabilities		68,279		36,724		35,136		29,646		151,379		33,007		354,171
Other financial liabilities(*)		14,409,376		113,049		19,370		20,315		765,870		3,037,563		18,365,543

Total		258,720,955		49,576,970		32,568,090		51,073,793		42,995,664		8,389,003		443,324,475

(*) Lease liabilities are excluded.

- 39 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		32,832		39,561		—		—		10,153		49,812		132,358
Deposits due to customers		228,313,106		54,730,491		25,699,106		19,439,327		11,711,644		223,278		340,116,952
Borrowings		11,250,530		4,643,849		3,785,350		5,352,201		5,669,187		430,582		31,131,699
Debentures		6,173,118		6,815,114		5,156,872		4,994,592		18,610,170		3,613,851		45,363,717
Lease liabilities		41,507		35,788		28,791		24,740		152,402		24,291		307,519
Other financial liabilities(*)		22,526,476		106,972		32,986		37,569		867,682		3,853,926		27,425,611

Total		268,337,569		66,371,775		34,703,105		29,848,429		37,021,238		8,195,740		444,477,856

(*) Lease liabilities are excluded.


	December 31, 2022
	Within 3 months		4 to 6 Months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		35,161		—		—		—		—		12,113		47,274
Deposits due to customers		242,132,680		41,113,768		24,269,363		29,670,943		10,490,993		56,013		347,733,760
Borrowings		8,969,648		5,734,715		3,210,812		3,156,211		7,457,240		484,909		29,013,535
Debentures		6,348,064		6,841,379		5,211,032		5,214,942		19,621,659		3,298,581		46,535,657
Lease liabilities		68,344		36,729		35,377		29,948		157,361		38,584		366,343
Other financial liabilities(*)		14,409,376		113,049		19,370		20,315		765,870		3,037,563		18,365,543

Total		271,963,273		53,839,640		32,745,954		38,092,359		38,493,123		6,927,763		442,062,112

(*) Lease liabilities are excluded.

Maturity analysis of derivative financial liabilities

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

The cash flow by the maturity of derivative financial liabilities as of June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


		Remaining maturity
		Within 3 months		4 to 6 months		7 to 9 months			10 to 12 months			1 to 5 years		Over 5 years			Total
June 30, 2023	Cash flow hedge		425		—		(8	)		(21	)		2		—			398
	Fair value hedge		27,295		37,511		30,402			34,761			102,490		(4,755	)		227,704
	Trading		8,401,006		—		—			—			—		—			8,401,006
December 31, 2022	Cash flow hedge		856		905		915			1,255			50,682		—			54,613
	Fair value hedge		25,048		16,175		31,974			18,540			118,027		(3,615	)		206,149
	Trading		8,905,125		—		—			—			—		—			8,905,125

- 40 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Maturity analysis of off-balance accounts (Guarantees loan commitments and others)

A financial guarantee represents an irrevocable undertaking that the Group should meet a customer’s obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the Group has promised a credit to the customer. Commitments to lend include commercial standby facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan commitment only applies to principal amounts. There are contractual maturities for financial guarantees, such as guarantees for debentures issued or loans, unused loan commitments, and other guarantees, however, under the terms of the guarantees and unused loan commitments, funds should be paid upon demand from the counterparty. Details of off-balance accounts are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Guarantees		13,152,389		11,921,586
Loan commitments		123,631,166		118,172,070
Other commitments		4,402,207		4,602,429

(4)	Operational risk

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.

Operational risk management

The Group has established and operated a group operational risk management system to cope with new Basel III global regulations, which is implemented since 2023, and the management of operational risks follows the procedures for risk recognition, evaluation, measurement, monitoring and reporting, risk control and mitigation.

Operational risk measurement

The Group applies the standard method for the purpose of calculating operational risk required equity capital.

- The standard method is to calculate operational risk required equity capital by multiplying the Business Indicator Component(BIC), which is calculated by multiplying Business Indicator(BI) that is a measure based on consolidated financial statements and adjustment coefficient, and the Internal Loss Multiplier(ILM), an adjusted multiplier based on the average past loss and operating index.

“Operational risk required equity capital” = Business Indicator Component (BIC) × Internal Loss Multiplier(ILM)

“Business Indicator Component(BIC)” = Business Index(BI) × Adjustment Coefficient

“Internal Loss Multiplier(ILM)” = ln (exp(1)-1 + (Loss Component(LC)/Business Indicator Component(BIC)^0.8)


Bucket	Business Index (BI) section	The coefficient
1	1.4 trillion Won or less	12%
2	More than 1.4 trillion Won and less than or equal 42 trillion Won	15%
3	Over 42 trillion Won	18%

- 41 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

5.	OPERATING SEGMENTS

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

(1)	Segment by type of organization

The Group’s reporting segments consist of banking, credit card, capital, investment banking and other sectors, and the composition of such reporting segments was divided based on internal report data periodically reviewed by the management to evaluate the performance of the segment and make decisions on the resources to be distributed.


		Operational scope
Banking		Loans/deposits and relevant services for customers of Woori Bank and its subsidiaries
Credit card		Credit card, cash services, card loans and accompanying business of Woori Card Co., Ltd.
Capital		Installments, loans including lease financing, and accompanying business of Woori Financial Capital Co., Ltd.
Investment Banking		Securities operation, sale of financial instruments, project financing and other related activities for comprehensive financing of Woori Investment bank Co., Ltd.
Others		Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Ltd., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Inc., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute, Woori Venture Partners Co., Ltd.

- 42 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	The composition of each segment for the six-month periods ended June 30, 2023, and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Other adjustments (*3)			Internal adjustments (*4)			Consolidated Adjustments (*5)			Total
Net interest income		3,324,229			338,200			169,105			48,129			56,767			3,936,430			38,739			440,929			(3,105	)		4,412,993
Non-interest income(expense)		766,099			51,564			61,015			25,247			1,730,003			2,633,928			6,896			(326,341	)		(1,704,307	)		610,176
Impairment losses due to credit loss		(391,534	)		(145,831	)		(97,705	)		(31,871	)		(36,939	)		(703,880	)		—			(115,072	)		1,137			(817,815	)
General and administrative expense		(1,742,049	)		(138,382	)		(42,097	)		(25,613	)		(274,534	)		(2,222,675	)		(356	)		—			165,115			(2,057,916	)

Net operating income(expense)		1,956,745			105,551			90,318			15,892			1,475,297			3,643,803			45,279			(484	)		(1,541,160	)		2,147,438

Share of gain(loss) of joint ventures and associates		61,878			—			261			124			744			63,007			(125	)		—			8,101			70,983
Other non-operating income(expense)		(67,474	)		(914	)		(14	)		(9	)		941			(67,470	)		1,370			484			(4,272	)		(69,888	)

Non-operating income(expense)		(5,596	)		(914	)		247			115			1,685			(4,463	)		1,245			484			3,829			1,095

Net income(expense) before tax		1,951,149			104,637			90,565			16,007			1,476,982			3,639,340			46,524			—			(1,537,331	)		2,148,533
Tax expense		(473,248	)		(22,289	)		(19,286	)		(3,841	)		(18,089	)		(536,753	)		—			—			2,032			(534,721	)

Net income(loss)		1,477,901			82,348			71,279			12,166			1,458,893			3,102,587			46,524			—			(1,535,299	)		1,613,812

Total assets		445,294,200			16,504,719			12,304,348			5,407,267			28,770,391			508,280,925			2,530,629			—			(27,899,935	)		482,911,619

Investment to joint ventures and associates		977,694			—			37,486			4,065			22,978,920			23,998,165			27,451			—			(22,403,946	)		1,621,670
Other assets		444,316,506			16,504,719			12,266,862			5,403,202			5,791,471			484,282,760			2,503,178			—			(5,495,989	)		481,289,949

Total liabilities		419,597,515			14,050,995			10,733,981			4,740,429			3,602,487			452,725,407			126,621			—			(2,631,673	)		450,220,355

(*1)	The banking sector includes banks and their consolidated subsidiaries(such as overseas subsidiaries).

(*2)

Other segments include Woori Financial Group Inc., Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Asset Management Corp., Woori Financial F&I Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Service Inc., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute., and Woori Venture Partners Co.,Ltd

(*3)	Other Adjustments are composed of group-consolidated funds that are not included in the reporting segment.

(*4)	Internal adjustment includes adjustment of 227,083 million Won in deposit insurance premiums and 214,394 million Won in fund contribution fees from net interest income to non-interest income to present income adjustment between reporting sectors in accordance with management accounting standards.

(*5)	Consolidation adjustments include the elimination of 163,610 million Won of internal transactions between Woori FIS Co., Ltd., the group’s IT service agency, and affiliates, and the removal of 1,472,869 million Won of dividends received by the holding company from its subsidiaries.

- 43 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Banking (*1)			Credit card			Capital			Investment banking			Others (*2)			Sub-total			Other adjustments (*3)			Internal adjustments (*4)			Consolidated Adjustments (*5)			Total
Net interest income		3,085,426			333,803			188,052			58,260			29,148			3,694,689			12,395			396,509			(271	)		4,103,322
Non-interest income(expense)		866,035			75,929			49,717			40,002			1,489,684			2,521,367			7,364			(346,800	)		(1,399,100	)		782,831
Impairment losses due to credit loss		(301,791	)		(103,745	)		(23,391	)		(9,354	)		(8,987	)		(447,268	)		—			(50,065	)		470			(496,863	)
General and administrative expense		(1,665,281	)		(122,250	)		(42,849	)		(28,859	)		(240,359	)		(2,099,598	)		(299	)		—			142,795			(1,957,102	)

Net operating income(expense)		1,984,389			183,737			171,529			60,049			1,269,486			3,669,190			19,460			(356	)		(1,256,106	)		2,432,188

Share of gain of associates		23,664			—			542			227			1,728			26,161			(53	)		—			(18,823	)		7,285
Other non-operating expense		32,166			(2,280	)		(52	)		(58	)		1,503			31,279			1,213			356			(4,335	)		28,513

Non-operating income(expense)		55,830			(2,280	)		490			169			3,231			57,440			1,160			356			(23,158	)		35,798

Net income(expense) before tax		2,040,219			181,457			172,019			60,218			1,272,717			3,726,630			20,620			—			(1,279,264	)		2,467,986
Tax expense		(481,432	)		(47,124	)		(47,070	)		(14,881	)		(16,839	)		(607,346	)		—			—			(1,845	)		(609,191	)

Net income(loss)		1,558,787			134,333			124,949			45,337			1,255,878			3,119,284			20,620			—			(1,281,109	)		1,858,795

Total assets		448,831,125			15,864,203			12,563,778			5,408,443			27,302,742			509,970,291			1,382,745			—			(26,407,855	)		484,945,181

Investment in associate		851,514			—			36,642			10,361			22,422,634			23,321,151			32,422			—			(21,992,537	)		1,361,036
Other assets		447,979,611			15,864,203			12,527,136			5,398,082			4,880,108			486,649,140			1,350,323			—			(4,415,318	)		483,584,145

Total liabilities		424,705,346			13,496,147			11,081,977			4,780,735			3,760,519			457,824,724			49,962			—			(2,435,044	)		455,439,642

(*1)	The banking sector includes banks and their consolidated subsidiaries(such as overseas subsidiaries).

(*2)

(*3)	Other Adjustments are composed of group-consolidated funds that are not included in the reporting segment.

(*4)	Internal adjustment includes adjustment of 206,510 million Won in deposit insurance premiums and 195,188 million Won in fund contribution fees from net interest income to non-interest income to present income adjustment between reporting sectors in accordance with management accounting standards.

(*5)	Consolidation adjustments include the elimination of 141,405 million Won of internal transactions between Woori FIS Co., Ltd., the group’s IT service agency, and affiliates, and the removal of 1,264,236 million Won of dividends received by the holding company from its subsidiaries.

- 44 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Operating profit from external customers for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023	2022
Domestic	1,911,303	2,213,714
Foreign	236,135	218,399

Total	2,147,438	2,432,113

(4)	Major non-current assets as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023 (*)	December 31, 2022 (*)
Domestic	5,590,101	5,152,033
Foreign	628,593	533,354

Total	6,218,694	5,685,387

(*)	Major non-current assets included investments in joint ventures and associates, investment properties, property, plant and equipment, and intangible assets.

(5)	Information about major customers

The Group does not have any single customer that generates 10% or more of the Group’s total revenue for the six-month periods ended June 30, 2023 and 2022.

6.	CASH AND CASH EQUIVALENTS

(1)	Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Cash		1,839,816		1,771,316
Foreign currencies		695,089		628,590
Demand deposits		18,861,661		31,729,228
Fixed deposits		293,795		90,014

Total		21,690,361		34,219,148

(2)	Details of restricted cash and cash equivalents are as follows (Unit: Korean Won in millions)


	Counterparty	June 30, 2023	Reason of restriction
Due from banks in local currency:
Due from BOK	BOK	6,929,575	Reserve deposits under the BOK Act

Due from banks in foreign currencies:
Due from banks on demand	BOK and others	1,840,412	Reserve deposits under the BOK Act and others

Total		8,769,987


	Counterparty	December 31, 2022	Reason of restriction
Due from banks in local currency:
Due from BOK	BOK	16,527,445	Reserve deposits under the BOK Act

Due from banks in foreign currencies:
Due from banks on demand	BOK and others	6,437,717	Reserve deposits under the BOK Act and others

Total		22,965,162

- 45 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

7.	FINANCIAL ASSETS AT FVTPL

(1)	Details of financial assets at FVTPL as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Financial assets at fair value through profit or loss		21,408,298		19,860,573

(2)	Financial assets at fair value through profit or loss measured at fair value are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Deposits:
Gold banking asset		32,893		34,995
Securities:
Debt securities
Korean treasury and government agencies		3,196,754		2,754,442
Financial institutions		598,239		620,311
Corporates		724,478		721,573
Others		108,806		174,206
Equity securities		401,544		383,883
Capital contributions		2,216,129		1,976,474
Beneficiary certificates		4,876,465		3,902,762
Others		167,658		143,334

Sub-total		12,290,073		10,676,985

Loans		952,072		899,228
Derivatives assets		8,088,541		8,206,181
Other financial assets		44,719		43,184

Total		21,408,298		19,860,573

The Group does not have financial assets at fair value through profit or loss designated as upon initial recognition as of June 30, 2023 and December 31, 2022.

8.	FINANCIAL ASSETS AT FVTOCI

(1)	Details of financial assets at FVTOCI as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Debt securities:
Korean treasury and government agencies		5,573,161		5,487,983
Financial institutions		17,953,081		16,870,619
Corporates		3,819,413		4,044,446
Bond denominated in foreign currencies		6,177,670		5,644,684
Securities loaned		237,031		98,026

Sub-total		33,760,356		32,145,758

Equity securities		1,112,942		939,322
Loans		30,807		—

Total		34,904,105		33,085,080

- 46 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Details of equity securities designated as financial assets at FVTOCI as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


Purpose of acquisition	June 30, 2023		December 31, 2022		Remarks
Investment for strategic business partnership purpose		967,837		776,199
Debt-equity swap		145,098		157,216
Others		7		5,907		Insurance for mutual aid association, etc.

Total		1,112,942		939,322

(3)	Changes in the loss allowance and gross carrying amount of financial assets at FVTOCI for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(11,805	)		—		—		(11,805	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision of allowance for credit losses		(12,163	)		—		—		(12,163	)
Disposal		432			—		—		432
Others(*)		(1,499	)		—		—		(1,499	)

Ending balance		(25,035	)		—		—		(25,035	)

(*)	Others consist of foreign currencies translation, etc.


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(12,146	)		—		—		(12,146	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Reversal of allowance for credit losses		220			—		—		220
Disposal		369			—		—		369
Others(*)		(1,358	)		—		—		(1,358	)

Ending balance		(12,915	)		—		—		(12,915	)

(*)	Others consist of foreign currencies translation, etc.

- 47 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Gross carrying amount


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		32,145,758			—		—		32,145,758
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		11,877,503			—		—		11,877,503
Disposal/Recovery		(10,783,130	)		—		—		(10,783,130	)
Gain on valuation		248,239			—		—		248,239
Amortization based on effective interest method		80,514							80,514
Others (*)		222,279			—		—		222,279

Ending balance		33,791,163							33,791,163

(*)	Changes due to foreign currencies translation, etc.


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		38,126,977			—		—		38,126,977
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		9,414,126			—		—		9,414,126
Disposal/Recovery		(11,777,181	)		—		—		(11,777,181	)
Loss on valuation		(722,270	)		—		—		(722,270	)
Amortization based on effective interest method		6,053			—		—		6,053
Others (*)		344,179			—		—		344,179

Ending balance		35,391,884			—		—		35,391,884

(*)	Changes due to foreign currencies translation, etc.

(4)

During the six-month period ended June 30, 2023, the Group sold its equity securities, designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 2,593 million Won, and cumulative gains at disposal dates were 203 million Won, respectively. During the six-month period ended June 30, 2022, the Group sold its equity securities, designated as financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values at disposal dates were 105 million Won, and cumulative gains at disposal dates were 87 million Won, respectively.

- 48 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

9.	SECURITIES AT AMORTIZED COST

(1)	Details of securities at amortized cost as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Korean treasury and government agencies		8,908,505			10,083,951
Financial institutions		8,368,993			10,283,631
Corporates		6,694,259			6,237,547
Bond denominated in foreign currencies		1,972,384			1,671,772
Securities loaned		19,901			—
Allowance for credit losses		(14,422	)		(8,385	)

Total		25,949,620			28,268,516

(2)	Changes in the allowance for credit losses and gross carrying amount of securities at amortized cost are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(8,385	)		—		—		(8,385	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision of allowance for credit losses		(6,019	)		—		—		(6,019	)
Others(*)		(18	)		—		—		(18	)

Ending balance		(14,422	)		—		—		(14,422	)

(*)	Changes due to foreign currencies translation, etc.


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(5,235	)		—		—		(5,235	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision of allowance for credit losses		(835	)		—		—		(835	)
Others(*)		(12	)		—		—		(12	)

Ending balance		(6,082	)		—		—		(6,082	)

(*)	Changes due to foreign currencies translation, etc.

Gross carrying amount


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		28,276,901			—		—		28,276,901
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		2,333,300			—		—		2,333,300
Disposal/ Recovery		(4,842,587	)		—		—		(4,842,587	)
Amortization based on effective interest method		104,732			—		—		104,732
Others (*)		91,696			—		—		91,696

Ending balance		25,964,042			—		—		25,964,042

(*)	Changes due to foreign currencies translation, etc.

- 49 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		17,091,509			—		—		17,091,509
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		6,037,379			—		—		6,037,379
Disposal/ Recovery		(3,165,016	)		—		—		(3,165,016	)
Amortization based on effective interest method		25,928			—		—		25,928
Others (*)		159,457			—		—		159,457

Ending balance		20,149,257			—		—		20,149,257

(*)	Changes due to foreign currencies translation, etc.

- 50 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1)	Details of loans and other financial assets at amortized cost are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Due from banks		3,111,786		2,994,672
Loans		350,660,700		343,918,560
Other financial assets		15,243,740		8,847,497

Total		369,016,226		355,760,729

(2)	Details of due from banks are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Due from banks in local currency:
Due from Bank of Korea (“BOK”)		100,000			160,000
Due from depository banks		333,936			170,006
Due from non-depository institutions		41			183
Due from the Korea Exchange		2,290			2,440
Others		247,650			421,318
Loss allowance		(303	)		(116	)

Sub-total		683,614			753,831

Due from banks in foreign currencies:
Due from banks on demand		234,366			199,671
Due from banks on time		349,746			466,963
Others		1,860,910			1,586,408
Loss allowance		(16,850	)		(12,201	)

Sub-total		2,428,172			2,240,841

Total		3,111,786			2,994,672

(3)	Details of restricted due from banks as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	Counterparty	June 30, 2023	Reason of restriction
Due from banks in local currency:
Due from BOK	BOK	100,000	Reserve deposits under BOK Act
Due from KSFC	The Korea Securities Finance Corporation	2,193	Customer deposits return reserve
Others	Korea Exchange and others	181,810	Korean Won CCP margin and others

Sub-total		284,003

Due from banks in foreign currencies:
Due from banks on demand	NATIONAL BANK OF CAMBODIA and others	228,590	Reserve deposits and others
Due from banks on time	NATIONAL BANK OF CAMBODIA and others	263	Usage deposits for fund settlement system
Others	Yuanta Securities Korea Co., Ltd., and others	1,853,056	Overseas futures and options trade deposits and others

Sub-total		2,081,909

Total		2,365,912

- 51 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	Counterparty	December 31, 2022	Reason of restriction
Due from banks in local currency:
Due from BOK	BOK	160,000	Reserve deposits under BOK Act
Due from KSFC	The Korea Securities Finance Corporation	2,419	Customer deposits return reserve
Others	Korea Exchange and others	223,705	Korean Won CCP margin and others

Sub-total		386,124

Due from banks in foreign currencies:
Due from banks on demand	BOK and others	193,507	Reserve deposits under BOK Act and others
Due from banks on time	NATIONAL BANK OF CAMBODIA and others	253	Reserve deposits and others
Others	Korea Investment & Securities Co., Ltd., and others	1,581,298	Overseas futures and options trade deposits and others

Sub-total		1,775,058

Total		2,161,182

(4)	Changes in the allowance for credit losses and gross carrying amount of due from banks for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(12,317	)		—		—		(12,317	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision for allowance for credit loss		(5,831	)		—		—		(5,831	)
Others(*)		995			—		—		995

Ending balance		(17,153	)		—		—		(17,153	)

(*)	Changes due to foreign currencies translation, etc.


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(6,034	)		—		—		(6,034	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Provision for allowance for credit loss		(4,195	)		—		—		(4,195	)
Others(*)		(163	)		—		—		(163	)

Ending balance		(10,392	)		—		—		(10,392	)

(*)	Changes due to foreign currencies translation, etc.

- 52 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Gross carrying amount


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		3,006,989			—		—		3,006,989
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net increase		(877,876	)		—		—		(877,876	)
Changes due to business combinations		113,000			—		—		113,000
Others(*)		886,826			—		—		886,826

Ending balance		3,128,939			—		—		3,128,939

(*)	Changes due to foreign currencies translation, etc.


	For the six-month period ended June 30, 2022
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		2,872,918		—		—		2,872,918
Transfer to 12-month expected credit losses		—		—		—		—
Transfer to lifetime expected credit losses		—		—		—		—
Transfer to credit-impaired financial assets		—		—		—		—
Net increase		853,030		—		—		853,030
Others(*)		85,715		—		—		85,715

Ending balance		3,811,663		—		—		3,811,663

(*)	Changes due to foreign currencies translation, etc.

(5)	Details of loans as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Loans in local currency		282,000,780			282,686,620
Loans in foreign currencies		28,081,198			26,988,360
Domestic banker’s usance		2,990,342			2,877,079
Credit card accounts		11,046,832			10,370,362
Bills bought in foreign currencies		4,532,127			3,650,792
Bills bought in local currency		225,410			533,879
Factoring receivables		24,289			25,469
Advances for customers on guarantees		22,838			25,698
Private placement bonds		499,001			485,519
Securitized loans		2,921,410			2,990,937
Call loans		4,481,025			3,626,226
Bonds purchased under resale agreements		11,559,693			6,849,038
Financial lease receivables		1,417,507			1,467,858
Installment financial bond		2,665,917			2,832,972
Others		130			140
Loan origination costs and fees		840,474			852,002
Discounted present value		(10,206	)		(10,238	)
Allowance for credit losses		(2,638,067	)		(2,334,153	)

Total		350,660,700			343,918,560

- 53 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(6)	Changes in the allowance for credit losses of loans for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		(147,876	)		(128,089	)		(241,942	)		(453,621	)		(818,234	)		(241,465	)		(27	)
Transfer to 12-month expected credit losses		(22,606	)		21,968			638			(71,867	)		71,114			753			—
Transfer to lifetime expected credit losses		10,968			(13,300	)		2,332			25,444			(34,718	)		9,274			—
Transfer to credit-impaired financial assets		4,167			21,237			(25,404	)		7,385			28,537			(35,922	)		—
Net reversal(provision) of allowance for credit losses		(44,811	)		(40,932	)		(146,892	)		(222,927	)		14,917			(164,241	)		(711	)
Recovery		—			—			(31,758	)		—			—			(28,827	)		—
Charge-off		—			—			130,288			—			—			107,439			457
Disposal		3,823			6,505			54,858			262			152			52,793			—
Interest income from impaired loans		—			—			10,233			—			—			9,340			—
Others		7,607			(8	)		1,603			(25,166	)		(1,911	)		25			—

Ending balance		(188,728	)		(132,619	)		(246,044	)		(740,490	)		(740,143	)		(290,831	)		(281	)


	For the six-month period ended June 30, 2023
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		(71,139	)		(127,814	)		(103,946	)		(672,636	)		(1,074,137	)		(587,353	)		(27	)
Transfer to 12-month expected credit losses		(29,518	)		29,464			54			(123,991	)		122,546			1,445			—
Transfer to lifetime expected credit losses		7,031			(7,557	)		526			43,443			(55,575	)		12,132			—
Transfer to credit-impaired financial assets		960			4,554			(5,514	)		12,512			54,328			(66,840	)		—
Net reversal(provision) of allowance for credit losses		12,570			(8,793	)		(167,464	)		(255,168	)		(34,808	)		(478,597	)		(711	)
Recovery		—			—			(19,146	)		—			—			(79,731	)		—
Charge-off		—			—			158,963			—			—			396,690			457
Disposal		—			—			27,840			4,085			6,657			135,491			—
Interest income from impaired loans		—			—			—			—			—			19,573			—
Others		(2	)		—			—			(17,561	)		(1,919	)		1,628			—

Ending balance		(80,098	)		(110,146	)		(108,687	)		(1,009,316	)		(982,908	)		(645,562	)		(281	)


	For the six-month period ended June 30, 2022
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		(136,520	)		(97,604	)		(206,617	)		(362,766	)		(576,740	)		(251,233	)		—
Transfer to 12-month expected credit losses		(26,915	)		21,357			5,558			(51,780	)		44,270			7,510			—
Transfer to lifetime expected credit losses		10,798			(12,924	)		2,126			18,224			(20,614	)		2,390			—
Transfer to credit-impaired financial assets		3,091			12,317			(15,408	)		1,928			11,464			(13,392	)		—
Net reversal(provision) of allowance for credit losses		(388	)		(36,505	)		(53,291	)		5,052			(215,973	)		(10,067	)		—
Recovery		—			—			(36,740	)		—			—			(33,022	)		—
Charge-off		—			—			70,928			—			—			66,791			—
Disposal		36			64			1,848			344			—			34,450			—
Interest income from impaired loans		—			—			7,659			—			—			4,944			—
Others		(207	)		14			3,005			(31,638	)		(14,884	)		(36,371	)		—

Ending balance		(150,105	)		(113,281	)		(220,932	)		(420,636	)		(772,477	)		(228,000	)		—

- 54 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		(68,814	)		(115,489	)		(70,927	)		(568,100	)		(789,833	)		(528,777	)		—
Transfer to 12-month expected credit losses		(26,094	)		26,069			25			(104,789	)		91,696			13,093			—
Transfer to lifetime expected credit losses		8,368			(8,564	)		196			37,390			(42,102	)		4,712			—
Transfer to credit-impaired financial assets		660			3,583			(4,243	)		5,679			27,364			(33,043	)		—
Net reversal(provision) of allowance for credit losses		12,765			(30,132	)		(83,398	)		17,429			(282,610	)		(146,756	)		—
Recovery		—			—			(29,344	)		—			—			(99,106	)		—
Charge-off		—			—			95,814			—			—			233,533			—
Disposal		—			—			7,897			380			64			44,195			—
Interest income from impaired loans		—			—			—			—			—			12,603			—
Others		48			—			—			(31,797	)		(14,870	)		(33,366	)		—

Ending balance		(73,067	)		(124,533	)		(83,980	)		(643,808	)		(1,010,291	)		(532,912	)		—

(7)	Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		131,328,377			14,020,582			564,057			179,552,435			9,486,297			625,998			313,717
Transfer to 12-month expected credit losses		3,612,969			(3,605,588	)		(7,381	)		1,691,048			(1,682,828	)		(8,220	)		—
Transfer to lifetime expected credit losses		(5,726,077	)		5,742,982			(16,905	)		(3,797,604	)		3,818,983			(21,379	)		—
Transfer to credit-impaired financial assets		(180,533	)		(172,537	)		353,070			(333,745	)		(253,004	)		586,749			—
Charge-off		—			—			(130,288	)		—			—			(107,439	)		(457	)
Disposal		(35,722	)		(16,354	)		(113,596	)		(18,132	)		(475	)		(251,831	)		(32,074	)
Net increase(decrease)		(781,825	)		(1,473,186	)		46,978			10,693,140			(1,352,834	)		(165,483	)		107,880
Changes due to business combinations		1,144			—			—			—			—			—			—

Ending balance		128,218,333			14,495,899			695,935			187,787,142			10,016,139			658,395			389,066


	For the six-month period ended June 30, 2023
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		9,115,460			1,066,380			179,410			319,996,272			24,573,259			1,369,465			313,717
Transfer to 12-month expected credit losses		349,541			(349,465	)		(76	)		5,653,558			(5,637,881	)		(15,677	)		—
Transfer to lifetime expected credit losses		(357,592	)		358,354			(762	)		(9,881,273	)		9,920,319			(39,046	)		—
Transfer to credit-impaired financial assets		(41,753	)		(34,059	)		75,812			(556,031	)		(459,600	)		1,015,631			—
Charge-off		—			—			(158,963	)		—			—			(396,690	)		(457	)
Disposal		—			—			(54,403	)		(53,854	)		(16,829	)		(419,830	)		(32,074	)
Net increase(decrease)		866,202			(136,480	)		160,252			10,777,517			(2,962,500	)		41,747			107,880
Changes due to business combinations		—			—			—			1,144			—			—			—

Ending balance		9,931,858			904,730			201,270			325,937,333			25,416,768			1,555,600			389,066

- 55 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		135,139,685			13,500,783			499,969			170,795,255			8,458,279			541,732			—
Transfer to 12-month expected credit losses		3,957,415			(3,942,577	)		(14,838	)		1,621,200			(1,603,561	)		(17,639	)		—
Transfer to lifetime expected credit losses		(5,485,367	)		5,503,346			(17,979	)		(3,350,543	)		3,358,862			(8,319	)		—
Transfer to credit-impaired financial assets		(85,063	)		(93,079	)		178,142			(122,307	)		(101,150	)		223,457			—
Charge-off		—			—			(70,928	)		—			—			(66,791	)		—
Disposal		(275	)		(235	)		(10,406	)		(48,472	)		—			(97,191	)		—
Net increase(decrease)		992,447			(759,783	)		(35,739	)		10,566,829			(430,835	)		(128,305	)		182,339

Ending balance		134,518,842			14,208,455			528,221			179,461,962			9,681,595			446,944			182,339


	For the six-month period ended June 30, 2022
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3			Credit impairment model
Beginning balance		8,239,303			1,395,139			116,075			314,174,243			23,354,201			1,157,776			—
Transfer to 12-month expected credit losses		433,931			(433,889	)		(42	)		6,012,546			(5,980,027	)		(32,519	)		—
Transfer to lifetime expected credit losses		(415,939	)		416,246			(307	)		(9,251,849	)		9,278,454			(26,605	)		—
Transfer to credit-impaired financial assets		(27,646	)		(32,338	)		59,984			(235,016	)		(226,567	)		461,583			—
Charge-off		—			—			(95,814	)		—			—			(233,533	)		—
Disposal		—			—			(17,082	)		(48,747	)		(235	)		(124,679	)		—
Net increase(decrease)		308,695			(9,668	)		73,475			11,867,971			(1,200,286	)		(90,569	)		182,339

Ending balance		8,538,344			1,335,490			136,289			322,519,148			25,225,540			1,111,454			182,339

(8)	Details of other financial assets are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Cash Management Account asset (CMA asset)		87,000			157,000
Receivables		12,272,530			5,438,469
Accrued income		1,772,863			1,667,397
Telex and telephone subscription rights and refundable deposits		791,037			801,536
Domestic exchange settlement debit		118,024			577,919
Other assets(*)		345,833			344,356
Allowance for credit losses		(143,547	)		(139,180	)

Total		15,243,740			8,847,497

(*)

The Group was aware of employee embezzlement incidents that occurred before the prior term in April 2022, and the Financial Supervisory Service conducted on-site inspections from April 28 to May 30, 2022. Accusations of embezzlers and seizure of discovered property were taken. The related amount included in other assets was 63,354 million Won, which was completely lost due to uncertainty over whether it could be recovered.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(9)	Changes in the allowances for credit losses on other financial assets are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(4,178	)		(9,133	)		(125,869	)		(139,180	)
Transfer to 12-month expected credit losses		(291	)		273			18			—
Transfer to lifetime expected credit losses		194			(228	)		34			—
Transfer to credit-impaired financial assets		94			716			(810	)		—
Provision of allowance for credit losses		(1,696	)		(701	)		(2,555	)		(4,952	)
Charge-off		—			—			1,429			1,429
Disposal		—			—			906			906
Others		(1,511	)		9			(248	)		(1,750	)

Ending balance		(7,388	)		(9,064	)		(127,095	)		(143,547	)


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,675	)		(5,580	)		(57,526	)		(66,781	)
Transfer to 12-month expected credit losses		(207	)		194			13			—
Transfer to lifetime expected credit losses		216			(246	)		30			—
Transfer to credit-impaired financial assets		340			394			(734	)		—
Provision of allowance for credit losses		(181	)		(3,298	)		(63,900	)		(67,379	)
Charge-off		—			—			854			854
Disposal		—			—			347			347
Others		298			(3	)		(217	)		78

Ending balance		(3,209	)		(8,539	)		(121,133	)		(132,881	)

(10)	Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		8,886,721			21,454			78,502			8,986,677
Transfer to 12-month expected credit losses		13,297			(13,277	)		(20	)		—
Transfer to lifetime expected credit losses		(24,835	)		24,878			(43	)		—
Transfer to credit-impaired financial assets		(1,804	)		(3,011	)		4,815			—
Charge-off		—			—			(1,429	)		(1,429	)
Disposal		—			—			(1,044	)		(1,044	)
Net increase		6,130,974			87,621			171,248			6,389,843
Changes due to business combinations		13,240			—			—			13,240

Ending balance		15,017,593			117,665			252,029			15,387,287


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		9,004,539			106,597			174,868			9,286,004
Transfer to 12-month expected credit losses		8,376			(8,362	)		(14	)		—
Transfer to lifetime expected credit losses		(40,256	)		40,286			(30	)		—
Transfer to credit-impaired financial assets		(2,075	)		(2,247	)		4,322			—
Charge-off		—			—			(854	)		(854	)
Disposal		(5	)		—			(462	)		(467	)
Net increase (decrease)		4,061,356			(38,338	)		59,223			4,082,241

Ending balance		13,031,935			97,936			237,053			13,366,924

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

7.	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

The fair value hierarchy for financial instruments is determined by the level of market observable inputs. The specific financial instruments characteristics and market condition such as the existence of the transactions among market participants and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices in active markets. The Group maximizes the use of observable inputs and minimizes the use of unobservable firm-specific inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market observable inputs are not readily available, firm-specific inputs reflect factors that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

•

Level 1—fair value measurements are those derived from quoted prices in active markets. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

•

Level 2— fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability. The types of financial assets or liabilities generally included in Level 2 are debt securities, and derivatives traded in OTC(e.g swaps, forwards, options, and etcs).

