What earnings per share did Woori Bank generate in 2025 under WF?

For 2025, Woori Bank reported basic and diluted earnings per share of 3,492 won , compared with 4,138 won in 2024. The lower EPS reflects reduced net income despite balance sheet growth and slightly higher net interest income during the year.

Woori Financial (WF) posts 2025 audited Woori Bank results with lower net income

Q: How did Woori Bank’s 2025 net income compare with 2024 for WF investors?

Woori Bank’s 2025 net income was 2,582,099 million won , down from 3,046,936 million won in 2024. This decline came despite slightly higher net interest income, indicating that factors like credit loss provisions and operating expenses weighed on overall profitability.

Q: What were Woori Bank’s total assets and equity at December 31, 2025 (WF)?

At December 31, 2025, Woori Bank reported total assets of 502,846,196 million won and total equity of 29,687,452 million won . Customer deposits were 372,337,805 million won, underscoring the bank’s large funding base within Woori Financial Group’s consolidated structure.

Q: How did Woori Bank’s operating cash flow change in 2025 for WF shareholders?

Operating cash flow improved significantly, with a net cash inflow from operating activities of 12,898,713 million won in 2025 versus a 6,062,354 million won outflow in 2024. This turnaround strengthened liquidity and helped lift cash and cash equivalents to 37,235,090 million won.

Q: Did Woori Bank receive an unqualified audit opinion on its 2025 results (WF)?

Yes. The independent auditors from KPMG Samjong Accounting Corp. issued an opinion that Woori Bank’s consolidated financial statements present fairly, in all material respects, its position and performance under K-IFRS for 2025 and 2024, providing assurance on reporting quality.

Q: Are Woori Bank’s 2025 financial statements final and approved by shareholders (WF)?

No. The filing states that the 2025 financial statements have not yet been approved by Woori Bank’s shareholders and remain subject to change. They are scheduled for approval at the annual shareholders’ meeting referenced for March 20, 2026.

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

Woori Financial Group Inc. furnished audited 2025 consolidated financial statements of its wholly owned subsidiary Woori Bank, prepared under K-IFRS, with an unqualified opinion from KPMG Samjong. The financial statements have not yet been approved by Woori Bank’s shareholders and remain subject to change.

Woori Bank reported total assets of 502,846,196 million Korean won and total liabilities of 473,158,744 million won as of December 31, 2025, with total equity of 29,687,452 million won. Deposits due to customers reached 372,337,805 million won.

For 2025, net income was 2,582,099 million won, down from 3,046,936 million won in 2024, while net interest income rose to 7,816,505 million won from 7,566,241 million won. Operating income declined to 3,520,742 million won from 4,069,308 million won, and basic and diluted earnings per share were 3,492 won versus 4,138 won a year earlier.

Net cash inflow from operating activities improved sharply to 12,898,713 million won compared with an outflow of 6,062,354 million won in 2024, while cash and cash equivalents increased to 37,235,090 million won at year-end 2025.

Insights

Audited 2025 results show lower profit but stronger cash generation.

Woori Bank delivered 2025 net income of 2,582,099 million won, down from 3,046,936 million won, while operating income fell to 3,520,742 million won. This came despite slightly higher net interest income of 7,816,505 million won, suggesting pressure from credit costs and expenses.

Total assets grew to 502,846,196 million won with customer deposits at 372,337,805 million won, indicating balance sheet expansion. Net cash inflow from operating activities swung to 12,898,713 million won from a large outflow, improving liquidity alongside cash and cash equivalents of 37,235,090 million won as of December 31, 2025.

The statements carry an unqualified opinion under K-IFRS, but remain subject to shareholder approval. Subsequent group disclosures and the March 20, 2026 annual shareholders’ meeting are referenced as milestones for final approval and any changes.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 03/04/2026 - 10:20 AM

FAQ

How did Woori Bank’s 2025 net income compare with 2024 for WF investors?

Woori Bank’s 2025 net income was 2,582,099 million won, down from 3,046,936 million won in 2024. This decline came despite slightly higher net interest income, indicating that factors like credit loss provisions and operating expenses weighed on overall profitability.

What were Woori Bank’s total assets and equity at December 31, 2025 (WF)?

At December 31, 2025, Woori Bank reported total assets of 502,846,196 million won and total equity of 29,687,452 million won. Customer deposits were 372,337,805 million won, underscoring the bank’s large funding base within Woori Financial Group’s consolidated structure.

How did Woori Bank’s operating cash flow change in 2025 for WF shareholders?

Operating cash flow improved significantly, with a net cash inflow from operating activities of 12,898,713 million won in 2025 versus a 6,062,354 million won outflow in 2024. This turnaround strengthened liquidity and helped lift cash and cash equivalents to 37,235,090 million won.

Did Woori Bank receive an unqualified audit opinion on its 2025 results (WF)?

Yes. The independent auditors from KPMG Samjong Accounting Corp. issued an opinion that Woori Bank’s consolidated financial statements present fairly, in all material respects, its position and performance under K-IFRS for 2025 and 2024, providing assurance on reporting quality.

Are Woori Bank’s 2025 financial statements final and approved by shareholders (WF)?

No. The filing states that the 2025 financial statements have not yet been approved by Woori Bank’s shareholders and remain subject to change. They are scheduled for approval at the annual shareholders’ meeting referenced for March 20, 2026.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2026

Commission File Number: 001-31811

Woori Financial Group Inc.

(Translation of registrant’s name into English)

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

(Address of principal executive office)

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

Form 20-F ☒ Form 40-F ☐

Submission of Audit Reports of Woori Bank

On March 4, 2026, Woori Financial Group Inc. disclosed audit reports of Woori Bank, its wholly-owned subsidiary, for the fiscal year 2025 based on the International Financial Reporting Standards as adopted by the Republic of Korea.

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

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

SIGNATURES

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


	Woori Financial Group Inc.
	(Registrant)

Date: March 4, 2026	By: /s/ Seong Min Kwak
	(Signature)

	Name:	Seong Min Kwak
	Title:	Deputy President

Exhibit 99.1

LOGO

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2025 and 2024

WOORI BANK


		Page(s)

INDEPENDENT AUDITORS’ REPORT		1-3

Consolidated Financial Statements

Consolidated Statements of Financial Position		5-6

Consolidated Statements of Comprehensive Income		7-8

Consolidated Statements of Changes in Equity		9

Consolidated Statements of Cash Flows		10-11

Notes to the Consolidated Financial Statements		12-163

INDEPENDENT AUDITORS’ REPORT

(Based on a report originally issued in Korean)

The Board of Directors and Shareholder of

Woori Bank

Opinion

We have audited the consolidated financial statements of Woori Bank and its subsidiaries (the “Group”), which comprise the consolidated statements of financial position as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

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

Other Matter

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

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

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

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

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

- 1 -

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

•

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

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•

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

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

- 2 -

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

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

- 3 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2025 AND 2024

The accompanying consolidated financial statements including all footnote disclosures were

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

Jin Wan Jung

President and Chief Executive Officer

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

(Phone Number) 02-2002-3000

- 4 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025 AND 2024


	December 31, 2025		December 31, 2024
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 4 and 6)		37,235,090		26,030,754
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12, 18, 26 and 45)		21,117,410		24,599,169
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12 and 18)		48,622,422		43,698,084
Securities at amortized cost (Notes 4, 9, 11, 12 and 18)		18,707,459		19,193,186
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45)		371,209,305		366,547,841
Investments in associates (Note 13)		1,095,521		1,067,880
Investment properties (Note 14)		502,885		523,118
Properties and equipment (Note 15)		2,946,422		3,001,875
Intangible assets (Note 16)		540,819		597,717
Assets held for sale (Note 17)		125,068		31,266
Current tax assets (Note 42)		51,168		47,653
Deferred tax assets (Note 42)		72,491		36,167
Derivative assets (Designated for hedging) (Notes 4, 11, 12, 26 and 45)		37,010		10,102
Net defined benefit assets (Note 24)		160,337		137,916
Other assets (Notes 19 and 45)		422,789		366,213

Total assets		502,846,196		485,888,941

LIABILITIES
Financial liabilities at FVTPL (Notes 4, 11, 12, 20, 26 and 45)		6,012,231		9,783,164
Deposits due to customers (Notes 4, 11, 21 and 45)		372,337,805		364,032,938
Borrowings (Notes 4, 11, 12, 22 and 45)		28,933,534		26,379,689
Debentures (Notes 4, 11, 12 and 22)		28,662,268		25,534,324
Provisions (Notes 23, 44 and 45)		637,475		530,106
Net defined benefit liability (Note 24)		2,903		2,803
Current tax liabilities (Note 42)		694,344		94,655
Deferred tax liabilities (Note 42)		579,094		868,848
Derivative liabilities (Designated for hedging) (Notes 4, 11, 12, 26 and 45)		27,050		102,634
Other financial liabilities (Notes 4, 11, 12, 25 and 45)		34,958,421		29,307,603
Other liabilities (Notes 25 and 45)		313,619		307,289

Total liabilities		473,158,744		456,944,053

(Continued)

- 5 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025 AND 2024

(CONTINUED)


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

Total equity		29,687,452			28,944,888

Total liabilities and equity		502,846,196			485,888,941

The accompanying notes are part of these consolidated financial statements.