•

Level 3— fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on market observable inputs. The types of financial assets or liabilities generally included in Level 3 are non-public securities, complex structured notes, and complex derivatives traded in OTC.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		32,893		—		—		32,893
Debt securities		2,769,317		1,853,883		5,077		4,628,277
Equity securities		73,772		20		327,752		401,544
Capital contributions		—		—		2,216,129		2,216,129
Beneficiary certificates		114,380		3,134,284		1,627,801		4,876,465
Loans		—		882,667		69,405		952,072
Derivative assets		18,706		7,989,443		80,392		8,088,541
Other financial assets in foreign currency		—		—		43,175		43,175
Others		—		—		169,202		169,202

Sub-total		3,009,068		13,860,297		4,538,933		21,408,298

Financial assets at FVTOCI
Debt securities		11,563,029		22,197,327		—		33,760,356
Equity securities		572,154		—		540,788		1,112,942
Loans receivables		—		—		30,807		30,807

Sub-total		12,135,183		22,197,327		571,595		34,904,105

Derivative assets (Designated for hedging)		—		70,980		—		70,980

Total		15,144,251		36,128,604		5,110,528		56,383,383

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		32,832		—		—		32,832
Derivative liabilities		15,492		8,383,080		2,870		8,401,442
Securities sold		99,527		—		—		99,527

Sub-total		147,851		8,383,080		2,870		8,533,801

Derivative liabilities (Designated for hedging)		—		216,680		—		216,680

Total		147,851		8,599,760		2,870		8,750,481

(*)	There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

- 59 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Deposits		34,995		—		—		34,995
Debt securities		2,580,563		1,654,591		1,078		4,236,232
Equity securities		76,007		25		307,851		383,883
Capital contributions		—		—		1,976,474		1,976,474
Beneficiary certificates		45,394		2,398,592		1,458,776		3,902,762
Loans		—		794,723		104,505		899,228
Derivative assets		69,316		8,042,895		93,970		8,206,181
Other financial assets in foreign currency		—		—		41,679		41,679
Others		34,299		—		144,840		179,139

Sub-total		2,840,574		12,890,826		4,129,173		19,860,573

Financial assets at FVTOCI
Debt securities		9,895,456		22,250,302		—		32,145,758
Equity securities		382,257		—		557,065		939,322

Sub-total		10,277,713		22,250,302		557,065		33,085,080

Derivative assets (Designated for hedging)		—		37,786		—		37,786

Total		13,118,287		35,178,914		4,686,238		52,983,439

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		35,161		—		—		35,161
Derivative liabilities		11,700		8,883,976		9,449		8,905,125
Securities sold		12,113		—		—		12,113

Sub-total		58,974		8,883,976		9,449		8,952,399

Derivative liabilities (Designated for hedging)		—		202,911		—		202,911

Total		58,974		9,086,887		9,449		9,155,310

(*)	Among financial assets and financial liabilities measured at fair value, the amount transferred from Level 2 to Level 1 is 2,835,187 million Won. The Group recognizes transfers among levels at the end of reporting period in which events have occurred or conditions have changed.

Financial assets and liabilities at FVTPL, financial liabilities at FVTPL designated as upon initial recognition, financial assets at FVTOCI, and derivative assets and liabilities are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Group determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows:

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Valuation methods and input variables for each type of financial instrument classified into level 2 as of June 30, 2023 and December 31, 2022 are as follows:


	Valuation methods	Input variables
Debt securities	Fair value is measured by discounting the future cash flows of debt securities applying the risk-free market rate with credit spread and LSMC and Hull-White model.	Risk-free market rate, credit spread, discount rate originated credit grade, stock prices and volatility of interest rate
Beneficiary certificates	The beneficiary certificates classified as Level 2 are measured at net asset value method.	Values of underlying assets such as bond
Derivatives	Fair value is measured by models such as option model (Closed form).	Correlation coefficient, risk-free market rate, volatility, exchange rate, stock prices, etc.
Loans	The future cash flows of debt instruments are measured at a discount by applying the market interest rate applied to entities with similar creditworthiness to the debtor.	Risk-free market rate and credit spread

Valuation methods and input variables for each type of financial instrument classified into level 3 as of June 30, 2023 and December 31, 2022 are as follows:


	Valuation methods	Input variables
Loans	Fair value is measured by using the DCF model (Discounted Cash Flow Model), which is a valuation technique commonly used in the market taking into account the price and variability of the underlying asset and T-F model.	Values of underlying assets, volatility, discount rate, volatility of underlying assets, risk-free rate.
Equity securities, capital contributions and Beneficiary certificates	Among DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, LSMC, Binomial Tree and Hull-white more than one method is used given the characteristic of the subject of fair value measurement.	Risk-free market rate, market risk premium, corporate Beta, stock prices, volatility of underlying asset, discount rate originated credit grade, volatility of interest rate, etc.
Derivatives	Fair value is measured by models such as option model , DCF model, Binomial Tree, T-F model.	Correlation, Discount rate, volatility of stock prices, risk-free rate, terminal growth rate.
Others	The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the binomial tree, which is commonly used valuation techniques in the market.	Stock price, volatility of underlying assets, etc.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

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

①

June 30, 2023


	Fair value measurement methods	Type	Input variable	Range(%)	Impact of changes in significant unobservable inputs on fair value measurement
Loans	DCF model and others		Discount rate	1.39%~15.1%	Fair value increases as discount rate decreases.
			Volatility of stock	22.82%~41.5%	Variation of fair value increases as volatility of stock increases.
Derivative assets	Option valuation model and others	Equity related	Correlation coefficient	0.28~0.68	Variation of fair value increases as correlation coefficient increases.
Derivative liabilities	Option valuation model and others	Equity related	Correlation coefficient	0.28~0.68	Variation of fair value increases as correlation coefficient increases.
Equity securities, capital contributions, and beneficiary certificates	Binomial Tree		Discount rate	3.72%	Fair value increases as discount rate decreases.
			Volatility of stock prices and underlying asset	23.44%~25.64%	Variation of fair value increases as volatility of underlying asset and stock price increases.
	DCF model and others		Discount rate	5.12%~20.02%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	0.00%	Fair value increases as liquidation value increases.
			Volatility of Stock prices	34.88%	Variation of fair value increases as volatility of stock increases.
Others	Binomial Tree		Volatility of stock prices and underlying asset	18.95%~49.75%	Variation of fair value increases as volatility of underlying asset and stock price increases.

②

December 31, 2022


	Fair value measurement methods	Type	Significant unobservable inputs	Range(%)	Impact of changes in significant unobservable inputs on fair value measurement
Loans	Binomial Tree		Stock prices	46.53%	Variation of fair value increases as volatility of underlying asset and stock price increases.
	DCF model		Discount rate	1.98%~2.18%	Fair value decreases as discount rate increases.
Derivative assets	Option valuation model and others	Equity related	Correlation coefficient	0.21~0.67	Variation of fair value increases as correlation coefficient increases.
Derivative liabilities	Option valuation model and others	Equity related	Correlation coefficient	0.21~0.67	Variation of fair value increases as correlation coefficient increases.
			Volatility of underlying asset	11.74% ~ 97.16%	Variation of fair value increases as volatility of underlying assets increases.
Equity securities, capital contributions, and beneficiary certificates	Binomial Tree		Stock prices, Volatility of underlying asset	28.40%	Variation of fair value increases as volatility of underlying asset and stock price increases.
	DCF model and others		Discount rate	0.00%~19.14%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.

- 62 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	Fair value measurement methods	Type	Significant unobservable inputs	Range(%)	Impact of changes in significant unobservable inputs on fair value measurement
			Liquidation value	0.00%	Fair value increases as liquidation value increases.
Others	Binomial Tree		Stock prices, Volatility of underlying asset	20.15%~36.19%	Variation of fair value increases as volatility of underlying asset and stock price 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.

(3)	Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):


	For the three-month period ended June 30, 2023
	Beginning balance		Business combination		Net income (loss) (*1)			Other comprehensive income			Purchases/ issuances		Disposals / settlements			Transfer to or out of Level 3 (*2)			Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		1,078		—		(1	)		—			4,000		—			—			5,077
Equity securities		307,851		8,334		5,346			—			38,185		(31,964	)		—			327,752
Capital contributions		1,976,474		11,503		66,249			—			292,880		(130,977	)		—			2,216,129
Beneficiary certificates		1,458,776		—		43,391			—			154,783		(29,149	)		—			1,627,801
Loans		104,505		—		747			—			327,789		(363,636	)		—			69,405
Derivative assets		93,970		—		(9,139	)		—			10		(4,449	)		—			80,392
Other foreign currency financial assets		41,679		—		1,496			—			—		—			—			43,175
Others		144,840		—		7,321			—			18,038		(997	)		—			169,202

Sub-total		4,129,173		19,837		115,410			—			835,685		(561,172	)		—			4,538,933

Financial assets at FVTOCI
Equity securities		557,065		—		—			(14,306	)		138		(2,086	)		(23	)		540,788
Loans		—		—		—			—			39,698		(8,891	)		—			30,807
Sub-total		557,065		—		—			(14,306	)		39,836		(10,977	)		(23	)		571,595

Total		4,686,238		19,837		115,410			(14,306	)		875,521		(572,149	)		(23	)		5,110,528

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		9,450		—		2,859			—			10		(9,449	)		—			2,870

Total		9,450		—		2,859			—			10		(9,449	)		—			2,870

(*1)

The losses that increase the amount of debt are expressed as positive (+) and profits that reduce the amount of debt are expressed as negative (-).The statements of comprehensive income includes gain of 162,982 million Won included in net gain(loss) on financial assets at FVTPL and net gain(loss) on financial assets at FVTOCI pertaining to the assets and liabilities held by the Group at the end of the period.

(*2)	The Group recognizes transfers between levels at the end of reporting period within which events have occurred or conditions have changed.

- 63 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Beginning balance		Net Income(loss) (*1)			Other comprehensive income		Purchases/ issuances			Disposals / settlements			Transfer to or out of Level 3 (*2)		Ending balance
Financial assets:
Financial assets at FVTPL
Debt securities		2,117		59			—		—			(1,000	)		—		1,176
Equity securities		303,985		(4,449	)		—		47,955			(14,833	)		—		332,658
Capital contributions		1,287,723		157,518			—		419,686			(100,507	)		—		1,764,420
Beneficiary certificates		1,104,074		39,954			—		306,097			(60,296	)		—		1,389,829
Loans		213,635		5,358			—		367,966			(389,863	)		—		197,096
Derivative assets		29,348		49,793			—		2,651			(906	)		—		80,886
Others		96,191		12,604			—		27,870			(2,975	)		—		133,690

Sub-total		3,037,073		260,837			—		1,172,225			(570,380	)		—		3,899,755

Financial assets at FVTOCI
Equity securities		581,455		—			982		303			(26,305	)		—		556,435

Total		3,618,528		260,837			982		1,172,528			(596,685	)		—		4,456,190

Financial liabilities:
Derivative liabilities		4,641		2,026			—		(1,012	)		(3,190	)		—		2,465

Total		4,641		2,026			—		(1,012	)		(3,190	)		—		2,465

(*1)

For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent gains that decrease balance. The statements of comprehensive income includes gain of 228,110 million Won included in net gain(loss) on financial assets at FVTPL and net gain(loss) on financial assets at FVTOCI pertaining to the assets and liabilities held by the Group at the end of the period.

(*2)	The Group recognizes transfers between levels at the end of reporting period within which events have occurred or conditions have changed.

(4)	The results of a sensitivity analysis on the rational fluctuation in the unobservable inputs used for measuring Level 3 financial instruments are as follows:

The sensitivity analysis of the financial instruments has been performed by classifying with favorable and unfavorable changes based on how changes in unobservable assumptions would have effects on the fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities, beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 5,113,398 million Won and 4,695,688 million Won as of June 30, 2023 and December 31, 2022 respectively, equity instruments of 3,819,161 million Won and 3,196,703 million Won whose carrying amount are considered to represent the reasonable approximation of fair value are excluded from the sensitivity analysis.

- 64 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

The sensitivity on fluctuation of input variables by financial instruments as of June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


	June 30, 2023
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		851		(284	)		—		—
Loans (*2)		210		(207	)		—		—
Debt securities		210		(155	)		—		—
Equity securities (2) (3) (*4)		12,075		(8,880	)		—		—
Beneficiary certificates (*4)		737		(737	)		—		—
Others (*2)		3,518		(3,426	)		—		—
Financial assets at FVTOCI
Equity securities (3) (4)		—		—			29,608		(22,660	)

Total		17,601		(13,689	)		29,608		(22,660	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		23		(29	)		—		—

Total		23		(29	)		—		—

(*1)

Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value changes are calculated by increasing or decreasing the volatility of interest rate, 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% to 10%), the major unobservable inputs.

(*3)	Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (-0.5%~0.5%) and discount rate (-1~1%) or liquidation value (-1~1%). The terminal growth rate, discount rate, and liquidation value are major unobservable variables.

(*4)

Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice, fair value changes of beneficiary certificates and other securities whose major unobservable variables are composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is underlying assets and discount rate by 1%.


	December 31, 2022
	Net income(loss)					Other comprehensive income(loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		2,453		(1,993	)		—		—
Loans (*2)		203		(200	)		—		—
Debt securities		1		—			—		—
Equity securities (2) (3) (*4)		10,146		(8,079	)		—		—
Beneficiary certificates (*4)		737		(737	)		—		—
Others (*2)		2,860		(2,790	)		—		—
Financial assets at FVTOCI		—		—			—		—
Equity securities (3) (4)		—		—			24,370		(17,579	)

Total		16,400		(13,799	)		24,370		(17,579	)

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)		41		(39	)		—		—

Total		41		(39	)		—		—

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*1)

(*2)	The change in fair value is calculated by increasing or decreasing the share price (-10% to 10%) and volatility (-10% to 10%), the major unobservable inputs.

(*3)	Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (-0.5%~0.5%) and discount rate (-1~1%) or liquidation value (-1~1%). The growth rate, discount rate, and liquidation value are major unobservable variables.

(*4)

(5)	Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,488,257		22,781,585		—		25,269,842		25,949,620
Loans and other financial assets at amortized cost		—		12,782,278		352,914,005		365,696,283		369,016,226
Financial liabilities:
Deposits due to customers		—		333,973,039		—		333,973,039		333,713,217
Borrowings		—		29,224,076		115,313		29,339,389		30,545,104
Debentures		—		42,465,215		—		42,462,215		42,613,485
Other financial liabilities (*)		—		31,292,588		554,824		31,847,412		32,401,667

(*)	Lease liabilities are excluded as of June 30, 2023


	December 31, 2022
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		2,652,449		24,623,369		—		27,275,818		28,268,516
Loans and other financial assets at amortized cost		—		6,238,724		345,952,544		352,191,268		355,760,730
Financial liabilities:
Deposits due to customers		—		343,931,576		—		343,931,576		342,105,209
Borrowings		—		26,063,256		2,135,047		28,198,303		28,429,603
Debentures		—		42,918,411		—		42,918,411		44,198,486
Other financial liabilities (*)		—		21,244,664		536,209		21,780,873		22,492,705

(*)	Lease liabilities are excluded as of December 31, 2022

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Group determines the fair value by using valuation methods. Valuation methods and input variables for financial assets and liabilities that are measured at amortized cost are given as follows:


	Valuation methods	Input variables
Securities at amortized cost	The fair value is measured by discounting the projected cash flows of debt securities by applying risk-free market rate with credit spread.	Risk-free market rate and credit spread

Loans and other financial assets at amortized cost	The fair value is measured by discounting the projected cash flows of loan products by applying the market discount rate that has been applied to a proxy company that has similar credit rating to the debtor.	Risk-free market rate, credit spread and prepayment rate

Deposits due to customers, borrowings, debentures and other financial liabilities	The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Group.	Risk-free market rate, credit spread

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(6)	Financial instruments by category

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


	June 30, 2023
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Deposits		32,893		—		3,111,786		—		3,144,679
Securities		12,290,073		34,873,298		25,949,620		—		73,112,991
Loans		952,072		30,807		350,660,700		—		351,643,579
Derivative assets		8,088,541		—		—		70,980		8,159,521
Other financial assets		44,719		—		15,243,740		—		15,288,459

Total		21,408,298		34,904,105		394,965,846		70,980		451,349,229


	June 30, 2023
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Deposits due to customers		32,832		333,713,217		—		333,746,049
Borrowings		99,527		30,545,104		—		30,644,631
Debentures		—		42,613,485		—		42,613,485
Derivative liabilities		8,401,442		—		216,680		8,618,122
Other financial liabilities		—		32,401,667		—		32,401,667

Total		8,533,801		439,273,473		216,680		448,023,954


	December 31, 2022
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivatives assets (Designated for hedging)		Total
Deposits		34,995		—		2,994,672		—		3,029,667
Securities		10,676,985		33,085,080		28,268,516		—		72,030,581
Loans		899,228		—		343,918,560		—		344,817,788
Derivative assets		8,206,181		—		—		37,786		8,243,967
Other financial assets		43,184		—		8,847,497		—		8,890,681

Total		19,860,573		33,085,080		384,029,245		37,786		437,012,684


	December 31, 2022
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Derivatives liabilities (Designated for hedging)		Total
Deposits due to customers		35,161		342,105,209		—		342,140,370
Borrowings		12,113		28,429,603		—		28,441,716
Debentures		—		44,198,486		—		44,198,486
Derivative liabilities		8,905,125		—		202,911		9,108,036
Other financial liabilities		—		22,492,707		—		22,492,707

Total		8,952,399		437,226,005		202,911		446,381,315

- 67 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(7)	Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category during the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Interest income(expense)			Fees and commissions income(expense)			Reversal (provision) of credit loss			Gain(loss) on valuation and transactions			Dividends, etc.		Total
Financial assets at FVTPL		91,617			(63	)		—			360,517			78,299		530,370
Financial assets at FVTOCI		436,796			456			(12,163	)		(398	)		13,706		438,397
Securities at amortized cost		405,262			—			(6,019	)		—			—		399,243
Loans and other financial assets at amortized cost		9,044,202			299,513			(780,194	)		115,708			—		8,679,229
Financial liabilities at amortized cost		(5,559,178	)		694			—			—			—		(5,558,484	)
Net derivatives (designated for hedging)		—			—			—			48,982			—		48,982

Total		4,418,699			300,600			(798,376	)		524,809			92,005		4,537,737


	For the six-month period ended June 30, 2022
	Interest income(expense)			Fees and commissions income(expense)		Reversal (provision) of credit loss			Gain(loss) on valuation and transactions			Dividends, etc.		Total
Financial assets at FVTPL		37,735			6		—			341,427			60,355		439,523
Financial assets at FVTOCI		291,582			1,044		220			(1,650	)		18,567		309,763
Securities at amortized cost		188,108			—		(835	)		—			—		187,273
Loans and other financial assets at amortized cost		5,695,990			285,632		(483,511	)		66,958			—		5,565,069
Financial liabilities at amortized cost		(2,106,454	)		1,109		—			—			—		(2,105,345	)
Net derivatives (designated for hedging)		—			—		—			84,780			—		84,780

Total		4,106,961			287,791		(484,126	)		491,515			78,922		4,481,063

- 68 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

12.

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES

(1)	Investments in joint ventures and associates accounted for using the equity method of accounting are as follows:


		Percentage of ownership (%)
Joint ventures and associates (*4)	Main business	June 30, 2023		December 31, 2022		Location	Financial statements as of
Woori Bank
W Service Networks Co., Ltd. (1)(5)	Freight & staffing services		4.9		4.9	Korea	2023-05-31
Korea Credit Bureau Co., Ltd.(*2)	Credit information		9.9		9.9	Korea	2023-06-30
Korea Finance Security Co., Ltd. (1)(5)	Security service		15.0		15.0	Korea	2023-05-31
Wongwang Co., Ltd. (*3)	Wholesale and real estate		29.0		29.0	Korea	—
Sejin Construction Co., Ltd. (*3)	Construction		29.6		29.6	Korea	—
ARES-TECH Co., Ltd. (*3)	Electronic component manufacturing		23.4		23.4	Korea	—
Beomgyo.,Ltd. (*3)	Telecommunication equipment retail sales		23.1		23.1	Korea	—
NK Eng Co., Ltd. (*3)	Manufacturing		23.1		23.1	Korea	—
Woori Growth Partnerships New Technology Private Equity Fund	Other financial services		23.1		23.1	Korea	2023-06-30
2016KIF-IMM Woori Bank Technology Venture Fund (*8)	Other financial services		—		20.0	Korea	—
K BANK Co., Ltd. (*2)(85)	Finance		12.6		12.6	Korea	2023-05-31
Woori Bank-Company K Korea Movie Asset Fund (*13)	Other financial services		25.0		25.0	Korea	2023-06-30
Partner One Value Up I Private Equity Fund	Other financial services		23.3		23.3	Korea	2023-06-30
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Other financial services		20.0		20.0	Korea	2023-06-30
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund	Other financial services		25.0		25.0	Korea	2023-06-30
LOTTE CARD Co., Ltd. (*5)	Credit card and installment financing		20.0		20.0	Korea	2023-03-31
Union Technology Finance Investment Association	Other financial investment		29.7		29.7	Korea	2023-06-30
Dicustody Co., Ltd.(*2)	Other information technology and computer operation related services		1.0		1.0	Korea	2023-06-30
Orient Shipyard Co., Ltd. (*5)	Manufacture of sections for ships		22.7		22.7	Korea	2023-03-31
Joongang Network Solution Co.,Ltd. (*5)	Other information technology and computer operation related services		25.3		25.3	Korea	2023-03-31
Win Mortgage Co.,LTd. (1)(5)(*12)	Other financial services		4.5		4.5	Korea	2023-03-31
Together-Korea Government Private Pool Private Securities Investment Trust No. 3	Other financial services		100.0		100.0	Korea	2023-06-30
BTS 2nd Private Equity Fund	Other financial services		20.0		20.0	Korea	2023-06-30
STASSETS FUND III	Other financial services		28.3		28.3	Korea	2023-06-30

- 69 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates (*4)	Main business	June 30, 2023		December 31, 2022		Location	Financial statements as of
Woori Bank (*6)
Japanese Hotel Real Estate Private Equity Fund No.2	Other financial services		19.9		19.9	Korea	2023-06-30
Woori Seoul Beltway Private Special Asset Fund No.1	Trust and collective investment		25.0		25.0	Korea	2023-06-30
Woori General Private Securities Investment Trust(Bond) No.1 (*12)	Collective investment business		25.0		—	Korea	2023-06-30
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F	Collective investment business		23.0		27.9	Korea	2023-06-30
Woori Safe Plus General Type Private Investment Trust S-8(Bond)	Collective investment business		16.4		9.2	Korea	2023-06-30
Woori General Private Securities Investment Trust(Bond) No.2 (*12)	Collective investment business		27.3		—	Korea	2023-06-30
Woori Smart General Private Equity Investment Trust 1(bond)(*12)	Collective investment business		28.6		—	Korea	2023-06-30

Woori Financial Capital Co., Ltd.
WOORI TAERIM 1st Fund	Other financial services		25.6		25.6	Korea	2023-06-30
Portone-Cape Fund No.1	Other financial services		20.0		20.0	Korea	2023-06-30
KIWOOM WOORI Financial 1st Fund (*7)	Other financial services		9.1		9.1	Korea	2023-06-30
DeepDive WOORI 2021-1 Financial Investment Fund (*7)	Other financial services		11.9		11.9	Korea	2023-06-30
Darwin Green Packaging Private Equity Fund	Other financial services		20.4		20.4	Korea	2023-06-30
DS Power Semicon Private Equity Fund	Other financial services		21.0		21.0	Korea	2023-06-30
Koreawide partners 2nd Private Equity Fund	Other financial services		26.7		26.7	Korea	2023-06-30

Woori Investment Bank Co., Ltd.
Woori FirstValue Private Real Estate Fund No.2	Real estate business		12.0		12.0	Korea	2023-06-30
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust	Investment trust and discretionary investment business		0.1		0.1	Korea	2023-06-30

Woori Asset Management Co. Ltd.
Woori Star50 feeder fund(H)	Collective investment business		17.5		17.9	Korea	2023-06-30
Woori Together TDF 2025	Collective investment business		22.6		23.6	Korea	2023-06-30
Woori Together TDF 2030	Collective investment business		22.6		23.8	Korea	2023-06-30

Woori Private Equity Asset Management Co., Ltd.
Australia Green Energy 1st PEF(*2)	Other financial services		4.0		4.0	Korea	2023-06-30
Aarden Woori Apparel 1st Private Equity Fund (*2)	Other financial services		0.5		0.5	Korea	2023-06-30

- 70 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates (*4)	Main business	June 30, 2023		December 31, 2022		Location	Financial statements as of
Woori Dyno 1st Private Equity Fund (*2)	Other financial services		19.6		19.6	Korea	2023-06-30

Woori Venture Partners Co., Ltd.(*14)
KTB-KORUS FUND(*9)	Asset Management		37.5		—	Korea	2023-06-30
KTB China Platform Fund(9)(10)(*11)	Asset Management		18.7		—	Korea	2023-06-30
KTBN Venture Fund No.7(9)(10)	Asset Management		20.1		—	Korea	2023-06-30
KTBN Venture Fund No.8(*10)	Asset Management		21.7		—	Korea	2023-06-30
KTBN Digital Contents Korea Fund No.9(9)(10)	Asset Management		30.0		—	Korea	2023-06-30
KTBN Media Contents Fund(9)(10)(*11)	Asset Management		15.0		—	Korea	2023-06-30
KTB China Synergy Fund(10)(11)	Asset Management		15.1		—	Korea	2023-06-30
NAVER-KTB Audio Contents Fund(*11)	Asset Management		1.0		—	Korea	2023-06-30
KTBN Venture Fund No.13(10)(11)	Asset Management		19.6		—	Korea	2023-06-30
KTBN Future Contents Fund(10)(11)	Asset Management		13.3		—	Korea	2023-06-30
KTBN Venture Fund No.16(*11)	Asset Management		10.3		—	Korea	2023-06-30
KTBN Venture Fund No.18(*11)	Asset Management		10.1		—	Korea	2023-06-30
KB-KTB Technology Venture Fund(*11)	Asset Management		18.2		—	Korea	2023-06-30
DAOL 2022 Scaleup Venture Fund	Asset Management		20.0		—	Korea	2023-06-30
DAOL 2022 Start-up Venture Fund	Asset Management		30.1		—	Korea	2023-06-30
KTB-NHN China Private Equity Fund(*9)	Asset Management		33.3		—	Korea	2023-06-30
KTBN GI Private Equity Fund(*11)	Asset Management		5.0		—	Korea	2023-06-30
Chirochem	Medical material Manufacturing		28.6		—	Korea	2023-06-30

Japanese Hotel Real Estate Private Equity Fund 1
Godo Kaisha Oceanos 1 (*5)	Other financial services		47.8		47.8	Japan	2023-04-30

Woori G Japan Private Placement Real Estate Master Investment Trust No.2
Woori Zip 1 (*5)	Other financial services		64.0		64.0	Japan	2023-03-31
Woori Zip 2 (*5)	Other financial services		64.0		64.0	Japan	2023-03-31

Woori bank and Woori card Co., Ltd. (*6)
Dongwoo C & C Co., Ltd. (*3)	Construction		24.5		24.5	Korea	—
SJCO Co., Ltd. (*3)	Aggregate transportation and wholesale		29.8		29.8	Korea	—
G2 Collection Co., Ltd. (*3)	Wholesale and retail sales		29.2		29.2	Korea	—
KG Fashion Co., Ltd.(3)(12)	Manufacturing		20.8		—	Korea	—
Kyesan Engineering Co., Ltd. (*3)	Construction		23.3		23.3	Korea	—
Good Software Lap Co., Ltd. (*3)	Service		29.4		29.4	Korea	—
Force Tech Co.,Ltd.(*8)	Manufacturing		—		24.5	Korea	—
DAEA SNC Co., Ltd. (*3)	Wholesale and retail sales		25.5		25.5	Korea	—
PREXCO Co., Ltd. (*3)	Manufacturing		28.1		28.1	Korea	—

- 71 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


		Percentage of ownership (%)
Joint ventures and associates (*4)	Main business	June 30, 2023		December 31, 2022		Location	Financial statements as of
JiWon Plating Co., Ltd. (*3)	Plating		20.8		20.8	Korea	—
Youngdong Sea Food Co., Ltd. (*3)	Processed sea food manufacturing		24.5		24.5	Korea	—
KUM HWA Co., Ltd. (*5)	Telecommunication equipment retail sales		20.1		20.1	Korea	2023-03-31
Jinmyung Plus Co., Ltd. (*5)	Manufacturing		21.3		21.3	Korea	2023-03-31

Woori bank and Woori Financial Capital Co., Ltd. (*6)
JC Assurance No.2 Private Equity Fund	Other financial services		23.5		23.5	Korea	2023-06-30
Dream Company Growth no.1 PEF	Other financial services		27.8		27.8	Korea	2023-06-30
HMS-Oriens 1st Fund	Other financial services		22.8		22.8	Korea	2023-06-30
Woori G Senior Loan Private Placement Investment Trust No.1	Collective investment business		21.7		21.7	Korea	2023-06-30
Genesis Eco No.1 Private Equity Fund	Other financial services		29.0		29.0	Korea	2023-06-30
Paratus Woori Material Component Equipment joint venture company	Other financial investment		29.9		29.9	Korea	2023-06-30
Midas No. 8 Private Equity Joint Venture Company	Other financial services		28.5		28.5	Korea	2023-06-30
Orchestra Private Equity Fund IV	Other financial services		28.2		28.2	Korea	2023-06-30
Synaptic Green No.1 PEF	Other financial services		21.1		21.1	Korea	2023-06-30
IGEN2022No. 1 Private Equity Fund	Other financial services		24.8		24.8	Korea	2023-06-30
PCC-Woori LP Secondary Fund	Other financial investment		38.8		38.8	Korea	2023-06-30

Woori Bank and Woori Private Equity Asset Management Co., Ltd. (*6)
Woori-Q Corporate Restructuring Private Equity Fund	Other financial services		35.6		35.6	Korea	2023-06-30

Woori Bank, Woori Financial Capital Co., Ltd., Woori Investment Bank Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. (*6)
Woori-Shinyoung Growth-Cap Private Equity Fund I	Other financial services		35.0		35.0	Korea	2023-06-30
NH Woori Newdeal Growth Alpha Private Equity Fund 1(*12)	Other financial services		32.7		—	Korea	2023-06-30

Woori Bank and Woori Asset Management Co. Ltd.
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)	Collective investment business		25.3		23.1	Korea	2023-06-30

(*1)	Most of the significant business transactions of associates are with the Group as of June 30, 2023 and December 2022.

(*2)	The Group can participate in decision-making body and exercise significant influence over financial policies and operational policies decision making of the associates.

(*3)	There is no investment balance as of June 30, 2023 and December 2022.

(*4)	Woori G Oncorp Corporate support of Major Industry General Type Private Placement Investment Trust (Type 2) and other 14 joint ventures and associates can exercise significant influence but was classified as an item measured at fair value through profit or loss.

- 72 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*5)

The equity method was applied using the most recent financial statements available from the settlement date because no financial statements were available at the end of the reporting period and the significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the subsidiary were duly reflected.

(*6)	Two or more subsidiaries may invest or operate to exert significant influence on the decision-making process for activities related to the investee.

(*7)	The Group can participate as a co-GP(General Partner) to exercise significant influence.

(*8)	It was excluded from associates in current period.

(*9)	It has been liquidating as of June 30, 2023.

(*10)

In the event of liquidation, if the distribution paid to or to be paid to members falls short of the amount invested, an agreement is made to bear the shortfall in preference to other members within the limit of a certain amount within the investment amount.

(*11)

The Group classified it as an associate because it has significant influence as a general partner of the investment association.

(*12)

It was added to associates in current period.

(*13)

It is scheduled to be dissolved because of liquidation for the year ended December 31, 2021.

(*14)

It was newly acquired and incorporated into consolidated subsidiaries in the current period.

- 73 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Changes in the carrying value of investments in joint ventures and associates accounted for using the equity method of accounting are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Acquisition cost		January 1, 2023		Share of profits(losses) and others			Acquisition		Business combination		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2023
W Service Networks Co., Ltd.		108		208		(1	)		—		—		—			(5	)		—			202
Korea Credit Bureau Co., Ltd.		3,313		5,709		1,284			—		—		—			(90	)		(429	)		6,474
Korea Finance Security Co., Ltd.		3,267		2,374		(113	)		—		—		—			—			1,010			3,271
Woori Growth Partnerships New Technology Private Equity Fund		12,942		10,889		(51	)		—		—		—			—			—			10,838
2016KIF-IMM Woori Bank Technology Venture Fund		—		9,474		111			—		—		(9,585	)		—			—			—
K BANK Co., Ltd.		236,232		247,789		1,486			—		—		—			—			4,558			253,833
Woori Bank-Company K Korea Movie Asset Fund		—		239		31			—		—		—			—			—			270
Partner One Value Up I Private Equity Fund		5,039		4,278		(3	)		—		—		—			—			—			4,275
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		7,556		10,285		456			—		—		—			—			—			10,741
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,392		4,355		—			38		—		—			—			—			4,393
LOTTE CARD Co.,Ltd.		346,810		514,131		58,988			—		—		—			(13,199	)		(3,600	)		556,320
Force TEC Co., Ltd. (*)		—		—		—			—		—		—			—			—			—
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,243		142			—		—		—			—			—			10,385
Union Technology Finance Investment Association		13,449		14,462		(260	)		—		—		(1,188	)		—			—			13,014
KUM HWA Co., Ltd. (*)		—		—		—			—		—		—			—			—			—
Dicustody Co., Ltd.		1		1		—			—		—		—			—			—			1
Jinmyung Plus Co., Ltd.		—		10		4			—		—		—			—			—			14
Orient Shipyard Co., Ltd.(*)		—		—		—			—		—		—			—			—			—
BTS 2nd Private Equity Fund		5,226		2,881		(130	)		2,200		—		—			—			—			4,951
Joongang Network Solution Co.,Ltd.		—		—		17			—		—		—			—			87			104
STASSETS FUND III		1,500		1,230		(159	)		—		—		—			—			—			1,071
KG Fashion Co., Ltd.(*)		—		—		—			—		—		—			—			—			—
Win Mortgage Co.,LTd.		23		—		70			23		—		—			(2	)		—			91
NH Woori Newdeal Growth Alpha Private Equity Fund 1		10,692		—		(167	)		10,692		—		—			—			—			10,525
Woori-Q Corporate Restructuring Private Equity Fund		27,063		27,536		1,160			—		—		—			—			—			28,696
Aarden Woori Apparel 1st Private Equity Fund		100		97		36			—		—		—			—			—			133
Woori Dyno 1st Private Equity Fund		2,000		1,994		—			—		—		—			—			—			1,994
Australia Green Energy 1st PEF		4,913		4,858		(24	)		—		—		—			—			—			4,834
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		1,700		1,074		95			1,000		—		(443	)		—			—			1,726

- 74 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2023
	Acquisition cost		January 1, 2023		Share of profits(losses) and others			Acquisition		Business combination		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2023
Woori Together TDF 2030		2,000		2,033		138			—		—		—			—			—			2,171
Woori Together TDF 2025		2,000		1,990		120			—		—		—			—			—			2,110
Woori Star50 feeder fund(H)		200		126		7			—		—		—			—			—			133
Portone-Cape Fund No.1		340		464		(181	)		—		—		—			—			—			283
WOORI TAERIM 1st Fund		1,100		988		—			—		—		—			—			—			988
KIWOOM WOORI Financial 1st Fund		545		953		(8	)		—		—		(455	)		—			—			490
DeepDive WOORI 2021-1 Financial Investment Fund		327		878		225			—		—		(574	)		(74	)		—			455
PCC-Woori LP Secondary Fund		10,435		12,984		59			—		—		(4	)		—			—			13,039
DS Power Semicon Private Equity Fund		3,000		2,976		211			—		—		—			(218	)		—			2,969
Koreawide partners 2nd Private Equity Fund		20,000		20,000		(244	)		—		—		—			—			—			19,756
Darwin Green Packaging Private Equity Fund		4,000		3,945		123			—		—		—			(80	)		—			3,988
Japanese Hotel Real Estate Private Equity Fund No.2		3,174		2,855		28			—		—		—			(77	)		(135	)		2,671
Woori Seoul Beltway Private Special Asset Fund No.1		10,925		9,874		208			1,158		—		—			(203	)		—			11,037
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		110,000		112,025		4,511			—		—		—			(3,779	)		—			112,757
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		10,000		10,182		261			—		—		—			(359	)		—			10,084
Woori Smart General Private Equity Investment Trust 1(bond)		30,000		—		56			30,000		—		—			—			—			30,056
Woori FirstValue Private Real Estate Fund No.2		40,000		—		86			40,000		—		—			—			—			40,086
Woori FirstValue Private Real Estate Fund No.2		9,000		558		(1	)		—		—		—			—			—			557
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust		100		102		2			—		—		(48	)		(2	)		—			54
JC Assurance No.2 Private Equity Fund		29,349		—		—			—		—		—			—			—			—
Dream Company Growth no.1 PEF		7,412		7,861		(26	)		—		—		—			—			—			7,835
HMS-Oriens 1st Fund		12,000		13,252		386			—		—		—			—			—			13,638
Woori G Senior Loan Private Placement Investment Trust No.1		77,505		81,861		1,829			—		—		(2,218	)		(1,829	)		—			79,643
Genesis Eco No.1 Private Equity Fund		12,000		11,216		(91	)		—		—		—			—			—			11,125
Paratus Woori Material Component Equipment joint venture company		17,700		17,250		(132	)		—		—		—			—			—			17,118

- 75 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2023
	Acquisition cost		January 1, 2023		Share of profits(losses) and others			Acquisition		Business combination		Disposal/ Reclassification		Dividends			Change in capital		June 30, 2023
Midas No. 8 Private Equity Joint Venture Company		18,537		18,713		409			—		—		—		(530	)		—		18,592
Orchestra Private Equity Fund IV		9,878		9,698		(73	)		—		—		—		—			—		9,625
Synaptic Green No.1 PEF		8,000		7,793		(109	)		—		—		—		—			—		7,684
Woori-Shinyoung Growth-Cap Private Equity Fund I		17,018		43,274		(1,380	)		—		—		—		—			—		41,894
IGEN2022No. 1 Private Equity Fund		7,822		8,010		398			—		—		—		(363	)		—		8,045
Woori General Private Securities Investment Trust(Bond) No.1		50,000		—		446			50,000		—		—		—			—		50,446
KTB-KORUS FUND		3,626		—		—			—		3,626		—		—			—		3,626
KTB China Platform Fund		17,023		—		—			—		17,023		—		—			—		17,023
KTBN Venture Fund No.7		16,972		—		(44	)		—		16,972		—		(703	)		—		16,225
KTBN Venture Fund No.8		3,325		—		35			—		3,325		—		—			—		3,360
KTBN Digital Contents Korea Fund No.9		5,329		—		32			—		5,329		—		—			—		5,361
KTBN Media Contents Fund		330		—		12			—		330		—		—			—		342
KTB China Synergy Fund		21,629		—		77			—		21,629		—		—			—		21,706
NAVER-KTB Audio Contents Fund		284		—		(2	)		—		284		—		—			—		282
KTBN Venture Fund No.13		13,279		—		45			—		13,279		—		—			—		13,324
KTBN Future Contents Fund		3,892		—		1			—		3,892		—		—			—		3,893
KTBN Venture Fund No.16		17,546		—		800			—		17,546		—		—			—		18,346
KTBN Venture Fund No.18		23,458		—		(101	)		2,850		23,458		—		—			—		26,207
KB-KTB Technology Venture Fund		5,755		—		(48	)		—		5,755		—		—			—		5,707
DAOL 2022 Scaleup Venture Fund		355		—		(175	)		6,861		355		—		—			—		7,041
DAOL 2022 Start-up Venture Fund		2,564		—		(42	)		—		2,564		—		—			—		2,522
KTB-NHN China Private Equity Fund		1,272		—		(37	)		—		1,272		—		—			44		1,279

- 76 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2023
	Acquisition cost		January 1, 2023		Share of profits(losses) and others			Acquisition		Business combination		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2023
KTBN GI Private Equity Fund		189		—		155			—		189		—			—			46			390
Chirochem		102		—		—			—		102		—			—			—			102
Woori Zip 1		9,021		8,690		(83	)		—		—		(234	)		—			(425	)		7,948
Woori Zip 2		12,518		12,180		(64	)		—		—		(410	)		—			(593	)		11,113
Godo Kaisha Oceanos 1		10,800		8,788		21			—		—		—			(330	)		(91	)		8,388

		1,389,962		1,305,636		70,812			144,822		136,930		(15,159	)		(21,843	)		472			1,621,670

(*)

The amount for which no loss was recognized for associates due to discontinuation of the equity method was 2 million Won for KUM HWA Co., Ltd., 6 million Won for Orient Shipyard Co.,Ltd., 34 million Won in KG FASHION CO., LTD. and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 6 million Won for Orient Shipyard Co.,Ltd., 34 million Won in KG FASHION CO., LTD..