- 6 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024


	For the years ended December 31
	2025			2024
	(Korean Won in millions, except for per share data)
Interest income		17,961,602			19,550,673
Financial assets at FVTPL		144,034			153,055
Financial assets at FVTOCI		1,278,693			1,281,641
Financial assets at amortized cost		16,538,875			18,115,977
Interest expense		(10,145,097	)		(11,984,432	)

Net interest income (Notes 11, 34 and 45)		7,816,505			7,566,241
Fees and commissions income		1,223,567			1,215,592
Fees and commissions expense		(230,348	)		(209,103	)

Net fees and commissions income (Notes 11, 35 and 45)		993,219			1,006,489
Dividend income (Notes 11 and 36)		383,469			374,687
Net gain on financial instruments at FVTPL (Notes 11, 37 and 45)		336,949			1,453,921
Net gain on financial assets at FVTOCI (Notes 11 and 38)		138,549			96,647
Net gain on financial assets at amortized cost (Note 11)		28,187			165,192
Net gain on disposals of loans and other financial assets at amortized cost		28,187			165,192
Provision for expected credit loss allowance (Notes 11, 39 and 45)		(1,162,903	)		(821,250	)
General and administrative expenses (Notes 40 and 45)		(4,293,462	)		(3,746,916	)
Other operating income (expenses), net (Notes 40 and 45)		(719,771	)		(2,025,703	)

Operating income		3,520,742			4,069,308
Gain on valuation of investments in associates		45,928			44,067
Net other non-operating expenses		(207,480	)		(104,388	)

Non-operating expenses (Notes 13 and 41)		(161,552	)		(60,321	)
Net income before income tax expense		3,359,190			4,008,987
Income tax expense (Note 42)		(777,091	)		(962,051	)

Net income
(Net income after the provision of regulatory reserve for credit loss for the years ended December 31, 2025 and 2024 are 2,342,590 million Won and 2,792,201million Won, respectively) (Note 32)		2,582,099			3,046,936

(Continued)

- 7 -

WOORI BANK AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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


	For the years ended December 31
	2025			2024
	(Korean Won in millions, except for per share data)
Net gain (loss) on valuation of equity securities at FVTOCI		114,953			(142,653	)
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at FVTPL		(74	)		1,348
Remeasurement loss related to defined benefit plan		(20,041	)		(56,964	)
Changes in capital due to equity method		(957	)		(1,663	)
Items that will not be reclassified to profit or loss		93,881			(199,932	)

Net gain (loss) on valuation of debt securities at FVTOCI		(154,461	)		172,152
Changes in capital due to equity method		(2,293	)		(6,274	)
Gain (loss) on foreign currency translation of foreign operations		(116,459	)		503,398
Gain (loss) on evaluation of hedge of net investment in foreign operations		22,319			(114,827	)
Items that may be reclassified to profit or loss		(250,894	)		554,449
Other comprehensive income (loss), net of tax (Note 30)		(157,013	)		354,517

Total comprehensive income		2,425,086			3,401,453

Net income attributable to:		2,582,099			3,046,936
Net income attributable to owners		2,589,646			3,039,372
Net income (loss) attributable to non-controlling interests		(7,547	)		7,564
Total comprehensive income attributable to:		2,425,086			3,401,453
Comprehensive income attributable to owners		2,440,011			3,381,799
Comprehensive income (loss) attributable to non-controlling interests		(14,925	)		19,654
Earnings per share (Note 43)
Basic and diluted earnings per share (Unit : In Korean Won)		3,492			4,138

The accompanying notes are part of these consolidated financial statements.

- 8 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024


	Capital stock		Hybrid securities			Capital surplus		Other equity			Retained earnings			Owners’ equity			Non- controlling interests			Total equity
	(Korean Won in millions)
January 1, 2024		3,581,392		1,546,447			1,096,194		(1,568,050	)		21,925,092			26,581,075			122,377			26,703,452
Net income		—		—			—		—			3,039,372			3,039,372			7,564			3,046,936
Dividends on common stocks		—		—			—		—			(1,131,996	)		(1,131,996	)		(3,486	)		(1,135,482	)
Changes in subsidiaries’ capital		—		—			12,256		—			—			12,256			(9,709	)		2,547
Net gain on changes in credit risk of financial liabilities designated to be measured at FVTPL		—		—			—		1,348			—			1,348			—			1,348
Net gain (loss) on valuation of financial assets at FVTOCI		—		—			—		29,640			—			29,640			(141	)		29,499
Net gain (loss) on disposal of financial assets at FVTOCI		—		—			—		(53,539	)		53,539			—			—			—
Changes in capital due to equity method		—		—			—		(7,937	)		—			(7,937	)		—			(7,937	)
Equity method capital adjustment		—		—			—		10			(10	)		—			—			—
Gain on foreign currency translation of foreign operations		—		—			—		491,204			—			491,204			12,194			503,398
Loss on evaluation of hedges of net investment in foreign operations		—		—			—		(114,827	)		—			(114,827	)		—			(114,827	)
Remeasurement loss related to defined benefit plan		—		—			—		(57,000	)		—			(57,000	)		36			(56,964	)
Business combination under the common control		—		—			—		(590	)		—			(590	)		—			(590	)
Dividends on hybrid securities		—		—			—		—			(76,249	)		(76,249	)		—			(76,249	)
Issuance of hybrid securities		—		757,970			—		—			—			757,970			—			757,970
Redemption of hybrid securities		—		(658,470	)		—		(49,743	)		—			(708,213	)		—			(708,213	)
Appropriation of retained earnings		—		—			—		1,694			(1,694	)		—			—			—

December 31, 2024		3,581,392		1,645,947			1,108,450		(1,327,790	)		23,808,054			28,816,053			128,835			28,944,888

January 1, 2025		3,581,392		1,645,947			1,108,450		(1,327,790	)		23,808,054			28,816,053			128,835			28,944,888
Net income		—		—			—		—			2,589,646			2,589,646			(7,547	)		2,582,099
Dividends on common stocks		—		—			—		—			(1,352,524	)		(1,352,524	)		(1,013	)		(1,353,537	)
Changes in subsidiaries’ capital		—		—			225		—			—			225			(225	)		—
Net loss on changes in credit risk of financial liabilities designated to be measured at FVTPL		—		—			—		(74	)		—			(74	)		—			(74	)
Net gain (loss) on valuation of financial assets at FVTOCI		—		—			—		(39,936	)		—			(39,936	)		428			(39,508	)
Net gain (loss) on disposal of financial assets at FVTOCI		—		—			—		1,326			(1,326	)		—			—			—
Changes in capital due to equity method		—		—			—		(3,250	)		—			(3,250	)		—			(3,250	)
Loss on foreign currency translation of foreign operations		—		—			—		(108,576	)		—			(108,576	)		(7,884	)		(116,460	)
Gain on evaluation of hedges of net investment in foreign operations		—		—			—		22,319			—			22,319			—			22,319
Remeasurement gain (loss) related to defined benefit plan		—		—			—		(20,118	)		—			(20,118	)		77			(20,041	)
Dividends on hybrid securities		—		—			—		—			(89,134	)		(89,134	)		—			(89,134	)
Redemption of hybrid securities		—		(239,434	)		—		(416	)		—			(239,850	)		—			(239,850	)
Appropriation of retained earnings		—		—			—		50,333			(50,333	)		—			—			—

December 31, 2025		3,581,392		1,406,513			1,108,675		(1,426,182	)		24,904,383			29,574,781			112,671			29,687,452

The accompanying notes are part of these consolidated financial statements.

- 9 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024


	For the years ended December 31
	2025			2024
	(Korean Won in millions)
Cash flows from operating activities:
Net income		2,582,099			3,046,936
Adjustments:
Income tax expense		777,091			962,051
Interest income		(17,961,602	)		(19,550,673	)
Interest expense		10,145,097			11,984,432
Dividend income		(383,469	)		(374,687	)

		(7,422,883	)		(6,978,877	)

Additions of expenses not involving cash outflows:
Loss on financial assets at FVTOCI		4,497			4,584
Provision for expected credit loss allowance		1,162,903			821,250
Loss on valuation of investments in associates		6,566			6,292
Loss on disposal of investments in associates		167			36
Loss on derivatives (designated for hedging)		9,532			24,252
Loss on fair value hedge		92,138			64,571
Retirement benefits		154,119			109,147
Loss on other provisions		103,785			40,657
Depreciation and amortization		488,090			456,461
Loss on disposal of properties and equipment, intangible asset and other assets		1,725			1,661
Impairment loss on properties and equipment, intangible asset and other assets		46,073			217
Loss on foreign currency translation		—			989,283
Other losses		—			10,888
Other operating expenses		1,014			9,509

		2,070,609			2,538,808

Deductions of incomes not involving cash inflows:
Gain on financial instruments at FVTPL		517,832			1,251,052
Gain on financial assets at FVTOCI		143,070			101,231
Gain on valuation of investments in associates		52,494			50,359
Gain on disposal of investments in associates		—			11,053
Gain on derivatives (designated for hedging)		102,915			40,843
Gain on fair value hedge		12,013			25,469
Gain related to other provisions		72			3,567
Gain on disposal of properties and equipment, intangible assets and other assets		7,126			1,591
Reversal of impairment loss on properties and equipment, intangible asset and other assets		300			—
Gain on disposal of assets held for sale		33,598			—
Gain on foreign currency translation		269,670			—

		1,139,090			1,485,165

Changes in operating assets and liabilities:
Financial instruments at FVTPL		1,199,680			934,120
Loans and other financial assets at amortized cost		(6,635,346	)		(21,446,518	)
Other assets		(72,973	)		(23,583	)
Deposits due to customers		12,384,985			4,556,235
Provisions		(11,117	)		(213,651	)
Net defined benefit liability		(205,516	)		(103,569	)
Other financial liabilities		2,846,907			4,783,889
Other liabilities		13,393			(6,281	)

		9,520,013			(11,519,358	)

Cash received (paid) from operating activities:
Interest income received		17,823,849			19,762,749
Interest expense paid		(10,431,126	)		(11,439,384	)
Dividends received		383,503			374,719
Income tax paid		(488,261	)		(362,782	)

Net cash inflow (outflow) from operating activities		12,898,713			(6,062,354	)

- 10 -

WOORI BANK AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(CONTINUED)


	For the years ended December 31
	2025			2024
	(Korean Won in millions)
Cash flows from investing activities:
Disposal of financial instruments at FVTPL		19,066,387			13,100,856
Acquisition of financial instruments at FVTPL		(20,015,510	)		(12,838,805	)
Disposal of financial assets at FVTOCI		30,943,285			26,916,235
Acquisition of financial assets at FVTOCI		(35,787,465	)		(31,708,549	)
Redemption of securities at amortized cost		5,890,990			7,634,677
Acquisition of securities at amortized cost		(5,312,962	)		(2,586,171	)
Disposal of investments in associates		29,359			33,161
Acquisition of investments in associates		(25,885	)		(52,912	)
Disposal of properties and equipment		35,116			9,217
Acquisition of properties and equipment		(271,835	)		(182,754	)
Disposal of intangible assets		2,754			2,340
Acquisition of intangible assets		(137,162	)		(145,126	)
Disposal of assets held for sale		82,411			—
Net increase in other assets		37,839			18,141
Business combination under the common control		—			2,627

Net cash inflow (outflow) from investing activities		(5,462,678	)		202,937

Cash flows from financing activities:
Net increase of derivatives (designated for hedging)		(9,109	)		(25,442	)
Net increase (decrease) in borrowings		2,873,831			(981,449	)
Issuance of debentures		12,818,972			16,756,011
Redemption of debentures		(9,793,897	)		(13,378,345	)
Redemption of lease liabilities		(210,536	)		(213,326	)
Net decrease in other liabilities		(51	)		(17,690	)
Dividends paid to common stocks		(1,352,524	)		(1,131,996	)
Issuance of hybrid securities		—			757,970
Redemption of hybrid securities		(240,000	)		(726,055	)
Dividends paid to hybrid securities		(89,134	)		(76,249	)
Dividends paid to non-controlling interest		(1,013	)		(3,486	)
Change in non-controlling interests		—			2,547

Net cash inflow from financing activities		3,996,539			962,490

Effects of exchange rate changes on cash and cash equivalents		(228,238	)		1,640,951
Net increase (decrease) in cash and cash equivalents		11,204,336			(3,255,976	)
Cash and cash equivalents, the beginning of the year		26,030,754			29,286,730

Cash and cash equivalents, the end of the year		37,235,090			26,030,754

The accompanying notes are part of these consolidated financial statements.

- 11 -

WOORI BANK AND ITS SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

1.	GENERAL

(1)	Summary of the Parent company

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

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

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

(2)	The consolidated financial statements for Woori Bank and its subsidiaries (the “Group”) include the following subsidiaries:

Main business

Percentage of ownership
(%)

Location

Financial
statements
as of
(2025)

Subsidiaries

December 31,
2025

December 31,
2024

Woori Bank:

Woori America Bank

Finance

100.0

U.S.A.

December 31

Woori Global Markets Asia Limited

Finance

100.0

Hong Kong

December 31

Woori Bank China Limited

Finance

100.0

China

December 31

AO Woori Bank (*4)

Finance

100.0

Russia

December 31

PT Bank Woori Saudara Indonesia 1906 Tbk

Finance

90.8

Indonesia

December 31

Banco Woori Bank do Brasil S.A.

Finance

100.0

Brazil

December 31

Korea BTL Infrastructure Fund

Finance

99.9

Korea

December 31

Woori Finance Myanmar Co., Ltd.

Finance

100.0

Myanmar

December 31

Wealth Development Bank

Finance

51.0

Philippines

December 31

Woori Bank Vietnam Limited

Finance

100.0

Vietnam

December 31

Woori Bank (Cambodia) PLC

Finance

100.0

Cambodia

December 31

Woori Bank Europe

Finance

100.0

Germany

December 31

KAMCO Value Recreation First Securitization Specialty Co., Ltd. (*1)

Asset securitization

15.0

Korea

December 31

Jeonju Iwon Ltd. (*1)

Asset securitization

0.0

Korea

December 31

Wonju I one Ltd. (*1)

Asset securitization

0.0

Korea

December 31

Heitz Third Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

Woori Dream 2nd Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

Woori Display 3rd Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

Quantum Jump the 2nd Co., Ltd. (*5)

Asset securitization

—

0.0

Korea

—

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

Asset securitization

0.0

Korea

December 31

Woori Dream 3rd Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

Woori-HWC 1stCo., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

Woori HC 3rd Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

Woori Park I 1st Co., Ltd. (*5)

Asset securitization

—

0.0

Korea

—

Woori HC 4th Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

- 12 -

Main business

Percentage of ownership
(%)

Location

Financial
statements
as of
(2025)

Subsidiaries

December 31,
2025

December 31,
2024

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

Woori K The 3rd Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

—

0.0

Korea

—

Woori Lotte Dongtan 1st Co., Ltd. (*5)

Asset securitization

—

0.0

Korea

—

Woori HC 6th Co., Ltd. (*5)

Asset securitization

—

0.0

Korea

—

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

—

0.0

Korea

—

Gangnam Landmark 2nd Co., Ltd. (*5)

Asset securitization

—

0.0

Korea

—

Woori HP the 1st Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

—

0.0

Korea

—

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

Woori Eugene 1st Co., Ltd. (*1)

Asset securitization

0.0

Korea

December 31

WOORIWON 1ST, CO., LIMITED. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

WOORI HL 1ST, CO., LIMITED. (*1)

Asset securitization

0.0

Korea

December 31

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

Asset securitization

0.0

Korea

December 31

WOORI PARC1. 2nd Co., Ltd. (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI HEROS 1st Co., Ltd. (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI GANGNAM ALPHA 1st Co.,Ltd. (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI BLOSSOM 1st Co., Ltd. (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI DK 1ST CO.,LTD. (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI TECHONE 1ST CO.,LTD (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI TECHONE 2ND CO.,LTD (*1)

Asset securitization

0.0

—

Korea

December 31

WOORI SONO 1ST CO.,LTD (*1)

Asset securitization

0.0

—

Korea

December 31

URI NC 1ST CO.,LTD. (*1)

Asset securitization

0.0

—

Korea

December 31

Heungkuk Global Private Placement Investment
Trust No. 1 (*2)

Securities investment

98.8

Korea

December 31

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

Securities investment

97.3

Korea

December 31

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

Securities investment

99.0

Korea

December 31

IGIS Australia Investment Trust No. 209-1 (*2)

Securities investment

99.4

Korea

December 31

Woori North America Energy Infrastructure Private Placement Investment Trust No. 1 (*2)

Securities investment

99.3

Korea

December 31

Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust (*2)

Securities investment

99.9

Korea

December 31

Woori Infrastructure New Deal Private Placement Investment Trust No. 1 (*2)

Securities investment

99.5

Korea

December 31

Woori Global Secondary Private Placement Investment Trust No. 1 (*2)

Securities investment

98.8

Korea

December 31

Woori ESG Infrastructure Development Private Placement Investment Trust No. 1 (*2)

Securities investment

95.2

Korea

December 31

Kiwoom Harmony Private Placement Investment
Trust No. 2 (*5)

Securities investment

—

97.3

Korea

—

Kiwoom Harmony Private Placement Investment
Trust No. 1 (*2)

Securities investment

97.7

97.4

Korea

December 31

- 13 -

Main business

Percentage of ownership
(%)

Location

Financial
statements
as of
(2025)

Subsidiaries

December 31,
2025

December 31,
2024

JB Airline Private Placement Investment
Trust No. 8 (*2)

Securities investment

97.0

Korea

December 31

Kiwoom Harmony Private Placement Investment
Trust No. 4 (*2)

Securities investment

96.2

Korea

December 31

WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1 (*2)

Securities investment

93.5

Korea

December 31

Woori Fund Financing General Type Private Investment Trust (*2)

Securities investment

99.0

99.3

Korea

December 31

Kiwoom Harmony Private Placement Investment Trust No. 9 (*2)

Securities investment

100.0

—

Korea

December 31

Woori Bank Partners General Type Private Investment Trust No. 4

Securities investment

99.0

—

Korea

December 31

Principal Guaranteed Trust (*3)

Trust

0.0

Korea

December 31

Principal and Interest Guaranteed Trust (*3)

Trust

0.0

Korea

December 31

Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2:

MAGI No.5 LuxCo S.a.r.l.

Asset securitization

54.6

Luxembourg

December 31

MAGI No.5 LuxCo S.a.r.l:

ADP 16 Brussels

Asset securitization

100.0

Belgium

December 31

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

Woori Global Infrastructure Development Co., Ltd.

Other Finance

100.0

Korea

December 31

Namyangju Resource Circulation Facility Development Co., Ltd.

Other professional service

100.0

Korea

December 31

(*1)

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

(*2)

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

(*3)

It was determined that the consolidated entity controlled the monetary trust under the Capital Markets Act, taking into account the power of less than half of the ownership stake in investment-related activities, exposure to variable returns, and the ability to use power to affect the variable returns of the consolidated entity.

(*4)

Following Russia’s further invasion of Ukraine in February 2022, various countries, including the United States, have imposed additional sanctions on a number of Russian individuals and entities, and restricted or prohibited certain activities relating to Russia such as making new investments or the provision of certain services. These sanctions may result in a decrease in the value of financial or operating assets held by banks in relation to the disputed country, an increase in the collection period, restrictions on capital transfers, and a decrease in profits. As a result, the Group expect future financial impacts on the business of its subsidiary, AO Woori Bank of Russia, as of December 31, 2025, but it is difficult to assess the maximum potential exposure or the ultimate adverse impact with any degree of certainty.

(*5)	Excluded from the consolidation due to the end of the credit facilities for the year ended December 31, 2025.