	For the six-month period ended June 30, 2022
	Acquisition cost		January 1, 2022		Share of profits(losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2022
W Service Networks Co., Ltd.		108		183		13			—		—			(4	)		—			192
Korea Credit Bureau Co., Ltd.		3,313		9,423		(4,104	)		—		—			—			—			5,319
Korea Finance Security Co., Ltd.		3,267		3,101		(251	)		—		—			—			—			2,850
Woori Growth Partnerships New Technology Private Equity Fund		13,731		12,448		579			—		(1,260	)		—			—			11,767
2016KIF-IMM Woori Bank Technology Venture Fund		8,056		12,629		(1,277	)		—		(340	)		(616	)		—			10,396
K BANK Co., Ltd.		236,232		239,493		5,575			—		—			—			(2,890	)		242,178
Woori Bank-Company K Korea Movie Asset Fund		—		345		—			—		—			—			—			345
Partner One Value Up I Private Equity Fund		5,039		6,575		(3,032	)		—		—			—			—			3,543
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		9,736		11,153		1,249			—		—			—			—			12,402
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,305		4,255		—			50		—			—			—			4,305
LOTTE CARD Co.,Ltd.		346,810		458,295		23,843			—		—			(12,960	)		5,572			474,750
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,000		10,070		59			—		—			—			—			10,129
Genesis Environmental Energy Company 1st Private Equity Fund		—		4,126		(41	)		—		(3,738	)		(347	)		—			—
Union Technology Finance Investment Association		15,000		12,388		(175	)		2,250		—			—			—			14,463
Dicustody Co., Ltd.		1		1		—			—		—			—			—			1
Japanese Hotel Real Estate Private Equity Fund 2		3,174		3,196		57			—		—			(164	)		(254	)		2,835
Woori Seoul Beltway Private Special Asset Fund		8,503		7,551		98			1,001		—			(94	)		—			8,556
Woori Multi Return Private Securities Investment Trust 3(Balanced Bond)		10,000		10,023		(1	)		—		—			(73	)		—			9,949
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		200,000		151,822		596			50,000		—			(1,972	)		—			200,446
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		10,000		—		35			10,000		—			(48	)		—			9,987
WOORI TAERIM 1st Fund		1,100		991		(3	)		—		—			—			—			988

- 77 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Acquisition cost		January 1, 2022		Share of profits(losses) and others			Acquisition		Disposal/ Reclassification			Dividends			Change in capital			June 30, 2022
Portone-Cape Fund No.1		340		489		(20	)		—		—			—			—			469
KIWOOM WOORI Financial 1st Investment Fund		1,000		973		(9	)		—		—			—			—			964
DeepDive WOORI 2022-1 Financial Investment Fund		1,000		993		(10	)		—		—			—			—			983
Darwin Green Packaging Private Equity Fund		4,000		3,957		419			—		—			(400	)		—			3,976
DS Power Semicon Private Equity Fund		3,000		—		157			3,000		—			(192	)		—			2,965
Koreawide partners 2nd Private Equity Fund		20,000		—		(137	)		20,000		—			—			—			19,863
Woori FirstValue Private Real Estate Fund No.2		9,000		763		—			—		(199	)		—			—			564
Woori High plus G.B. Securities Feeder Fund1(G.B.)		100		100		2			—		—			—			—			102
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		1,200		—		(136	)		—		1,239			—			—			1,103
Woori Together TDF 2025		2,000		—		(185	)		—		2,193			—			—			2,008
Woori Together TDF 2030		2,000		—		(206	)		—		2,247			—			—			2,041
Woori Hanhwa Eureka Private Equity Fund		86		327		(45	)		—		(77	)		(24	)		—			181
Aarden Woori Apparel 1st Private Equity Fund		100		99		(1	)		—		—			—			—			98
Woori Dyno 1st Private Equity Fund		2,000		—		(17	)		2,000		—			—			—			1,983
Godo Kaisha Oceanos 1		10,800		9,905		8			—		—			(497	)		(113	)		9,303
Woori Zip 1		10,143		10,496		13			—		—			—			(852	)		9,657
Woori Zip 2		14,254		14,732		(74	)		—		—			—			(1,196	)		13,462
Force TEC Co., Ltd. (*)		—		—		(16	)		—		—			—			16			—
KUM HWA Co., Ltd. (*)		—		—		—			—		—			—			—			—
Jinmyung Plus Co., Ltd		—		—		16			—		—			—			—			16
JC Assurance No.2 Private Equity Fund		29,349		17,728		(17,728	)		—		—			—			—			—
Dream Company Growth no.1 PEF		7,706		7,914		(27	)		—		—			—			—			7,887
HMS-Oriens 1st Fund		12,000		12,007		749			—		—			—			—			12,756
Woori G Senior Loan No.1		81,274		88,029		1,900			14,073		(19,888	)		(1,829	)		—			82,285
Genesis Eco No.1 Private Equity Fund		11,805		11,120		(6	)		—		—			—			—			11,114
Paratus Woori Materials, Parts, Equipments Private Equity Fund		17,700		17,493		(118	)		—		—			—			—			17,375
Midas No. 8 Private Equity Joint Venture Company		19,000		18,968		(129	)		—		—			—			—			18,839
Orchestra Private Equity Fund IV		10,000		—		(232	)		10,000		—			—			—			9,768
Synaptic Green No.1 PEF		8,000		—		(134	)		8,000		—			—			—			7,866
IGEN2023No. 1 Private Equity Fund		8,000		—		(76	)		8,000		—			—			—			7,924
PCC-Woori LP Secondary Fund		10,100		12,350		445			—		—			—			—			12,795
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		20,000		73,787		(3,569	)		—		(50,937	)		(190	)		—			19,091
Woori-Q Corporate Restructuring Private Equity Fund		26,790		46,155		1,270			262		(19,057	)		—			—			28,630
Woori-Shinyoung Growth-Cap Private Equity Fund I		17,018		28,714		1,653			—		—			—			—			30,367

		1,248,140		1,335,167		6,977			128,636		(89,817	)		(19,410	)		283			1,361,836

- 78 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*)	The amount for which no loss was recognized for associates due to discontinuation of the equity method was 81 million Won for POSTECH Co., Ltd. and 1 million Won for KUM HWA Co., Ltd. and the accumulated amount is 878 million Won for POSTECH Co., Ltd. and 3 million Won in KUM HWA Co., Ltd..

(3)	Summary financial information relating to investments in joint ventures and associates accounted for using the equity method of accounting is as follows (Unit: Korean Won in millions):


	June 30, 2023
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
W Service Networks Co., Ltd.		6,836		2,734		9,106		780			—			780
Korea Credit Bureau Co., Ltd.		137,431		70,291		79,279		12,744			—			12,744
Korea Finance Security Co., Ltd.		35,877		14,071		20,494		(555	)		—			(555	)
Woori Growth Partnerships New Technology Private Equity Fund		47,389		424		16		(221	)		—			(221	)
K BANK Co., Ltd.		18,903,916		17,057,591		359,650		19,310			28,975			48,285
Woori Bank-Company K Korea Movie Asset Fund (*1)		1,080		—		129		124			—			124
Partner One Value Up I Private Equity Fund		18,477		94		188		(11	)		—			(11	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		54,087		386		2,669		2,296			—			2,296
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,766		94		1		(190	)		—			(190	)
LOTTE CARD Co., Ltd. (*2)		21,211,388		18,387,434		676,395		55,136			(12,528	)		42,608
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,388		1		69		68			—			68
Union Technology Finance Investment Association		44,098		282		2,251		1,667			—			1,667
KUM HWA Co., Ltd.		4		167		—		—			—			—
Dicustody Co., Ltd.		93		—		—		(2	)		—			(2	)
Jinmyung Plus Co., Ltd.		582		516		65		(2	)		—			(2	)
Orient Shipyard Co., Ltd.		10,807		27,225		—		(25	)		—			(25	)
BTS 2nd Private Equity Fund		25,037		281		4		(650	)		—			(650	)
Joongang Network Solution Co.,Ltd.		1,521		3,111		2,091		66			—			66
STASSETS FUND III		4,091		306		46		(562	)		—			(562	)
KG Fashion Co., Ltd.		2,863		2,909		287		(152	)		—			(152	)
Win Mortgage Co.,LTd.		3,218		1,218		2,216		6			—			6
NH Woori Newdeal Growth Alpha Private Equity Fund 1		32,665		3,271		—		(1,567	)		—			(1,567	)
Australia Green Energy 1st PEF		122,026		23		228		(616	)		—			(616	)
Woori Dyno 1st Private Equity Fund		10,213		43		115		31			—			31
Aarden Woori Apparel 1st Private Equity Fund		28,380		87		—		(169	)		—			(169	)
Woori Star50 feeder fund(H)		758		—		99		29			—			29
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		6,847		29		817		664			—			664
Woori Together TDF 2030		9,610		3		1,618		503			—			503
Woori Together TDF 2025		9,320		7		115		429			—			429
DeepDive WOORI 2021-1 Financial Investment Fund		3,859		34		1,991		1,889			—			1,889
KIWOOM WOORI Financial 1st Fund		5,484		86		—		(88	)		—			(88	)
WOORI TAERIM 1st Fund		4,045		183		—		—			—			—
Portone-Cape Fund No.1		1,464		50		—		(976	)		—			(976	)
Darwin Green Packaging Private Equity Fund		19,541		—		759		602			—			602
DS Power Semicon Private Equity Fund		14,194		44		900		815			—			815
Koreawide partners 2nd Private Equity Fund		76,607		2,520		—		(810	)		—			(810	)
PCC-Woori LP Secondary Fund		33,887		323		441		109			—			109

- 79 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	June 30, 2023
	Assets		Liabilities		Operating revenue			Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
Japanese Hotel Real Estate Private Equity Fund No.2		13,457		12		188			148			(681	)		(533	)
Woori Seoul Beltway Private Special Asset Fund No.1		44,148		2		856			830			—			830
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		568,969		77,916		15,156			13,760			—			13,760
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		61,623		10		2,872			2,749			—			2,749
Woori General Private Securities Investment Trust(Bond) No.2		216,843		106,638		847			205			—			205
Woori Smart General Private Equity Investment Trust 1(bond)		281,047		140,746		974			302			—			302
Woori FirstValue Private Real Estate Fund No.2		67,000		62,357		6			(5	)		—			(5	)
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust		96,132		52		1,720			1,603			—			1,603
JC Assurance No.2 Private Equity Fund		121,613		5		—			(607	)		—			(607	)
Dream Company Growth no.1 PEF		29,747		1,542		1,490			1,395			—			1,395
HMS-Oriens 1st Fund		59,785		6		1,962			1,690			—			1,690
Woori G Senior Loan Private Placement Investment Trust No.1		367,872		20		8,944			8,425			—			8,425
Genesis Eco No.1 Private Equity Fund		38,382		—		—			(315	)		—			(315	)
Paratus Woori Material Component Equipment joint venture company		58,301		1,049		—			(442	)		—			(442	)
Midas No. 8 Private Equity Joint Venture Company		65,513		245		1,912			1,435			—			1,435
Orchestra Private Equity Fund IV		34,170		—		—			(258	)		—			(258	)
Synaptic Green No.1 PEF		36,676		179		2			(521	)		—			(521	)
Woori-Q Corporate Restructuring Private Equity Fund		82,087		970		—			(976	)		—			(976	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		120,712		924		(3,008	)		(3,723	)		—			(3,723	)
Woori General Private Securities Investment Trust(Bond) No.1		398,123		196,339		3,785			1,785			—			1,785
IGEN2022No. 1 Private Equity Fund		32,496		113		1,847			1,603			—			1,603
Woori Zip 1		44,615		31,505		1,041			(129	)		—			(129	)
Woori Zip 2		62,911		44,754		1,531			(99	)		—			(99	)
Godo Kaisha Oceanos 1		62,894		45,346		1,401			45			—			45
KTB-KORUS FUND		9,669		—		—			—			—			—
KTB China Platform Fund		91,056		—		4			1			—			1
KTBN Venture Fund No.7		80,768		—		3,459			1,405			—			1,405
KTBN Venture Fund No.8		15,567		111		3,709			(654	)		—			(654	)
KTBN Digital Contents Korea Fund No.9		19,439		1,568		180			(1,929	)		—			(1,929	)
KTBN Media Contents Fund		2,280		—		176			176			—			176
KTB China Synergy Fund		153,422		9,296		1,804			(47	)		—			(47	)
NAVER-KTB Audio Contents Fund		28,526		324		1			(329	)		—			(329	)
KTBN Venture Fund No.13		68,345		390		1,530			1,362			—			1,362
KTBN Future Contents Fund		29,442		246		14			(237	)		—			(237	)
KTBN Venture Fund No.16		179,826		947		9,754			9,037			—			9,037
KTBN Venture Fund No.18		259,614		1,223		1,766			515			—			515
KB-KTB Technology Venture Fund		31,663		276		69			(490	)		—			(490	)
DAOL 2022 Scaleup Venture Fund		35,168		9		59			(1,562	)		—			(1,562	)
DAOL 2022 Start-up Venture Fund		8,375		2		26			(283	)		—			(283	)
KTB-NHN China Private Equity Fund		3,843		7		—			(9	)		132			123
KTBN GI Private Equity Fund		7,847		52		—			2,385			921			3,306
Chirochem		732		375		2,107			148			—			148

(*1)	It is scheduled to be dissolved because of liquidation for the year ended December 31, 2021.

(*2)	The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

- 80 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Assets		Liabilities		Operating revenue			Net income (loss)			Other comprehensive income(loss)			Total comprehensive income(loss)
W Service Networks Co., Ltd.		7,052		2,825		19,697			1,215			—			1,215
Korea Credit Bureau Co., Ltd.		155,165		100,065		144,907			13,809			—			13,809
Korea Finance Security Co., Ltd.		28,792		12,964		47,043			(3,856	)		—			(3,856	)
Woori Growth Partnerships New Technology Private Equity Fund		47,394		208		2,978			2,185			—			2,185
2016KIF-IMM Woori Bank Technology Venture Fund		47,979		609		665			(7,839	)		—			(7,839	)
K BANK Co., Ltd.		16,694,289		14,896,426		491,880			91,059			(32,156	)		58,903
Woori Bank-Company K Korea Movie Asset Fund (*1)		989		33		462			324			—			324
Partner One Value Up I Private Equity Fund		18,395		—		(9,431	)		(9,831	)		—			(9,831	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		51,804		385		8,092			7,288			—			7,288
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,811		95		1			(383	)		—			(383	)
LOTTE CARD Co., Ltd. (*2)		19,983,059		17,179,093		1,925,577			268,096			43,162			311,258
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,246		1		218			170			—			170
Union Technology Finance Investment Association		48,991		299		2,300			632			—			632
Dicustody Co., Ltd.		95		—		—			(3	)		—			(3	)
Orient Shipyard Co., Ltd.		10,832		27,225		—			(16,467	)		—			(16,467	)
BTS 2nd Private Equity Fund		15,012		608		1			(725	)		—			(725	)
STASSETS FUND III		4,660		313		37			(953	)		—			(953	)
Japanese Hotel Real Estate Private Equity Fund 2		14,387		13		1,050			968			(1,186	)		(218	)
Woori Seoul Beltway Private Special Asset Fund No.1		39,497		2		1,028			984			—			984
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		468,357		67,022		14,189			11,804			—			11,804
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		115,781		4,508		1,899			1,763			—			1,763
WOORI TAERIM 1st Fund		4,047		185		—			(13	)		—			(13	)
Portone-Cape Fund No.1		2,344		26		—			(129	)		—			(129	)
KIWOOM WOORI Financial 1st Investment Fund		10,597		111		1			(222	)		—			(222	)
DeepDive WOORI 2021-1 Financial Investment Fund		7,412		37		57			(103	)		—			(103	)
Darwin Green Packaging Private Equity Fund		19,332		—		2,215			1,904			—			1,904
DS Power Semicon Private Equity Fund		14,230		44		1,185			937			—			937
Koreawide partners 2nd Private Equity Fund		77,039		2,038		3,020			1			—			1
Woori FirstValue Private Real Estate Fund No.2		67,005		62,357		3			(54	)		—			(54	)
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust		73,064		56		3,140			2,874			—			2,874
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		4,667		12		389			(636	)		—			(636	)
Woori Together TDF 2025		8,513		16		1,287			(1,018	)		—			(1,018	)
Woori Together TDF 2030		8,615		—		1,352			(1,108	)		—			(1,108	)
WOORI Star50 feeder fund(H)		709		—		48			(480	)		—			(480	)
Aarden Woori Apparel 1st Private Equity Fund		20,750		89		8			(325	)		—			(325	)
Woori Dyno 1st Private Equity Fund		10,212		43		200			(31	)		—			(31	)
Australia Green Energy 1st PEF		122,634		14		30			(1,380	)		—			(1,380	)
Godo Kaisha Oceanos 1		63,741		45,358		2,942			176			—			176
Woori Zip 1		48,309		34,346		2,085			(215	)		—			(215	)
Woori Zip 2		68,388		48,927		3,069			(198	)		—			(198	)
Force TEC Co., Ltd.		10,489		24,804		25,182			(2,664	)		—			(2,664	)
KUM HWA Co., Ltd.		4		159		—			(8	)		—			(8	)
Jinmyung Plus Co.,Ltd.		696		649		177			(9	)		—			(9	)
JC Assurance No.2 Private Equity Fund		122,015		3		—			(929	)		—			(929	)

- 81 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Assets		Liabilities		Operating revenue		Net income (loss)			Other comprehensive income(loss)		Total comprehensive income(loss)
Dream Company Growth no.1 PEF		28,351		50		1,695		1,506			—		1,506
HMS-Oriens 1st Fund		58,095		6		3,829		3,279			—		3,279
Woori G Senior Loan Private Placement Investment Trust No.1		378,145		23		18,584		17,496			—		17,496
Genesis Eco No.1 Private Equity Fund		38,700		5		48		(593	)		—		(593	)
Paratus Woori Material Component Equipment joint venture company		58,311		617		7		(812	)		—		(812	)
Midas No. 8 Private Equity Joint Venture Company		65,936		242		1,928		977			—		977
Orchestra Private Equity Fund IV		34,427		—		1,580		878			—		878
Synaptic Green No.1 PEF		37,017		—		4		(983	)		—		(983	)
IGEN2022No. 1 Private Equity Fund		32,362		122		3,166		2,616			—		2,616
PCC-Woori LP Secondary Fund		33,591		168		6,127		1,152			—		1,152
Woori-Q Corporate Restructuring Private Equity Fund		75,973		418		3,019		(4,696	)		—		(4,696	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		123,824		312		41,780		40,544			—		40,544

(*1)	It is scheduled to be dissolved because of liquidation for the year ended December 31, 2021.

(*2)	The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the adjustments that occurred by difference of accounting policies with the Group.

(4)	The entities that the Group has not applied equity method of accounting although the Group’s ownership interest is more than 20% as of June 30, 2023 and December 31, 2022 are as follows:


	June 30, 2023
Associate (*)	Number of shares owned		Ownership (%)
CL Tech Co., Ltd.		10,191		28.6

(*)	Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.


	December 31, 2022
Associate (*)	Number of shares owned		Ownership (%)
CL Tech Co., Ltd.		10,191		28.6

(*)	Although the Group’s ownership interest of the entity is more than 20%, the Group does not have significant influence over the entity since it is going through work-out process under receivership, accordingly it is excluded from the investment in joint ventures and associates.

- 82 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(5)	As of June 30, 2023 and December 31, 2022, the reconciliations from the net assets of the associates to the book value of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won in millions except for ownership):


	June 30, 2023
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment		Intercompany transaction			Book value
W Service Networks Co., Ltd.		4,102			4.9		203			—		—		(1	)		202
Korea Credit Bureau Co., Ltd.		67,140			9.9		6,656			246		—		(428	)		6,902
Korea Finance Security Co., Ltd.		21,807			15.0		3,271			—		—		—			3,271
Woori Growth Partnerships New Technology Private Equity Fund		46,964			23.1		10,838			—		—		—			10,838
K BANK Co., Ltd. (*)		1,844,331			12.6		231,938			21,895		—		—			253,833
Woori Bank-Company K Korea Movie Asset Fund		1,080			25.0		270			—		—		—			270
Partner One Value Up I Private Equity Fund		18,383			23.3		4,275			—		—		—			4,275
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		53,701			20.0		10,740			—		—		1			10,741
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,671			25.0		3,918			—		—		475			4,393
LOTTE CARD Co., Ltd. (*)		2,588,141			20.0		517,628			—		—		38,692			556,320
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,387			100.0		10,386			—		—		(1	)		10,385
Union Technology Finance Investment Association		43,816			29.7		13,015			—		—		(1	)		13,014
KUM HWA Co., Ltd.		(163	)		20.1		(33	)		—		—		33			—
Dicustody Co., Ltd.		93			1.0		1			—		—		—			1
Jinmyung Plus Co., Ltd.		66			21.3		13			—		—		1			14
Orient Shipyard Co., Ltd.		(16,419	)		22.7		(3,732	)		—		—		3,732			—
BTS 2nd Private Equity Fund		24,756			20.0		4,951			—		—		—			4,951
Joongang Network Solution Co.,Ltd.		(1,590	)		25.3		(403	)		—		—		507			104
STASSETS FUND III		3,785			28.3		1,071			—		—		—			1,071
KG Fashion Co., Ltd.		(46	)		20.8		(10	)		—		—		10			—
Win Mortgage Co.,LTd.		2,000			4.5		90			—		—		1			91
NH Woori Newdeal Growth Alpha Private Equity Fund 1		29,394			32.7		9,781			—		—		744			10,525
Woori-Q Corporate Restructuring Private Equity Fund		81,118			35.6		28,696			—		—		—			28,696
Aarden Woori Apparel 1st Private Equity Fund		28,293			0.5		133			—		—		—			133
Woori Dyno 1st Private Equity Fund		10,170			19.6		1,994			—		—		—			1,994
Australia Green Energy 1st PEF		122,002			4.0		4,834			—		—		—			4,834
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		6,817			25.3		1,726			—		—		—			1,726
Woori Together TDF 2030		9,627			22.6		2,171			—		—		—			2,171
Woori Together TDF 2025		9,343			22.6		2,110			—		—		—			2,110
Woori Star50 feeder fund(H)		762			17.5		133			—		—		—			133
Portone-Cape Fund No.1		1,414			20.0		283			—		—		—			283
WOORI TAERIM 1st Fund		3,862			25.6		988			—		—		—			988
KIWOOM WOORI Financial 1st Fund		5,398			9.1		490			—		—		—			490
DeepDive WOORI 2021-1 Financial Investment Fund		3,825			11.9		455			—		—		—			455

- 83 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	June 30, 2023
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment			Intercompany transaction		Book value
PCC-Woori LP Secondary Fund		33,565		38.8		13,039		—		—			—		13,039
DS Power Semicon Private Equity Fund		14,150		21.0		2,969		—		—			—		2,969
Koreawide partners 2nd Private Equity Fund		74,087		26.7		19,756		—		—			—		19,756
Darwin Green Packaging Private Equity Fund		19,541		20.4		3,988		—		—			—		3,988
Japanese Hotel Real Estate Private Equity Fund No.2		13,445		19.9		2,671		—		—			—		2,671
Woori Seoul Beltway Private Special Asset Fund No.1		44,146		25.0		11,037		—		—			—		11,037
Woori Short-term Bond Securities Investment Trust(Bond) ClassC-F		491,053		23.0		112,757		—		—			—		112,757
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		61,613		16.4		10,084		—		—			—		10,084
Woori General Private Securities Investment Trust(Bond) No.2		110,205		27.3		30,056		—		—			—		30,056
Woori Smart General Private Equity Investment Trust 1(bond)		140,302		28.6		40,086		—		—			—		40,086
Woori FirstValue Private Real Estate Fund No.2		4,643		12.0		557		—		—			—		557
WooriG Real Infrastructure Blind General Type Private Placement Investment Trust		96,079		0.1		54		—		—			—		54
JC Assurance No.2 Private Equity Fund		121,609		23.5		28,615		—		(28,615	)		—		—
Dream Company Growth no.1 PEF		28,206		27.8		7,835		—		—			—		7,835
HMS-Oriens 1st Fund		59,779		22.8		13,638		—		—			—		13,638
Woori G Senior Loan Private Placement Investment Trust No.1		367,852		21.7		79,643		—		—			—		79,643
Genesis Eco No.1 Private Equity Fund		38,382		29.0		11,125		—		—			—		11,125
Paratus Woori Material Component Equipment joint venture company		57,252		29.9		17,118		—		—			—		17,118
Midas No. 8 Private Equity Joint Venture Company		65,269		28.5		18,592		—		—			—		18,592
Orchestra Private Equity Fund IV		34,170		28.2		9,625		—		—			—		9,625
Synaptic Green No.1 PEF		36,497		21.1		7,684		—		—			—		7,684
Woori-Shinyoung Growth-Cap Private Equity Fund I		119,788		35.0		41,894		—		—			—		41,894
IGEN2022No. 1 Private Equity Fund		32,383		24.8		8,045		—		—			—		8,045
Woori General Private Securities Investment Trust(Bond) No.1		201,785		25.0		50,446		—		—			—		50,446
KTB-KORUS FUND		9,669		37.5		3,626		—		—			—		3,626
KTB China Platform Fund		91,056		18.7		17,023		—		—			—		17,023
KTBN Venture Fund No.7		80,768		20.1		16,225		—		—			—		16,225
KTBN Venture Fund No.8		15,456		21.7		3,360		—		—			—		3,360
KTBN Digital Contents Korea Fund No.9		17,871		30.0		5,361		—		—			—		5,361
KTBN Media Contents Fund		2,280		15.0		342		—		—			—		342
KTB China Synergy Fund		144,126		15.1		21,706		—		—			—		21,706

- 84 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	June 30, 2023
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment		Intercompany transaction			Book value
NAVER-KTB Audio Contents Fund		28,202			1.0		282			—		—		—			282
KTBN Venture Fund No.13		67,955			19.6		13,324			—		—		—			13,324
KTBN Future Contents Fund		29,196			13.3		3,893			—		—		—			3,893
KTBN Venture Fund No.16		178,878			10.3		18,346			—		—		—			18,346
KTBN Venture Fund No.18		258,390			10.1		26,207			—		—		—			26,207
KB-KTB Technology Venture Fund		31,387			18.2		5,707			—		—		—			5,707
DAOL 2022 Scaleup Venture Fund		35,160			20.0		7,041			—		—		—			7,041
DAOL 2022 Start-up Venture Fund		8,373			30.1		2,522			—		—		—			2,522
KTB-NHN China Private Equity Fund		3,836			33.3		1,279			—		—		—			1,279
KTBN GI Private Equity Fund		7,794			5.0		390			—		—		—			390
Chirochem		358			28.6		102			—		—		—			102
Woori Zip 1		13,110			64.0		7,948			—		—		—			7,948
Woori Zip 2		18,157			64.0		11,113			—		—		—			11,113
Godo Kaisha Oceanos 1		17,548			47.8		8,388			—		—		—			8,388

(*) The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

	December 31, 2022
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment		Intercompany transaction			Book value
W Service Networks Co., Ltd.		4,227			4.9		209			—		—		(1	)		208
Korea Credit Bureau Co., Ltd.		55,100			9.9		5,462			246		—		1			5,709
Korea Finance Security Co., Ltd.		15,828			15.0		2,374			—		—		—			2,374
Woori Growth Partnerships New Technology Private Equity Fund		47,185			23.1		10,889			—		—		—			10,889
2016KIF-IMM Woori Bank Technology Venture Fund		47,370			20.0		9,474			—		—		—			9,474
K BANK Co., Ltd. (*)		1,796,269			12.6		225,894			21,894		—		1			247,789
Woori Bank-Company K Korea Movie Asset Fund		957			25.0		239			—		—		—			239
Partner One Value Up Ist Private Equity Fund		18,395			23.3		4,278			—		—		—			4,278
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		51,419			20.0		10,284			—		—		1			10,285
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		15,716			25.0		3,929			—		—		426			4,355
LOTTE CARD Co., Ltd. (*)		2,570,656			20.0		514,131			—		—		—			514,131
Together-Korea Government Private Pool Private Securities Investment Trust No.3		10,245			100.0		10,244			—		—		(1	)		10,243
Union Technology Finance Investment Association		48,692			29.7		14,463			—		—		(1	)		14,462
Dicustody Co., Ltd.		95			1.0		1			—		—		—			1
Orient Shipyard Co., Ltd.		(16,393	)		22.7		(3,721	)		—		—		3,721			—
BTS 2nd Private Equity Fund		14,405			20.0		2,881			—		—		—			2,881
STASSETS FUND III		4,347			28.3		1,230			—		—		—			1,230
Japanese Hotel Real Estate Private Equity Fund No.2		14,374			19.9		2,855			—		—		—			2,855
Woori Seoul Beltway Private Special Asset Fund No.1		39,495			25.0		9,874			—		—		—			9,874

- 85 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Impairment		Intercompany transaction		Book value
Woori Short-term Bond Securities Investment Trust (Bond) ClassC-F		401,335			27.9		112,025			—		—		—		112,025
Woori Safe Plus General Type Private Investment Trust S-8(Bond)		111,273			9.2		10,182			—		—		—		10,182
WOORI TAERIM 1st Fund		3,862			25.6		988			—		—		—		988
Portone-Cape Fund No.1		2,318			20.0		464			—		—		—		464
KIWOOM WOORI Financial 1st Investment Fund		10,486			9.1		953			—		—		—		953
DeepDive WOORI 2021-1 Financial Investment Fund		7,375			11.9		878			—		—		—		878
Darwin Green Packaging Private Equity Fund		19,332			20.4		3,945			—		—		—		3,945
DS Power Semicon Private Equity Fund		14,186			21.0		2,976			—		—		—		2,976
Koreawide partners 2nd Private Equity Fund		75,001			26.7		20,000			—		—		—		20,000
Woori FirstValue Private Real Estate Fund No.2		4,648			12.0		558			—		—		—		558
Woori G Real Infrastructure Blind General Type Private Placement Investment Trust		73,008			0.1		102			—		—		—		102
Woori BIG2 Plus Securities Investment Trust(Balanced Bond)		4,655			23.1		1,074			—		—		—		1,074
Woori Together TDF 2025		8,497			23.6		1,990			—		—		—		1,990
Woori Together TDF 2030		8,615			23.8		2,033			—		—		—		2,033
WOORI Star50 feeder fund(H)		709			17.9		126			—		—		—		126
Aarden Woori Apparel 1st Private Equity Fund		20,661			0.5		97			—		—		—		97
Woori Dyno 1st Private Equity Fund		10,169			19.6		1,994			—		—		—		1,994
Australia Green Energy 1st PEF		122,620			4.0		4,858			—		—		—		4,858
Godo Kaisha Oceanos 1		18,383			47.8		8,788			—		—		—		8,788
Woori Zip 1		13,963			64.0		8,690			—		—		—		8,690
Woori Zip 2		19,461			64.0		12,180			—		—		—		12,180
Force TEC		(14,315	)		24.5		(3,513	)		—		—		3,513		—
KUM HWA Co., Ltd.		(155	)		20.1		(31	)		—		—		31		—
Jinmyung Plus Co.,Ltd.		47			21.3		10			—		—		—		10
JC Assurance No.2 Private Equity Fund		122,012			23.5		17,728			—		(17,728)		—		—
Dream Company Growth no.1 PEF		28,301			27.8		7,861			—		—		—		7,861
HMS-Oriens 1st Fund		58,089			22.8		13,252			—		—		—		13,252
Woori G Senior Loan General Type Private Investment Trust No.1		378,122			21.7		81,861			—		—		—		81,861
Genesis Eco No.1 Private Equity Fund		38,695			29.0		11,216			—		—		—		11,216
Paratus Woori Material Component Equipment joint venture company		57,694			29.9		17,250			—		—		—		17,250
Midas No. 8 Private Equity Joint Venture Company		65,694			28.5		18,713			—		—		—		18,713
Orchestra Private Equity Fund IV		34,427			28.2		9,698			—		—		—		9,698
Synaptic Green No.1 PEF		37,017			21.1		7,793			—		—		—		7,793
IGEN2022No. 1 Private Equity Fund		32,240			24.8		8,010			—		—		—		8,010
PCC-Woori LP Secondary Fund		33,423			38.8		12,984			—		—		—		12,984

- 86 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Total net asset		Ownership (%)		Ownership portion of net assets		Basis difference		Impairment		Intercompany transaction		Book value
Woori-Q Corporate Restructuring Private Equity Fund		75,555		35.6		27,536		—		—		—		27,536
Woori-Shinyoung Growth-Cap Private Equity Fund I		123,512		35.0		43,274		—		—		—		43,274

(*)	The net asset equity amount is after the debt-for-equity swap, non-controlling etc.

13.

INVESTMENT PROPERTIES

(1)	Details of investment properties are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Acquisition cost		509,050			418,775
Accumulated depreciation		(34,631	)		(30,982	)
Accumulated impairment losses		(86	)		(86	)

Net carrying value		474,333			387,707

(2)	Changes in investment properties are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		387,707			389,495
Acquisition		99,234			—
Disposal		—			(1,194	)
Depreciation		(2,580	)		(1,977	)
Transfer		(1,730	)		15,972
Foreign currencies translation adjustments		(8,298	)		(5,792	)
Others		—			355

Ending balance		474,333			396,859

- 87 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

14.