- 14 -

(3)	The Group has not consolidated the following entities as of December 31, 2025 and 2024 despite having more than 50% ownership interest:


	As of December 31, 2025
Structured Entities	Location	Main Business	Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*1)	Korea	Securities Investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*1)	Korea	Securities Investment		88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)	Korea	Securities Investment		97.8
IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)	Korea	Securities Investment		69.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)	Korea	Securities Investment		69.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)	Korea	Securities Investment		66.7
Hangang Blue Water Private Placement Special Asset Investment Trust (*1)	Korea	Securities Investment		55.6
Korea Investment Pocheon-Hwado Highway Private Special Asset Trust 2 (*1)	Korea	Securities Investment		55.2
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1 (*1)	Korea	Securities Investment		55.0
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)	Korea	Securities Investment		58.3
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] (*3)	Korea	Securities Investment		100.0
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2 (*1)	Korea	Securities Investment		55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1)	Korea	Securities Investment		92.6
Woori Private Real Estate Investment Trust No. 1 (*1)	Korea	Securities Investment		86.8
INMARK France Private Placement Real Estate Investment Trust No. 18-1 (*1)	Korea	Securities investment		93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W (EUR) (*2)	Korea	Securities investment		99.5
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		80.0
KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*2)	Korea	Securities investment		99.7
Hana UBS Class One Private Equity No. 3 C2 (*1)	Korea	Securities investment		51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1)	Korea	Securities investment		50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		65.0
Woori Private Real Estate Investment Trust No. 5 (*1)	Korea	Securities investment		87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		76.7
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 (*1)	Korea	Securities investment		79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		55.0
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1 (*1)	Korea	Securities investment		66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		60.0
NH-Amundi WSCP VIII Private Placement Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (USD) (*2)	Korea	Securities investment		98.0
Woori Equity Investment General Type Private Investment Trust No.1 (*1)	Korea	Securities investment		93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1)	Korea	Securities investment		60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		66.7
Woori Financial Digital Investment Association No. 1 (*1)	Korea	Securities investment		88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		85.0

- 15 -


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

(*1)

Since the investee is a discretionary funds, the Group does not have power over the investee 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 predefined, and the disposition of investment assets cannot be determined by the Group, and as a fund of funds, the Group does not have ability to make decisions regarding investment assets in parent funds. The Group does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*3)

Since the investee is a stock market stabilization fund, the Group does not have power over such fund as the fund’s relevant activities are determined by the investment management committee, over which the Group does not have substantive rights. The Group does not have the power over the fund’s relevant activities even though the Group holds more than 50% of ownership interest.


	As of December 31, 2024
Structured Entities	Location	Main Business	Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*1)	Korea	Securities Investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*1)	Korea	Securities Investment		88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)	Korea	Securities Investment		97.8
IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)	Korea	Securities Investment		69.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)	Korea	Securities Investment		69.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)	Korea	Securities Investment		66.7
Hangang Blue Water Private Placement Special Asset Investment Trust (*1)	Korea	Securities Investment		55.6
Korea Investment Pocheon-Hwado Highway Private Special Asset Trust 2 (*1)	Korea	Securities Investment		55.2
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1 (*1)	Korea	Securities Investment		55.0
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)	Korea	Securities Investment		58.3
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] (*3)	Korea	Securities Investment		100.0
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2 (*1)	Korea	Securities Investment		55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1)	Korea	Securities Investment		92.6

- 16 -


	As of December 31, 2024
Structured Entities	Location	Main Business	Percentage of ownership (%)
Woori Private Real Estate Investment Trust No. 1 (*1)	Korea	Securities Investment		84.9
INMARK France Private Placement Real Estate Investment Trust No. 18-1 (*1)	Korea	Securities investment		93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W (EUR) (*2)	Korea	Securities investment		99.5
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		80.0
KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*2)	Korea	Securities investment		99.7
Hana UBS Class One Private Equity No. 3 C2 (*1)	Korea	Securities investment		51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1)	Korea	Securities investment		50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		65.0
Woori Private Real Estate Investment Trust No. 5 (*1)	Korea	Securities investment		87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		76.7
Consus Solar Energy Private Placement Investment Trust No.1 (*1)	Korea	Securities investment		50.0
Woori Innovative Growth New Deal Private Placement Investment Trust No.3 (*1)	Korea	Securities investment		79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		55.0
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1 (*1)	Korea	Securities investment		66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		60.0
NH-Amundi WSCP VIII Private Placement Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (USD) (*2)	Korea	Securities investment		98.0
Woori Equity Investment General Type Private Investment Trust No. 1 (*1)	Korea	Securities investment		93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1)	Korea	Securities investment		60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		66.7
Woori Financial Digital Investment Association No. 1 (*1)	Korea	Securities investment		88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		85.0
IGIS Global Private Placement Real Estate Fund No. 316-1 (*2)	Korea	Securities investment		99.3
INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2)	Korea	Securities investment		97.7
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-2 (*2)	Korea	Securities investment		98.8
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1 (*2)	Korea	Securities investment		99.9
Woori Private Real Estate Investment Trust No. 6 (*1)	Korea	Securities investment		85.0
Woori New Growth Credit Fund 1 (*1)	Korea	Securities investment		70.9
Woori Asset Global Partnership Fund No. 5 (*1)	Korea	Securities investment		57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)	Korea	Securities investment		76.9
CHILLE PMGD Solar PV Investment Project Fund II (*2)	Korea	Securities investment		75.2
Woori Financial Dino Lab Investment Association No. 1 (*1)	Korea	Securities investment		70.0
Woori Bank Partners General Type Private Investment Trust No. 3 (*1)	Korea	Securities investment		90.9
Woori Natixis Partnership Global Private Debt Fund No. 1-1 (USD) (*1)	Korea	Securities investment		80.0
NH-Amundi BXD Private Placement Real Estate Investment Trust No. 2 (USD) (*2)	Korea	Securities investment		77.8
Woori Private Real Estate Investment Trust No. 7 (*1)	Korea	Securities investment		87.0
Woori Junior Equity General Type Private Investment Trust (*1)	Korea	Securities investment		85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		50.0

- 17 -

(*1)

(*2)

(*3)

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


	December 31, 2025
	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Total comprehensive income (loss) attributable to owners
Woori America Bank		5,689,437		4,924,553		300,381		52,975			39,253
Woori Global Markets Asia Limited		860,673		606,703		60,135		21,735			17,816
Woori Bank China Limited		6,588,780		5,861,752		275,334		(52,742	)		(45,931	)
AO Woori Bank		616,006		451,847		67,350		31,127			68,949
PT Bank Woori Saudara Indonesia 1906 Tbk		5,261,114		4,160,256		361,526		(74,133	)		(143,527	)
Banco Woori Bank do Brasil S.A.		222,794		207,470		25,143		(8,712	)		(5,113	)
Korea BTL Infrastructure Fund		766,563		292		26,464		23,751			24,604
Woori Finance Myanmar Co., Ltd.		49,785		23,582		11,592		2,911			2,369
Wealth Development Bank		284,766		239,272		21,399		(1,474	)		(3,434	)
Woori Bank Vietnam Limited		4,670,022		3,659,430		422,688		71,646			17,780
Woori Bank (Cambodia) PLC		1,920,614		1,303,923		233,323		4,316			(10,624	)
Woori Bank Europe		963,445		838,396		27,849		(4,193	)		8,391
Money trust under the FISCM Act		1,120,413		1,097,773		52,318		(3,466	)		(3,466	)
Structured entity for securitization of financial assets		2,218,545		2,573,528		92,275		2,106			(188	)
Structured entity for the investments in securities		2,246,851		63,940		109,913		91,228			90,067

	December 31, 2024
	Assets		Liabilities		Operating revenue		Net income (loss) attributable to owners			Total comprehensive income (loss) attributable to owners
Woori America Bank		5,603,828		4,878,197		278,248		37,240			125,569
Woori Global Markets Asia Limited		764,409		528,256		60,999		22,453			49,694
Woori Bank China Limited		7,025,618		6,252,659		309,973		20,178			101,666
AO Woori Bank		507,190		411,981		56,523		30,459			20,742
PT Bank Woori Saudara Indonesia 1906 Tbk		5,423,733		4,168,715		386,889		56,768			156,791
Banco Woori Bank do Brasil S.A.		230,713		210,275		23,555		(1,412	)		(5,629	)
Korea BTL Infrastructure Fund		734,750		286		26,829		24,273			23,946
Woori Finance Myanmar Co., Ltd.		46,102		22,268		10,653		2,318			5,121
Wealth Development Bank		272,386		223,457		22,275		1,559			5,782
Woori Bank Vietnam Limited		3,932,302		2,939,490		371,959		61,565			132,345
Woori Bank (Cambodia) PLC		2,212,892		1,585,577		241,234		(14,786	)		53,564
Woori Bank Europe		860,239		743,581		41,167		(6,330	)		865
Money trust under the FISCM Act		1,201,313		1,175,208		51,546		2,935			2,935
Structured entity for securitization of financial assets		2,179,838		2,548,776		103,230		(5,533	)		2,585
Structured entity for the investments in securities		2,138,102		62,111		122,417		97,685			127,430

- 18 -

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

•

Structured entity for asset securitization

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

•

Structured entity for the investments in securities

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

•

Monetary trust under the Financial Investment Services and Capital Markets Act

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

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

(6)

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

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

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

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

- 19 -

The unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private equity funds. An investment trust orders the investment and operation of funds to the trust manager in accordance with trust contract with profits distributed to the investors. Private equity funds raise funding required to acquire equity securities to enable direction of management and/or improvement of ownership structure, with profit distributed to the investors. The Group recognizes pro rata amount of dividend income as an investor in the same way as ‘structured finance’ and may be exposed to losses due to reduction in investment value. As of December 31, 2025 and December 31, 2024, the investment value in MMF (Money Market Funds)and ETF(Exchanged Traded Funds) amounted to 309,121 million Won and 22,850 million Won, respectively, and there are no additional MMF and ETF-related commitments.