PREMISES AND EQUIPMENT

(1)	Details of premises and equipment as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Land		Building		Properties for business use		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,710,366		722,730		237,162		58,654		34,222		—		2,763,134
Right-of-use asset		—		352,196		17,885		—		—		—		370,081

Carrying value		1,710,366		1,074,926		255,047		58,654		34,222		—		3,133,215


	December 31, 2022
	Land		Building		Properties for business use		Leasehold improvement		Construction in progress		Structures		Total
Premises and equipment (owned)		1,695,357		730,676		261,278		58,352		32,184		—		2,777,847
Right-of-use asset		—		349,494		15,589		—		—		—		365,083

Carrying value		1,695,357		1,080,170		276,867		58,352		32,184		—		3,142,930

(2)	Details of premises and equipment (owned) as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,711,026			1,086,881			1,173,980			477,024			34,222		20			4,483,153
Accumulated depreciation		—			(364,151	)		(936,818	)		(418,370	)		—		(20	)		(1,719,359	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,710,366			722,730			237,162			58,654			34,222		—			2,763,134


	December 31, 2022
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress		Structures			Total
Acquisition cost		1,696,017			1,078,385			1,179,928			470,513			32,184		20			4,457,047
Accumulated depreciation		—			(347,709	)		(918,650	)		(412,161	)		—		(20	)		(1,678,540	)
Accumulated impairment losses		(660	)		—			—			—			—		—			(660	)

Net carrying value		1,695,357			730,676			261,278			58,352			32,184		—			2,777,847

(3)	Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress			Structures		Total
Beginning balance		1,695,357			730,676			261,278			58,352			32,184			—		2,777,847
Acquisitions		124			4,468			36,436			10,469			2,291			—		53,788
Disposals		(14	)		(11	)		(12,476	)		(401	)		(200	)		—		(13,102	)
Depreciation		—			(16,318	)		(49,817	)		(10,363	)		—			—		(76,498	)
Classified as held-for-sale		(1,356	)		(2,886	)		—			—			—			—		(4,242	)
Transfer		5,147			(3,417	)		—			—			—			—		1,730
Foreign currencies translation adjustments		1,575			768			1,417			685			58			—		4,503
Changes due to business combinations		9,530			9,530			318			—			—			—		19,378
Others		3			(80	)		6			(88	)		(111	)		—		(270	)

Ending balance		1,710,366			722,730			237,162			58,654			34,222			—		2,763,134

- 88 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress			Structures		Total
Beginning balance		1,719,325			756,964			258,361			51,354			3,171			1		2,789,176
Acquisitions		26			7,347			28,207			13,498			33,507			—		82,585
Disposals		(19,021	)		—			(626	)		(509	)		—			—		(20,156	)
Depreciation		—			(16,023	)		(48,226	)		(10,328	)		—			—		(74,577	)
Classified as held-for-sale		(946	)		(898	)		—			—			—			—		(1,844	)
Transfer		(5,346	)		(10,626	)		—			—			—			—		(15,972	)
Foreign currencies translation adjustments		807			425			2,296			1,349			352			—		5,229
Others		421			(5	)		305			85			(440	)		—		366

Ending balance		1,695,266			737,184			240,317			55,449			36,590			1		2,764,807

(4)	Details of right-of-use assets as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Building			Properties for business use			Total
Acquisition cost		695,322			36,084			731,406
Accumulated depreciation		(343,126	)		(18,199	)		(361,325	)

Net carrying value		352,196			17,885			370,081


	December 31, 2022
	Building			Properties for business use			Total
Acquisition cost		643,484			32,700			676,184
Accumulated depreciation		(293,990	)		(17,111	)		(311,101	)

Net carrying value		349,494			15,589			365,083

(5)	Details of changes in right-of-use assets for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Building			Properties for business use			Total
Beginning balance		349,494			15,589			365,083
New contracts		104,162			8,063			112,225
Changes in contract		6,162			68			6,230
Termination		(15,529	)		(639	)		(16,168	)
Depreciation		(99,044	)		(5,935	)		(104,979	)
Changes due to business combinations		674			272			946
Others		6,277			467			6,744

Ending balance		352,196			17,885			370,081


	For the six-month period ended June 30, 2022
	Building			Properties for business use			Total
Beginning balance		367,480			18,064			385,544
New contracts		96,102			5,690			101,792
Changes in contract		1,272			42			1,314
Termination		(9,508	)		(771	)		(10,279	)
Depreciation		(110,156	)		(5,472	)		(115,628	)
Others		13,944			30			13,974

Ending balance		359,134			17,583			376,717

- 89 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

15.

INTANGIBLE ASSETS

(1)	Details of intangible assets are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		453,571		2,252			801,845			1,362,181			48,840			6,420		2,675,109
Accumulated amortization		—		(1,681	)		(584,568	)		(1,062,730	)		—			—		(1,648,979	)
Accumulated impairment losses		—		—			—			(33,552	)		(3,102	)		—		(36,654	)

Net carrying value		453,571		571			217,277			265,899			45,738			6,420		989,476


	December 31, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress		Total
Acquisition cost		397,527		2,219			754,031			1,244,516			46,231			3,027		2,447,551
Accumulated amortization		—		(1,576	)		(541,404	)		(1,018,591	)		—			—		(1,561,571	)
Accumulated impairment losses		—		—			—			(33,552	)		(3,314	)		—		(36,866	)

Net carrying value		397,527		643			212,627			192,373			42,917			3,027		849,114

(2)	Details of changes in intangible assets are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		397,527		643			212,627			192,373			42,917			3,027			849,114
Acquisitions		—		33			47,825			92,814			279			4,397			145,348
Disposal		—		—			—			—			(177	)		—			(177	)
Amortization(*)		—		(105	)		(43,175	)		(41,828	)		—			—			(85,108	)
Impairment losses		—		—			—			—			157			—			157
Transfer		—		—			—			289			—			(289	)		—
Changes due to business combinations		41,527		—			—			18,882			2,565			—			62,974
Foreign currencies translation adjustments		14,517		—			—			2,660			22			147			17,346
Others		—		—			—			709			(25	)		(862	)		(178	)

Ending balance		453,571		571			217,277			265,899			45,738			6,420			989,476

(*)	Amortization of other intangible assets amounting to 10,093 million Won is included in other operating expenses.


	For the six-month period ended June 30, 2022
	Goodwill		Industrial property rights			Development cost			Other intangible assets			Membership deposit			Construction in progress			Total
Beginning balance		345,449		723			207,708			193,182			37,607			717			785,386
Acquisitions		—		97			40,072			24,334			717			266			65,486
Disposal		—		—			—			(501	)		(658	)		—			(1,159	)
Amortization(*)		—		(125	)		(42,354	)		(36,861	)		—			—			(79,340	)
Impairment losses		—		—			—			—			48			—			48
Transfer		—		—			—			182			—			(182	)		—
Foreign currencies translation adjustments		9,453		—			(6	)		2,201			96			—			11,744
Others		—		—			(32	)		2,791			(10	)		—			2,749

Ending balance		354,902		695			205,388			185,328			37,800			801			784,914

(*)	Amortization of other intangible assets amounting to 7,274 million Won is included in other operating expenses.

- 90 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

16.

ASSETS HELD FOR SALE

Assets held for sale are as follows (Unit: Korean Won in millions):


Assets(*)	June 30, 2023		December 31, 2022
Premises and equipment		13,512		9,589
Others		4,284		4,183

Total		17,796		13,772

(*)	The Group classifies assets as held for sale that are highly likely to be sold within one year from June 30, 2023, and December 31, 2022.

The Group measured assets held for sale at the lower of fair value less costs to sell and carrying amount.

The Group has decided to sell some of the premises and equipment through internal consultation during the current period and classifies the premises as non-current assets held for sale. On the other hand, other assets that are expected to be sold as of the end of the current period are classified as assets that are expected to be sold within one year due to the possibility of being sold as buildings and land acquired through auction.

17.

OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Lease assets		2,709,878		2,593,578
Prepaid expenses		320,800		287,323
Advance payments		101,050		99,772
Assets for non-business use		29,377		23,340
Others		53,094		57,539

Total		3,214,199		3,061,552

18.

FINANCIAL LIABILITIES AT FVTPL

(1)	Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Financial liabilities at fair value through profit or loss		8,533,801		8,952,399

(2)	Financial liabilities at fair value through profit or loss are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Deposits
Gold banking liabilities		32,832		35,161
Borrowings
Securities sold		99,527		12,113
Derivative liabilities		8,401,442		8,905,125

Total		8,533,801		8,952,399

(3)	The Group does not have financial liabilities at fair value through profit or loss designated as upon initial recognition as of June 30, 2023 and December 31, 2022.

(4)	There is no cumulative change in financial liabilities at fair value through profit or loss designated as upon initial recognition due to changes in credit risk as of June 30, 2023 and December 31, 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

19.

DEPOSITS DUE TO CUSTOMERS

Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Deposits in local currency:
Deposits on demand		10,435,136			15,627,300
Deposits at termination		262,473,161			270,092,855
Mutual installment		22,220			22,995
Deposits on notes payables		3,307,750			3,675,596
Deposits on Cash Management Account		84,049			60,079
Certificate of deposits		13,290,975			5,255,889
Other deposits		1,149,677			1,196,486

Sub-total		290,762,968			295,931,200

Deposits in foreign currencies:
Deposits in foreign currencies		43,078,165			46,263,943
Present value discount		(130,109	)		(92,352	)
Customers’ deposits for beneficiary		2,193			2,418

Total		333,713,217			342,105,209

20.

BORROWINGS AND DEBENTURES

(1)	Details of borrowings are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Lenders	Interest rate (%)	Amount
Borrowings in local currency
Borrowings from BOK	BOK	0.3 ~ 2.0		2,552,742
Borrowings from government funds	Small Enterprise And Market Service and others	0.0 ~ 4.6		2,045,981
Others	The Korea Development Bank and others	0.0 ~ 6.7		10,617,958

Sub-total				15,216,681

Borrowings in foreign currencies
Borrowings in foreign currencies	Export-Import Bank of Korea and others	0.0 ~ 10.0		13,080,042
Bills sold	Others	0.0 ~ 2.7		7,677
Call money	Bank and others	0.4 ~ 6.1		1,083,404
Bonds sold under repurchase agreements	Other financial institutions	1.0 ~ 13.7		1,210,443
Present value discount				(53,143	)

Total				30,545,104

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Lenders	Interest rate (%)	Amount
Borrowings in local currency
Borrowings from BOK	BOK	0.3 ~ 1.8		3,040,877
Borrowings from government funds	Small Enterprise And Market Service and others	0.0 ~ 3.5		2,021,049
Others	The Korea Development Bank and others	0.0 ~ 6.7		9,562,082

Sub-total				14,624,008

Borrowings in foreign currencies
Borrowings in foreign currencies	Export-Import Bank of Korea and others	(0.1) ~ 10.6		11,161,294
Bills sold	Others	0.0 ~ 2.4		7,308
Call money	Bank and others	1.6 ~ 5.5		400,071
Bonds sold under repurchase agreements	Other financial institutions	0.2 ~ 6.4		2,313,044
Present value discount				(76,122	)

Total				28,429,603

(2)	Details of debentures are as follows (Unit: Korean Won in millions):


	June 30, 2023					December 31, 2022
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.8 ~ 7.5		35,073,640			0.8 ~ 7.5		37,132,334
Subordinated bonds		1.9 ~ 5.1		5,943,926			1.9 ~ 5.1		5,835,325
Other bonds		1.6 ~ 17.0		1,647,281			0.8 ~ 17.0		1,271,364

Sub-total				42,664,847					44,239,023

Discounts on bonds				(51,362	)				(40,537	)

Total				42,613,485					44,198,486

(*)

Included debentures under fair value hedge amounting to 4,435,558 million Won and 3,076,983 million Won as of June 30, 2023 and December 31, 2022 respectively. Also, debentures under cash flow hedge amounting to 1,727,297 million Won and 1,324,812 million Won are included as of June 30, 2023 and December 31, 2022 respectively.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

21.

PROVISIONS

(1)	Details of provisions are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Asset retirement obligation		90,903		82,717
Provisions for guarantees(*1)		78,492		76,508
Provisions for unused loan commitments		127,127		106,033
Other provisions(*2)		312,789		280,607

Total		609,311		545,865

(*1)

Provisions for guarantees includes provision for financial guarantee of 50,482 million Won and 47,969 million Won as of June 30, 2023 and December 31, 2022, respectively.

(*2)

Other provisions consist of provision for litigation, loss compensation and others.

(2)	Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won in millions):

Provisions for guarantees


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		44,496			24,327			7,685		76,508
Transfer to 12-month expected credit loss		19,568			(19,568	)		—		—
Transfer to expected credit loss for the entire period		(564	)		564			—		—
Transfer to credit-impaired financial assets		(30	)		(4	)		34		—
Provisions used		—			—			—		—
Net provision(reversal)		(2,813	)		162			1,117		(1,534	)
Others(*)		3,520			(2	)		—		3,518

Ending balance		64,177			5,479			8,836		78,492

(*)

Effect of initial recognition of new financial guarantee contract that is measured at fair value.


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		52,830			15,269			6,767		74,866
Transfer to 12-month expected credit loss		1,246			(1,246	)		—		—
Transfer to expected credit loss for the entire period		(205	)		205			—		—
Transfer to credit-impaired financial assets		(4	)		(35	)		39		—
Provisions used		(2,169	)		—			—		(2,169	)
Net provision(reversal)		(2,794	)		11,665			798		9,669
Others(*)		4,816			—			—		4,816

Ending balance		53,720			25,858			7,604		87,182

(*)

Effect of initial recognition of new financial guarantee contract that is measured at fair value.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Provisions for unused loan commitment


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		67,640			38,188			205			106,033
Transfer to 12-month expected credit loss		14,241			(14,197	)		(44	)		—
Transfer to expected credit loss for the entire period		(2,228	)		2,229			(1	)		—
Transfer to credit-impaired financial assets		(140	)		(249	)		389			—
Net provision(reversal) of unused amount		17,027			4,153			(207	)		20,973
Others		121			—			—			121

Ending balance		96,661			30,124			342			127,127


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		67,440			44,536			320			112,296
Transfer to 12-month expected credit loss		11,743			(11,697	)		(46	)		—
Transfer to expected credit loss for the entire period		(2,715	)		2,796			(81	)		—
Transfer to credit-impaired financial assets		(133	)		(275	)		408			—
Net provision(reversal) of unused amount		(5,148	)		8,445			(229	)		3,068
Others		180			—			—			180

Ending balance		71,367			43,805			372			115,544

(3)	Changes in asset retirement obligation for the six-month periods ended June 30, 2023 and 2022, are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		82,717			80,777
Provisions provided		3,099			1,715
Provisions used		(1,187	)		(3,684	)
Reversal of provisions unused		(118	)		(22	)
Amortization		707			413
Increase in restoration costs and others		5,685			4,279

Ending balance		90,903			83,478

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 premises as of June 30, 2023, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each premise’s lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(4)	Changes in other provisions for the six-month periods ended June 30, 2023 and 2022, are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		280,607			308,195
Provisions provided		59,272			1,782
Provisions used		(25,079	)		(2,231	)
Reversal of provisions unused(*)		(2,596	)		(51,714	)
Foreign currencies translation adjustments		563			5,019
Others		22			16

Ending balance		312,789			261,067

(*)

The Group provided Korean won settlement services for trading transaction settlement between Korea and Iran, investigated by U.S. prosecutors (federal prosecutors, New York state prosecutors) and New York State Department of Financial Services for violations of U.S. sanctions against Iran, Sudan, Syria and Cuba. In this regard, the Office of Foreign Assets Control concluded its investigation in December 2020 urging the bank’s attention without taking any additional sanctions, and New York State Department of Financial Services concluded its investigation in February 2022 without taking any additional sanctions. Meanwhile, in June 2022, the Group reversed the provision related to the investigation of the U.S. Prosecutors, which have not been completed yet, in consideration of the opinion of an independent legal expert that the probability of sanctions by the U.S. Prosecutors in this case is low.

(5)

Others

The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfill its current obligations at the end of the period.

The Group recognized provisions for estimated compensation amounts related to the prepayment arising from the delay in the redemption of funds in prior fiscal year and the dispute settlement as the best estimate of the expenditure amounting to 172.1 billion won. In addition, The Group recognized provision amounting to 53.6 billion won for estimated compensation of expected customer loss related to delayed redemption of fund during the current period.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

22.

NET DEFINED BENEFIT LIABILITY(ASSET)

The retirement benefit of the consolidated company is based on the defined benefit retirement pension plan.

Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes account of projected earnings increases, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:


Volatility of asset		The defined benefit obligation was estimated with an discount rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the discount rate.

Decrease in profitability of blue chip bonds		A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation		Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1)	Details of net defined benefit liability(asset) are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Present value of defined benefit obligation		1,464,944			1,377,545
Fair value of plan assets		(1,727,802	)		(1,661,623	)

Net defined benefit liabilities(asset) (*)		(262,858	)		(284,078	)

(*)

Net defined benefit asset amount of 262,858 million Won as of June 30, 2023 is net amount of defined benefit liability of 39,723 million Won and defined benefit asset of 302,581 million Won. Also, net defined benefit asset amount of 284,078 million Won as of December 31, 2022 is net amount of defined benefit liability of 35,202 million Won and defined benefit asset of 319,280 million Won.

(2)	Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		1,377,545			1,618,098
Current service cost		65,858			83,104
Interest cost		36,333			24,106
Remeasurements Financial assumption		20,488			(216,698	)
Experience adjustments		47,060			27,459
Retirement benefit paid		(81,596	)		(77,912	)
Foreign currencies translation adjustments		15			93
Others		(759	)		244

Ending balance		1,464,944			1,458,494

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Changes in the plan assets are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		1,661,623			1,591,458
Interest income		45,762			24,925
Remeasurements		(16,325	)		(11,466	)
Employer’s contributions		122,126			6,000
Retirement benefit paid		(84,943	)		(80,807	)
Others		(441	)		33

Ending balance		1,727,802			1,530,143

(4)	Fair value of plan assets as of June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Cash and due from banks		1,727,802		1,661,623

Meanwhile, among plan assets, realized returns on plan assets amount to 29,437 million Won and 13,459 million Won for the six-month periods ended June 30, 2023 and 2022, respectively.

(5)	The amounts recognized in net income and total comprehensive income in relation to defined benefit plans are as follows:(Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Current service cost		65,858			83,104
Net interest income		(9,429	)		(819	)

Cost recognized in net income		56,429			82,285
Remeasurements (*)		83,873			(177,773	)

Cost recognized in total comprehensive income		140,302			(95,488	)

(*)

Amount before tax

Meanwhile, retirement benefits related to defined contribution plans recognized as expenses are 2,605 million Won and 2,188 million Won for the six-month periods ended June 30, 2023 and 2022, respectively.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

23.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Other financial liabilities:
Accounts payable		12,984,670			6,001,858
Accrued expenses		3,946,646			3,219,349
Borrowings from trust accounts		3,968,355			3,475,118
Agency business revenue		466,479			213,845
Foreign exchange payables		593,814			822,446
Domestic exchange settlement credits		5,859,696			4,631,921
Lease liabilities		316,513			319,161
Other miscellaneous financial liabilities		4,603,947			4,148,621
Present value discount		(21,939	)		(20,451	)

Sub-total		32,718,181			22,811,868

Other liabilities:
Unearned income		355,761			351,633
Other miscellaneous liabilities		329,257			338,524

Sub-total		685,018			690,157

Total		33,403,199			23,502,025

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

24.

DERIVATIVES

(1)	Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):


			June 30, 2023
			Assets						Liabilities
	Nominal amount		For cash flow hedge		For fair value hedge		For trading		For cash flow hedge		For fair value hedge		For trading
Interest rate:
Futures		187,170		—		—		—		—		—		—
Forwards		2,715,000		—		—		246,784		—		—		—
Swaps		132,920,751		970		—		424,997		—		216,680		347,528
Purchase options		170,000		—		—		9,283		—		—		—
Written options		400,000		—		—		—		—		—		17,798

Currency:
Futures		2,770		—		—		—		—		—		—
Forwards		80,999,452		—		—		2,862,692		—		—		731,213
Swaps		88,761,714		70,010		—		3,351,787		—		—		5,550,175
Purchase options		175,699		—		—		5,775		—		—		—
Written options		44,393		—		—		—		—		—		8

Equity:
Futures		727,871		—		—		—		—		—		—
Forwards		183		—		—		75		—		—		—
Swaps		480,442		—		—		78,289		—		—		2,859
Purchase options		32,327,606		—		—		1,108,859		—		—		—
Written options		32,009,841		—		—		—		—		—		1,751,861

Total		371,922,892		70,980		—		8,088,541		—		216,680		8,401,442


			December 31, 2022
			Assets						Liabilities
	Nominal amount		For cash flow hedge		For fair value hedge		For trading		For cash flow hedge		For fair value hedge		For trading
Interest rate:
Futures		42,545		—		—		—		—		—		—
Forwards		2,620,000		—		—		249,356		—		—		—
Swaps		136,550,518		2,041		—		440,540		—		193,831		474,158
Purchase options		170,000		—		—		9,308		—		—		—
Written options		310,000		—		—		—		—		—		16,752

Currency:
Futures		51,136		—		—		—		—		—		—
Forwards		90,134,257		—		—		3,083,082		—		—		1,360,535
Swaps		97,197,309		35,745		—		3,105,901		9,080		—		5,500,970
Purchase options		487,852		—		—		23,182		—		—		—
Written options		570,982		—		—		—		—		—		7,929

Equity:
Futures		958,589		—		—		—		—		—		—
Forwards		183		—		—		100		—		—		—
Swaps		568,835		—		—		90,237		—		—		673
Purchase options		29,801,478		—		—		1,204,475		—		—		—
Written options		29,874,836		—		—		—		—		—		1,544,108

Total		389,338,520		37,786		—		8,206,181		9,080		193,831		8,905,125

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at FVTPL (Note 18), and derivatives designated for hedging are presented as a separate line item in the consolidated statements of financial position.

(2)	Overview of the Group’s hedge accounting

The hedging relationships that the Group applies fair value hedge accounting and cash flow hedge accounting to are affected by interest rate which is related with Interest Rate Benchmark Reform. The interest rates to which the hedging relationships are exposed are USD 1M LIBOR, USD 3M LIBOR, Compounding SOFR, AUD 3M BBSW, and CD 3M. The nominal amounts of hedging instruments related to USD 1M LIBOR, USD 3M LIBOR, Compounding SOFR, AUD 3M BBSW, CD 3M in the hedging relationships of the Group are USD 270,000,000, USD 2,120,000,000, USD 1,125,000,000, AUD 150,000,000, and KRW 640,000 million, respectively. The Group pays close attention to discussions in the market and industry regarding the applicable alternative benchmark interest rates for the exposed interest rate. The Group judges related uncertainty is expected to be no longer present when the exposed interest rates are replaced by the applicable benchmark interest rates.

Fair value hedge

As of the June 30, 2023, the Group has applied fair value hedge on fixed interest rate debentures on foreign currency amounting to 3,795,737 million Won and debentures on local currency amounting to 639,761 million Won. The purpose of the hedging is to avoid fair value volatility risk of fixed interest rate foreign currency denominated debentures derived from fluctuations of market interest rate, and as such the Group entered into interest rate swap agreements designated as hedging instruments.

Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is hedged as the foreign currency denominated debentures fixed interest rate terms are converted to floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by matching the nominal value of hedging instrument to the face value of the hedged item.

In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument.

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the fair value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is USD Libor 3M, and AUD BBSW 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.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Cash Flow Hedge

As of the June 30, 2023, the Group has applied cash flow hedge debentures on local currency amounting to 229,919 million Won, debentures on foreign currency amounting to 1,497,378 million Won. The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from variable interest rate debentures on local currency due to changes in market interest rate by entering into an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of cash flow fluctuation from principal and interest of variable interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and interest rates; ③ Mitigate the risks of cash flow fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency due to changes in foreign exchange rates and ④ Mitigate the risks of cash flow fluctuation in variable interest rate foreign currency borrowings resulting from changes in market interest rates and designate it as a hedging instrument through entering into currency swap contracts and interest rate swap contracts.

This means exchanging a predetermined nominal amount as set forth in the interest rate swap contract adjusted by the differences between the fixed and variable interest rates, which results in the conversion of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the cash flow fluctuation risk.

In addition, this also means a payment of predetermined principal amount as set forth in the currency swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest rate to USD or applying fixed interest rate to USD, and an exchange of the principal denominated in KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk on principal and interest.

The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face amount of the hedged item in accordance with interest rate swap and currency swap.

Only interest rate and foreign exchange rate fluctuation risks, which are the most significant factor in the cash flow fluctuation of the hedged item, are addressed in this hedging relationship, and other risk factors such as credit risk are not subject to hedging.

Accordingly, hedge ineffectiveness may arise from price margin set by the counterparty of hedging instruments and unilateral change in credit risk of any party in the transaction.

The interest rate swap, currency swap contract and the hedged item are all affected by the changes in market interest rate and foreign exchange rates which are basic factors. The Group expects that the value of interest rate swap contract, currency swap contract and value of the hedged item will generally fluctuate in opposite direction.

Hedges of Net Investment in Foreign Operations

Foreign currency exposure arises from the Group’s net investments in Woori America Bank, Woori Bank(Cambodia) PLC. Woori Global Markets Asia Limited, which use USD as their functional currency. The risk arises from fluctuations in the spot exchange rate between USD and KRW. This may result in different net investment amounts.

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

A portion of the Group’s net investments in Woori America Bank, Woori Bank(Cambodia) PLC. and Woori Global Markets Asia Limited are hedged in USD denominated foreign currency bonds(Carrying amount as of June 30, 2023: USD 863,959,317) and mitigate foreign exchange risk arising from the net assets of subsidiaries. The loan has been designated as a hedging instrument for the value change of net investments, which arises from fluctuation in the spot exchange rate between USD and KRW.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

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

(3)	The nominal amounts of the hedging instrument are as follows (Unit: USD, AUD, EUR and Korean Won in millions):


	June 30, 2023
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		1,000,000,000		1,675,000,000		300,000,000		2,975,000,000
Interest rate swap (AUD)		150,000,000		—		—		150,000,000
Interest rate swap (KRW)		640,000		—		—		640,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		50,000		140,000		—		190,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		270,000,000		270,000,000		—		540,000,000
Foreign currencies translation risk
Currency swap (USD)		80,000,000		100,000,000		—		180,000,000
Currency swap (EUR)		—		270,000,000		—		270,000,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (USD)		400,000,000		463,959,317		—		863,959,317


	December 31, 2022
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swap (USD)		—		2,075,000,000		300,000,000		2,375,000,000
Interest rate swap (AUD)		150,000,000		—		—		150,000,000
Interest rate swap (KRW)		150,000		—		—		150,000
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		50,000		140,000		—		190,000
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		—		270,000,000		—		270,000,000
Foreign currencies translation risk
Currency swap (USD)		80,000,000		100,000,000		—		180,000,000
Currency swap (EUR)		—		194,780,000		—		194,780,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (USD)		272,390,437		592,000,000		—		864,390,437

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(4)	The average interest rate and average currency rate of the hedging instrument as of June 30, 2023 and December 31, 2022 are as follows:


		June 30, 2023
		Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)		Fixed 3.62% receipt and Libor 3M+1.45% floating paid
Interest rate swap (USD)		Fixed 3.56% receipt and (C.SOFR)+1.09% paid
Interest rate swap (AUD)		Fixed 0.84% receipt and BBSW 3M+0.72% paid
Interest rate swap (KRW)		Fixed 3.73% receipt and CD 3M paid
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		KRW CMS 5Y+0.46% receipt, KRW 3.65% paid
Interest rate swap (KRW)		KRW CD+0.33% receipt, KRW 1.68% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 1M Libor+1.16% receipt, KRW 2.68% paid, KRW/USD = 1,238.78
Foreign currencies translation risk
Currency swap (USD)		USD 1.50% receipt, KRW 1.57% paid, KRW/USD = 1,140.50
Currency swap (EUR)		EUR 1.98% receipt, KRW 3.40% paid, KRW/EUR = 1,344.08
Hedges of net investment
Foreign exchange risk
Foreign currency denominated debentures (KRW/USD)		1,295.28


		December 31, 2022
		Average interest rate and average exchange rate
Fair value hedge
Interest rate risk
Interest rate swap (USD)		Fixed 3.62% receipt and Libor 3M+1.45% floating paid
Interest rate swap (USD)		Fixed 2.05% receipt and (C.SOFR)+0.65% paid
Interest rate swap (AUD)		Fixed 0.84% receipt and BBSW 3M+0.72% paid
Interest rate swap (KRW)		Fixed 3.13% receipt and CD 3M paid
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)		KRW CMS 5Y+0.46% receipt, KRW 3.65% paid
Interest rate swap (KRW)		KRW CD+0.33% receipt, KRW 1.68% paid
Foreign currencies translation risk and interest rate risk
Currency swap (USD)		USD 1M Libor+0.79% receipt, KRW 0.80% paid, KRW/USD = 1,226.29
Foreign currencies translation risk
Currency swap (USD)		USD 1.50% receipt, KRW 1.57% paid, KRW/USD = 1,140.50
Currency swap (EUR)		EUR 1.98% receipt, KRW 3.86% paid, KRW/EUR = 1,344.08
Hedges of net investment
Foreign exchange risk
Foreign currency denominated debentures (KRW/USD)		1,334.37

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(5)	The amounts related to items designated as hedging instruments are as follows (Unit: USD, AUD, EUR and Korean Won in millions):


	June 30, 2023
	Nominal amounts of the hedging instrument		Carrying amount of the hedging instrument				Line item in the statement of financial position where the hedging instrument is located	Changing in fair value used for calculating hedge ineffectiveness
	Nominal amounts of the hedging instrument		Assets		Liabilities
Fair value hedge
Interest rate risk
Interest rate Swap(USD)		2,975,000,000		—		216,680	Derivative assets (designated for hedging)		(22,648	)
Interest rate Swap(AUD)		150,000,000					Derivative liabilities (designated for hedging)
Interest rate Swap(KRW)		640,000
Cash flow hedge
Interest rate risk
Interest rate swap(KRW)		190,000		970		—	Derivative liabilities (designated for hedging)		(1,071	)
Foreign currency translation risk and interest rate risk
Currency swap(USD)		540,000,000		41,185		—	Derivative liabilities (designated for hedging)		27,858
Foreign currency translation risk
Currency swap(USD)		180,000,000		25,452		—	Derivative liabilities (designated for hedging)		7,957
Currency swap(EUR)		270,000,000		3,372		—	Derivative liabilities (designated for hedging)		12,527
Hedges of net investment in foreign operations
Exchange rate risk
Foreign currency denominated debentures(USD)		863,959,317		—		1,134,206	Foreign currency denominated debentures		(39,305	)


	December 31, 2022
	Nominal amounts of the hedging instrument		Carrying amount of the hedging instrument				Line item in the statement of financial position where the hedging instrument is located	Changing in fair value used for calculating hedge ineffectiveness
	Nominal amounts of the hedging instrument		Assets		Liabilities
Fair value hedge
Interest rate risk
Interest rate Swap(USD)		2,375,000,000		—		193,831	Derivative assets (designated for hedging)		(247,765	)
Interest rate Swap(AUD)		150,000,000					Derivative liabilities (designated for hedging)
Interest rate Swap(KRW)		150,000
Cash flow hedge
Interest rate risk
Interest rate swap(KRW)		190,000		2,041		—	Derivative liabilities (designated for hedging)		1,690
Foreign currency translation risk and interest rate risk
Currency swap(USD)		270,000,000		17,909		—	Derivative liabilities (designated for hedging)		58,253
Foreign currency translation risk
Currency swap(USD)		180,000,000		17,836		—	Derivative liabilities (designated for hedging)		9,317
Currency swap(EUR)		194,780,000		—		9,080	Derivative liabilities (designated for hedging)		(10,286	)
Hedges of net investment in foreign operations
Exchange rate risk
Foreign currency denominated debentures(USD)		864,390,437		—		1,095,442	Foreign currency denominated debentures		(28,553	)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(6)	Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Carrying amount of the hedged item				Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item					Line item in the statement of financial position in which the hedged item is included	Changing in fair value used for calculating hedge ineffectiveness			hedge reserve (*)
	Assets		Liabilities		Assets		Liabilities							hedge reserve (*)
Fair value hedge
Interest rate risk
Debentures		—		4,435,498		—		(227,230	)	Debentures		18,037			—
Cash flow hedge
Interest rate risk
Debentures		—		229,919		—		—		Debentures		1,071			1,386
Foreign currencies translation risk and interest rate risk
Debentures		—		706,689		—		—		Debentures		(27,858	)		1,198
Foreign currencies translation risk
Debentures		—		790,689		—		—		Debentures		(33,012	)		(29,475	)
Hedges of net investment in foreign operations
Exchange rate risk
Foreign operations net asset		—		1,134,206		—		—		Foreign operations net asset		39,305			(49,629	)

(*)	After tax amount


	December 31, 2022
	Carrying amount of the hedged item				Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of the hedged item					Line item in the statement of financial position in which the hedged item is included	Changing in fair value used for calculating hedge ineffectiveness			hedge reserve (*)
	Assets		Liabilities		Assets		Liabilities							hedge reserve (*)
Fair value hedge
Interest rate risk
Debentures		—		3,076,983		—		(199,804	)	Debentures		257,911			—
Cash flow hedge
Interest rate risk
Debentures		—		229,892		—		—		Debentures		(3,742	)		2,531
Foreign currencies translation risk and interest rate risk
Debentures		—		342,019		—		—		Debentures		(23,296	)		8,648
Foreign currencies translation risk
Debentures		—		752,901		—		—		Debentures		11,256			(24,600	)
Hedges of net investment in foreign operations
Exchange rate risk
Foreign operations net asset		—		1,095,442		—		—		Foreign operations net asset		28,553			(38,797	)

(*)	After tax amount

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(7)	Amounts recognized in profit or loss due to the ineffective portion of fair value hedges are as follows (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2023
		Hedge ineffectiveness recognized in profit or loss			Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		(4,611	)	Other net operating income(expense)


		For the six-month period ended June 30, 2022
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss that includes hedge ineffectiveness
Fair value hedge	Interest rate risk		16,147	Other net operating income(expense)

(8)	Reclassification of profit or loss from other comprehensive income and equity related to cash flow hedges are as follows (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2023
		Changes in the value of hedging instruments recognized in OCI			Hedge ineffectiveness recognized in profit or loss		Changes in the value of foreign basis spread recognized in OCI			Line item recognized in the profit or loss	Amounts reclassified from cash flow hedge reserve to profit or loss			Line item affected in profit or loss due to reclassification
Cash flow hedge	Interest rate risk		(1,071	)		—		—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		27,858			—		(4,582	)	Other net operating income(expense)		(30,726	)	Other net operating income(expense)
	Foreign currencies translation risk		20,484			—		(416	)	Other net operating income(expense)		(22,867	)	Other net operating income(expense)


		For the six-month period ended June 30, 2022
		Changes in the value of hedging instruments recognized in OCI		Hedge ineffectiveness recognized in profit or loss		Changes in the value of foreign basis spread recognized in OCI			Line item recognized in the profit or loss	Amounts reclassified from cash flow hedge reserve to profit or loss			Line item affected in profit or loss due to reclassification
Cash flow hedge	Interest rate risk		1,881		37		—		Other net operating income(expense)		—		Other net operating income(expense)
	Foreign currencies translation risk and interest rate risk		55,963		—		(1,839	)	Other net operating income(expense)		(49,785	)	Other net operating income(expense)
	Foreign currencies translation risk		16,747		—		(1,326	)	Other net operating income(expense)		(19,332	)	Other net operating income(expense)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(9)	The amounts recognized in profit or loss and other comprehensive income related to the hedging of net investments in foreign operations are as follows. (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2023
		Profit or loss recognized in OCI			Hedge ineffectiveness recognized in profit or loss		Line item which recognized the hedge ineffectiveness
Hedges of net investment in foreign operation	Exchange rate risk		(28,928	)		—		—


		For the six-month period ended June 30, 2022
		Profit or loss recognized in OCI			Hedge ineffectiveness recognized in profit or loss		Line item which recognized the hedge ineffectiveness
Hedges of net investment in foreign operation	Exchange rate risk		(43,971	)		—		—

No amount was reclassified from reserve of hedges of net investment in foreign operations to profit or loss.

25.

DEFERRED DAY 1 PROFITS OR LOSSES

Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		17,964			29,111
New transactions		—			22,124
Amounts recognized in losses		(4,956	)		(13,771	)

Ending balance		13,008			37,464

In case some variables to measure fair values of financial instruments are not observable in the market, valuation methods are utilized to evaluate such financial instruments. Those financial instruments are recorded the transaction price as at the time of acquisition, even though there are difference noted between the transaction price and the fair value. The table above presents the difference yet to be realized as profit or loss at the end of June 30, 2023 and 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

26.