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


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

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


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

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

- 20 -

(7)	The share of non-controlling interests on the net income and equity of subsidiaries of which non-controlling interests that are significant to the Group’s consolidated financial statements as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

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


	December 31, 2025		December 31, 2024
PT Bank Woori Saudara Indonesia 1906 Tbk		89,767		104,023
Wealth Development Bank		22,292		23,975

Net income or loss attributable to non-controlling interests


	For the years ended December 31
	2025			2024
PT Bank Woori Saudara Indonesia 1906 Tbk		(6,856	)		6,764
Wealth Development Bank		(722	)		764

Dividends to non-controlling interests


	For the years ended December 31
	2025		2024
PT Bank Woori Saudara Indonesia 1906 Tbk		983		3,450

- 21 -

2.	BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

(1)	Basis of presentation

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

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

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

The material accounting policies applied in the preparation of consolidated financial statements as of and for the year ended December 31, 2025 are stated below, and the accounting policies applied are identical to ones used in the preparation of previous year’s consolidated financial statements, except for the effects of adopting new standards or interpretations as explained below.

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

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

1) From the accounting period beginning on January 1, 2025, the Group has newly applied the following amendments and interpretations.

Amendments to K-IFRS No.1021 ‘The Effects of Changes in Foreign Exchange Rates’ and K-IFRS No.1101 ‘First-time Adoption of International Financial Reporting Standards’ – Lack of Exchangeability

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

2) The details of K-IFRS that have been issued and published as of January 1, 2025 but have not yet reached the effective date, and which the Group has not applied at an earlier date are as follows :

Amendments to K-IFRS No.1109 ‘Financial Instruments’, K-IFRS No.1107 ‘Financial Instruments: Disclosures’

When an entity K-IFRS No.1109 ‘Financial Instruments’ and K-IFRS No.1107 ‘Financial Instruments: Disclosures’ have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Group is in review for the impact of these amendments on the consolidated financial statements. These amendments

•

permit to deem the financial liability to be settled (discharged) through an electronic payment system before the settlement date in cases of meeting certain conditions;

- 22 -

•

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

•

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

•

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

ii)

Annual Improvements to K-IFRS

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

•

K-IFRS No.1101 ‘First-time Adoption of International Financial Reporting Standards’: Hedge accounting by a first-time adopter

•

K-IFRS No.1107 ‘Financial Instruments: Disclosures’: Gain or loss on derecognition and implementation guidance

•

K-IFRS No.1109 ‘Financial Instruments’: Derecognition of lease liabilities and definition of transaction price

•

K-IFRS No.1110 ‘Consolidated Financial Statements’: Determination of a ‘de facto agent’

•

K-IFRS No.1007 ‘Statement of Cash Flows’: Cost method

iii)

Standards to Korean IFRS 1118 ‘Presentation and Disclosure in Financial Statements’

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

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

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

(2)	Basis of consolidated financial statement presentation

The consolidated financial statements incorporate the financial statements of the Bank and the entities (including structured entities) controlled by the Bank (and its subsidiaries, which is the “Group”). Control is achieved where the Group 1) has the power over the investee, 2) is exposed, or has rights, to variable returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

- 23 -

When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including:

•

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

•

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

•

Rights arising from other contractual arrangements;

•

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

Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the date the Group gains control until the date when the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owner of the Group and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owner of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

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

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

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

(3)	Business combinations

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

- 24 -

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

•

deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with K-IFRS No.1012 ‘Income Taxes’ and K-IFRS No.1019 ‘Employee Benefits’, respectively;

•

liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with K-IFRS No.1102 ‘Share-based Payment at the acquisition date’; and

•

non-current assets (or disposal groups) that are classified as held for sale in accordance with K-IFRS No.1105 ‘Non-current Assets Held for Sale and Discontinued Operations’ are measured at the lower of their previous carrying amounts and fair value less costs to sell.

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

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

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

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

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

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

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

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(4)	Investments in joint ventures and associates

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

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

The net income of the current period and the assets and liabilities of the joint ventures and associates are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with K-IFRS No.1105 ‘Non-current Assets Held for Sale and Discontinued Operations’. Under the equity method, an investment in the joint ventures and associates is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the Group’s share of the net assets of the joint ventures and associates and any impairment. When the Group’s share of losses of the joint ventures and associates exceeds the Group’s interest in the associate, the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint ventures and associates.

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

Upon a loss of significant influence over the joint ventures and associates, the Group discontinues the use of the equity method and measures at fair value of any investment that the Group retains in the former joint ventures and associates from the date when the Group loses significant influence. The fair value of the investment is regarded as its fair value on initial recognition as a financial asset in accordance with K-IFRS No.1109 ‘Financial Instruments’; Recognition and Measurement. The Group recognized differences between the carrying amount and fair value in profit or loss and it is included in determination of the gain or loss on disposal of joint ventures and associates. The Group accounts for all amounts recognized in other comprehensive income in relation to that joint ventures and associates on the same basis as would be required if the joint ventures and associates had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by an associate would be reclassified to net income on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to net income as a reclassification adjustment.

When the Group’s ownership of interest in an associate or a joint venture decreases but the Group continues to maintain significant influence over an associate or a joint venture, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that decrease in ownership interest if the gain or loss would be reclassified to profit or loss on the disposal of the related assets or liabilities. Meanwhile, if interest on associate or joint venture meets the definition of non-current asset held for sale, it is accounted for in accordance with K-IFRS No.1105.

The requirements of K-IFRS No.1028 - ‘Investments in Associates and Joint Ventures’ to determine whether there has been a loss event are applied to identify whether it is necessary to recognize any impairment loss with respect to the Group’s investment in the joint ventures and associates. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with K-IFRS No.1036 - ‘Impairment of Assets’ as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized is not allocated to any asset (including goodwill), which forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with K-IFRS No.1036 to the extent that the recoverable amount of the investment subsequently increases.

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

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

(5)	Investment in Joint operation

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

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

•

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

•

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

•

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

•

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

•

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

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

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

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

(6)	Revenue recognition

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

Revenues from contracts with customers

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

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

①

Fees and commission received for brokerage

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

②

Fees and commission received related to credit

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

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③

Fees and commission received for electronic finance

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

④

Fees and commission received on foreign exchange handling

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

⑤

Fees and commission received on foreign exchange

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

⑥

Fees and commission received for guarantee

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

⑦

Fees and commission received on securities business

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

⑧

Fees and commission from trust management

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

⑨

Other fees

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

Revenues from sources other than contracts with customers

①

Interest income

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

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

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

②

Loan origination fees and costs

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

(7)	Accounting for foreign currencies

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

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

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

(8)	Cash and cash equivalents

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

(9)	Financial assets and financial liabilities

Financial assets

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

On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets at FVTOCI, and financial assets at amortized cost.

Business model

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

•

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

•

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

•

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

•

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

•

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

Contractual cash flows

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

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

•

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

•

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

•

Early payment features and maturity extension features

•

Contractual terms that limit the Group’s claim on cash flows arising from certain assets (e.g. non-recourse feature)

•

Terms of holding multiple contractually linked financial tranche that concentrate credit risk. In such case, credit risk comparison information of the instrument itself, the contractual cash flow characteristics of underlying financial instrument group and the underlying financial instrument group

①

Financial assets at FVTPL

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

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

②

Financial assets at FVTOCI

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

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At initial recognition, financial assets at FVTOCI is measured at its fair value plus any direct transaction cost and is subsequently measured in fair value. The changes in fair value except for profit or loss items such as impairment losses (reversals), interest revenue calculated by using effective interest method, and foreign exchange gain or loss, and related income tax effects are recognized as other comprehensive income until the asset’s disposal. Upon derecognition, the accumulated other comprehensive income is reclassified from equity to net income for FVTOCI (debt instrument) and reclassified within the equity for FVTOCI (equity instruments).

③

Financial assets at amortized cost

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

Financial liabilities

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

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

It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial liability at FVTPL; (b) the financial asset forms part of the Group’s financial instrument group (a group composed of a combination of financial asset or liability) according to the Group’s documented risk management or investment strategy, is measured at fair value and is being evaluated for its performance, and such information is provided internally; and (c) the financial liability is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL is allowed under K-IFRS No.1109 ‘Financial Instruments’.

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

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

Reclassification

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

Derecognition

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

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

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

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

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

Fair value of financial instruments

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

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

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

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

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

Financial assets at FVTPL and Financial assets at FVTOCI

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

Derivatives

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

Adjustment of valuation amount

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

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

Expected credit losses on financial assets

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

•

Financial assets at amortized cost

•

Debt instruments measured at FVTOCI

•

Contract assets as defined by K-IFRS No.1115

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

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

•

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

•

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

- 33 -

•

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

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

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

Measurement of expected credit losses on financial asset at amortized cost

The expected credit losses on financial assets at amortized cost is measured by the difference between the contractual cash flows during the period and the present value of expected cash flows. Expected cash inflows are computed for individually significant financial assets in order to calculate expected credit losses.

Financial assets that are not individually significant, they are included in a group of financial assets with similar credit risk characteristics and expected credit losses of the group are calculated collectively.

Expected credit losses are deducted through loss allowance account, and when the financial asset is determined to be uncollectible, the loss allowance is written off from the books along with the related financial asset. Changes in loss allowance due to subsequent recoveries of amounts previously written off are recognized in profit or loss.

Measurement of expected credit losses on financial asset at FVTOCI

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

(10)	Offsetting financial instruments

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

(11)	Investment properties

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

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

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

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

(12)	Properties and equipment

Properties and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of Properties and equipment is expenditure directly attributable to their purchase or construction, which includes any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. It also includes the initial estimate of costs of dismantling and removing the item and restoring the site on which it is located.

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

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


	Useful life
Buildings used for business purpose		35 to 57 years
Structures in leased office		4 to 5 years
Properties for business purpose		4 to 5 years

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

(13)	Intangible assets and goodwill

The Group is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and accumulated impairment losses. The Group’s intangible asset are amortized over the following economic lives using the straight-line method. The estimated useful life and amortization method are reviewed at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate.


	Useful life
Industrial property rights		5 to 10 years
Development costs		5 years
Software and others		4 to 5 years or contract period

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

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

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

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(14)	Impairment of non-monetary assets

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

(15)

Leases

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

The Group as a lessee

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

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

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

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

•

Fixed payments (including in-substance fixed payments)

•

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

•

Amounts expected to be payable by the lessee under residual value guarantees

•

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

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

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

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

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

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

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

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

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

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

The Group as a lessor

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

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

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

If the agreement contains both lease and non-lease elements, the Group applies K-IFRS No.1115 to allocate the consideration of the contract.

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

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

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

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(16)	Derivative instruments

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

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

Embedded derivatives

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

Embedded derivatives that are part of a hybrid contract of which the host contract is a financial asset within the scope of K-IFRS No.1109 is not separated. The classification is done by considering the hybrid contract as a whole, and subsequent measurement is either at amortized cost or fair value.

If embedded derivatives are part of a hybrid contract of which the host contract is not a financial asset within the scope of K-IFRS No.1109 (e.g. financial liability), then these are treated as separate derivatives if embedded derivatives meet the definition of a derivative, characteristics & risk of the embedded derivatives are not closely related to that of host contract, and if the host contract is not measured at FVTPL.

Hedge accounting

The Group is designating certain derivatives as hedging instrument against fair value changes in relation to the interest rate risk, foreign currency translation and interest rate risk, and foreign currency translation risk.

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

•

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

•

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

•

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

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

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

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Fair value hedge

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

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

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

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

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

(18)	Provisions

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

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

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

(19)	Capital and compound financial instruments

The Group classifies a financial instrument that it issues as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

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

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(20)	Financial guarantee contracts

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

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

•

Loss allowance in accordance with K-IFRS No.1109

•

Initial book value less accumulated profit measured in accordance with K-IFRS No.1115

(21)	Employee benefits and pensions

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

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

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

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

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

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

(22)	Hedge accounting of net investment in a foreign operation

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

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(23)	Income taxes

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

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

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

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

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

The tax uncertainty arises from the compensation claim filed by the Group, and the refund litigation for the amount of tax levied by the tax authority due to differences in tax law analysis. In response, the Group paid taxes in accordance with K-IFRS No.2123 due to the tax authority’s claim but recognized as a corporate tax asset if it is highly probable of a refund in the future.

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

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

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3.	SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

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

(1)	Income taxes

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

(2)	Valuation of financial instruments

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

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

(3)	Impairment of financial instruments

The accuracy of the provision for credit losses is determined by the estimation of the expected cash flows for

each borrower for estimating the individually assessed loan-loss allowance, and the assumptions and variables in the model used for estimating the collectively assessed loan-loss allowance, payment guarantee and unused commitment.

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

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

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

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

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

(4)	Defined benefit plan

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

4.	RISK MANAGEMENT

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

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

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

(1)	Credit risk

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

Credit risk management

Credit facilities limit management

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

Credit risk monitoring organization and role

①

Large Corporate Credit Analysis & Approval Dept.

•

Examination, approval, and maintenance of loans to large enterprises (including small- and medium-sized enterprises affiliated with major debt group)

•

Examination, approval, and maintenance of loans to government agencies, public institutions (50% or more of government investments and contributions) and other corporations

•

Examination, approval, and maintenance of relevant real estate PF (Project Financing) (large or non-confirmed construction enterprises)

•

Operation controls over the ‘Credit Management for Affiliate Enterprise Groups’ as specified by the Regulation on Supervision of Bank Business, etc.

•

Establishing and managing total exposure limits for affiliated companies

•

Management of approved loans (delinquency, asset quality, portfolios, etc.)

•

Credit limit management designated by the Banking Act for the affiliated companies

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②

IB/Global Investment Banking Credit Analysis & Approval Dept

•

Examination, approval and maintenance of loans related to IB Group Investment Banking (including Principal Investment excluding blind funds, structured securities of foreign currency bonds, real estate project financing, and branch-linked IB deals)

•

Examination, approval and maintenance of overseas branches or subsidiaries of local companies, foreign companies.

•

Support for related tasks such as credit screening and maintenance of overseas review centers

•

Management of approved loans (delinquency, asset quality, portfolios, etc.)

•

Establishing and managing total exposure limits for affiliated companies

•

Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies

•

Credit research and credit rating for affiliated companies

•

Derivative-related risk examination and management for affiliated customers

③

SME Credit Analysis & Approval Dept.

•

Examination, approval, and maintenance of loans to small and medium-sized enterprises (excluding SMEs affiliated with major debt group) (including credit-related securities, credit derivatives, and credit-related deposits)

•

Examination, approval, and maintenance of loans to public institutions (less than 50% of government investments and contributions) and other corporations

•

Consultation on loan examination, and agreement on the approval (including follow-up) of overseas branches and local corporations of the enterprises

•

Examination, approval, and maintenance of relevant real estate PF (small and medium- construction enterprises)

•

Examination, approval, and maintenance, etc. of business loans related to National Housing and Urban Fund

•

Develop and maintain examination techniques

•

Management of approved loans (delinquency, asset quality, portfolios, etc.)

•

Establishing and managing total exposure limits for affiliated companies

•

Credit research and credit rating for affiliated companies

•

Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies

•

Derivative-related risk examination and management for affiliated customers

④

Retail Credit Analysis & Approval Dept.

•

Examination, approval, and maintenance of personal and individual business loans

•

Examination and approval of collective loans (including cases where construction enterprise is subject to workout)

⑤

Corporate Restructuring Dept.

•

General management of enterprises subject to workout, etc.

•

General management of enterprises subject to pre-workout, etc.

•

General management on the borrower in the course of corporate rehabilitation procedures

•

Workout activities such as the establishment and implementation of corporate workout plans performed for affiliated companies

•

Pre-workout activities such as the establishment and implementation of corporate management diagnosis and management plans performed for affiliated companies

•

Credit examination, approval, setting total exposure limit and follow-up management for affiliated companies

•

Examination and execution of loans for sound post-management of rehabilitation loans

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Credit screening and post monitoring or post management

①

Objective

•

To maintain appropriate credit ratings and improve asset quality

②

Main activities

•

Review the adequacy of credit and credit ratings, and maintain the consistency in application of ratings

•

Review the appropriateness of asset classification by quality and the provision for credit losses

•

Overall analysis of loan portfolio quality

•

Inspection of compliance with loan policies and relevant regulations, and recommendation for modification of policies

•

Review the appropriateness of loan approval and compliance with loan commitments

•

Post-inspection of the branches’ discretionary decision for loans

•

Assessing the accuracy of the identification of bad loans and the timeliness of actions taken by the person in charge of the loan

ii)

Current status by measurement method

Method of calculating risk-weighted assets

①

The Group calculates the risk-weighted assets of the credit risk by obtaining approval of the internal rating-based approach.

②

The internal rating-based approach meets the qualitative and quantitative requirements set by the Financial Supervisory Service, including the use of advanced techniques in risk measurement, as well as the establishment of an internal control and risk management system. It enables more accurate measurement and management of credit risk than the standard method.

•

The internal rating-based approach

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

Overview and utilization scope of credit rating evaluation model

①

Definition of corporate credit rating model

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

②

Operation of corporate credit rating model

•

General corporate evaluation model: Classified to external audit based on K-IFRS, external audit based on GAAP, non-external audit 1, non-external audit 2 and personal business based on their total assets, sales volume, accounting standards, whether subject to external audit or not, loan size and types of business, such as individuals or corporations.

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•

Evaluation model of local governments

•

Evaluation model of public institutions

•

Evaluation model of financial institutions: Banks, insurance companies, financial investment, and other financing

•

Evaluation model of overseas companies

•

Evaluation model of non-profit organization: Private schools, medical institutions, religious organizations, and other organizations

•

Specialized lending evaluation model: PF (Project Finance) (*1), OF (Object Financing) (*2), CF (Commodities Financing) (*3), real estate financing for sale, Real estate financing for rent, fund financing, acquisition financing, and asset securitization.

(*1) Project Finance (PF)

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

(*2) Object Finance (OF)

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

(*3) Commodities Finance (CF)

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

③

Corporate credit rating system

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

①

Definition of retail credit scoring model

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

•

Application Scoring System (ASS): The model determines credit rating by statistically calculating credit score for new retail loan applications using personal information, transaction information, credit information, and other relevant data.

•

Behavior Scoring System (BSS): The model determines credit rating by statistically calculating credit score for existing retail loans using transaction information, credit information, and relevant data.

②

Operation of retail credit scoring model

•

SOHO loan credit scoring model : ASS / BSS scoring model

•

Household loan credit scoring model : ASS / BSS scoring model

③

Retail credit scoring model evaluation system : Presented in number from grade 1 to 10.

①

Utilizes as a key component in calculating BIS credit risk-weighted assets

- 46 -

②

Supports prompt loan decision-making by applying for interest rate (pricing), and discretionary decision-making, etc.

③

Utilizes to measure overall risk such as asset quality and provisions for the credit losses

④

Utilizes as an indicator of Risk Adjusted Performance Measurement and relevant performance measurement.

Control structure for credit evaluation system (including content related to grade change)

①

Securing the independence of granting credit rating

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

②

Securing independence of credit risk control operations

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

③

Validation of credit evaluation systems by an independent third party

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

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

④

Strengthen the role of the Board of Directors and management

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

- 47 -

Scope of application of internal rating method


BIS Ratio calculation method		Exposure category	Date of approval
Standard method	Permanent standard method	Government, public institutions, and banks	October 30, 2008

	Standard method	Subsidiaries, overseas branches, and other assets	October 30, 2008

Internal rating-based model		Large/small, medium-sized enterprise exposure (external audit IFRS, external audit GAAP, non-external audit1, non-external audit2, personal business model), retail exposure, and asset-backed exposure (Credit rating-based approach)	October 30, 2008 February 13, 2015

Stepwise application		Special financing, financial institutions and non-profit organizations	October 30, 2008

iii)

Measurement of expected credit loss

K-IFRS No.1109 ‘Financial Instruments’ requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, depending on the degree of increase in credit risk since their initial recognition.