EQUITY

(1)	Details of equity as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Capital
Common stock capital		3,640,303			3,640,303
Hybrid securities		3,411,676			3,112,449
Capital surplus
Capital in excess of par value		643,544			643,544
Others		41,883			38,841

Sub-total		685,427			682,385

Capital adjustments
Treasury stocks		(27,456	)		(3,819	)
Other adjustments (*1)		(1,647,116	)		(1,780,367	)

Sub-total		(1,674,572	)		(1,784,186	)

Accumulated other comprehensive income
Financial assets at FVTOCI		(324,352	)		(645,731	)
Changes in capital due to equity method		2,796			475
Gain (loss) on foreign currency translation of foreign operations		122,533			(24,202	)
Gain (loss) on hedges of net investment in foreign operations		(49,630	)		(20,701	)
Remeasurements of defined benefit plan		(6,479	)		55,235
Gain (loss) on valuation of cash flow hedge		(15,155	)		(4,282	)

Sub-total		(270,287	)		(639,206	)

Retained earnings (2) (3)		24,452,124			23,750,152
Non-controlling interest (*4)		2,446,592			2,865,445

Total		32,691,263			31,627,342

(*1)	Included 178,060 million Won in capital transaction gains and losses recognized by Woori Bank and (formerly) Woori Financial Group in 2014 and 2,238,228 million Won due to the spin-off of Kyongnam Bank and Gwangju Bank.

(*2)	The regulatory reserve for credit losses in retained earnings amounted to 2,839,475 million Won and 2,966,960 million Won as of June 30, 2023 and December 31, 2022, respectively in accordance with the relevant article.

(*3)	The earned surplus reserve in retained earnings amounted to 300,190 million Won and 181,860 million Won as of June 30, 2023 and December 31, 2022 in accordance with the Article 53 of the Financial Holding Company Act.

(*4)

The hybrid securities issued by Woori Bank amounting to 1,845,529 million Won and 2,344,816 million Won as of June 30, 2023 and December 31, 2022, respectively, are recognized as non-controlling interests. 55,320 million Won and 61,890 million Won of dividends for the hybrid securities issued by Woori Bank are allocated to net profit and loss of the non-controlling interests for the six-month periods ended June 30, 2023 and 2022.

(2)	The number of authorized shares and others of the Group are as follows:


	June 30, 2023		December 31, 2022
Shares of common stock authorized		4,000,000,000 Shares		4,000,000,000 Shares
Par value		5,000 Won		5,000 Won
Shares of common stock issued		728,060,549 Shares		728,060,549 Shares
Capital stock		3,640,303 million Won		3,640,303 million Won

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):


	Issue date		Maturity		Interest rate (%)		June 30, 2023			December 31, 2022
Securities in local currency		2019-07-18		—		3.49		500,000			500,000
Securities in local currency		2019-10-11		—		3.32		500,000			500,000
Securities in local currency		2020-02-06		—		3.34		400,000			400,000
Securities in local currency		2020-06-12		—		3.23		300,000			300,000
Securities in local currency		2020-10-23		—		3.00		200,000			200,000
Securities in local currency		2021-04-08		—		3.15		200,000			200,000
Securities in local currency		2021-10-14		—		3.60		200,000			200,000
Securities in local currency		2022-02-17		—		4.10		300,000			300,000
Securities in local currency		2022-07-28		—		4.99		300,000			300,000
Securities in local currency		2022-10-25		—		5.97		220,000			220,000
Securities in local currency		2023-02-10		—		4.65		300,000			—
Issuance cost								(8,324	)		(7,551	)

Total								3,411,676			3,112,449

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date of issuance.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(4)	Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(645,731	)		434,400			398			(113,419	)		(324,352	)
Changes in capital due to equity method		475			(2,427	)		—			4,748			2,796
Gain(loss) on foreign currency translation of foreign operations		(24,202	)		152,117			—			(5,382	)		122,533
Gain(loss) on hedges of net investment in foreign operations		(20,701	)		(39,306	)		—			10,377			(49,630	)
Remeasurement gain(loss) related to defined benefit plan		55,235			(83,917	)		—			22,203			(6,479	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		(4,282	)		(10,743	)		(476	)		346			(15,155	)

Total		(639,206	)		450,124			(78	)		(81,127	)		(270,287	)

(*)

The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income is a change due to the period evaluation, and the reclassification adjustments to retained earnings, amounting to 149 million Won and (50) million Won are due to disposal of equity securities at FVTOCI and capital due to equity method, are included.


	For the six-month period ended June 30, 2022
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain(loss) on valuation of financial assets at FVTOCI		(162,522	)		(770,085	)		1,650			204,617			(726,340	)
Changes in capital due to equity method		(138	)		2,419			—			(706	)		1,575
Gain(loss) on foreign currency translation of foreign operations		(63,781	)		249,478			—			(4,832	)		180,865
Gain(loss) on hedges of net investment in foreign operations		—			(60,650	)		—			16,679			(43,971	)
Remeasurement gain(loss) related to defined benefit plan		(195,944	)		177,756			—			(48,883	)		(67,071	)
Gain(loss) on valuation of derivatives designated as cash flow hedges		5,553			3,497			(21	)		(553	)		8,476
Capital related to noncurrent assets held for sale		279			(385	)		—			106			—

Total		(416,553	)		(397,970	)		1,629			166,428			(646,466	)

(*)

The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive income and capital related to noncurrent assets held for sale is a change due to the period evaluation and the reclassification adjustments to retained earnings, amounting to (63) million Won, (279) million Won are due to disposal of equity securities at FVTOCI and assets held for sale, are included.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(5)	Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Financial Holding Company Supervision Regulations, the Group calculates and discloses the regulatory reserve for credit loss.

Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Beginning balance		2,839,475			2,966,960
Planned provision(reversal) of regulatory reserve for credit loss		(268,122	)		(127,485	)

Ending balance		2,571,353			2,839,475

Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory reserve and others

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Net income before regulatory reserve		667,190			1,613,812			986,832			1,859,304
Provision(reversal) of regulatory reserve for credit loss		(212,909	)		(268,122	)		(57,538	)		(39,096	)
Adjusted net income after the provision of regulatory reserve		880,099			1,881,934			1,044,370			1,898,400
Dividends to hybrid securities		(32,738	)		(63,152	)		(22,224	)		(41,375	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		847,361			1,818,782			1,022,146			1,857,025
Adjusted EPS after regulatory reserve and the dividends to hybrid securities (Unit: Korean Won)		1,165			2,500			1,405			2,552

(6)	Details of changes in treasury stock are as follows (Unit: Korean Won in millions, number of shares):


	For the six-month period ended June 30, 2023
	Beginning balance		Acquisition		Retirement		Ending balance
Number of shares		343,991		1,981,565		—		2,325,556
Book value		3,819		23,637		—		27,456


	For the six-month period ended June 30, 2022
	Beginning balance		Acquisition		Retirement		Ending balance
Number of shares		343,991		—		—		343,991
Book value		3,819		—		—		3,819

27.

DIVIDENDS

(1)	Dividends per share and the total dividends for the fiscal year ending December 31, 2022 were 980 Won and 713,497 million Won, respectively, and the dividends were approved at the regular general shareholders’ meeting held on March 24, 2023, and were paid in April, 2023.

(2)	On July 21, 2023, the Board of Directors has declared an quarterly dividend of 180 Won per share (130,748 million Won in total) and fixed record date as June 30, 2023.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

28.

NET INTEREST INCOME

(1)

Details of interest income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Financial assets at FVTPL		47,642		91,617		21,062		37,735
Financial assets at FVTOCI		228,548		436,796		149,991		291,582
Financial assets at amortized cost
Securities at amortized cost		200,056		405,262		99,144		188,108
Loans and other financial assets at amortized cost
Interest on due from banks		134,011		265,158		25,983		40,153
Interest on loans		4,418,333		8,741,473		2,967,048		5,638,180
Interest of other receivables		20,149		37,571		9,429		17,657

Subtotal		4,572,493		9,044,202		3,002,460		5,695,990

Total		5,048,739		9,977,877		3,272,657		6,213,415

(2)

Details of interest expense recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Interest on deposits due to customers		2,086,270		4,084,520		793,003		1,441,571
Interest on borrowings		318,066		605,529		109,658		183,688
Interest on debentures		367,334		701,589		219,705		418,513
Other interest expense		80,258		168,239		32,766		62,682
Interest on lease liabilities		2,639		5,007		1,869		3,639

Total		2,854,567		5,564,884		1,157,001		2,110,093

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

29.

NET FEES AND COMMISSIONS INCOME

(1)	Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Fees and commission received for brokerage		35,376		77,040		33,123		70,272
Fees and commission received related to credit		49,903		94,658		53,322		103,119
Fees and commission received for electronic finance		31,006		62,129		32,835		65,952
Fees and commission received on foreign exchange handling		13,832		27,435		14,137		27,810
Fees and commission received on foreign exchange		26,759		46,599		27,328		44,945
Fees and commission received for guarantee		21,783		41,148		28,605		48,112
Fees and commission received on credit card		159,642		308,833		154,277		295,749
Fees and commission received on securities business		16,859		31,753		28,796		56,690
Fees and commission from trust management		68,936		133,465		71,250		138,507
Fees and commission received on credit information		2,931		5,406		2,642		5,097
Fees and commission received related to lease		168,020		331,756		139,431		262,177
Other fees		46,969		101,056		48,937		93,173

Total		642,016		1,261,278		634,683		1,211,603

(2)	Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Fees and commissions paid		86,521		165,514		79,592		146,503
Credit card commission		126,845		244,986		110,763		211,709
Brokerage commission		436		780		412		687
Others		4,043		7,733		3,232		6,320

Total		217,845		419,013		193,999		365,219

30.

DIVIDEND INCOME

(1)	Details of dividend income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Dividend income related to financial assets at FVTPL		40,534		78,299		27,908		60,355
Dividend income related to financial assets at FVTOCI		2,391		13,706		3,991		18,567

Total		42,925		92,005		31,899		78,922

(2)	Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in millions):

Periods ended June 30, 2023

Periods ended June 30, 2022

Three-month

Six-month

Three-month

Six-month

Dividend income recognized from assets held

Equity securities

2,391

13,706

3,991

18,567

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

31.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS MANDATORILY MEASURED AT FAIR VALUE

(1)	Details of gain or loss related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Gain(loss) on financial instruments at FVTPL		122,019		360,517		226,041		341,427

Total		122,019		360,517		226,041		341,427

(2)	Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair value and financial instruments held for trading are as follows (Unit: Korean Won in millions):


			Periods ended June 30, 2023						Periods ended June 30, 2022
			Three-month			Six-month			Three-month			Six-month
Financial assets at FVTPL	Securities	Gain on transactions and valuation		(2,725	)		287,207			131,796			264,431
		Loss on transactions and valuation		(33,925	)		(102,508	)		(195,672	)		(334,705	)

		Sub-total		(36,650	)		184,699			(63,876	)		(70,274	)

	Loans	Gain on transactions and valuation		710			4,562			3,085			8,522
		Loss on transactions and valuation		(42	)		(1,742	)		(1,241	)		(2,531	)

		Sub-total		668			2,820			1,844			5,991

	Other financial assets	Gain on transactions and valuation		4,023			7,207			7,105			16,478
		Loss on transactions and valuation		(2,184	)		(7,398	)		(2,661	)		(8,191	)

		Sub-total		1,839			(191	)		4,444			8,287

Sub-total				(34,143	)		187,328			(57,588	)		(55,996	)

Derivatives (Held for trading)	Interest rates derivatives	Gain on transactions and valuation		2,103,949			3,399,512			1,226,728			2,620,659
		Loss on transactions and valuation		(1,773,604	)		(3,223,790	)		(821,449	)		(1,653,940	)

		Sub-total		330,345			175,722			405,279			966,719

	Currency derivatives	Gain on transactions and valuation		1,666,912			5,255,412			7,190,283			9,926,389
		Loss on transactions and valuation		(1,739,004	)		(5,147,724	)		(7,309,919	)		(10,498,686	)

		Sub-total		(72,092	)		107,688			(119,636	)		(572,297	)

	Equity derivatives	Gain on transactions and valuation		985,723			2,073,732			831,615			1,560,772
		Loss on transactions and valuation		(1,087,820	)		(2,183,928	)		(833,642	)		(1,557,788	)

		Sub-total		(102,097	)		(110,196	)		(2,027	)		2,984

	Other derivatives	Gain on transactions and valuation		—			—			13			17
		Loss on transactions and valuation		6			(25	)		—			—

		Sub-total		6			(25	)		13			17

Sub-total				156,162			173,189			283,629			397,423

Net, total				122,019			360,517			226,041			341,427

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

32.

NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Gain(loss) on redemption of securities		67			105			(5	)		(8	)
Gain(loss) on transactions of securities		(796	)		(503	)		(1,916	)		(1,642	)

Total		(729	)		(398	)		(1,921	)		(1,650	)

33.

REVERSAL OF(PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Reversal of(provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Reversal of(provision for) impairment loss due to credit loss on financial assets at FVTOCI		(11,750	)		(12,163	)		939			220
Provision for impairment loss due to credit loss on securities at amortized cost		(6,143	)		(6,019	)		(552	)		(835	)
Provision for impairment loss due to credit loss on loan and other financial assets at amortized cost		(517,794	)		(780,194	)		(318,974	)		(483,511	)
Reversal of(provision for) provision on guarantee		(865	)		1,534			(3,596	)		(9,669	)
Provision for unused loan commitment		(19,690	)		(20,973	)		(8,612	)		(3,068	)

Total		(556,242	)		(817,815	)		(330,795	)		(496,863	)

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

34.

GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME(EXPENSES)

(1)	Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):


			Periods ended June 30, 2023				Periods ended June 30, 2022
			Three-month		Six-month		Three-month			Six-month
Employee benefits	Short-term employee benefits	Salaries		431,716		850,340		408,941			826,173
		Employee fringe benefits		156,230		307,757		135,591			297,882
	Share based payment			3,829		3,460		(530	)		6,402
	Retirement benefit service costs			29,633		59,034		42,093			84,473
	Termination			—		6,488		—			118

		Sub-total		621,408		1,227,079		586,095			1,215,048

Depreciation and amortization				124,927		256,566		131,511			262,271
Other general and administrative expenses	Rent			29,682		58,476		20,702			42,763
	Taxes and public dues			60,441		108,466		47,561			90,940
	Service charges			61,316		120,254		58,782			113,272
	Computer and IT related			35,780		66,476		34,428			60,019
	Telephone and communication			20,904		41,809		20,539			39,352
	Operating promotion			11,572		23,843		13,496			24,361
	Advertising			30,083		45,481		34,619			44,964
	Printing			1,251		2,532		1,463			2,868
	Traveling			3,162		6,220		2,572			4,582
	Supplies			1,841		3,787		1,927			3,992
	Insurance premium			3,363		7,056		2,925			5,766
	Maintenance			5,382		11,433		5,130			10,544
	Water, light, and heating			3,809		9,658		3,243			7,979
	Vehicle maintenance			3,636		6,877		3,866			6,772
	Others (*)			2,379		61,903		12,115			21,609

		Sub-total		274,601		574,271		263,368			479,783

	Total			1,020,936		2,057,916		980,974			1,957,102

(*)	It includes 40,047 million won in in-house welfare fund contributions for the six-month periods ended June 30,2023.

(2)	Details of other operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023					Periods ended June 30, 2022
	Three-month			Six-month		Three-month		Six-month
Gain on transactions of foreign exchange		205,189			635,264		197,978		323,652
Gain related to derivatives (Designated for hedging)		(7,552	)		62,328		52,701		69,151
Gain on fair value hedged items		22,431			28,071		90,392		198,984
Others		64,136			154,247		70,652		142,966

Total		284,204			879,910		411,723		734,753

(3)	Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023					Periods ended June 30, 2022
	Three-month			Six-month		Three-month		Six-month
Loss on transactions of foreign exchange		208,060			790,825		300,440		387,969
KDIC deposit insurance premium		115,023			227,083		100,061		206,510
Contribution to miscellaneous funds		110,503			214,394		98,686		195,188
Loss on derivatives (Designated for hedging)		25,975			31,384		69,430		183,355
Loss on fair value heged items		(18,173	)		10,033
Others (*)		204,160			406,112		158,915		311,016

Total		645,548			1,679,831		727,532		1,284,038

(*)	Other expense includes 10,093 million Won and 7,274 million Won for intangible asset amortization cost and 219,772 million Won and 178,412 million Won for lease depreciation cost for the six-month periods ended June 30, 2023 and 2022, respectively.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(4)	Share-based payment

Details of performance condition share-based payment granted to executives as of June 30, 2023 and December 31, 2022 are as follows.

Performance condition share-based payment


Subject to		Shares granted for the year 2020
Type of payment		Cash-settled
Vesting period		January 1, 2020 ~ December 31, 2023
Date of payment		2024-01-01
Fair value (*1)		11,517 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		0.5 years
Number of shares remaining	As of June 30, 2023	944,343 shares
	As of December 31, 2022	944,343 shares
Number of shares granted (*2)	As of June 30, 2023	944,343 shares
	As of December 31, 2022	944,343 shares
Subject to		Shares granted for the year 2021
Type of payment		Cash-settled
Vesting period		January 1, 2021 ~ December 31, 2024
Date of payment		2025-01-01
Fair value (*1)		10,819 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		1.5 years
Number of shares remaining	As of June 30, 2023	1,105,515 shares
	As of December 31, 2022	1,105,515 shares
Number of shares granted (*2)	As of June 30, 2023	1,105,515 shares
	As of December 31, 2022	1,105,515 shares
Subject to		Shares granted for the year 2022
Type of payment		Cash-settled
Vesting period		January 1, 2022 ~ December 31, 2025
Date of payment		2026-01-01
Fair value (*1)		10,164 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		2.5 years
Number of shares remaining	As of June 30, 2023	968,119 shares
	As of December 31, 2022	968,119 shares
Number of shares granted (*2)	As of June 30, 2023	968,119 shares
	As of December 31, 2022	968,119 shares
Subject to		Shares granted for the year 2023
Type of payment		Cash-settled
Vesting period		January 1, 2023 ~ December 31, 2026
Date of payment		2027-01-01
Fair value (*1)		9,548 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		3.5 years
Number of shares remaining	As of June 30, 2023	292,124 shares
	As of December 31, 2022	—
Number of shares granted (*2)	As of June 30, 2023	292,124 shares
	As of December 31, 2022	—

- 118 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated to measure the liability according to the Black Scholes model based on the base price at the time of each settlement.

(*2)

It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long-term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing loan ratio, and job performance.

The Group accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of June 30, 2023 and December 31, 2022, the book value of the liabilities related to the performance condition share-based payments recognized by the Group amounts to 37,243 million Won and 41,334 million Won, respectively, which includes 15,737 million Won and 17,494 million Won, respectively.

- 119 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

35.

NON-OPERATING INCOME(EXPENSES)

(1)	Details of gains or losses on valuation of investments in joint ventures and associates are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Gain on valuation of investments in joint ventures and associates		64,571			74,592			23,745			39,158
Loss on valuation of investments in joint ventures and associates		(731	)		(3,609	)		(3,641	)		(14,146	)
Impairment loss of investments in joint ventures and associates		—			—			—			(17,727	)

Total		63,840			70,983			20,104			7,285

(2)	Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Other non-operating income		39,182			60,755			89,603			114,259
Other non-operating expenses		(120,249	)		(130,643	)		(10,544	)		(85,746	)

Total		(81,067	)		(69,888	)		79,059			28,513

(3)	Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month			Six-month
Rental fee income		6,122		10,554		7,637			12,889
Gain on disposal of investments in joint ventures		22,985		22,985		—			561
Gain on disposal of premises and equipment, intangible assets and other assets		3,135		3,372		32,700			41,719
Reversal of impairment loss of premises and equipment, intangible assets and other assets		126		263		(110	)		168
Others (*)		6,814		23,581		49,376			58,922

Total		39,182		60,755		89,603			114,259

(*)

Other special gains related to other provisions for the six-month period ended June 30, 2023 and 2022 are 158 million Won and 45,276 million Won, respectively.

(4)	Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month			Six-month
Depreciation on investment properties		1,431		2,580		996			1,977
Operating expenses on investment properties		496		974		320			654
Losses on disposal of investments in joint ventures		—		—		(2,257	)		116
Losses on disposal of premises and equipment, intangible assets and other assets		735		1,174		802			1,487
Impairment losses of premises and equipment, intangible assets and other assets		6		6		(1	)		335
Donation		9,331		10,897		3,429			4,843
Others (*)		108,250		115,012		7,255			76,334

Total		120,249		130,643		10,544			85,746

(*)

Other special losses related to other provisions for the six-month period ended June 30, 2023 and 2022 are 55,460 million Won and 99 million Won, respectively, and other special losses related to employee incidents for the six-month period ended June 30, 2022 are 62,196 million Won.

- 120 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

36.

INCOME TAX EXPENSE

Details of income tax expenses are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Current tax expense
Current tax expense in respect to the current year		258,528			681,424
Adjustments recognized in the current period in relation to the current tax of prior periods		(19,816	)		(15,099	)
Corporate tax expense directly reflected in other capital		7,295			—

Sub-total		246,007			666,325

Deferred tax expense
Change in deferred tax assets(liabilities) relating to the temporary differences		384,870			(224,146	)
Current tax charged to equity and others directly:		(96,769	)		166,428
Others		613			—

Sub-total		288,714			(57,718	)

Income tax expense		534,721			608,607

Income tax expense was recognized based on the estimate of the best weighted average annual effective tax rate expected for the interim period. The weighted average annual effective tax rate for the June 30, 2023, is 24.9% (The weighted average annual effective tax rate for the June 30, 2022, is 24.7%).

- 121 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

37.

EARNINGS PER SHARE (“EPS”)

(1)	Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Net profit (loss) attributable to Owners		625,190			1,538,876			922,746			1,761,934
Dividends to hybrid securities		(32,738	)		(63,152	)		(22,225	)		(41,375	)
Net income attributable to common shareholders		592,452			1,475,724			900,521			1,720,559
Weighted average number of common shares outstanding (Unit: million shares)		728			728			728			728
Basic EPS (Unit: Korean Won)		814			2,028			1,237			2,364

(2)	The weighted average number of common shares outstanding is as follows (Unit: number of shares, days)


	For the six-month period ended June 30, 2023
	Period		Number of shares			Dates (Unit: Day)		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2023-01-01 ~ 2023-06-30		728,060,549			181		131,778,959,369
Treasury stock		2023-01-01 ~ 2023-06-30		(343,991	)		181		(62,262,371	)
Acquisition of treasury stock		2023-01-01 ~ 2023-06-30		(1,981,565	)		14		(28,658,738	)

Sub-total (①)									131,688,038,260

Weighted average number of common shares outstanding (②=(①/181)									727,558,222


	For the six-month period ended June 30, 2022
	Period		Number of shares			Dates		Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		2022-01-01 ~ 2022-06-30		728,060,549			181		131,778,959,369
Treasury stock		2022-01-01 ~ 2022-06-30		(343,991	)		181		(62,262,371	)

Sub-total (①)									131,716,696,998

Weighted average number of common shares outstanding (②=(①/181)									727,716,558

Diluted EPS is equal to basic EPS because there is no dilution effect for the six-month periods ended June 30, 2023 and 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

38.

CONTINGENT LIABILITIES AND COMMITMENTS

(1)	Details of guarantees are as follows (Unit: Korean Won in millions):


	June 30, 2023 (*)		December 31, 2022 (*)
Confirmed guarantees (*)
Guarantee for loans		49,485		39,684
Acceptances		512,704		501,921
Guarantees in acceptances of imported goods		68,951		97,920
Other confirmed guarantees		7,493,712		6,847,713

Sub-total		8,124,852		7,487,238

Unconfirmed guarantees
Local letters of credit		211,385		150,075
Letters of credit		2,781,700		3,014,228
Other unconfirmed guarantees		1,262,619		1,144,498

Sub-total		4,255,704		4,308,801

Commercial paper purchase commitments and others		771,831		125,547

Total		13,152,387		11,921,586

(*)	Includes financial guarantees of 3,871,057 million Won and 3,095,091 million Won as of June 30, 2023 and December 31, 2022, respectively.

(2)	Details of loan commitments and others are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Loan commitments		123,631,166		118,172,070
Other commitments (*)		8,132,297		7,107,828

(*)	The amount of unsecured bills (purchase note sales) and discounts on electronic short-term bond sales (purchase) are 3,730,090 million Won and 2,505,399 million Won as of June 30, 2023 and December 31, 2022, respectively.

(3)	Litigation case

As of June 30, 2023 and December 31, 2022, the contents of the litigation case are as follows.

Litigation case that the key Group is a defendant in a lawsuit pending (excluding fraud lawsuits and those lawsuits that are filed only to extend the statute of limitation, etc.) are 592 cases (litigation value of 451,437 million Won) and 531 cases (litigation value of 577,128 million Won) as of June 30, 2022 and December 31, 2022 respectively, and provisions for litigations are 31,255 million Won and 33,877 million Won.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(4)	Other commitments

As of June 30, 2023, Woori FIS Co., Ltd, a subsidiary, has been provided with a payment guarantee limit of 6,457 million Won in relation to bid guarantees and contract/defect guarantees from the Korean Software Financial Cooperative, but there is no committed amount. In relation to the guarantee, the capital contributions to the Korean Software Financial Cooperative are provided as collateral. In addition, as of June 30, 2023, Seoul Guarantee Insurance Company is providing a payment guarantee of 374 million Won related to the return of subsidy to the daycare center at work.

As of June 30, 2023, Woori FIS Co., Ltd, a subsidiary agreed with Shinhan Bank for short-term borrowings of 20 billion Won for one year (2022.11.16.~2023.11.16.), and there is no outstanding balance of short-term borrowings as of June 30, 2023.

As of June 30, 2023, Woori Savings bank is provided with a guarantee of 1,295 million Won from Seoul Guarantee Insurance Company in relation to provisional attachment for recovery of loans, etc.

As of June 30, 2023, Woori Asset Trust, a subsidiary, has committed to fulfill responsibility for the completion of 67 projects, including a residential-commercial complex in U-dong, Haeundae-gu, Busan. Responsible completion type management land trust is a trust that bears the obligation of responsible completion when the construction company fails to fulfill the obligation of responsible completion, and the obligation to compensate losses to the lending financial institution if Woori Asset Trust fails to fulfill the obligation of responsible completion. As of June 30, 2023, the total amount of PF(Project Financing) loans from PF lending financial institutions invested in the responsible completion type management land trust business is 3,385,256 million Won. Although additional losses may occur in relation to these contracts for liability obligations, these effects were not reflected in the financial statements at the end of the current quarter because the possibility is not high and the amount of losses cannot be reliably estimated. Also, Woori Asset Trust may lend a trust account for a part of the total project cost in relation to 13 debt-type land trust contracts including Busan Haeundae Udong Beautique Terrace Hotel and responsible completion management land trust contracts in Gyeongseo-dong, Seo-gu, Incheon and Songdo-dong, Yeonsu-gu Incheon, and additional business sites in progress. The maximum loan amount (unused limit) is 50,719 million Won. Whether or not Woori Asset Trust lends a trust account in relation to the relevant businesses is not an unconditional payment obligation, and it is determined by considering overall matters such as the unique account and the fund balance plan of each trust business.

Pursuant to some contracts related to asset securitization, the Group utilizes various prerequisites as triggering events causing early redemption, limiting risks that investors bear due to change in asset quality. Breach of such triggering clause leads to an early redemption of the securitized bonds.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

39.

RELATED PARTY TRANSACTIONS

Related parties of the Group as of June 30, 2023 and December 31, 2022, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the six-month periods ended June 30, 2023 and 2022 are as follows. Please see Note 12 for the details of joint ventures and associates.

(1)	Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):


Related parties		Account title	June 30, 2023			December 31, 2022
Associates	W Service Networks Co., Ltd.	Loans		27			120
		Deposits due to customers		3,190			3,298
		Accrued expenses		7			7
		Other liabilities		91			109
	Korea Credit Bureau Co., Ltd.	Loans		4			2
		Deposits due to customers		933			4,450
		Accrued expenses		1			—
		Other liabilities		—			40
	Korea Finance Security Co., Ltd.	Loans		2,634			3,433
		Loss allowance		(53	)		(46	)
		Deposits due to customers		1,282			1,764
		Other liabilities		13			6
	LOTTE CARD Co. Ltd.	Loans		—			50,000
		Account receivables		19			16
		Loss allowance		—			(30	)
		Other assets		—			—
		Deposits due to customers		19,558			35,986
		Other liabilities		257			74
	K BANK Co., Ltd.	Loans		1			3
		Account receivables		20			31
		Other liabilities		106,028			108,156
	Others (*)	Loans		65,355			68,660
		Loss allowance		(49	)		(34	)
		Other assets		2,930			768
		Deposits due to customers		13,113			3,622
		Other liabilities		43			119

(*)	Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori Growth Partnerships New Technology Private Equity Fund, and etc., as of June 30, 2023 and December 31, 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Major gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):


			For the six-month periods ended June 30
Related parties		Account title	2023		2022
Associates	W Service Network Co., Ltd.	Other income		—		17
		Interest expenses		14		4
		Fees expenses		266		275
		Other expenses		869		934
	Korea Credit Bureau Co., Ltd.	Interest expenses		9		—
		Fees expenses		1,881		1,773
		Other expenses		73		68
	Korea Finance Security Co., Ltd.	Interest income		105		56
		Interest expenses		1		3
		Provision of allowance for credit loss		14		1
		Other expenses		18		32
	LOTTE CARD Co., Ltd.	Interest income		7		61
		Fees income		2,108		48
		Interest expenses		2,892		530
		Provision of allowance for credit loss		153		1
	K BANK Co., Ltd.	Fees income		109		539
		Fees expenses		248		512
	Others (*)	Interest income		339		354
		Fees income		2,613		3,623
		Other income		632		—
		Interest expenses		8		3
		Provision (reversal) of allowance for credit loss		16		(96	)
		Dividend income		372		—

(*)	Others include IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership, Woori Growth Partnerships New Technology Private Equity Fund, and etc., for the six-month periods ended June 30, 2023 and 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Major loan transactions with related parties for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2023
Related parties		Beginning balance		Loan		Collection		Foreign currency exchange, etc.			Ending balance (*)
Associates	W Service Network Co., Ltd.		120		147		240		—			27
	Korea Credit Bureau Co., Ltd.		2		6		4		—			4
	Korea Finance Security Co., Ltd.		3,433		225		1,023		—			2,635
	LOTTE CARD Co., Ltd.		50,000		—		50,000		—			—
	K BANK Co., Ltd.		3		11		13		—			1
	One Mortgage		—		139		128		—			11
	Godo Kaisha Oceanos 1		39,814		—		—		(1,930	)		37,884
	Woori ZIP 1		11,819		—		—		(573	)		11,246
	Woori ZIP 2		16,776		—		—		(813	)		15,963
	Joongang Network Solution Co.,Ltd.		251		—		—		—			251

(*)	Settlement payment from normal operation among the related parties were excluded, and in the case of a limited loan, it was presented as a net increase or decrease.


		For the six-month period ended June 30, 2022
Related parties		Beginning balance		Loan		Collection		Foreign currency exchange, etc.			Ending balance (*)
Associates	W Service Network Co., Ltd.		20		119		117		—			22
	Korea Credit Bureau Co., Ltd.		2		7		8		—			1
	Korea Finance Security Co., Ltd.		3,425		2,196		2,182		—			3,439
	LOTTE CARD Co., Ltd.		3,750		—		1,875		—			1,875
	K BANK Co., Ltd.		99		285		341		—			43
	Godo Kaisha Oceanos 1		43,033		41,467		43,033		(1,934	)		39,533
	Woori ZIP 1		12,775		—		—		(1,039	)		11,736
	Woori ZIP 2		18,132		—		—		(1,474	)		16,658

(*)	Settlement payment from normal operation among the related parties were excluded, and in the case of a limited loan, it was presented as a net increase or decrease.

(4)	Details of changes in major deposits due to customers with related parties for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


		For the six-month period ended June 30, 2023
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		1,200		1,000		1,200		1,000
	Partner One Value Up I Private Equity Fund		100		—		100		—
	Korea Credit Bureau Co., Ltd.		3,000		—		3,000		—
	One Mortgage		—		600		300		300

(*)	Details of payment between related parties, demand deposit due to customers and etc. are excluded.


		For the six-month period ended June 30, 2022
Related parties		Beginning balance		Increase		Decrease		Ending balance (*)
Associates	W Service Networks Co., Ltd		1,180		—		—		1,180
	Partner One Value Up I Private Equity Fund		329		250		329		250

(*)	Details of payment between related parties, demand deposit due to customers and etc. are excluded.

(5)	There are no major borrowing transactions with related parties for the six-month periods ended June 30, 2023 and 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(6)	Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):


Warrantee	June 30, 2023		December 31, 2022		Warranty
Korea Finance Security Co., Ltd.		1,226		627	Unused loan commitment
Korea Credit Bureau Co., Ltd.		31		33	Unused loan commitment
W Service Network Co., Ltd.		153		60	Unused loan commitment
K BANK Co., Ltd.		299		297	Unused loan commitment
LOTTE CARD Co. Ltd.		498,400		450,000	Unused loan commitment
One Mortgage		39		—	Unused loan commitment
D-Custody Co., Ltd.		5		10	Unused loan commitment

As of June 30, 2023 and December 31, 2022, the provision for unused commitments recognized are 269 million Won and 80 million Won, respectively, in relation to the guarantees provided to the related parties above.

(7)	Amount of commitments with the related parties


Warrantee	June 30, 2023		December 31, 2022		Warranty
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		4,664		4,664		Securities purchase commitment
Woori Seoul Beltway Private Special Asset Fund No.1		35,987		37,146		Securities purchase commitment
Woori-Q Corporate Restructuring Private Equity Fund		12,555		12,555		Securities purchase commitment
JC Assurance No.2 Private Equity Fund		1,351		1,351		Securities purchase commitment
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		288		325		Securities purchase commitment
WooriG Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		39		39		Securities purchase commitment
BTS 2nd Private Equity Fund		4,774		6,974		Securities purchase commitment
STASSETS FUND III		13,500		13,500		Securities purchase commitment
Together Korea Government Private Securities Investment Trust No.3		990,000		990,000		Securities purchase commitment
NH Woori Newdeal Growth Alpha Private Equity Fund 1		51,090		—		Securities purchase commitment

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(8)	Major investment and Recovery transactions

The details of major investment and recovery transactions with related parties for the for the six-month periods ended June 30, 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2022
The same parent company and its associates	Investment and others (*)		Recovery and others (*)
Woori Long-term government bond securities Investment Trust No.1		—		1,951
WOORI Republic of Korea Treasury Bond Active ETF(Bond)		3,000		—
Woori K-New Opening Target Return Securities Investment Trust(Equity)		200		—
Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv Trust 1		—		21,606
Woori Two-year Bond Securities Investment Trust 2(Bond)		—		213
Woori Bank Plus Public Offering stock 10 securities Investment Trust 2(Bond Mixed)		200		—
Woori High Plus Bond Sec Feeder Inv Trust 3(USD)		—		1,052
Woori China Mainland Stock Securities Investment Trust H(Securities)		—		443
Woori 2023 Maturity Securities Investment Trust(Bond)		200		—
Woori G Oncorp Corporate support of Major Industry General Type Private Investment Trust (Type 2)		550		—

(*)	Investment and recovery transactions of associates that are not treated as FVTPL are described in Note 12.(2)

(9)	Compensation for key management is as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Short-term employee salaries		10,734		12,099
Retirement benefit service costs		519		445
Share-based compensation		1,445		2,794

Total		12,698		15,338

Key management includes executives and directors of Woori Financial Group and major subsidiaries, and also includes CEO of other subsidiaries. Outstanding assets from transactions with key management amount to 2,982 million Won and 3,620 million Won, as of June 30, 2023 and December 31, 2022, respectively and with respect to the assets, the Group has not recognized any allowance nor related impairment loss due to credit losses. Also, liabilities from transaction with key management amount to 36,235 million Won and 12,660 million Won, respectively, as of June 30, 2023 and December 31, 2022.

- 129 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

40.