Classification	Stage 1	Stage 2	Stage 3
Definition	No significant increase in credit risk after initial recognition (*)	Significant increase in credit risk after initial recognition	Credit-impaired

Loss allowance	12-month expected credit losses	Lifetime expected credit losses
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.

At the end of each reporting period, the Group assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality, early warning system, days past due, and others. For financial assets whose contractual cash flows have been modified, the Group assesses whether there is a significant increase in credit risk on the same basis. The Group performs the above assessment to both corporate and retail exposures, and indicators of significant increase in credit risk are as follows:


Corporate Exposures		Retail Exposures
Asset quality level ‘Precautionary’ or lower		Asset quality level ‘Precautionary’ or lower

More than 30 days past due		More than 30 days past due

‘Warning’ level in early warning system		Significant decrease in credit rating (*)

Debtor experiencing financial difficulties (Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors)		Deferment of repayment of principal and interest

Significant decrease in credit rating		Deferment of interest

Deferment of repayment of principal and interest		—

Deferment of interest		—

- 48 -

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

•

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

•

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

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

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

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

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

- 49 -

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

•

Development of estimation models through regression analysis of borrower(corporate/retail)/probability of default by point in time and collateral (credit, collateral)/ default recovery rate by point in time (1-loss given default) and macroeconomic indicator data by year


Major macroeconomic variables		Correlation between credit risk and macroeconomic indicators
Gross Domestic Product (real, original series) growth rate		Negative (-) Correlation

Average manufacturing utilization rate		Negative (-) Correlation

Unemployment rate (original series)		Positive (+) Correlation

Apartment sales price index (KB, Seoul)		Negative (-) Correlation

KOSPI		Negative (-) Correlation

Gross Domestic Income (GDI)		Negative (-) Correlation

Retail sales index		Negative (-) Correlation

Housing transaction price index (KB, Nationwide)		Negative (-) Correlation

KOSDAQ		Negative (-) Correlation

•

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

•

Probability weight

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


	Normal Scenario		Good Scenario		Bad Scenario		Worst Scenario
Probability weight		45.58		5.69		28.73		20.00

- 50 -

•

When reflecting the predicted probability of default and default recovery rates, the increase rate is used as a future economic forecast adjustment coefficient and reflected in the estimate applied for the current year.

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


Scenarios	Probability weight			Assuming 100%		Difference from book value
Good		5.69	%		1,280,714		(675,757	)
Normal		45.58	%		1,394,081		(562,390	)
Bad		28.73	%		1,796,726		(159,745	)
Worst		20.00	%		4,255,128		2,298,657

- 51 -

iv)

Maximum exposure to credit risk

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

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


		December 31, 2025		December 31, 2024
Loans and other financial assets at amortized cost	Korean treasury and government agencies		158,916		194,896
	Banks		22,306,039		23,060,847
	Corporates		165,693,847		164,118,475
	Retail		183,050,503		179,173,623

	Sub-total		371,209,305		366,547,841

Financial assets at FVTPL (*1)	Due from banks		261,470		73,951
	Debt securities		4,117,965		4,651,188
	Derivative assets		5,806,126		10,095,101

	Sub-total		10,185,561		14,820,240

Financial assets at FVTOCI	Debt securities and others		47,686,718		42,912,557
Securities at amortized cost	Debt securities		18,707,459		19,193,186
Derivative assets (Designated for hedging)			37,010		10,102
Off-balance accounts	Guarantees (*2)		16,070,080		16,610,473
Off-balance accounts	Loan commitments		88,699,685		90,311,327

	Sub-total		104,769,765		106,921,800

	Total		552,595,818		550,405,726

(*1) Puttable financial instruments are not included.

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

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Credit risk exposure by geographical areas

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


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

Total		506,774,381		7,232,863		11,939,239		2,342,207		1,578,417		22,728,711		552,595,818

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


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

Total		502,047,585		7,784,268		14,464,509		1,416,458		1,330,932		23,361,974		550,405,726

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

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Credit risk exposure by industries

The following tables analyze credit risk exposure by industries, which are service, manufacturing, finance and insurance, construction, individuals and others in accordance with the Korea Standard Industrial Classification Code as of December 31, 2025 and 2024 (Unit: Korean Won in millions):


	December 31, 2025
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		82,661,426		50,363,769		32,939,748		4,468,456		180,689,079		20,086,827		371,209,305
Securities at amortized cost		89,611		—		8,009,336		39,968		—		10,568,544		18,707,459
Financial assets at FVTPL		65,673		424,379		5,710,158		4,392		100		3,980,859		10,185,561
Financial assets at FVTOCI		179,072		265,129		33,749,595		79,600		—		13,413,322		47,686,718
Derivative assets (Designated for hedging)		—		—		37,010		—		—		—		37,010
Off-balance accounts		21,447,783		25,003,158		14,659,721		3,024,118		33,261,431		7,373,554		104,769,765
Guarantees		5,062,242		7,346,416		1,575,301		718,525		4,257		1,363,339		16,070,080
Loan commitments		16,385,541		17,656,742		13,084,420		2,305,593		33,257,174		6,010,215		88,699,685

Total		104,443,565		76,056,435		95,105,568		7,616,534		213,950,610		55,423,106		552,595,818


	December 31, 2024
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		86,264,992		46,100,201		30,436,530		4,751,261		176,668,876		22,325,981		366,547,841
Securities at amortized cost		169,352		—		10,238,266		59,866		—		8,725,702		19,193,186
Financial assets at FVTPL		129,606		563,351		9,625,142		11,452		693		4,489,996		14,820,240
Financial assets at FVTOCI		331,590		474,837		29,935,897		194,940		—		11,975,293		42,912,557
Derivative assets (Designated for hedging)		—		—		10,102		—		—		—		10,102
Off-balance accounts		20,286,212		27,691,963		14,908,569		2,749,923		33,498,969		7,786,164		106,921,800
Guarantees		4,485,092		7,770,339		1,631,135		858,098		7,159		1,858,650		16,610,473
Loan commitments		15,801,120		19,921,624		13,277,434		1,891,825		33,491,810		5,927,514		90,311,327

Total		107,181,752		74,830,352		95,154,506		7,767,442		210,168,538		55,303,136		550,405,726

- 54 -

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


	December 31, 2025
	Stage 1				Stage 2				Stage 3		Total		Expected credit loss allowance			Total, net
	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		Total		Expected credit loss allowance			Total, net
Loans and other financial assets at amortized cost		320,987,247		25,876,614		12,791,200		11,526,507		2,290,607		373,472,175		(2,262,870	)		371,209,305
Korean treasury and government agencies		159,419		—		—		—		—		159,419		(503	)		158,916
Banks		21,947,704		380,844		—		—		—		22,328,548		(22,509	)		22,306,039
Corporates		137,760,518		21,175,120		2,405,192		4,949,910		979,847		167,270,587		(1,576,740	)		165,693,847
General business		99,660,976		14,532,450		2,075,889		3,692,874		822,745		120,784,934		(1,271,965	)		119,512,969
Small- and medium-sized enterprise		26,324,391		6,316,669		321,059		1,253,836		155,743		34,371,698		(261,253	)		34,110,445
Project financing and others		11,775,151		326,001		8,244		3,200		1,359		12,113,955		(43,522	)		12,070,433
Retails		161,119,606		4,320,650		10,386,008		6,576,597		1,310,760		183,713,621		(663,118	)		183,050,503
Securities at amortized cost		18,718,526		—		—		—		—		18,718,526		(11,067	)		18,707,459
Financial assets at FVTOCI (*3)		47,527,021		159,697		—		—		—		47,686,718		(28,937	)		47,686,718

Total		387,232,794		26,036,311		12,791,200		11,526,507		2,290,607		439,877,419		(2,302,874	)		437,603,482


	December 31, 2025
	Collateral value
	Stage 1		Stage 2		Stage 3		Total
Loans and other financial assets at amortized cost		233,729,937		21,699,210		1,009,058		256,438,205
Korean treasury and government agencies		103,817		—		—		103,817
Banks		1,815,479		—		—		1,815,479
Corporates		92,470,615		6,504,152		556,479		99,531,246
General business		61,019,442		5,128,816		475,788		66,624,046
Small- and medium-sized enterprise		23,443,754		1,375,336		80,691		24,899,781
Project financing and others		8,007,419		—		—		8,007,419
Retails		139,340,026		15,195,058		452,579		154,987,663
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		233,729,937		21,699,210		1,009,058		256,438,205

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

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

(*3)	Financial assets at FVTOCI are disclosed as the amount before deducting credit loss allowances as it does not reduce the carrying amount.

- 55 -


	December 31, 2024
	Stage 1				Stage 2				Stage 3		Total		Expected credit loss allowance			Total, net
	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		Total		Expected credit loss allowance			Total, net
Loans and other financial assets at amortized cost		319,216,302		22,126,049		12,779,833		12,871,140		1,891,996		368,885,320		(2,337,479	)		366,547,841
Korean treasury and government agencies		195,521		—		—		—		—		195,521		(625	)		194,896
Banks		22,842,408		115,722		88,306		—		36,140		23,082,576		(21,729	)		23,060,847
Corporates		139,696,518		16,962,447		2,745,985		5,666,456		715,654		165,787,060		(1,668,585	)		164,118,475
General business		97,835,687		10,772,864		2,359,928		4,012,005		548,821		115,529,305		(1,255,045	)		114,274,260
Small- and medium-sized enterprise		30,520,022		5,841,706		376,099		1,560,415		163,776		38,462,018		(343,071	)		38,118,947
Project financing and others		11,340,809		347,877		9,958		94,036		3,057		11,795,737		(70,469	)		11,725,268
Retails		156,481,855		5,047,880		9,945,542		7,204,684		1,140,202		179,820,163		(646,540	)		179,173,623
Securities at amortized cost		19,203,940		—		—		—		—		19,203,940		(10,754	)		19,193,186
Financial assets at FVTOCI (*3)		42,756,363		156,194		—		—		—		42,912,557		(29,082	)		42,912,557

Total		381,176,605		22,282,243		12,779,833		12,871,140		1,891,996		431,001,817		(2,377,315	)		428,653,584


	December 31, 2024
	Collateral value
	Stage 1		Stage 2		Stage 3		Total
Loans and other financial assets at amortized cost		237,605,385		22,440,301		828,926		260,874,612
Korean treasury and government agencies		55,775		—		—		55,775
Banks		2,474,302		—		—		2,474,302
Corporates		98,950,301		7,227,619		442,546		106,620,466
General business		59,099,372		5,578,709		328,666		65,006,747
Small- and medium-sized enterprise		32,222,974		1,588,272		113,880		33,925,126
Project financing and others		7,627,955		60,638		—		7,688,593
Retails		136,125,007		15,212,682		386,380		151,724,069
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		237,605,385		22,440,301		828,926		260,874,612

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

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

(*3)	Financial assets at FVTOCI are disclosed as the amount before deducting credit loss allowances as it does not reduce the carrying amount.