LEASES

(1)

Lessor

Finance lease

①

The total investment in finance lease and the present value of the minimum lease payments to be recovered are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Total investment in lease		Net investment in lease
Within one year		198,210		182,234
After one year but within two years		282,735		264,133
After two years but within three years		435,977		402,690
After three years but within four years		464,677		415,080
After four years but within five years		183,304		153,089
After five years		4		4

Total		1,564,907		1,417,230


	December 31, 2022
	Total investment in lease		Net investment in lease
Within one year		160,181		146,749
After one year but within two years		231,075		215,497
After two years but within three years		366,599		338,709
After three years but within four years		501,034		452,099
After four years but within five years		368,420		314,696
After five years		19		18

Total		1,627,328		1,467,768

②

The unrealized interest income of the finance lease is as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Total investment in lease		1,564,907		1,627,328
Net investment in lease		1,417,230		1,467,768
Present value of minimum lease payments		1,417,230		1,467,768
Present value of unguaranteed residual value		—		—

Unearned interest income		147,677		159,560

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Operating lease

①

The details of prepaid lease assets and operating lease assets are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Prepaid lease assets		2,013			3,121
Operating lease assets
Acquisition cost		3,514,356			3,320,275
Accumulated depreciation		(806,491	)		(729,818	)
Net carrying value		2,707,865			2,590,457

Total		2,709,878			2,593,578

②

The details of changes in operating lease assets as of June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023			June 30, 2022
Beginning balance		2,590,457			1,778,308
Acquisition		443,068			805,277
Disposal		(101,538	)		(58,437	)
Depreciation		(219,772	)		(178,412	)
Others		(4,350	)		19,576

Ending balance		2,707,865			2,366,312

③

The future lease payments to be received under the lease contracts are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Within one year		629,325		567,998
After one year but within two years		579,539		526,899
After two years but within three years		447,741		420,244
After three years but within four years		257,847		275,080
After four years but within five years		68,305		86,606

Total		1,982,757		1,876,827

④

There are no adjusted lease payments recognized as profit or loss for the six-month periods ended June 30, 2023 and 2022.

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WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)

Lessee

The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Lease payments
Within one year		128,010		170,781
After one year but within five years		148,570		152,145
After five years		24,291		33,007

Total		300,871		355,933

Total cash outflows from lease are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Total cash outflows from lease		104,691		93,226

Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Lease payments for short-term leases		429		5,645
Lease payments for which the underlying asset is of low value		704		650
Variable lease payments		15,030		—

Total		16,163		6,295

- 132 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

41.

BUSINESS COMBINATION

(1)

General

As of March 23, 2023, the Group acquired 53.9% interest(excluding treasury stocks, 52.0% interest including treasury stocks) in Daol Investment CO., Ltd. and changed the name of Daol Investment CO., Ltd. to Woori Venture Partners. The main reasons for the business combination are to maximize synergy between the consolidated subsidiaries and to strengthen the non- banking business portfolio.

If Woori Venture Partners had been acquired from January 1, 2023, the consolidated statement of comprehensive income would have shown operating profit and net income of Woori Venture Partners for 7,211 and 6,154 million Won, respectively.

(2)	Identifiable net assets

Identified assets and liabilities as of the acquisition date are as follows (Unit: Korean Won in millions):


	Accounts	March 31, 2023
Assets	Cash and cash equivalent		2,879
	Financial assets at FVTPL		38,385
	Loans and other financial assets at amortized cost(*1)		124,904
	Investments in joint ventures and associates		136,930
	Premises and equipment		20,349
	Intangible assets(*2)		21,454
	Current tax assets		33
	Others		41

	Sub-total		344,975

Liabilities	Current tax liabilities		7,938
	Deferred tax liabilities		11,593
	Other financial liabilities		1,000
	Other liabilities		14,971

	Sub-total		35,502

Fair value of net identifiable assets			309,473

(*1)

The acquired financial assets at amortized cost were estimated at fair value. The contractual total of the financial assets at amortized cost of Woori Venture Partners is 127,384 million Won, and the contractual cash flows that are not expected to be recovered as of the acquisition date are 2,480 million Won.

(*2)

The intangible assets include 18,880 million Won in customer relationships as a result of business combination and were valued at fair value through the Multi-period excess earning method (MEEM) as they were judged separately identifiable intangible assets. Multi-period excess earning method is a method to estimate the future cash flows generated by each intangible asset and to discount the cash flows generated purely by that intangible asset to its present value by deducting the portion of the asset’s contribution to that cash flow generation.

If, within one year of the acquisition date, new information obtained about the facts and circumstances that existed at the acquisition date requires the adjustment of the amounts recognized at the acquisition date, or the recognition of additional provisions existing at the acquisition date, the accounting for the business combination will be adjusted.

- 133 -

WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)

Goodwill

Recognized goodwill as a result of business combination are as follows (Unit: Korean Won in million):


	Woori Venture Partners
Transfer price		212,522
Fair value of net identifiable asset		309,473
Non-controlling interest (*)		138,478
Goodwill		41,527

(*)	Non-controlling interests were recognized at fair value applying the closing price on the acquisition date of Woori Venture Partners.

In the event of a business combination, the consideration transferred includes the premium paid to acquire Woori Venture Partners which results in goodwill. In addition, the consideration paid for the business combination includes expected synergies, revenue growth, and the amount related to future market growth.

The Group also acquired a relationship with a customer of Woori Venture Partners as part of the acquisition. These relationships with customers were recognized separately from goodwill because they met the reparability criteria to meet the recognition requirements for intangible assets.

(4)	Net cash outflow due to business combination

Details of net cash outflows due to business combination are as follows (Unit: Korean Won in million):


	Woori Venture Partners
Consideration paid in cash		212,522
Acquired cash and cash equivalents		2,879

Deduction in total		209,643

42.

EVENTS AFTER THE REPORTING PERIOD

(1)

The Group has entered into a stock exchange agreement with Woori Investment Bank Co., Ltd., a subsidiary, on June 1, 2023, in which the Group provide 0.0624346 common stock of Woori Financial Group Inc. for 1 common stock of Woori Investment Bank Co., Ltd. to shareholders of Woori Investment Bank Co., Ltd. excluding the Group. On July 21, 2023, the Board of Directors and the general meeting of Woori Investment Bank Co., Ltd., in lieu of the Group’s shareholders’ meeting, approved a comprehensive stock exchange. In this regard, the new shares to be issued by the Group are planned to be listed on August 28, 2023.

(2)

The Group has entered into a stock exchange agreement with Woori Venture Partners Co., Ltd., a subsidiary, on June 1, 2023, in which the Group provide 0.2234440 common stock of Woori Financial Group Inc. for 1 common stock of Woori Venture Partners Co., Ltd. to shareholders of Woori Venture Partners Co., Ltd. excluding the Group. On July 21, 2023, the Board of Directors and the general meeting of Woori Venture Partners Co., Ltd., in lieu of the Group’s shareholders’ meeting, approved a comprehensive stock exchange. In this regard, the new shares to be issued by the Group are planned to be listed on August 28, 2023.

(3)	On July 21, 2023, in accordance with a resolution of the Board of Directors, the Group declared the quarterly dividend of 180 Won per share (total dividend of 130,748 million Won) with June 30, 2023 as base date.

- 134 -

Exhibit 99.2

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

WOORI FINANCIAL GROUP INC.


	Page(s)
Independent Auditor’s Review Report		1-2

Separate Interim Financial Statements

Separate Interim Statements of Financial Position		4

Separate Interim Statements of Comprehensive Income		5

Separate Interim Statements of Changes in Equity		6

Separate Interim Statements of Cash Flows		7

Notes to the Separate Interim Financial Statements		8-47

Independent Auditor’s Review Report

Based on a report originally issued in Korean

To the Board of Directors and Shareholders of Woori Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of Woori Financial Group Inc. (the “Company”), which comprise the separate interim statement of financial position as of June 30, 2023, the separate interim statement of comprehensive income for the three-month and six-month periods ended June 30, 2023, the separate interim statement of changes in equity and cash flows for the six-month periods ended June 30, 2023 and notes, comprising a summary of material accounting policy information and other explanatory information.

Management’s Responsibility

Management is responsible for the preparation and fair presentation of these condensed separate interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No.1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of the condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s review responsibility

Our responsibility is to issue a report on these condensed separate interim financial statements based on our reviews.

We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed separate interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

- 1 -

Other Matters

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

The accompanying condensed separate interim statements of comprehensive income for the three-month and six-month periods ended June 30, 2022, changes in equity and cash flows for the six-month periods ended June 30, 2022, were reviewed by other auditor whose report thereon, dated August 12, 2022, expressed that nothing came to their attention that caused them to believe that those condensed interim financial statements are not prepared, in all material respects, in accordance with K-IFRS No.1034 Interim Financial Reporting.

The separate statement of financial position of the Company as of December 31, 2022, and the related

separate statements of comprehensive income, changes in equity and cash flows for the year the ended, which are not accompanying this report, were audited by other auditor in accordance with Korean Standards on Auditing and their report thereon, dated March 7, 2023, expressed an unqualified opinion. The accompanying separate statement of financial position of the Company as of December 31, 2022, presented for comparative purposes, is consistent, in all material respects, with the audited separate statement of financial position from which it has been derived.

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

August 14, 2023

This report is effective as of August 14, 2023, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

- 2 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF AND FOR THE THREE-MONTH AND SIX-MONTH PERIODS

ENDED JUNE 30, 2023 AND 2022

The accompanying separate interim financial statements including all footnote disclosures

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

Jong Yong Yim

President and Chief Executive Officer

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

(Phone Number) 02-2125-2000

- 3 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2023 (UNAUDITED) AND DECEMBER 31, 2022


	June 30, 2023			December 31, 2022

	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 5 and 31)		175,318			313,361
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 6, 9 and 18)		—			689
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 7 and 9)		324,814			312,771
Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 31)		2,233,028			2,041,877
Investments in subsidiaries (Notes 10 and 31)		22,796,367			22,394,915
Premises and equipment (Notes 11 and 31)		9,421			11,052
Intangible assets (Note 12)		4,553			4,859
Net defined benefit asset (Note 16)		1,962			5,947
Current tax assets (Note 28)		19,409			14,350
Deferred tax assets (Note 28)		10,650			13,433
Other assets (Note 13)		231			322

Total assets		25,575,753			25,113,576

LIABILITIES
Debentures (Notes 4, 9 and 14)		1,597,717			1,447,762
Provisions (Note 15)		1,266			487
Current tax liabilities		81,743			721,795
Other financial liabilities (Notes 4, 9, 17, 31 and 32)		45,479			46,039
Other liabilities (Note 17)		391			591

Total liabilities		1,726,596			2,216,674

EQUITY (Note 19)
Capital stock		3,640,303			3,640,303
Hybrid securities		3,411,501			3,112,273
Capital surplus		10,909,281			10,909,281
Other equity		(41,939	)		(26,186	)
Retained earnings		5,930,011			5,261,231

Total equity		23,849,157			22,896,902

Total liabilities and equity		25,575,753			25,113,576

The accompanying notes are part of this interim financial statements.

- 4 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

(UNAUDITED)


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month

	(Korean Won in millions, except for earnings per share data)
Interest income		18,362			32,068			4,806			6,578
Interest expense		(8,352	)		(16,376	)		(7,338	)		(14,521	)

Net interest income (loss) (Notes 9, 21 and 31)		10,010			15,692			(2,532	)		(7,943	)
Fees and commissions income		399			798			327			653
Fees and commissions expense		(5,817	)		(9,553	)		(3,985	)		(6,968	)

Net fees and commissions loss (Notes 22 and 31)		(5,418	)		(8,755	)		(3,658	)		(6,315	)
Dividend income (Notes 23 and 31)		3,578			1,472,869			3,520			1,264,236
Net gain on financial instruments at FVTPL (Notes 9 and 24)		—			2,023			—			—
Reversal (Provision) of impairment losses due to credit loss (Notes 9, 25 and 31)		(937	)		(978	)		196			(77	)
General and administrative expenses (Notes 26 and 31)		(19,082	)		(35,527	)		(16,189	)		(33,919	)

Operating income (expense)		(11,849	)		1,445,324			(18,663	)		1,215,982
Non-operating income (expense) (Note 27)		18			9			(134	)		(130	)
Net income (expense) before income tax expense		(11,831	)		1,445,333			(18,797	)		1,215,852
Income tax income (expense) (Note 28)		881			96			(345	)		(1,604	)
Net income (loss)		(10,950	)		1,445,429			(19,142	)		1,214,248

Net gain (loss) on valuation of equity securities at FVTOCI		(198	)		8,826			(17,655	)		(14,391	)
Remeasurement of the net defined benefit liability		405			(941	)		1,083			1,440

Items that will not be reclassified to profit or loss:		207			7,885			(16,572	)		(12,951	)

Other comprehensive income (loss), net of tax		207			7,885			(16,572	)		(12,951	)
Total comprehensive income (loss)		(10,743	)		1,453,314			(35,714	)		1,201,297

Earnings (Loss) per share (Note 29)
Basic and diluted earnings (loss) per share (Unit: In Korean Won)		(60	)		1,899			(57	)		1,611

The accompanying notes are part of this interim financial statements.

- 5 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)


	Capital stock		Capital surplus		Hybrid securities		Other equity			Retained earnings			Total equity

	(Korean Won in millions)
January 01, 2022		3,640,303		10,909,281		2,294,288		(3,874	)		4,824,991			21,664,989
Total comprehensive income
Net income		—		—		—		—			1,214,248			1,214,248
Net loss on valuation of equity securities at FVTOCI		—		—		—		(14,391	)		—			(14,391	)
Remeasurement of the net defined benefit liability		—		—		—		1,440			—			1,440
Transactions with owners
Dividends to common stocks		—		—		—		—			(546,044	)		(546,044	)
Issuance of hybrid securities		—		—		299,318		—			—			299,318
Dividends to hybrid securities		—		—		—		—			(41,375	)		(41,375	)

June 30, 2022 (Unaudited)		3,640,303		10,909,281		2,593,606		(16,825	)		5,451,820			22,578,185

January 01, 2023		3,640,303		10,909,281		3,112,273		(26,186	)		5,261,231			22,896,902
Total comprehensive income
Net income		—		—		—		—			1,445,429			1,445,429
Net gain on valuation of equity securities at FVTOCI		—		—		—		8,826			—			8,826
Remeasurement of the net defined benefit liability		—		—		—		(941	)		—			(941	)
Transactions with owners
Dividends to common stocks		—		—		—		—			(713,497	)		(713,497	)
Issuance of hybrid securities		—		—		299,228		—			—			299,228
Dividends to hybrid securities		—		—		—		—			(63,152	)		(63,152	)
Acquisition of treasury stock		—		—		—		(23,638	)		—			(23,638	)

June 30, 2023 (Unaudited)		3,640,303		10,909,281		3,411,501		(41,939	)		5,930,011			23,849,157

The accompanying notes are part of this interim financial statements.

- 6 -

WOORI FINANCIAL GROUP INC.

SEPARATE INTERIM STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month periods ended June 30
	2023			2022

	(Korean Won in millions)
Cash flows from operating activities:
Net income		1,445,429			1,214,248
Adjustments to net income:
Income tax expense(income)		(96	)		1,604
Interest income		(32,068	)		(6,578	)
Interest expense		16,376			14,521
Dividend income		(1,472,869	)		(1,264,236	)

		(1,488,657	)		(1,254,689	)

Adjustments for profit/loss items not involving cash flows:
Provision of impairment losses due to credit loss		978			77
Gain on valuation of financial instruments at FVTPL		(2,023	)		—
Retirement benefit		1,672			1,234
Depreciation and amortization		3,631			3,108

		4,258			4,419

Changes in operating assets and liabilities:
Loans and other financial assets at amortized cost		872			(89	)
Other assets		90			(15	)
Net defined benefit liability		1,035			311
Other financial liabilities		(3,836	)		(591	)
Other liabilities		(200	)		(2	)

		(2,039	)		(386	)

Interest income received		28,907			3,766
Interest expense paid		(15,686	)		(14,145	)
Dividends received		1,472,866			1,264,236
Income tax paid		(1,085	)		(741	)

		1,485,002			1,253,116

Net cash provided by operating activities		1,443,993			1,216,708

Cash flows from investing activities:
Net increase on other investment assets		(829,888	)		(460,000	)
Acquisition of investments in subsidiaries		(398,740	)		(250,000	)
Acquisition of financial assets at FVTOCI		—			(200,000	)
Acquisition of premises and equipment		(56	)		(2,036	)
Acquisition of intangible assets		(350	)		(548	)
Increase on guarantee deposits for leases		—			(142	)

		(1,229,034	)		(912,726	)

Cash flows from financing activities:
Issuance of debentures		149,646			80,000
Issuance of hybrid securities		299,228			299,318
Acquisition of treasury stock		(23,638	)		—
Redemption of lease liabilities		(1,589	)		(1,509	)
Dividends paid to hybrid securities		(63,152	)		(41,375	)
Dividends paid		(713,497	)		(546,044	)

		(353,002	)		(209,610	)

Net increase (decrease) in cash and cash equivalents		(138,043	)		94,372
Cash and cash equivalents, beginning of the period		313,361			578,725

Cash and cash equivalents, end of the period (Note 5)		175,318			673,097

The accompanying notes are part of this interim financial statements.

- 7 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

1.	GENERAL

(1)	Summary of the parent company

Woori Financial Group, Inc. (hereinafter referred to as the “Company”) is primarily aimed at controlling subsidiaries that operate in the financial industry or those that are closely related to the financial industry through the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori Private Equity Asset Management Co., Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,640,303 million Won as of June 30. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New York Stock Exchange since the same date.

The details of stock between from the Company and subsidiaries as of incorporation are as follows (Unit: Number of shares):


Stock transfer company	Total number of issued shares		Exchange ratio per share		Number of Parent company’s stocks
Woori Bank		676,000,000		1.0000000		676,000,000
Woori FIS Co., Ltd.		4,900,000		0.2999708		1,469,857
Woori Finance Research Institute Co., Ltd.		600,000		0.1888165		113,289
Woori Credit Information Co., Ltd.		1,008,000		1.1037292		1,112,559
Woori Fund Service Co., Ltd.		2,000,000		0.4709031		941,806
Woori Private Equity Asset Management Co., Ltd.		6,000,000		0.0877992		526,795

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

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

As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% when including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.) In addition, as of March 31, 2023, the Company acquired an additional 28.1% interests in Woori Asset Trust Co. (excluding treasury stock, 21.3% when including treasury stock).

As of December 10, 2020, the Company acquired 76.8% interests (excluding treasury stock, 74% when including treasury stock) in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.). In addition, as of April 15, 2021, the Company acquired an additional 13.3% interests in Woori Financial Capital Co., Ltd. (excluding treasury stock, 12.9% in the case of including treasury stock), and as of May 24, 2021, the Company additionally acquired treasury stock held by Woori Financial Capital Additional shares (3.6%).

As of March 12, 2021, the Company paid 113,238 million Won in cash to acquire 100% interests on Woori Savings Bank from Woori Financial Capital Co., Ltd., our subsidiary.

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

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

- 8 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

As of March 23, 2023, the Company acquired a 53.9% interests in Woori Venture Partners Co., Ltd. (formerly Daol Investment Co., Ltd.) (excluding treasury stock, 52.0% in the case of including treasury stock). In addition, as of May 30, 2023, the Company additionally acquired treasury stock held by Woori Venture Partners Co., Ltd. (3.5%).

2.	BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The Company’s financial statements are condensed interim financial statements prepared in accordance with Korean IFRS 1034, Interim Financial Reporting for some of periods in which the annual separate financial statements belong. They are also separate financial statements prepared in accordance with Korean IFRS 1027 Separate Financial Statements. It is necessary to use the Company’s annual separate financial statements for the year ended December 31, 2022 for understanding of the accompanying condensed interim financial statements.

(1)

Except for the impacts on the newly adopted standards and interpretations explained below, the accounting policies applied in preparing the accompanying condensed interim financial statements have been applied consistently with the annual financial statements as of and for the year ended December 31, 2022.

Amendments to K-IFRS No.1001 ‘Presentation of Financial Statements’ and IFRS Practice Statement 2 ‘Making Materiality Judgements’ – Disclosure of Accounting Policy

In order to define and disclose important accounting policies and to provide guidance on how to apply the concept of materiality, the International Accounting Standards Practice 2 ‘Accounting Policy Disclosure’ has been revised. The amendment does not have a significant impact on the financial statements.

Amendments to K-IFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ – Definition of Accounting Estimates

The amendments have defined accounting estimates and clarified how to distinguish them from changes in accounting policies. The amendment does not have a significant impact on the financial statements.

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Disclosure of valuation gains or losses on financial liabilities with condition to adjust exercise price

The amendments require disclosure of valuation gains or losses (limited to those recognized in the profit or loss) of the conversion options or warrants (or financial liabilities including them), if all or part of the financial instrument with exercise price that is adjusted depending on the issuer’s share price change is classified as financial liability. The amendment does not have a significant impact on the financial statements.

Amendments to K-IFRS 1012 ‘Income Taxes’ – deferred tax related to assets and liabilities arising from a single transaction

Additional phrase ‘the temporary difference to be added and the temporary difference to be deducted do not occur in the same amount’ has been added to initial recognition exception for a transaction in which an asset or liability is initially recognized. The amendment does not have a significant impact on the financial statements.

- 9 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	The details of K-IFRSs that have been issued and published since January 1, 2023 but have not yet reached the effective date are as follows:

Amendments to K-IFRS 1001 ‘Presentation of Financial Statements’ – Classification of Liabilities as Current or Non-current

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability include the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. The amendments should be applied for annual periods beginning on or after January 1, 2024, and earlier application is permitted. The Company does not expect that these amendments have a significant impact on the financial statements.

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

(3)	Significant accounting policies and method of computation used in the preparation of the condensed interim financial statements are consistent with those of the annual financial statements for the year ended December 31, 2022, except for the one described below.

•

Income tax expense

Income tax expense for the interim period is recognized based on weighted average annual income tax rate expected for the expected gross annual profit. The estimated average annual tax rate is applied to the pre-tax income.

- 10 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

3.	SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

The management shall make judgements, estimates and assumptions that affect the application of accounting policies and application of assets, liabilities and revenues and expenses in preparing condensed interim financial statements. Therefore, the actual results may differ from these estimates.

The important judgements by the management on accounting policies and the main sources of estimation uncertainty for preparing condensed interim financial statements are identical to ones used in the Company’s annual separate financial statements for the year ended December 31, 2022.

- 11 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

4.	RISK MANAGEMENT

The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Committee analyzes, assesses, and establishes risk management standards, including policies, guidelines, management systems and decision-making to ensure sound management of the Company.

The Risk Management Committee, Chief Risk Officer (“CRO”) and the Risk Management Department are operated as risk management organizations. The board of directors operates the Risk Management Committee, composed of nonexecutive directors for professional risk management. The Risk Management Committee performs as the top decision-making body for risk management by establishing fundamental risk management policies that are consistent with the Company’s management strategy and by determining the Company’s acceptable level of risk.

The CRO assists the Risk Management Committee and operates the Company Risk Management Council, which is composed of the risk management managers of the subsidiaries, to periodically check and improve the external environment and the Company’s risk burden. The Risk Management Department, which is independently structured, controls the risk management matter of the Company and reports key risks and assists decision-making.

(1)	Credit risk

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

Credit risk management

The Company measures expected loss on assets subject to credit risk management and uses it as a management indicator.

Maximum exposure

The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):


		June 30, 2023		December 31, 2022
Loans and other financial assets at amortized cost (*)	Banks		2,109,154		1,946,609
	Corporates		123,874		95,268

	Sub-total		2,233,028		2,041,877

Financial assets at FVTPL	Derivative assets		—		689

	Total		2,233,028		2,042,566

(*) Cash and cash equivalents are not included.

Credit risk exposure by geographical areas

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


	June 30, 2023		December 31, 2022
	Korea		Korea
Loans and other financial assets at amortized cost		2,233,028		2,041,877
Financial assets at FVTPL		—		689

Total		2,233,028		2,042,566

- 12 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are finance and insurance, and others in accordance with the Korea Standard Industrial Classification Code as of June 30, 2023 and December 31, 2022 (Unit: Korean Won in millions):


	June 30, 2023
	Finance and insurance		Others		Total
Loans and other financial assets at amortized cost		2,231,901		1,127		2,233,028

	December 31, 2022
	Finance and insurance		Others		Total
Loans and other financial assets at amortized cost		2,039,388		2,489		2,041,877
Financial assets at FVTPL		689		—		689

Total		2,040,077		2,489		2,042,566

Credit risk exposure

The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL as of June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


	June 30, 2023
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
Financial assets	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Stage 3		Total		Loss allowance			Total, net
Loans and other financial assets at amortized cost		2,234,322		—		—		—		—		2,234,322		(1,294	)		2,233,028
Banks		2,110,296		—		—		—		—		2,110,296		(1,142	)		2,109,154
Corporates		124,026		—		—		—		—		124,026		(152	)		123,874
General business		124,026		—		—		—		—		124,026		(152	)		123,874

Total		2,234,322		—		—		—		—		2,234,322		(1,294	)		2,233,028

(*1)	Credit grade of corporates are AAA ~ BBB.

(*2)	Credit grade of corporates are BBB- ~ C.


	December 31, 2022
	Stage 1				Stage 2				Stage 3		Total		Loss allowance			Total, net
Financial assets	Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Above appropriate credit rating (*1)		Less than a limited credit rating (*2)		Stage 3		Total		Loss allowance			Total, net
Loans and other financial assets at amortized cost		2,042,192		—		—		—		—		2,042,192		(315	)		2,041,877
Banks		1,946,924		—		—		—		—		1,946,924		(315	)		1,946,609
Corporates		95,268		—		—		—		—		95,268		—			95,268
General business		95,268		—		—		—		—		95,268		—			95,268

Total		2,042,192		—		—		—		—		2,042,192		(315	)		2,041,877

(*1)	Credit grade of corporates are AAA ~ BBB.

(*2)	Credit grade of corporates are BBB- ~ C.

- 13 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Market risk

Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company’s main market risk is interest rate risk.

The Company estimates and manages risks related to changes in interest rate due to the difference in the maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows (both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Within 3 months (*1)		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost (*1)		256,160		1,583,700		—		505,680		—		—		2,345,540
Financial assets at FVTOCI (*2)		—		—		—		—		—		324,814		324,814

Sub-total		256,160		1,583,700		—		505,680		—		324,814		2,670,354

Liability:
Debentures		269,205		8,519		8,519		8,519		537,973		938,710		1,771,445

	December 31, 2022
	Within 3 months (*1)		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Asset:
Loans and other financial assets at amortized cost (*1)		315,632		406,445		913,995		—		—		—		1,636,072
Financial assets at FVTOCI (*2)		—		—		—		—		—		312,771		312,771

Sub-total		315,632		406,445		913,995		—		—		312,771		1,948,843

Liability:
Debentures		7,843		7,843		267,698		7,011		382,167		949,275		1,621,837

(*1)	The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with 176,273 million Won and 315,632 million Won as of June 30, 2023 and December 31, 2022, respectively.

(*2)	Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the remaining contract.

- 14 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Liquidity risk

Liquidity risk refers to the risk that the Company may encounter difficulties in meeting obligations from its financial liabilities.

Liquidity risk management

Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk management that could arise from mismatching the assets and liabilities or unexpected cash outflows. The financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated within the scope of risk management.

The Company manages liquidity risk by identifying the maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity and contract period, etc.).

Maturity analysis of non-derivative financial liabilities

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 Years		Over 5 years		Total
Debentures		269,205		8,519		8,519		8,519		537,973		938,710		1,771,445
Lease liabilities		802		800		785		774		1,873		—		5,034
Other financial liabilities (*)		9,133		—		—		19,765		11,741		—		40,639

Total		279,140		9,319		9,304		29,058		551,587		938,710		1,817,118


	December 31, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		7,843		7,843		267,698		7,011		382,167		949,275		1,621,837
Lease liabilities		797		770		767		764		3,070		—		6,168
Other financial liabilities (*)		10,720		21,087		—		348		8,000		—		40,155

Total		19,360		29,700		268,465		8,123		393,237		949,275		1,668,160

(*)	It does not include lease liabilities.

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		269,205		8,519		8,519		8,519		537,973		938,710		1,771,445
Lease liabilities		802		800		785		774		1,873		—		5,034
Other financial liabilities(*)		9,133		—		—		19,765		11,741		—		40,639

Total		279,140		9,319		9,304		29,058		551,587		938,710		1,817,118

- 15 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	December 31, 2022
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Debentures		7,843		7,843		267,698		7,011		382,167		949,275		1,621,837
Lease liabilities		797		770		767		764		3,070		—		6,168
Other financial liabilities (*)		10,720		21,087		—		348		8,000		—		40,155

Total		19,360		29,700		268,465		8,123		393,237		949,275		1,668,160

(*)	It does not include lease liabilities.

Maturity analysis of derivative financial liabilities.

As of June 30, 2023 and December 31, 2022, there are no fair measured derivative financial liabilities.

5.	CASH AND CASH EQUIVALENTS

(1)	Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Demand deposits		20,318		18,361
Fixed deposits		155,000		295,000

Total		175,318		313,361

(2)	Significant transactions of investing activities and financing activities not involving cash inflows and outflows are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Changes in other comprehensive income related to valuation of financial assets at FVTOCI		8,826		(14,391	)
Increase in account payables related to acquisition of premises and equipment		104		2
Changes in right-of-use assets due to new contract		465		858
Changes in lease liabilities due to new contract		465		584
Change in bond discount issuance differences due to bond issuance		353		—
Change in accounts payables related to acquisition of treasury stock		3,525		—

6.	FINANCIAL ASSETS AT FVTPL

(1)	Details of financial assets at FVTPL as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Financial assets at FVTPL mandatorily measured at fair value		—		689

(2)	Financial assets at FVTPL mandatorily measured at fair value are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Derivatives assets		—		689

(3)	Financial assets at FVTPL designated as upon initial recognition is nil among financial assets at FVTPL as of June 30, 2023 and December 31, 2022.

- 16 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

7.	FINANCIAL ASSETS AT FVTOCI

(1)	Details of financial assets at FVTOCI as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Hybrid securities		324,814		312,771

(2)	Details of equity securities designated as financial assets at FVTOCI as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


Purpose of acquisition	June 30, 2023		December 31, 2022
Investment for political purpose		324,814		312,771

8.	LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1)	Details of loans and other financial assets at amortized cost as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Due from banks		2,128,604		1,299,687
Other financial assets		104,424		742,190

Total		2,233,028		2,041,877

(2)	Details of due from banks are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Due from banks in local currency:
Due from depository banks		2,050,000			1,300,000
Others		79,888			—
Loss allowance		(1,284	)		(313	)

Total		2,128,604			1,299,687

(3)	Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit: Korean Won in millions):

Allowance for credit losses


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(313	)		—		—		(313	)
Provision of allowance for credit loss		(971	)		—		—		(971	)

Ending balance		(1,284	)		—		—		(1,284	)


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(72	)		—		—		(72	)
Provision of allowance for credit loss		(76	)		—		—		(76	)

Ending balance		(148	)		—		—		(148	)

- 17 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Gross carrying amount


	For the six-month period ended June 30, 2023
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		1,300,000		—		—		1,300,000
Net increase		829,888		—		—		829,888

Ending balance		2,129,888		—		—		2,129,888


	For the six-month period ended June 30, 2022
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		160,000		—		—		160,000
Net increase		460,000		—		—		460,000

Ending balance		620,000		—		—		620,000

(4)	Details of other financial assets are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Receivables		83,976			724,101
Accrued income		18,313			15,991
Lease deposits		2,145			2,101
Loss allowance		(10	)		(3	)

Total		104,424			742,190

(5)	Changes in the allowance for credit losses and gross carrying amount of other financial assets are as follows (Unit: Korean Won in millions).

Allowance for credit losses


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(3	)		—		—		(3	)
Provision of allowance for credit losses		(7	)		—		—		(7	)

Ending balance		(10	)		—		—		(10	)


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		—			—		—		—
Provision of allowance for credit losses		(1	)		—		—		(1	)

Ending balance		(1	)		—		—		(1	)

Gross carrying amount


	For the six-month period ended June 30, 2023
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		742,193			—		—		742,193
Net increase (decrease)		(637,759	)		—		—		(637,759	)

Ending balance		104,434			—		—		104,434


	For the six-month period ended June 30, 2022
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		473,182			—		—		473,182
Net increase (decrease)		74,055			—		—		74,055

Ending balance		547,237			—		—		547,237

- 18 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

9.	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

The fair value hierarchy is determined by the levels of market observable inputs. The specific financial instruments characteristics and market condition such as volume of transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market participant. As such, even when market observable inputs are not readily available, firm-specific inputs reflect factors that market participants would use for measuring the assets or liabilities at the measurement date.

The fair value measurement is described in the one of the following three levels used to classify fair value measurements:

•

Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.

•

Level 2— fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities not traded in active markets and derivatives traded in OTC but not required significant judgment.

•

Level 3— fair value measurements are those derived from valuation technique that include inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

(2)	Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at FVTPL
Derivative assets		—		—		—		—
Financial assets at FVTOCI
Hybrid securities		—		—		324,814		324,814

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at FVTPL
Derivative assets		—		—		689		689
Financial assets at FVTOCI
Hybrid securities		—		—		312,771		312,771

- 19 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

Financial assets measured at FVTPL and financial assets measured at FVTOCI are recognized at fair value. Fair value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.

Financial instruments are measured at fair value using a quoted market price in active markets. If there is no active market for a financial instrument, the Company determines the fair value using valuation methods. Valuation methods and input variables for each type of financial instruments are as follows:


	Valuation methods	Input variables
Derivatives	As the transaction price of the forward contract is determined, the discounted cash flow method is used to calculate the fair values of the underlying asset, and based on this, the fair value of derivative is calculated.	Values of underlying assets
Hybrid securities	The fair value is measured using the Hull and White model and the Monte Carlo Simulations.	YTM Matrix, Additive spread by grade, Risk spread by entity, Effective Credit rating, Issuing information by item, Interest rate volatility estimate

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


	Fair value measurement technique	Type	Significant unobservable inputs	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative assets	The discounted cash flow method	Equity related	Discount rate	9.25% ~ 11.25%	Value of underlying assets and derivative assets decreases as discount rate increases.
Hybrid securities	Hull and White model and others	Hybrid securities related	Interest rate (YTM), Discount rate	Interest rate 3.53%~ 3.70% Discount rate 4.39% ~ 6.87%	Variation of fair value increases as variation of interest rate (YTM) increases.

The fair value of financial assets classified as level 3 uses external valuation figures.

(3)	Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Beginning balance		Net Income		Other comprehensive income		Purchases/ issuances		Disposals/ settlements			Transfer to or out of Level 3		Ending balance
Financial assets:
Financial assets at FVTPL
Derivative assets		689		2,023		—		—		(2,712	)		—		—
Financial assets at FVTOCI
Hybrid securities		312,771		—		12,043		—		—			—		324,814
Financial liabilities
Financial liabilities at FVTPL
Derivative liabilities		—		—		—		—		—			—		—

- 20 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	For the six-month period ended June 30, 2022
	Beginning balance		Net Income (loss)		Other comprehensive income			Purchases/ issuances		Disposals/ settlements		Transfer to or out of Level 3		Ending balance
Financial assets:
Financial assets at FVTPL
Derivative assets		—		—		—			—		—		—		—
Financial assets at FVTOCI
Hybrid securities		146,294		—		(19,849	)		200,000		—		—		326,445
Financial liabilities
Financial liabilities at FVTPL
Derivative liabilities		329		—		—			—		—		—		329

(4)	Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the fair value of Level 3 financial instruments are as follows.

The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis was performed for equity related derivatives of which fair value changes are recognized as net income and hybrid securities of which fair value changes are recognized as other comprehensive income among level 3 financial instruments.

The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility (Unit: Korean Won in millions):


	June 30, 2023
	Net income (loss)				Other comprehensive income (loss)
	Favorable		Unfavorable		Favorable		Unfavorable
Financial assets:
Financial liabilities at FVTPL
Derivative assets		—		—		—		—
Financial assets at FVTOCI
Hybrid securities (*)		—		—		9,239		(8,958	)

(*)	Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%, respectively.


	December 31, 2022
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)		16,523		(13,279	)		—		—
Financial assets at FVTOCI
Hybrid securities (*2)		—		—			10,347		(9,988	)

(*1)	Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of underlying assets and correlation, which are major unobservable variables, by 1%, respectively.

(*2)	Fair value changes of hybrid securities are calculated by increasing or decreasing discount rate, which is the major unobservable variable, by 1%, respectively.

- 21 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(5)	Fair value and carrying amount of financial liabilities that are recorded at amortized cost are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Fair value								Book Value
	Level 1		Level 2		Level 3		Total		Book Value
Financial assets:
Loans and other financial assets at amortized cost (*1)		—		—		2,233,028		2,233,028		2,233,028
Financial liabilities:
Debentures		—		1,477,869		—		1,477,869		1,597,717
Other financial liabilities (1)(2)		—		—		40,639		40,639		40,639

(*1)	The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

(*2)	It does not include lease liabilities.


	December 31, 2022
	Fair value								Book Value
	Level 1		Level 2		Level 3		Total		Book Value
Financial assets:
Loans and other financial assets at amortized cost (*1)		—		—		2,041,877		2,041,877		2,041,877
Financial liabilities:
Debentures		—		1,277,164		—		1,277,164		1,447,762
Other financial liabilities (1)(2)		—		—		40,155		40,155		40,155

(*1)	The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.

(*2)	It does not include lease liabilities.

The fair values of financial instruments are measured using quoted market price in active markets. In case there is no active market for financial instruments, the Company determines the fair value using valuation methods. For the disclosed items in which book value is considered to be the approximate value of fair value, valuation techniques and input variables are not disclosed. Valuation techniques and input variables for the fair value of financial liabilities that are recorded at amortized cost are as follows:


	Valuation methods	Input variables
Debentures	The fair value is measured by discounting the projected cash flows of debt products by applying the market discount rate that is reflecting credit rating of the Company.	Risk-free market rate, etc.

- 22 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(6)	Financial instruments by category

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

Financial assets


	June 30, 2023
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Total
Deposits		—		—		2,128,604		2,128,604
Hybrid securities		—		324,814		—		324,814
Other financial assets		—		—		104,424		104,424

Total		—		324,814		2,233,028		2,557,842


	December 31, 2022
Financial assets	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Total
Deposits		—		—		1,299,687		1,299,687
Hybrid securities		—		312,771		—		312,771
Derivative assets		689		—		—		689

Other financial assets		—		—		742,190		742,190

Total		689		312,771		2,041,877		2,355,337

Financial liabilities


	June 30, 2023				December 31, 2022
Financial liabilities	Financial liabilities at FVTPL		Financial liabilities at amortized cost		Financial liabilities at FVTPL		Financial liabilities at amortized cost
Debentures		—		1,597,717		—		1,447,762
Other financial liabilities		—		40,639		—		40,155

Total		—		1,638,356		—		1,487,917

- 23 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(7)	Income or expense from financial instruments by category

Income or expense from financial assets and liabilities by each category for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Interest Income (expense)			Provision of credit loss			Gain on transactions and valuation		Others		Total
Financial assets at FVTPL		—			—			2,023		—		2,023
Financial assets at FVTOCI		—			—			—		7,044		7,044
Loans and other financial assets at amortized cost (*)		32,068			(978	)		—		—		31,090
Financial liabilities at amortized cost		(16,234	)		—			—		—		(16,234	)

		15,834			(978	)		2,023		7,044		23,923

(*) 6,999 million Won interest income of cash and cash equivalents are included.


	For the six-month period ended June 30, 2022
	Interest Income (expense)			Provision of credit loss			Gain on transactions and valuation		Others		Total
Financial assets at FVTPL		—			—			—		—		—
Financial assets at FVTOCI		—			—			—		4,810		4,810
Loans and other financial assets at amortized cost (*)		6,578			(77	)		—		—		6,501
Financial liabilities at amortized cost		(14,499	)		—			—		—		(14,499	)

		(7,921	)		(77	)		—		4,810		(3,188	)

(*)	3,188 million Won interest income of cash and cash equivalents are included.

- 24 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

10.

INVESTMENTS IN SUBSIDIARIES

(1)	Details of Investments in subsidiaries are as follows (Unit: Korean Won in millions and number of shares):


Subsidiaries (*1)	Location	Capital stock		Main business
Woori Bank	Korea		3,581,400	Bank
Woori Card Co., Ltd.	Korea		896,300	Finance
Woori Financial Capital Co., Ltd.	Korea		373,800	Finance
Woori Investment Bank Co., Ltd.	Korea		437,100	Other credit finance business
Woori Asset Trust Co., Ltd.	Korea		15,300	Real asset trust
Woori Savings Bank	Korea		124,000	Mutual saving bank
Woori F&I Co., Ltd.	Korea		20,000	Finance
Woori Asset Management Corp	Korea		20,000	Finance
Woori Venture Partners Co., Ltd.	Korea		50,000	Other financial services
Woori Global Asset Management Co., Ltd.	Korea		20,000	Finance
Woori Private Equity Asset Management Co., Ltd.	Korea		80,000	Finance
Woori Credit Information Co., Ltd.	Korea		5,000	Credit information
Woori Fund Service Co., Ltd.	Korea		10,000	Financial support service business
Woori FIS Co., Ltd.	Korea		24,500	System software development & maintenance
Woori Finance Research Institute Co., Ltd.	Korea		3,000	Other service business


	June 30, 2023					December 31, 2022
Subsidiaries (*1)	Number of shares		Percentage of ownership (%) (*2)		Financial statements date of use	Number of shares		Percentage of ownership (%) (*2)		Financial statements date of use
Woori Banks		716,000,000		100.0	June 30, 2023		716,000,000		100.0	December 31, 2022
Woori Card Co., Ltd.		179,266,200		100.0	June 30, 2023		179,266,200		100.0	December 31, 2022
Woori Financial Capital Co., Ltd.		74,757,594		100.0	June 30, 2023		74,757,594		100.0	December 31, 2022
Woori Investment Bank Co., Ltd.		513,162,392		58.7	June 30, 2023		513,162,392		58.7	December 31, 2022
Woori Asset Trust Co., Ltd.		2,210,600		95.3	June 30, 2023		1,560,000		67.2	December 31, 2022
Woori Savings Bank		24,802,623		100.0	June 30, 2023		24,802,623		100.0	December 31, 2022
Woori F&I Co., Ltd.		4,000,000		100.0	June 30, 2023		4,000,000		100.0	December 31, 2022
Woori Asset Management Corp		2,920,000		73.0	June 30, 2023		2,920,000		73.0	December 31, 2022
Woori Venture Partners Co., Ltd.		55,544,803		55.5	June 30, 2023		—		—	—
Woori Global Asset Management Co., Ltd.		4,000,000		100.0	June 30, 2023		4,000,000		100.0	December 31, 2022
Woori Private Equity Asset Management Co., Ltd.		16,000,000		100.0	June 30, 2023		16,000,000		100.0	December 31, 2022
Woori Credit Information Co., Ltd.		1,008,000		100.0	June 30, 2023		1,008,000		100.0	December 31, 2022
Woori Fund Service Co., Ltd.		2,000,000		100.0	June 30, 2023		2,000,000		100.0	December 31, 2022
Woori FIS Co., Ltd.		4,900,000		100.0	June 30, 2023		4,900,000		100.0	December 31, 2022
Woori Finance Research Institute Co., Ltd.		600,000		100.0	June 30, 2023		600,000		100.0	December 31, 2022

(*1)	Only subsidiaries invested directly by the Company are included.

(*2)	The percentage is based on the effective shareholding rate relative to the number of stocks outstanding.

- 25 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Changes in the carrying value of investments in subsidiaries are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Beginning balance		Acquisition		Disposal		Ending balance
Woori Bank		18,921,151		—		—		18,921,151
Woori Card Co., Ltd.		1,118,367		—		—		1,118,367
Woori Financial Capital Co., Ltd.		1,003,206		—		—		1,003,206
Woori Investment Bank Co., Ltd.		447,673		—		—		447,673
Woori Asset Trust Co., Ltd.(*1)		224,198		179,444		—		403,642
Woori Savings Bank		213,238		—		—		213,238
Woori F&I Co., Ltd.		200,000		—		—		200,000
Woori Asset Management Corp		122,449		—		—		122,449
Woori Venture Partners Co., Ltd.(*2)		—		222,008		—		222,008
Woori Global Asset Management Co., Ltd.		33,000		—		—		33,000
Woori Private Equity Asset Management Co., Ltd.		57,797		—		—		57,797
Woori Credit Information Co., Ltd		16,466		—		—		16,466
Woori Fund Service Co., Ltd.		13,939		—		—		13,939
Woori FIS Co., Ltd.		21,754		—		—		21,754
Woori Finance Research Institute Co., Ltd.		1,677		—		—		1,677

Total		22,394,915		401,452		—		22,796,367

(*1)	The Company additionally acquired 28.1% (excluding treasury stocks) interests of Woori Asset Trust Co Ltd on March 31, 2023. In the case of including treasury stocks, the share ratio was 21.3%

(*2)

The Company additionally acquired 53.9% interests of Daol Investment Co Ltd (excluding treasury stocks) on March 23, 2023. In the case of including treasury stocks, the share ratio was 52.0%) and the Company name was changed to Woori Venture Partners Co., Ltd. The Company additionally acquired treasury stocks held by Woori Venture Partners Co., Ltd. (3.5% interests) on May 30, 2023.


	For the six-month period ended June 30, 2022
	Beginning balance		Acquisition		Disposal		Ending balance
Woori Bank		18,921,151		—		—		18,921,151
Woori Card Co., Ltd.		1,118,367		—		—		1,118,367
Woori Financial Capital Co., Ltd.		1,003,206		—		—		1,003,206
Woori Investment Bank Co., Ltd.		447,673		—		—		447,673
Woori Asset Trust Co., Ltd.		224,198		—		—		224,198
Woori Savings Bank		213,238		—		—		213,238
Woori F&I Co., Ltd.(*1)		—		200,000		—		200,000
Woori Asset Management Corp		122,449		—		—		122,449
Woori Global Asset Management Co., Ltd.		33,000		—		—		33,000
Woori Private Equity Asset Management Co., Ltd.(*2)		7,797		50,000		—		57,797
Woori Credit Information Co., Ltd		16,466		—		—		16,466
Woori Fund Service Co., Ltd.		13,939		—		—		13,939
Woori FIS Co., Ltd.		21,754		—		—		21,754
Woori Finance Research Institute Co., Ltd.		1,677		—		—		1,677

Total		22,144,915		250,000		—		22,394,915

(*1)	On January 7, 2022, Woori Financial F&I Co., Ltd. was established (100% stake, 200 billion won in stock payments) and included as a subsidiary.

(*2)	The Capital increase amount of 50,000 million Won was made in June 2022.

- 26 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

11.

PREMISES AND EQUIPMENT

(1)	Details of premises and equipment as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Building		Equipment and Vehicles		Leasehold improvements		Total
Premises and equipment (owned)		—		1,389		2,624		4,013
Right-of-use asset		4,663		745		—		5,408

Total		4,663		2,134		2,624		9,421


	December 31, 2022
	Building		Equipment and Vehicles		Leasehold improvements		Total
Premises and equipment (owned)		—		1,944		3,125		5,069
Right-of-use asset		5,462		521		—		5,983

Total		5,462		2,465		3,125		11,052

(2)	Details of premises and equipment (owned) as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Equipment and Vehicles			Leasehold improvements			Total
Acquisition cost		6,060			6,219			12,279
Accumulated depreciation		(4,671	)		(3,595	)		(8,266	)

Net carrying amount		1,389			2,624			4,013


	December 31, 2022
	Equipment and Vehicles			Leasehold improvements			Total
Acquisition cost		6,012			6,107			12,119
Accumulated depreciation		(4,068	)		(2,982	)		(7,050	)

Net carrying amount		1,944			3,125			5,069

(3)	Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Equipment and Vehicles			Leasehold improvements			Total
Beginning balance		1,944			3,125			5,069
Acquisitions		48			112			160
Depreciation		(603	)		(613	)		(1,216	)

Ending balance		1,389			2,624			4,013


	For the six-month period ended June 30, 2022
	Equipment and Vehicles			Leasehold improvements			Total
Beginning balance		2,676			2,411			5,087
Acquisitions		321			1,717			2,038
Depreciation		(565	)		(461	)		(1,026	)

Ending balance		2,432			3,667			6,099

- 27 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(4)	Details of right-of-use assets as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Building			Equipment and Vehicles			Total
Acquisition cost		5,825			1,274			7,099
Accumulated depreciation		(1,162	)		(529	)		(1,691	)

Net carrying amount		4,663			745			5,408


	December 31, 2022
	Building			Equipment and Vehicles			Total
Acquisition cost		10,320			1,191			11,511
Accumulated depreciation		(4,858	)		(670	)		(5,528	)

Net carrying amount		5,462			521			5,983

(5)	Details of changes in right-of-use assets for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Building			Equipment and Vehicles			Total
Beginning balance		5,462			521			5,983
New contracts		755			465			1,220
Termination		—			(36	)		(36	)
Depreciation		(1,554	)		(205	)		(1,759	)

Ending balance		4,663			745			5,408


	For the six-month period ended June 30, 2022
	Building			Equipment and Vehicles			Total
Beginning balance		2,272			431			2,703
New contracts		314			544			858
Termination		—			(78	)		(78	)
Depreciation		(1,268	)		(204	)		(1,472	)

Ending balance		1,318			693			2,011

12.

INTANGIBLE ASSETS

(1)	Details of intangible assets are as follows (Unit: Korean Won in millions):


	June 30, 2023
	Software			Development cost			Membership deposit		Construction in progress		Total
Acquisition cost		4,155			3,500			2,371		61		10,087
Accumulated amortization		(3,468	)		(2,066	)		—		—		(5,534	)

Net carrying amount		687			1,434			2,371		61		4,553


	December 31, 2022
	Software			Development cost			Membership deposit		Total
Acquisition cost		3,866			3,500			2,371		9,737
Accumulated amortization		(3,162	)		(1,716	)		—		(4,878	)

Net carrying amount		704			1,784			2,371		4,859

- 28 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Details of changes in intangible assets are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Software			Development cost			Membership deposit		Construction in progress			Total
Beginning balance		704			1,784			2,371		—			4,859
Acquisitions		—			—			—		350			350
Amortization		(306	)		(350	)		—		—			(656	)
Transfer		289			—			—		(289	)		—

Ending balance		687			1,434			2,371		61			4,553


	For the six-month period ended June 30, 2022
	Software			Development cost			Membership deposit		Construction in progress			Total
Beginning balance		882			1,918			2,371		—			5,171
Acquisitions		398			—			—		150			548
Amortization		(309	)		(300	)		—		—			(609	)

Ending balance		971			1,618			2,371		150			5,110

13.

OTHER ASSETS

Details of other assets are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Prepaid expenses		231		322

14.

DEBENTURES

Details of debentures are as follows (Unit: Korean Won in millions):


	June 30, 2023					December 31, 2022
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bonds:
General bonds		1.23~4.04		650,000			1.23~3.90		500,000
Subordinated bonds		2.13~2.55		950,000			2.13~2.55		950,000

Sub-total				1,600,000					1,450,000
Deducted item:
Discounts on bonds				(2,283	)				(2,238	)

Total				1,597,717					1,447,762

- 29 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

15.

PROVISIONS

(1)	Details of provisions are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Asset retirement obligation		1,266		487

(2)	Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Beginning balance		487		394
Increase		754		87
Amortization		25		3

Ending balance		1,266		484

16.

NET DEFINED BENEFIT LIABILITY (ASSET)

The Company’s pension plan is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method, which takes into account of projected earnings’ increase, using actuarial assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.

The Company is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:


Volatility of asset		The defined benefit obligation was estimated with an discount rate calculated based on blue chip corporate bonds earnings. A deficit may occur if the rate of return of plan assets falls short of the discount rate.

Decrease in profitability of blue chip bonds		A decrease in profitability of blue chip bonds will be offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation		Defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1)	Details of net defined benefit asset are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Present value of defined benefit obligation		(14,736	)		(18,660	)
Fair value of plan assets		16,698			24,607

Net defined benefit asset		1,962			5,947

- 30 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):


		For the six-month periods ended June 30
		2023			2022
Beginning balance			18,660			20,966
Transfer-in / out			(4,778	)		634
Current service cost			1,854			1,273
Interest cost			484			304
Remeasurements	Financial assumptions		202			(2,886	)
	Experience adjustment		753			713
Retirement benefit paid			(1,519	)		(413	)
Others			(920	)		(184	)

Ending balance			14,736			20,407

(3)	Changes in the plan assets are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Beginning balance		24,607			22,482
Transfer-in / out		(6,207	)		690
Interest income		667			342
Remeasurements		(323	)		(187	)
Retirement benefit paid		(2,046	)		(964	)

Ending balance		16,698			22,363

(4)	The fair value of plan assets as of June 30, 2023 and December 31, 2022 is as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Cash and Deposit		16,698		24,607

Meanwhile, the actual revenue of plan assets for the six-month periods ended June 30, 2023 and 2022 are 344 million Won and 155 million Won, respectively.

(5)	The amount recognized in profit or loss and total comprehensive income related to the defined benefit plan for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Current service cost		1,854			1,273
Net interest income		(182	)		(39	)

Cost recognized in net income		1,672			1,234
Remeasurements (*)		1,278			(1,985	)

Cost recognized in total comprehensive income		2,950			(751	)

(*)	The amount is before income tax expense effect.

- 31 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

17.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Other financial liabilities:
Accounts payable		24,738		20,243
Accrued expenses		15,901		19,912
Lease liabilities		4,840		5,884

Sub-total		45,479		46,039

Other liabilities:
Other miscellaneous liabilities		391		591

Total		45,870		46,630

18.

DERIVATIVES

Derivative assets and derivative assets are as follows (Unit: Korean Won in millions):

June 30, 2023

December 31, 2022

Nominal amount

Assets

Nominal amount

Assets

For trading

Equity Forwards

—

176,720

689

Derivatives assets were terminated by the acquisition of additional shares in Woori Asset Trust as of March 31, 2023 (see Note 6, Note 9).

19.

EQUITY

(1)	Details of equity as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Capital		3,640,303			3,640,303
Hybrid securities		3,411,501			3,112,273
Capital surplus		10,909,281			10,909,281
Other equity
Treasury stock		(23,664	)		(26	)
Accumulated other comprehensive income		(18,275	)		(26,160	)

Sub-Total		(41,939	)		(26,186	)

Retained earnings (1) (2)		5,930,011			5,261,231

Total		23,849,157			22,896,902

(*1)	The regulatory reserve for credit loss in retained earnings amounted to 3,697 million won and 2,356 million won as of June 30, 2023 and December 31, 2022 in accordance with the relevant regulation.

(*2)	The earned surplus reserve in retained earnings amounted to 300,190 million won and 181,860 million won as of June 30, 2023 and December 31, 2022 in accordance with the Article 53 of the Financial Holding Company Act.

(2)	The number of authorized shares and others of the Company are as follows:


	June 30, 2023		December 31, 2022
Shares of common stock authorized		4,000,000,000 Shares		4,000,000,000 Shares
Par value		5,000 Won		5,000 Won
Shares of common stock issued		728,060,549 Shares		728,060,549 Shares
Capital stock		3,640,303 million won		3,640,303 million won

- 32 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	Hybrid securities

The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):


	Issue date		Maturity		Interest rate (%)		June 30, 2023			December 31, 2022
Securities in local currency		2019-07-18		—		3.49		500,000			500,000
Securities in local currency		2019-10-11		—		3.32		500,000			500,000
Securities in local currency		2020-02-06		—		3.34		400,000			400,000
Securities in local currency		2020-06-12		—		3.23		300,000			300,000
Securities in local currency		2020-10-23		—		3.00		200,000			200,000
Securities in local currency		2021-04-08		—		3.15		200,000			200,000
Securities in local currency		2021-10-14		—		3.60		200,000			200,000
Securities in local currency		2022-02-17		—		4.10		300,000			300,000
Securities in local currency		2022-07-28		—		4.99		300,000			300,000
Securities in local currency		2022-10-25		—		5.97		220,000			220,000
Securities in local currency		2023-02-10		—		4.65		300,000			—
Issuance cost								(8,499	)		(7,727	)

Total								3,411,501			3,112,273

The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from the date of issuance.

(4)	Accumulated other comprehensive income

Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):


	For the six-month period ended June 30, 2023
	Beginning balance			Increase (decrease)			Income tax effect			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		(27,364	)		12,042			(3,216	)		(18,538	)
Remeasurement gain (loss) related to defined benefit plan		1,204			(1,278	)		337			263

Total		(26,160	)		10,764			(2,879	)		(18,275	)


	For the six-month period ended June 30, 2022
	Beginning balance			Increase (decrease)			Income tax effect			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		(2,688	)		(19,849	)		5,458			(17,079	)
Remeasurement gain (loss) related to defined benefit plan		(1,160	)		1,986			(546	)		280

Total		(3,848	)		(17,863	)		4,912			(16,799	)

- 33 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(5)	Regulatory Reserve for Credit Loss

In accordance with Article 26 ~ 28 of the Regulations on Supervision of Financial Holding Companies, the Company calculates and discloses the regulatory reserve for credit loss.

1)	Balance of the regulatory reserve for credit loss

Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):


	June 30, 2023			December 31, 2022
Beginning balance		3,697			2,356
Planned provision (reversal) of regulatory reserve for credit loss		(3,196	)		1,341

Ending balance		501			3,697

2)	Provision of regulatory reserve for credit loss, adjusted net income after the provision of regulatory reserve and others


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Net income (loss) before regulatory reserve		(10,950	)		1,445,429			(19,142	)		1,214,248
Provision (reversal) of regulatory reserve for credit loss		(3,485	)		(3,196	)		(1,067	)		368
Adjusted net income after the provision of regulatory reserve		(7,465	)		1,448,625			(18,075	)		1,213,880
Dividends to hybrid securities		(32,738	)		(63,152	)		(22,225	)		(41,375	)
Adjusted net income after regulatory reserve and dividends to hybrid securities		(40,203	)		1,385,473			(40,300	)		1,172,505
Adjusted EPS (Loss Per Share) after regulatory reserve and dividends to hybrid securities (Unit: Korean Won)		(55	)		1,903			(55	)		1,610

(6) Details of changes in treasury stock are as follows (Unit: Korean Won in millions, number of shares):


	For the six-month period ended June 30, 2023
	Beginning balance		Acquisition		Retirement		Ending balance
Number of shares		2,324		1,981,565		—		1,983,889
Book value		26		23,638		—		23,664

	For the six-month period ended June 30, 2022
	Beginning balance		Acquisition		Retirement		Ending balance
Number of shares		2,324		—		—		2,324
Book value		26		—		—		26

20.

DIVIDENDS

(1)	Dividends per share and the total dividends for the fiscal year ending December 31, 2022 were 980 Won and 713,497 million Won, respectively, approved at the regular general shareholders’ meeting held on March 24, 2023, and were paid in April, 2023.

(2)	On July 21, 2023, the Board of Directors has declared an quarterly dividend of 180 Won per share (130,748 million Won in total) and fixed record date as June 30, 2023.

- 34 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

21.

NET INTEREST INCOME

(1)	Interest income recognized is as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Interest on due from banks		18,336		32,023		4,799		6,565
Other interest income		26		45		7		13

Total		18,362		32,068		4,806		6,578

(2)	Details of interest expense recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Interest on debentures		8,279		16,234		7,327		14,499
Other interest expense		13		25		1		3
Interest on lease liabilities		60		117		10		19

Total		8,352		16,376		7,338		14,521

- 35 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

22.

NET FEES AND COMMISSIONS INCOME

(1)	Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):

Periods ended June 30, 2023

Periods ended June 30, 2022

Three-month

Six-month

Three-month

Six-month

Fees and commissions income

399

798

327

653

(2)	Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Fees and commissions paid		3,434		4,701		1,998		2,736
Others		2,383		4,852		1,987		4,232

Total		5,817		9,553		3,985		6,968

23.

DIVIDEND INCOME

Details of dividend income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Dividend income recognized from investments in subsidiaries		—		1,465,825		—		1,259,426
Dividend income recognized from FVTOCI		3,578		7,044		3,520		4,810

Total		3,578		1,472,869		3,520		1,264,236

24.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL

(1)	Details of gain or loss related to net gain or loss on financial instruments at FVTPL are as follows (Unit: Korean Won in millions):

Periods ended June 30, 2023

Periods ended June 30, 2022

Three-month

Six-month

Three-month

Six-month

Gains and losses on financial instruments at FVTPL mandatorily measured at fair value

—

2,023

—

(2)	Details of net gain or loss on financial instrument at FVTPL are as follows (Unit: Korean Won in millions):

Periods ended
June 30, 2023

Periods ended
June 30, 2022

Derivatives (Held for trading)

Equity derivatives

Gain on transactions and valuation

2,023

—

25.

REVERSAL (PROVISION) FOR IMPAIRMENT LOSSES DUE TO CREDIT LOSS

Details of reversal (provision) for impairment losses due to credit loss recognized are as follows (Unit: Korean Won in millions):

- 36 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month		Six-month
Reversal (Provision) of impairment loss due to credit loss on loans and other financial assets at amortized cost		(937	)		(978	)		196		(77	)

26.

GENERAL AND ADMINISTRATIVE EXPENSES

(1)	Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):


			Periods ended June 30, 2023				Periods ended June 30, 2022
			Three-month		Six-month		Three-month			Six-month
Employee benefits	Short-term	Salaries		7,665		14,907		7,420			14,816
	Employee benefits	Employee fringe benefits		3,951		6,654		3,190			6,109
	Retirement benefit service costs			764		1,672		557			1,234
	Share based payments			693		523		(100	)		1,281

	Sub-total			13,073		23,756		11,067			23,440

Depreciation and amortization				1,847		3,631		1,616			3,108
Other general and administrative expenses	Rent			433		885		406			787
	Taxes and public dues			133		339		68			262
	Service charges			1,097		1,752		627			1,512
	Computer and IT related			1,557		3,155		1,467			2,941
	Telephone and communication			126		246		90			196
	Operating promotion			194		620		309			608
	Advertising			14		39		30			75
	Printing			23		38		16			30
	Traveling			38		111		75			96
	Supplies			39		73		39			85
	Insurance premium			50		100		48			96
	Reimbursement			396		659		253			538
	Vehicle maintenance			55		110		72			133
	Others			7		13		6			12

	Sub-total			4,162		8,140		3,506			7,371

	Total			19,082		35,527		16,189			33,919

- 37 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Share-based payment

Details of performance condition share-based payment granted to executives as of June 30, 2023 and December 31, 2022 are as follows.

Performance condition share-based payment


Subject to		Shares granted for the year 2020
Type of payment		Cash-settled
Vesting period		January 1, 2020 ~ December 31, 2023
Date of payment		2024-01-01
Fair value (*1)		11,517 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		0.50 years
Number of shares remaining	As of June 30, 2023	189,270 shares
	As of December 31, 2022	189,270 shares
Number of shares granted (*2)	As of June 30, 2023	189,270 shares
	As of December 31, 2022	189,270 shares

Subject to		Shares granted for the year 2021
Type of payment		Cash-settled
Vesting period		January 1, 2021 ~ December 31, 2024
Date of payment		2025-01-01
Fair value (*1)		10,819 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		1.50 years
Number of shares remaining	As of June 30, 2023	239,798 shares
	As of December 31, 2022	239,798 shares
Number of shares granted (*2)	As of June 30, 2023	239,798 shares
	As of December 31, 2022	239,798 shares

Subject to		Shares granted for the year 2022
Type of payment		Cash-settled
Vesting period		January 1, 2022 ~ December 31, 2025
Date of payment		2026-01-01
Fair value (*1)		10,164 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		2.50 years
Number of shares remaining	As of June 30, 2023	223,176 shares
	As of December 31, 2022	223,176 shares
Number of shares granted (*2)	As of June 30, 2023	223,176 shares
	As of December 31, 2022	223,176 shares

Subject to		Shares granted for the year 2023
Type of payment		Cash-settled
Vesting period		January 1, 2023 ~ December 31, 2026
Date of payment		2027-01-01
Fair value (*1)		9,548 Won
Valuation method		Black-Scholes Model
Expected dividend rate		6.25%
Expected maturity date		3.50 years
Number of shares remaining	As of June 30, 2023	73,889 shares
	As of December 31, 2022	—
Number of shares granted (*2)	As of June 30, 2023	73,889 shares
	As of December 31, 2022	—

- 38 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(*1)

As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value is calculated and used to measure the liability according to the Black Shawls model based on the base price at the time of each settlement.

(*2)

The number of payable stocks is granted at the initial contract date and the payment rate is determined based on the achievement of the pre-determined performance targets. Performance is evaluated as long-term performance indication including relative shareholder return, net income, return on equity (ROE), non-performing loan ratio and job performance.

The Company accounts for performance condition share-based payments according to the cash-settled method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every closing period. As of June 30, 2023 and December 31, 2022 the book value of the liabilities related to the performance condition share-based payments recognized by the Company is 7,748 million Won and 8,266 million Won.

27.

NON-OPERATING INCOME (EXPENSES)

(1)	Details of non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Other non-operating income		50			51			56			61
Other non-operating expense		(32	)		(42	)		(190	)		(191	)

Total		18			9			(134	)		(130	)

(2)	Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Lease change cancellation income		4		4		—		—
Others		46		47		56		61

Total		50		51		56		61

(3)	Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):


	Periods ended June 30, 2023				Periods ended June 30, 2022
	Three-month		Six-month		Three-month		Six-month
Donations		30		40		190		190
Lease change cancellation loss		2		2		—		1

Total		32		42		190		191

- 39 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

28.

INCOME TAX EXPENSE (INCOME)

Details of income tax expense (income) are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023			2022
Current tax expense
Current tax expense with respect to the current period		—			—

Deferred tax expense (income)
Change in deferred tax assets (liabilities) due to temporary differences		2,783			(3,308	)
Tax expense (income) directly attributable to equity		(2,879	)		4,912

Sub-total		(96	)		1,604

Income tax expense (income)		(96	)		1,604

- 40 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

29.

EARNINGS PER SHARE (“EPS”)

(1)	Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of shares):


	Periods ended June 30, 2023						Periods ended June 30, 2022
	Three-month			Six-month			Three-month			Six-month
Net profit (loss) attributable to Owners		(10,950	)		1,445,429			(19,142	)		1,214,248
Dividends to hybrid securities		(32,738	)		(63,152	)		(22,225	)		(41,375	)
Net income attributable to common shareholders		(43,688	)		1,382,277			(41,367	)		1,172,873
Weighted average number of common shares outstanding (Unit: million shares)		728			728			728			728
Basic EPS (Loss Per Share) (Unit: Korean Won)		(60	)		1,899			(57	)		1,611

(2)	The weighted average number of common shares outstanding is as follows (Unit: number of shares, days):


	For the six-month period ended June 30, 2023
	Number of shares			Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		728,060,549			131,778,959,369
Treasury stock		(2,324	)		(420,644	)
Acquisition of treasury stock		(1,981,565	)		(28,658,738	)

Sub-total (①)					131,749,879,987

Weighted average number of common shares outstanding (②=(①/181)					727,899,889


	For the six-month period ended June 30, 2022
	Number of shares			Accumulated number of shares outstanding during period
Common shares issued at the beginning of the period		728,060,549			131,778,959,369
Treasury stock		(2,324	)		(420,644	)

Sub-total (①)					131,778,538,725

Weighted average number of common shares outstanding (②=(①/181)					728,058,225

Diluted EPS is equal to basic EPS because there is no dilution effect for the six-month periods ended June 30, 2023 and 2022.

- 41 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

30.

CONTINGENT LIABILITIES AND COMMITMENTS

(1)	Litigation case

As of June 30, 2023 and December 31, 2022, the Company has no litigation case in progress.

(2)	Details of loan commitments with financial institutions are as follows (Unit: Korean Won in millions):


		June 30, 2023				December 31, 2022
	Financial institutions	Line of credit		Loan balance		Line of credit		Loan balance
Loans	Standard Chartered Bank Korea Ltd.		100,000		—		100,000		—

	Total		100,000		—		100,000		—

- 42 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

31.

RELATED PARTY TRANSACTIONS

Related parties of the Company as of June 30, 2023 and December 31, 2022, and assets and liabilities recognized, guarantees and commitments, major transactions with related parties and compensation to key management for the six-month periods ended June 30, 2023 and 2022 are as follows:

(1)	Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):


Related parties	Title of account	June 30, 2023			December 31, 2022
Subsidiaries
Woori Bank	Cash and cash equivalents		175,318			313,361
	Other financial assets		2,109,175			1,945,807
	Allowance for credit losses		(1,142	)		(315	)
	Other financial liabilities		23,462			21,242
Woori Card Co., Ltd.	Other financial assets		25,275			46,920
	Other financial liabilities		79			281
Woori Financial Capital Co., Ltd.	Other financial assets		18,300			46,487
	Other financial liabilities		286			—
Woori Investment Bank Co., Ltd.	Other financial assets		1			—
Woori Savings Bank	Other financial assets		—			389
	Other financial liabilities		537			—
Woori Financial F&I Co., Ltd.	Other financial liabilities		581			564
Woori Global Asset Management Co., Ltd	Other financial assets		—			101
Woori Private Equity Asset Management Co. Ltd	Other financial assets		10			—
	Other financial liabilities		—			127
Woori Credit Information Co., Ltd.	Other financial assets		504			535
	Other financial liabilities		—			1
Woori Fund Service Co., Ltd.	Other financial assets		541			834
	Other financial liabilities		—			1
Woori FIS Co., Ltd.	Other financial assets		1			1,054
	Other financial liabilities		489			480
Woori Finance Research Institute Co., Ltd.	Other financial assets		81			66
	Other financial liabilities		—			2,160
Associates of subsidiaries
W Service Networks Co., Ltd.	Other financial liabilities		59			90

- 43 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(2)	Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):


		For the six-month periods ended June 30
Related party	Title of account	2023		2022
Subsidiaries
Woori Bank	Interest income		31,521		6,578
	Fees and commissions income		798		653
	Dividend income		1,372,572		1,175,672
	Interest expenses (*)		107		12
	Fees and commissions expense		10		8
	Provision of impairment loss due to credit loss		827		77
	General and administrative expenses (*)		2,358		2,008
Woori Card Co., Ltd.	Dividend income		43,432		42,736
Woori Financial Capital Co., Ltd.	Dividend income		41,190		30,414
Woori Investment Bank Co., Ltd.	Dividend income		11,803		10,263
Woori Asset Trust Co., Ltd	Dividend income		780		780
Woori Savings Bank	Dividend income		1,383		2,803
Woori Credit Information Co., Ltd.	Dividend income		535		469
Woori Fund Service Co., Ltd.	Dividend income		1,174		1,100
Woori FIS Co., Ltd.	General and administrative expenses		2,869		2,669
Woori Finance Research Institute Co., Ltd.	Fees and commissions expenses		3,400		3,200
Associates of subsidiaries
W Service Networks Co., Ltd.	General and administrative expenses		458		545

(*)	The depreciation of right-of-use assets and interest expense of lease liabilities arising from lease transactions during the current period and prior period are included.

- 44 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(3)	The details of the right-of-use assets and lease liabilities due to lease transactions with related parties as of June 30, 2023 and December 31, 2022 are as follows (Unit: Korea Won in millions):


Related parties		Title of account	June 30, 2023		December 31, 2022
Subsidiary	Woori Bank	Right-of-use assets		4,662		5,462
		Lease liabilities (*)		4,053		5,325
	Woori Financial Capital Co., Ltd.	Right-of-use assets		277		—
		Lease liabilities (*)		286		—

(*)	Cash outflows of lease liabilities redemption for the six-month periods ended June 30, 2023 and 2022 are 1,397 million Won and 1,307 million Won.

(4)	The details of loan and borrowing transactions with related parties for the six-month periods ended June 30, 2023 and 2022 are as follows (Unit: Korea Won in millions):

Title of account

For the six-month periods ended June 30, 2023

Related parties

Beginning
balance

Increase

Decrease

Ending
balance

Subsidiary

Woori Bank

Deposit (*)

1,595,000

3,230,000

2,620,000

2,205,000

(*)	Excludes due from banks without withdrawal limitations.

Title of account

For the six-month periods ended June 30, 2022

Related parties

Beginning
balance

Increase

Decrease

Ending
balance

Subsidiary

Woori Bank

Deposit (*)

520,000

1,825,000

1,055,000

1,290,000

(*)	Excludes due from banks without withdrawal limitations.

- 45 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

(5)	The details of equity-related transactions with related parties are as follows (Unit: Korean Won in million)

(*1)	During the current period, the Company additionally acquired 28.1% (excluding treasury stocks) interests of Woori Asset Trust Co Ltd on March 31, 2023. In the case of including treasury stocks, the share ratio was 21.3%

(*2)

During the current period, the Company additionally acquired 53.9% (excluding treasury stocks) interests of Woori Venture Partners Co., Ltd., which was included in subsidiaries. In the case of including treasury stocks, the share ratio was 52.0%). Afterward, the Company additionally acquired treasury stocks held by Woori Venture Partners Co., Ltd. (3.5% interests) in May.


		For the six-month period ended June 30, 2022
Related parties		Investment (*)		Acquisition of hybrid securities
Subsidiary	Woori Financial F&I Co., Ltd.		200,000		—
Subsidiary	Woori Financial Capital Co., Ltd.		—		200,000
Subsidiary	Woori Private Equity Asset Management Co. Ltd.		50,000		—

(*)	During the prior period, Woori Financial F&I Co., Ltd. was established (100% share ratio, 200 billion won in stock payments) and included as a subsidiary.

(6)	There are no guarantees provided to the related parties. The unused commitments provided from the related parties are as follows (Unit: Korean Won in millions):

Related parties

June 30, 2023

December 31, 2022

Warranty

Subsidiary

Woori Card Co., Ltd.

788

741

Unused loan commitment

(7)	Compensation for key management is as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Short-term employee salaries		2,722		3,486
Retirement benefit service costs		83		103
Share-based compensation		453		1,116

Total		3,258		4,705

Key management includes registered executives and non-registered executives. The Company has not recognized any outstanding assets, allowance and related impairment loss due to credit losses from transaction with key management as of June 30, 2023 and December 31, 2022. Liabilities related to key management compensation are 8,042 million Won and 10,272 million Won as of as of June 30, 2023 and December 31, 2022, respectively.

- 46 -

WOORI FINANCIAL GROUP INC.

NOTES TO SEPARATE INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2023 AND 2022 (UNAUDITED)

32.

LEASES

(1)	The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):


	June 30, 2023		December 31, 2022
Lease payments:
Within one year		3,160		3,098
After one year but within five years		1,874		3,070

Total		5,034		6,168

(2)	Total cash outflows from lease are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Cash outflows from lease		1,684		1,595

(3)	Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):


	For the six-month periods ended June 30
	2023		2022
Lease payments for which the underlying short-term lease payments		20		10
asset is of low value		75		76

33.

EVENTS AFTER THE REPORTING PERIOD

(1)

The Company has entered into a stock exchange agreement with Woori Investment Bank Co., Ltd., a subsidiary, on June 1, 2023, in which the Company provide 0.0624346 common stock of Woori Financial Group Inc. for 1 common stock of Woori Investment Bank Co., Ltd. to shareholders of Woori Investment Bank Co., Ltd. excluding the Company on August 8, 2023. On July 21, 2023, the Board of Directors and the general meeting of Woori Investment Bank Co., Ltd., in lieu of the Company’s shareholders’ meeting, approved a comprehensive stock exchange. In this regard, the new shares to be issued by the Company are planned to be listed on August 28, 2023.

(2)

The Company has entered into a stock exchange agreement with Woori Venture Partners Co., Ltd., a subsidiary, on June 1, 2023, in which the Company provide 0.2234440 common stock of Woori Financial Group Inc. for 1 common stock of Woori Venture Partners Co., Ltd. to shareholders of Woori Venture Partners Co., Ltd. excluding the Company on August 8, 2023. On July 21, 2023, the Board of Directors and the general meeting of Woori Venture Partners Co., Ltd., in lieu of the Company’s shareholders’ meeting, approved a comprehensive stock exchange. In this regard, the new shares to be issued by the Company are planned to be listed on August 28, 2023.

(3)	On July 21, 2023, in accordance with a resolution of the Board of Directors, the Group declared the quarterly dividend of 180 Won per share (total dividend of 130,784 million Won) with June 30, 2023 as base date.

- 47 -


January 11, 2019		Establishment of the Company pursuant to a comprehensive stock transfer, by which Woori Bank, Woori FIS, Woori Finance Research Institute, Woori Credit Information, Woori Fund Services and Woori Private Equity Asset Management became wholly-owned subsidiaries of the Company.

February 13, 2019		Listed on the Korea Exchange (KRX).

April 5, 2019		Entered into share purchase agreements to acquire Tongyang Asset Management Corp. and ABL Global Asset Management Co., Ltd.

June 21, 2019		Entered into a purchase agreement with Woori Bank to acquire the common shares of Woori Investment Bank Co., Ltd. (“Woori Investment Bank”) and integrate Woori Investment Bank as a first-tier subsidiary of the Company (Buyer: Woori Financial Group, Seller: Woori Bank)

July 3, 2019		Entered into a stock exchange agreement between the Company and Woori Card Co., Ltd (“Woori Card”) to integrate Woori Card as a first-tier subsidiary of the Company

July 25, 2019		Entered into a share purchase agreement to acquire Kukje Asset Trust, Ltd.

August 1, 2019		Integrated Woori Asset Management Corp. (formerly known as Tongyang Asset Management Co., Ltd.) as a first-tier subsidiary of the Company.

September 10, 2019		Integrated Woori Card and Woori Investment Bank as first-tier subsidiaries of the Company.

September 26, 2019		Disposed 4% of common shares of the Company held by Woori Bank to a Taiwanese company, Fubon Life Insurance Co., Ltd.

December 6, 2019		Integrated Woori Global Asset Management Corp. as a first-tier subsidiary of the Company

December 30, 2019		Integrated Woori Asset Trust Ltd. as a first-tier subsidiary of the Company

March 25, 2020		Held the first annual general meeting of shareholders of Woori Financial Group; reappointed the Chief Executive Officer


October 26, 2020		Entered into a share purchase agreement to acquire Aju Capital Co., Ltd.

December 10, 2020		Integrated Woori Financial Capital Co., Ltd., (formerly known as Aju Capital Co., Ltd.) as a first-tier subsidiary of the Company

		Integrated Woori Savings Bank(formerly known as Aju Savings Bank) as a second-tier subsidiary of the Company

January 15, 2021		Joined the Carbon Disclosure Project (CDP), announced support for the Task force on Climate related Financial Disclosure (TCFD) and established the ESG management principles of Woori Financial Group

March 5, 2021		Established the Board ESG Management Committee

March 12, 2021		Integrated Woori Savings Bank as a first-tier subsidiary of the Company

April 9, 2021		Disposal by the Korea Deposit Insurance Corporation of a 2% stake in Woori Financial Group

April 15, 2021		Acquired an additional 12.9% equity interest in Woori Financial Capital Co., Ltd.

May 13, 2021		Participated in the capital increase of Woori Savings Bank (KRW 100 billion)

May 24, 2021		Purchased 3.6% of the treasury stock of Woori Financial Capital Co.

June 4, 2021		Entered into a stock exchange agreement to acquire the remaining shares of Woori Financial Capital Co., Ltd.

August 10, 2021		Integrated Woori Financial Capital Co., Ltd., as a wholly-owned subsidiary of the Company (completion of stock exchange)

September 9, 2021		Announcement by the Korea Deposit Insurance Corporation of the contemplated sale of its remaining stakes in Woori Financial Group

October 8, 2021		Joined the Science Based Targets initiative (SBTi) as part of the roadmap for achieving carbon neutrality

November 2, 2021		Obtained regulatory approval for using the Internal Rating Based (IRB) approach

November 9, 2021		Obtained an ‘AA’ rating from MSCI’s ESG assessment (2 grades higher than the previous year) and an ‘A’ rating from KCGS (Korea Corporate Governance Service) (1 grade higher than the previous year)



November 17, 2021		Newly admitted into the Asia Pacific Index of DJSI(Dow Jones Sustainability Indices)

December 9, 2021		Achieved practically full privatization through the decrease of the KDIC’S stake in us from 15.1% to 5.8%, changing the largest shareholder from the KDIC to the Employee Stock Ownership Association of Woori Financial Group

December 26, 2021		Launched the Group integrated car finance platform “Woori WON Car”

January 7, 2022		Officially launched the NPL investment company Woori Financial F&I Inc.

January 13, 2022		Joined the global environment initiative Taskforce on Nature-related Financial Disclosures (TNFD)

February 4, 2022		Recognized as an ‘Industry Mover’ in a sustainability assessment by S&P Global for 2022

February 10, 2022		Disposal by the Korea Deposit Insurance Corporation of a 2.2% stake in Woori Financial Group (reducing the KDIC’s stake in Woori Financial Group from 5.8% to 3.6%)

May 11, 2022		Became the first company in the world to join the launch of the ‘Business for Land (B4L) Initiative’ for the protection of sustainable forests and the recovery of land degradation

May 18, 2022		Disposal by the Korea Deposit Insurance Corporation of a 2.3% stake in Woori Financial Group (reducing the KDIC’s stake in Woori Financial Group from 3.6% to 1.3%)

June 19, 2022		Held the inaugural meeting of Woori Financial Future Foundation

August 22, 2022		Joined the ‘Partnership for Biodiversity Accounting Financials(PBAF)’ as the first Asian company

November 7, 2022		Held the global conference ‘Sustainable Finance for a Better World’

December 14, 2022		Signatory of Statement from the Financial Sector at the Conference of the Parties to the ‘UN Convention on Biological Diversity(UN CBD)’


December 29, 2022		Received ‘AA’ rating from MSCI ESG Research for 2 consecutive years

January 16, 2023		Completed the establishment of the ‘WON Synergy’ system to create effective synergy within group companies

January 26, 2023		Became the first financial company in Korea to join the ‘Finance Leadership Group on Plastics’ hosted by ‘UN Environment Programme Finance Initiative (UNEP FI)’

February 27, 2023		Entered into a stock purchase agreement to acquire 52% equity interest in DAOL Investment

March 23, 2023		Integrated Woori Venture Partners Co., Ltd., (formerly known as DAOL Investment) as a first-tier subsidiary of the Company

March 24, 2023		Appointed Jong-Yong Yim as the Chief Executive Officer of Woori Financial Group (at the fourth annual general meeting of shareholders)

April 21, 2023		Obtained the resolution of the board of directors for the acquisition and cancellation of treasury shares for the first time since the establishment of Woori Financial Group

June 1, 2023		Entered into comprehensive stock exchange agreements with Woori Investment Bank Co., Ltd. and Woori Venture Partners Co., Ltd. respectively


As of June 30, 2023					(unit: shares)
Items	Type				Notes
Items	Common Shares		Total		Notes
Number of authorized shares		4,000,000,000		4,000,000,000		—
Number of issued shares		728,060,549		728,060,549		—
Number of treasury shares		1,683,889		1,683,889		Note 1	)
Number of outstanding shares		726,376,660		726,376,660		—

For the six-month period ended June 30, 2023

Related parties

Acquisition of interests

Subsidiary

Woori Asset Trust Co Ltd (*1)

Subsidiary

Woori Venture Partners Co., Ltd. (*2)


1.		Summary of 2023 1H Business Report

2.		Exhibit 99.1 Woori Financial Group Review Report for 2023 1H (Consolidated)

3.		Exhibit 99.2 Woori Financial Group Review Report for 2023 1H (Separate)


I.	INTRODUCTION OF THE COMPANY		5

	1.	Overview of the Company	5

	2.	Capital Structure (Changes in Capital)	11

	3.	Total Number of Authorized Shares	12

II.	BUSINESS OVERVIEW		13

	1.	Results of Operations	13

	2.	Funding Sources and Uses of Funds	13

	3.	Other Information Necessary for Making Investment Decisions	14

III.	FINANCIAL INFORMATION		18

	1.	Condensed Financial Statements (Consolidated)	18

	2.	Condensed Financial Statements (Separate)	20

	3.	Dividend Information	22

IV.	INDEPENDENT AUDITOR’S OPINION		23

	1.	Independent Auditor’s Opinion	23

	2.	Compensation to the Independent Auditor	23

V.	CORPORATE GOVERNANCE		25

	1.	About the Board of Directors	25

	2.	Shareholder’s Meeting	27

VI.	SHAREHOLDER INFORMATION		29

	1.	Share Distribution	29

	2.	Stock Price and Stock Market Performance	30

VII.	DIRECTORS AND EMPLOYEE INFORMATION		32

	1.	Directors and Executives	32

	2.	Employee Status	32

	3.	Directors’ Compensation	33


Type		Name of Company
Listed company (5 companies)		Woori Financial Group Inc.
		Woori Investment Bank Co., Ltd.
		Woori Venture Partners Co., Ltd.
		PT Bank Woori Saudara Indonesia 1906 Tbk
		PT Woori Finance Indonesia Tbk
Unlisted company (31 companies)		Woori Bank
		Woori Card Co., Ltd.
		Woori Financial Capital Co., Ltd.
		Woori Asset Trust Co., Ltd.
		Woori Savings Bank
		Woori Asset Management Corp.
		Woori Financial F&I Inc.
		Woori Credit Information Co., Ltd.
		Woori Fund Services Co., Ltd.
		Woori Private Equity Asset Management Co., Ltd.
		Woori Global Asset Management Co., Ltd.
		Woori FIS Co., Ltd.
		Woori Finance Research Institute Co., Ltd.
		Korea BTL Infrastructure Fund
		Woori America Bank
		Woori Bank China Limited
		AO Woori Bank
		Banco Woori Bank do Brazil S.A.
		Woori Global Markets Asia Limited
		Woori Bank Vietnam Limited
		Wealth Development Bank
		Woori Finance Myanmar Co., Ltd
		Woori Bank (Cambodia) PLC.
		Woori Bank Europe Gmbh
		Tutu Finance-WCI Myanmar Co., Ltd
		Woori Venture Partners America
		KTB NHN China Private Equity Fund
		KTB NGI Private Equity Fund
		Arden Woori Apparel 1^st Private Equity Fund
		Woori-Dino No.1 PEF
		Green ESG Growth No.1 Private Equity Fund


		(units: Won, shares)
Date	Item	Type
Date	Item	Common Shares		Preferred Shares		Others
June 30, 2023	Number of issued shares		728,060,549		—		—
	Par Value		5,000		—		—
	Capital Stock		3,640,302,745,000		—		—
December 31, 2022	Number of issued shares		728,060,549
	Par Value		5,000
	Capital Stock		3,640,302,745,000
December 31, 2021	Number of issued shares		728,060,549		—		—
	Par Value		5,000		—		—
	Capital Stock		3,640,302,745,000		—		—
December 31, 2020	Number of issued shares		722,267,683		—		—
	Par Value		5,000		—		—
	Capital Stock		3,611,338,415,000		—		—
December 31, 2019	Number of issued shares		722,267,683		—		—
	Par Value		5,000		—		—
	Capital Stock		3,611,338,415,000		—		—


	(unit: billions of Won)
Type	2023 1H		2022		2021
Operating income		2,147		4,431		3,660
Non-operating income		1		55		89
Income from continuing operations before income tax		2,149		4,485		3,749
Income tax expense from continuing operations		535		1,161		942
Net income		1,614		3,324		2,807
Controlling Interest		1,539		3,142		2,588
Non-controlling Interest		75		182		219


For the periods indicated other than as noted below														(units: millions of Won, %)
Classification	Funding Source	2023 1H						2022						2021
Classification	Funding Source	Average Balance		Interest Rate		Proportion		Average Balance		Interest Rate		Proportion		Average Balance		Interest Rate		Proportion
Source	Deposits		319,708,654		2.72		68.57		313,019,768		1.45		68.21		291,653,291		0.79		70.88
	Borrowings		27,558,670		3.85		5.91		27,296,742		1.99		5.95		21,628,379		0.98		5.26
	Debentures		43,006,243		3.29		9.22		45,945,392		2.26		10.01		40,901,547		1.78		9.94
	Others		43,702,619		—		9.37		42,537,152		—		9.27		29,470,312		—		7.15
	Total Liabilities		433,976,186		—		93.07		428,799,054		—		93.44		383,653,529		—		93.23
Total Equity			32,307,405		—		6.93		30,082,662		—		6.56		27,845,863		—		6.77
Total Liabilities & Equity			466,283,591		—		100.00		458,881,716		—		100.00		411,499,392		—		100.00


As of the end of the period indicated	(units: billions of Won, %)
Type	2023 1H		2022		2021
Equity capital (A)		33,400		31,404		28,980
Risk weighted assets (B)		212,333		205,307		192,503
BIS(Capital adequacy) ratio (A/B)		15.73		15.30		15.05


As of the end of the periods indicated					(units: millions of Won, %)
Name of Company	Type		2023 1H		2022		2021
Woori Bank Note 2)	BIS ratio Note 1)	Equity capital (A)		28,133,776		26,119,135		25,473,034
		Risk weighted assets (B)		171,292,048		167,432,214		157,275,764
		Capital adequacy ratio (A/B)		16.42		15.60		16.20
Woori Card Note 3)	Adjusted capital ratio			15.88		16.54		17.73
Woori Card Note 3)	Tangible common equity ratio			11.66		11.28		11.84
Woori Financial Capital Note 3)	Adjusted capital ratio			14.42		13.78		13.38
Woori Financial Capital Note 3)	Tangible common equity ratio			12.77		12.24		11.70
Woori Investment Bank Note 4)	BIS ratio Note 1)	Equity capital (A)		678,992		674,082		576,693
		Risk weighted assets (B)		4,339,985		4,448,524		4,037,822
		Capital adequacy ratio (A/B)		15.65		15.15		14.28
Woori Asset Trust Note 5)	Operating capital ratio			1,287.35		1,189.77		1,078.93
Woori Asset Management Note 3)	Minimum operating capital ratio			720.76		681.18		721.87
Woori Venture Partners Note 6)	Tangible common equity ratio			90.42		90.92		88.57
Woori Savings Bank Note 7)	BIS Capital adequacy ratio Note 1)			17.43		18.06		21.47
Woori Private Equity Asset Management Note 3)	Minimum operating capital ratio			8,760.87		8,937.76		3,967.99


						(unit: %)
Name of Company	Type	2023 1H Note 1)		2022 Note 1)		2021 Note 2)
Woori Bank	Liquidity coverage ratio Note 3)		100.78		102.40		89.95
	Foreign currency liquidity coverage ratio Note 3)		125.83		143.11		107.40
	Ratio of business purpose premises and equipment		10.23		11.04		11.46


																	(units: %)
Type	2023 1H						2022						2021
Type	Substandard and below ratio		NPL ratio		Substandard and below coverage ratio		Substandard and below ratio		NPL ratio		Substandard and below coverage ratio		Substandard and below ratio		NPL ratio		Substandard and below coverage ratio
Woori Bank		0.24		0.21		229.12		0.19		0.16		263.43		0.20		0.18		205.50
Woori Card		0.89		—		104.97		0.80		—		104.92		0.41		—		103.21
Woori Financial Capital		2.11		—		141.78		1.22		—		198.56		1.20		—		196.70
Woori Investment Bank		1.58		1.58		107.67		0.63		0.58		151.81		0.57		0.55		120.05
Woori Asset Trust		23.90		—		—		32.23		—		—		56.61		—		—
Woori Savings Bank		2.76		—		117.70		3.22		—		97.54		2.32		—		117.37


For the periods indicated other than as noted below									(units: millions of Won, %)
Type	Managed Item	2023 1H							2022							2021
Type	Managed Item	Average Balance		Interest Rate		Proportion			Average Balance		Interest Rate		Proportion			Average Balance		Interest Rate		Proportion
Use	Cash & Due from Banks		17,436,390		3.07		3.74			16,097,533		1.52		3.51			13,809,362		0.34		3.36
	Marketable securities		74,041,817		3.21		15.88			68,661,882		1.50		14.96			58,416,310		1.67		14.20
	Loans		328,310,744		5.05		70.41			326,710,683		3.73		71.20			301,849,585		2.79		73.35
	Loans in local currency		282,487,154		4.82		60.59			280,414,033		3.53		61.12			262,010,967		2.59		63.67
	Loans in foreign currency		30,719,500		6.47		6.59			30,916,107		4.54		6.74			25,104,084		3.58		6.10
	Guarantee payments		18,763		2.06		0.00			21,260		2.67		0.00			28,000		2.46		0.01
	Credit card receivables		10,547,115		7.04		2.26			10,026,037		7.24		2.18			9,196,190		7.42		2.23
	Foreign bills bought		4,538,212		5.26		0.97			5,333,246		2.58		1.16			5,510,344		0.85		1.34
	Bad debt expense (Δ)		2,464,155		—		(0.53	)		2,128,867		—		(0.46	)		1,878,781		—		(0.46	)
	Others		48,958,795		—		10.50			49,540,485		—		10.79			39,302,916		—		9.55
Total Assets			466,283,591		—		100.00			458,881,716		—		100.00			411,499,392		—		100.00


Type	2023 1H						2022				2021
Type	ROA			ROE			ROA		ROE		ROA		ROE
Woori Financial Group
Including non-controlling interests		0.67			10.92			0.70		12.21		0.66		11.48
Excluding non-controlling interests		0.64			10.41			0.66		11.54		0.61		10.58
Woori Bank		0.67			11.61			0.66		11.71		0.60		9.92
Woori Card		1.42			9.29			1.14		7.28		1.10		6.36
Woori Financial Capital		1.03			8.36			1.51		12.53		1.69		15.74
Woori Investment Bank		1.27			9.94			1.74		14.47		1.59		12.89
Woori Asset Trust		23.52			31.30			20.86		29.74		18.64		27.05
Woori Savings Bank Note 3)		(1.19	)		(9.07	)		0.41		3.05		1.06		7.95
Woori Asset Management		6.26			6.65			0.75		0.80		6.82		7.11
Woori Venture Partners		4.96			5.44			4.06		4.51		27.83		32.93
Woori Private Equity Asset Management		1.56			1.63			2.60		2.75		5.46		5.96


(The Company and its Consolidated Subsidiaries, as of the end of the periods indicated)				(unit: millions of Won)
Classification	2023 1H			2022			2021
ASSETS
Cash and cash equivalents		21,690,361			34,219,148			20,613,073
Financial assets at fair value through profit or loss (“FVTPL”)		21,408,298			19,860,573			13,497,234
Financial assets at fair value through other comprehensive income		34,904,105			33,085,080			39,119,789
Securities at amortized cost		25,949,620			28,268,516			17,086,274
Loans and other financial assets at amortized cost		369,016,226			355,760,729			348,885,617
Investments in joint ventures and associates		1,621,670			1,305,636			1,335,167
Investment properties		474,333			387,707			389,495
Premises and equipment		3,133,215			3,142,930			3,174,720
Intangible assets and goodwill		989,476			849,114			785,386
Assets held for sale		17,796			13,772			26,327
Net defined benefit asset		302,581			319,280			21,346
Current tax assets		42,965			53,274			22,598
Deferred tax assets		75,794			109,299			31,131
Derivative assets (designated for hedging)		70,980			37,786			106,764
Other assets		3,214,199			3,061,552			2,088,950

Total assets		482,911,619			480,474,396			447,183,871

LIABILITIES
Financial liabilities at FVTPL		8,533,801			8,952,399			4,873,458
Deposits due to customers		333,713,217			342,105,209			317,899,871
Borrowings		30,545,104			28,429,603			24,755,459
Debentures		42,613,485			44,198,486			44,653,864
Provisions		609,311			545,865			576,134
Net defined benefit liability		39,723			35,202			47,986
Current tax liabilities		155,068			843,555			584,491
Deferred tax liabilities		390,767			31,799			186,946
Derivative liabilities (designated for hedging)		216,680			202,911			27,584
Other financial liabilities		32,718,181			22,811,868			24,171,030
Other liabilities		685,018			690,157			556,853

Total liabilities		450,220,355			448,847,054			418,333,676

EQUITY
Owners’ equity:		30,244,672			28,761,897			25,842,019
Capital stock		3,640,303			3,640,303			3,640,303
Hybrid securities		3,411,676			3,112,449			2,294,381
Capital surplus		685,427			682,385			682,385
Other equity		(1,944,858	)		(2,423,392	)		(2,167,614	)
Retained earnings		24,452,124			23,750,152			21,392,564
Non-controlling interests		2,446,592			2,865,445			3,008,176

Total equity		32,691,264			31,627,342			28,850,195

Total liabilities and equity		482,911,619			480,474,396			447,183,871

Number of Consolidated Subsidiaries (excluding holding company)		168			167			152


(The Company and its Consolidated Subsidiaries, for the periods indicated)	(unit: millions of Won, except per share amounts)
Classification	2023 1H			2022 1H			2022			2021
Operating income		2,147,438			2,432,113			4,430,524			3,659,749
Net interest income		4,412,993			4,103,322			8,696,579			6,985,721
Net fees and commissions income		842,265			846,384			1,710,170			1,470,775
Dividend income		92,005			78,922			159,982			309,211
Net gain or loss on financial instruments at FVTPL		360,517			341,427			238,502			325,751
Net gain or loss on financial assets at FVTOCI		(398	)		(1,650	)		(21,498	)		32,624
Net gain or loss arising on financial assets at amortized cost		115,708			66,958			74,204			107,317
Impairment losses due to credit loss		(817,815	)		(496,863	)		(885,272	)		(536,838	)
General and administrative expenses		(2,057,916	)		(1,957,102	)		(4,529,890	)		(4,147,411	)
Other net operating expenses		(799,921	)		(549,285	)		(1,012,253	)		(887,401	)

Non-operating income		1,095			35,798			54,850			89,492

Net income before income tax expense		2,148,533			2,467,911			4,485,374			3,749,241

Income tax expense		(534,721	)		(608,607	)		(1,161,392	)		(941,870	)

Net income		1,613,812			1,859,304			3,323,982			2,807,371

Net income attributable to owners		1,538,876			1,761,934			3,141,680			2,587,936
Net income attributable to the non-controlling interests		74,936			97,370			182,302			219,435

Other comprehensive income (loss), net of tax		382,460			(223,775	)		(239,819	)		170,181

Items that will not be reclassified to profit or loss		72,019			84,883			216,767			96,529
Items that may be reclassified to profit or loss		310,441			(308,658	)		(456,586	)		73,652

Total comprehensive income		1,996,272			1,635,529			3,084,163			2,977,552

Comprehensive income attributable to the owners		1,907,895			1,532,364			2,909,053			2,745,764
Comprehensive income attributable to non-controlling interests		88,377			103,165			175,110			231,788
Net income per share:
Basic and diluted loss per share (in Korean Won)		2,028			2,364			4,191			3,481


(The Company, as of the end of the period indicated)	(unit: millions of Won)
Classification	2023 1H			2022			2021
ASSETS
Cash and cash equivalents		175,318			313,361			578,725
Financial assets at fair value through profit or loss		—			689			—
Financial assets at fair value through other comprehensive income		324,814			312,771			146,294
Loans and other financial assets at amortized cost		2,233,028			2,041,877			633,110
Investments in subsidiaries		22,796,367			22,394,915			22,144,915
Premises and equipment		9,421			11,052			7,790
Intangible assets		4,553			4,859			5,171
Net defined benefit asset		1,962			5,947			1,516
Current tax assets		19,409			14,350			856
Deferred tax assets		10,650			13,433			6,454
Other assets		231			322			151

Total assets		25,575,753			25,113,576			23,524,982

LIABILITIES
Financial liabilities at fair value through profit or loss		—			—			329
Debentures		1,597,717			1,447,762			1,367,429
Provisions		1,266			487			394
Current tax liabilities		81,743			721,795			468,305
Other financial liabilities		45,479			46,039			22,988
Other liabilities		391			591			548

Total liabilities		1,726,596			2,216,674			1,859,993

EQUITY
Capital stock		3,640,303			3,640,303			3,640,303
Hybrid securities		3,411,501			3,112,273			2,294,288
Capital surplus		10,909,281			10,909,281			10,909,281
Other equity		(41,939	)		(26,186	)		(3,874	)
Retained Earnings		5,930,011			5,261,231			4,824,991

Total equity		23,849,157			22,896,902			21,664,989

Total liabilities and equity		25,575,753			25,113,576			23,524,982


(The Company, for the period indicated)	(unit: millions of Won, except per share amounts)
Classification	2023 1H			2022 1H			2022			2021
Operating Income:		1,445,324			1,215,982			1,185,627			590,550
Net interest expense		15,692			(7,943	)		(5,030	)		(22,245	)
Interest income		32,068			6,578			25,614			4,236
Interest expense		(16,376	)		(14,521	)		(30,644	)		(26,481	)
Net fees and commissions loss		(8,755	)		(6,315	)		(15,059	)		(12,585	)
Fees and commissions income		798			653			1,596			1,306
Fees and commissions expense		(9,553	)		(6,968	)		(16,655	)		(13,891	)
Dividend income		1,472,869			1,264,236			1,272,393			692,605
Net gain or loss on financial instruments at FVTPL		2,023			—			1,018			(7,576	)
Reversal (Provision) of impairment losses due to credit loss		(978	)		(77	)		(244	)		76
General and administrative expenses		(35,527	)		(33,919	)		(67,451	)		(59,725	)
Non-operating income (expense)		9			(130	)		(1,363	)		(305	)
Net income before income tax expense		1,445,333			1,215,852			1,184,264			590,245
Income tax benefit (expense)		96			(1,604	)		(1,015	)		4,607

Net income		1,445,429			1,214,248			1,183,249			594,852

Other comprehensive loss, net of tax		7,885			(12,951	)		(22,312	)		(2,330	)
Items that will not be reclassified to profit or loss		7,885			(12,951	)		(22,312	)		(2,330	)
Net gain or loss on valuation of equity securities at FVTOCI		8,826			(14,391	)		(24,676	)		(2,408	)
Remeasurement of the net defined benefit liability		(941	)		1,440			2,364			78

Total comprehensive income		1,453,314			1,201,297			1,160,937			592,522

Net income per share:
Basic and diluted income per share (in Korean Won)		1,899			1,611			1,499			730


Term	Auditor	Description	Fee
2023 1H	KPMG Samjong Accounting Corp.	U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2023)	KRW 1,891 million
2022	Samil PricewaterhouseCoopers	U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2022)	KRW 2,240 million
2021	Samil PricewaterhouseCoopers	U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2021)	KRW 2,370 million


(As of June 30, 2023) Name of Committee	Composition	Names of Members
Audit Committee	Four outside directors	(Chairman) Su-Young Yun (outside director) Chan-Hyoung Chung (outside director) Yo-Hwan Shin (outside director) Sung-Bae Ji (outside director)
Board Risk Management Committee	Three outside directors	(Chairman) In-Sub Yoon (outside director) Su-Young Yun (outside director) Soo-Young Song (outside director)
Compensation Committee	Four outside directors	(Chairman) Yo-Hwan Shin (outside director) In-Sub Yoon (outside director) Chan-Hyoung Chung (outside director) Su-Young Yun (outside director)
Committee for Recommending Executive Officer Candidates	Six outside directors	(Chairman) Sung-Bae Ji (outside director) In-Sub Yoon (outside director) Chan-Hyoung Chung (outside director) Su-Young Yun (outside director) Yo-Hwan Shin (outside director) Soo-Young Song (outside director)
Committee for Recommending Subsidiary Representative Director Candidates	Six outside directors One standing director	(Chairman) Jong-Yong Yim (standing director) In-Sub Yoon (outside director) Chan-Hyoung Chung (outside director) Su-Young Yun (outside director) Yo-Hwan Shin (outside director) Sung-Bae Ji (outside director) Soo-Young Song (outside director)
Board ESG Management Committee	Six outside directors One standing director One non-standing director	(Chairman) Soo-Young Song (outside director) In-Sub Yoon (outside director) Chan-Hyoung Chung (outside director) Su-Young Yun (outside director) Yo-Hwan Shin (outside director) Sung-Bae Ji (outside director) Jong-Yong Yim (standing director) Won-Duk Lee (non-standing director)


	Agenda	Result
Annual General Meeting of Shareholders for 2020 (March 26, 2021)	1. Approval of financial statements for the fiscal year 2020	Approved as submitted
	2. Approval of amendments to the Articles of Incorporation	Approved as submitted
	3. Approval of the reduction of capital reserve	Approved as submitted
	4. Appointment of directors (1 standing director, 4 outside directors) - 4-1 Candidate for standing director : Won-Duk Lee - 4-2 Candidate for outside director : Sung-Tae Ro - 4-3 Candidate for outside director : Sang-Yong Park - 4-4 Candidate for outside director : Zhiping Tian - 4-5 Candidate for outside director : Dong-Woo Chang	Approved as submitted
	5. Appointment of an outside director who will serve as an Audit Committee Member - Candidate for outside director who will serve as an Audit Committee Member : Chan-Hyoung Chung	Approved as submitted
	6. Appointment of Audit Committee Members who are outside directors - 6-1 Candidate for Audit Committee Member who is an outside director : Sung-Tae Ro - 6-2 Candidate for Audit Committee Member who is an outside director : Dong-Woo Chang	Approved as submitted
	7. Approval of the maximum limit on directors’ compensation	Approved as submitted
Extraordinary General Meeting of Shareholders in 2022 (January 27, 2022)	1. Appointment of directors (2 outside directors) - 1-1 Candidate for outside director : In-Sub Yoon - 1-2 Candidate for outside director : Yo-Hwan Shin	Approved as submitted
Annual General Meeting of Shareholders for 2021 (March 25, 2022)	1. Approval of financial statements for the fiscal year 2021	Approved as submitted
	2. Approval of amendments to the Articles of Incorporation	Approved as submitted
	3. Appointment of directors (4 outside directors, 1 non-standing director) - 3-1 Candidate for outside director : Soo-Young Song - 3-2 Candidate for outside director : Sung-Tae Ro - 3-3 Candidate for outside director : Sang-Yong Park - 3-4 Candidate for outside director : Dong-Woo Chang - 3-5 Candidate for non-standing director : Won-Duk Lee	Approved as submitted
	4. Appointment of an outside director who will serve as an Audit Committee Member - Candidate for outside director who will serve as an Audit Committee Member : Chan-Hyoung Chung	Approved as submitted
	5. Appointment of Audit Committee Members who are outside directors - 5-1 Candidate for Audit Committee Member who is an outside director : Sung-Tae Ro - 5-2 Candidate for Audit Committee Member who is an outside director : Dong-Woo Chang	Approved as submitted
	6. Approval of the maximum limit on directors’ compensation	Approved as submitted
Annual General Meeting of Shareholders for 2022 (March 24, 2023)	1. Approval of financial statements for the fiscal year 2022	Approved as submitted
	2. Approval of amendments to the Articles of Incorporation	Approved as submitted
	3. Appointment of directors (2 outside directors, 1 standing director) - 3-1 Candidate for outside director : Chan-Hyoung Chung - 3-2 Candidate for outside director : Su-Young Yun - 3-3 Candidate for standing director : Jong-Yong Yim	Approved as submitted
	4. Appointment of an outside director who will serve as an Audit Committee Member - Candidate for outside director who will serve as an Audit Committee Member : Sung-Bae Ji	Approved as submitted
	5. Appointment of Audit Committee Members who are outside directors - 5-1 Candidate for Audit Committee Member who is an outside director : Chan-Hyoung Chung - 5-2 Candidate for Audit Committee Member who is an outside director : Su-Young Yun - 5-2 Candidate for Audit Committee Member who is an outside director : Yo-Hwan Shin	Approved as submitted
	6. Approval of the maximum limit on directors’ compensation	Approved as submitted


As of June 30, 2023				(units: shares, %)
Name	Relation		Type	Shares Held								Notes
				Beginning balance				Ending balance
				Number		Share		Number		Share
Employee Stock Ownership Association of Woori Financial Group		The largest shareholder	Common		41,165,138		5.65		42,638,612		5.86		—
Employee Stock Ownership Association of Woori Bank		Specially related party of the largest shareholder	Common		28,136,218		3.87		26,045,784		3.58		—
Total			Common		69,301,356		9.52		68,684,396		9.43		—
Total			Others		—		—		—		—		—


												(units: Won, shares)
Period		January 2023		February 2023		March 2023		April 2023		May 2023		June 2023
Common Shares	High		13,480		12,950		11,960		11,920		12,040		12,180
	Low		11,250		12,130		10,950		11,090		11,560		11,610
	Average		12,606		12,424		11,316		11,523		11,836		11,944
Monthly Trade Volume	High		6,163,074		4,085,986		4,092,995		3,255,002		4,050,502		3,595,228
	Low		2,059,497		1,206,388		1,319,731		1,172,230		984,327		1,122,609
	Monthly Total		65,315,078		52,349,827		55,615,552		42,175,907		34,405,146		40,790,950


										(units: US Dollars, Won, ADSs)
Period		January 2023		February 2023		March 2023		April 2023		May 2023		June 2023
ADS	High		32.96		31.84		28.19		26.79		27.70		28.51
	Low		27.17		27.94		24.84		25.55		25.84		26.75
	Average		30.89		29.43		26.04		26.33		26.81		27.77
Won Conversion	High		40,547		39,189		37,188		35,130		36,874		36,809
	Low		34,476		36,336		32,414		33,519		34,631		34,890
	Average		38,528		37,403		34,003		34,756		35,606		36,007
Monthly Trade Volume	High		98,558		91,348		116,780		87,908		79,913		63,561
	Low		22,367		29,821		26,026		21,759		21,909		14,805
	Monthly Total		816,911		1,094,473		1,326,951		935,286		857,948		772,709


As of June 30, 2023			(units: persons, millions of Won)
Items	Number of Persons		Total Compensation		Average Compensation Per Director		Note
Registered Directors (excludes outside directors and audit committee members)		2		1,524		760		—
Outside Directors (excludes audit committee members)		2		137		47		—
Audit Committee Members		4		111		31		—
Auditor		—		—		—		—


	Woori Financial Group Inc.
	(Registrant)

Date: August 14, 2023	By:	/s/ Sung-Wook Lee
	(Signature)
	Name: Sung-Wook Lee
	Title: Deputy President