- 56 -

Guarantees and loan commitments

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


	December 31, 2025
Financial assets	Stage 1				Stage 2				Stage 3		Total
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)		Stage 3		Total
Off-balance accounts
Guarantees		15,186,127		776,038		18,603		66,204		23,108		16,070,080
Loan commitments		83,416,740		2,902,883		2,179,241		200,588		233		88,699,685

Total		98,602,867		3,678,921		2,197,844		266,792		23,341		104,769,765

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

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


	December 31, 2024
Financial assets	Stage 1				Stage 2				Stage 3		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)		Stage 3		Total
Off-balance accounts
Guarantees		15,678,584		808,182		41,866		59,688		22,153		16,610,473
Loan commitments		85,592,644		2,416,771		2,080,517		221,395		—		90,311,327

Total		101,271,228		3,224,953		2,122,383		281,083		22,153		106,921,800

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

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

vi)

Collateral and other credit enhancements

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

vii)

Among the financial assets that have measured expected credit loss allowances in terms of lifetime expected credit losses, amortized costs before changes in contractual cash flows for the year ended December 31, 2025 is 56,978 million Won, with net losses recognized along with the changes 9,244 million Won and for the year end December 31, 2024 is 52,420 million Won, with net losses recognized along with the changes 1,500 million Won, respectively.

viii)

The Group determines which loan is subject to write-off in accordance with internal guidelines and writes off loan receivables when it is determined that the loans are practically irrecoverable. For example, loans are practically irrecoverable when application is made for rehabilitation under the Debtor Rehabilitation and Bankruptcy Act. and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation, or when it is not possible to recover the loan amount through legal means such as selling debtor’s assets via auctions or through any other means available. Notwithstanding the write-off, the Group may still exercise its right of collection after the asset has been written off in accordance with its collection policies.

As the Group manages receivables that have not lost the right of claim to the debtor for the grounds of incomplete statute limitation and uncollected receivables under the related laws as receivable charge-offs, the balance as of December 31, 2025 and 2024 is 8,239,954 million Won and 7,662,692 million Won, respectively. In addition, the contractual uncollected amount of financial assets written off during the year ended December 31, 2025, but still in the process of recovery is 789,029 million Won.

- 57 -

(2)	Market risk

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

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

Market risk management for trading activities

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

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

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

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

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

- 58 -

Trading activities

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


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

Total			181,701		174,304

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

ii)

Market risk management for non-trading activities

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

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

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

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


December 31, 2025		December 31, 2024
ΔEVE(*1)	ΔNII(*2)	ΔEVE(*1)	ΔNII(*2)
488,658	685,472	952,830	668,290

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

(*2)	ΔNII: change in Net Interest Income

- 59 -

The Group measures and manages the risks resulting from interest rate fluctuations caused by mismatches in interest rates and maturities of assets and liabilities. At the interest rate re-pricing date, cash flows (both principal and interest) of interest-bearing assets and liabilities, which is the basis of non-trading position interest rate risk management are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Within 3 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		242,452,158		49,888,783		19,968,147		12,907,840		66,559,606		3,874,317		395,650,851
Financial assets at FVTPL		21,445		—		—		—		—		—		21,445
Financial assets at FVTOCI		16,065,783		3,864,449		2,551,840		1,989,420		23,884,850		1,298,513		49,654,855
Securities at amortized cost		1,068,946		1,058,142		2,206,199		2,130,814		11,965,315		1,192,507		19,621,923

Total		259,608,332		54,811,374		24,726,186		17,028,074		102,409,771		6,365,337		464,949,074

Liability:
Deposits due to customers		168,307,298		57,072,670		42,566,190		43,628,460		63,954,509		29,396		375,558,523
Borrowings		20,176,206		3,471,807		1,085,634		1,257,658		2,883,194		518,214		29,392,713
Debentures		3,726,029		1,689,439		1,919,818		1,950,739		19,032,647		2,555,145		30,873,817

Total		192,209,533		62,233,916		45,571,642		46,836,857		85,870,350		3,102,755		435,825,053


	December 31, 2024
	Within 3 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		228,548,911		50,494,417		23,092,039		15,052,939		64,031,345		4,200,527		385,420,178
Financial assets at FVTPL		22,850		—		—		—		—		—		22,850
Financial assets at FVTOCI		7,276,054		4,996,536		2,350,588		2,570,750		26,449,061		1,421,185		45,064,174
Securities at amortized cost		1,318,853		1,641,266		1,856,726		629,079		12,972,012		1,862,090		20,280,026

Total		237,166,668		57,132,219		27,299,353		18,252,768		103,452,418		7,483,802		450,787,228

Liability:
Deposits due to customers		166,067,906		54,851,422		43,879,398		40,969,896		62,233,212		34,575		368,036,409
Borrowings		17,300,859		3,577,136		1,144,449		1,343,675		2,961,263		513,870		26,841,252
Debentures		2,627,676		3,528,439		2,602,985		1,633,304		14,766,804		2,611,435		27,770,643

Total		185,996,441		61,956,997		47,626,832		43,946,875		79,961,279		3,159,880		422,648,304

- 60 -

iii)

Currency risk

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

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


		December 31, 2025
		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		10,365		14,873,417		162,974		1,495,497		1,434		293,637		396		667,397		1,503,822		18,833,770
	Loans and other financial assets at amortized cost		22,599		32,426,982		98,342		902,417		18,707		3,830,413		2,061		3,474,553		7,539,317		48,173,682
	Financial assets at FVTPL		1,015		1,456,178		4,835		44,367		—		—		184		310,228		19,687		1,830,460
	Financial assets at FVTOCI		2,718		3,900,476		—		—		3,185		652,090		283		477,752		870,955		5,901,273
	Securities at amortized cost		610		875,923		—		—		271		55,390		7		12,610		135,379		1,079,302

	Total		37,307		53,532,976		266,151		2,442,281		23,597		4,831,530		2,931		4,942,540		10,069,160		75,818,487

Liability	Financial liabilities at FVTPL		62		88,508		—		1		—		—		—		774		138		89,421
	Deposits due to customers		22,953		32,935,771		215,351		1,976,126		21,625		4,428,000		5,781		9,744,458		6,344,375		55,428,730
	Borrowings		7,846		11,258,513		34,754		318,915		957		195,936		359		605,116		2,060,833		14,439,313
	Debentures		3,093		4,438,023		—		—		600		122,856		—		—		—		4,560,879
	Other financial liabilities		3,143		4,509,358		12,179		111,756		1,423		291,386		62		104,848		352,234		5,369,582

	Total		37,097		53,230,173		262,284		2,406,798		24,605		5,038,178		6,202		10,455,196		8,757,580		79,887,925

Off-balance accounts			9,277		13,312,112		19,765		181,369		1,163		238,158		673		1,134,333		541,985		15,407,957


		December 31, 2024
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		8,257		12,138,001		78,491		735,049		1,330		267,679		223		341,262		1,123,418		14,605,409
	Loans and other financial assets at amortized cost		21,620		31,780,528		104,070		974,600		26,856		5,405,371		2,212		3,380,628		7,580,785		49,121,912
	Financial assets at FVTPL		871		1,279,639		6,655		62,327		—		—		145		222,355		20,086		1,584,407
	Financial assets at FVTOCI		3,588		5,274,144		—		—		2,910		585,622		37		55,853		847,518		6,763,137
	Securities at amortized cost		767		1,127,313		—		—		980		197,188		36		55,074		175,895		1,555,470

	Total		35,103		51,599,625		189,216		1,771,976		32,076		6,455,860		2,653		4,055,172		9,747,702		73,630,335

Liability	Financial liabilities at FVTPL		112		164,400		2		15		—		—		1		1,766		751		166,932
	Deposits due to customers		23,607		34,702,743		250,528		2,346,146		27,301		5,494,893		2,024		3,094,378		5,348,054		50,986,214
	Borrowings		8,302		12,203,906		49,495		463,513		110		22,235		545		832,661		2,833,639		16,355,954
	Debentures		3,379		4,967,433		—		—		—		—		—		—		—		4,967,433
	Other financial liabilities		2,122		3,119,796		20,524		192,200		4,120		829,197		244		373,176		491,995		5,006,364

	Total		37,522		55,158,278		320,549		3,001,874		31,531		6,346,325		2,814		4,301,981		8,674,439		77,482,897

Off-balance accounts			7,939		11,670,439		23,905		223,864		1,702		342,576		647		988,344		1,506,643		14,731,866

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(3)	Liquidity risk

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

Liquidity risk management

Basel III regulatory response

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

Analysis of financing and operation status by maturity

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

Establishment and implementation of Contingency Plan

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

•

Inspection items related to liquidity risk on the Contingency Plan checklist

∎

The amount of Won and foreign currency and insufficiency of funds

∎

Liquidity coverage ratio (monthly average balance, daily balance)

∎

The amounts of deposits and withdrawals (saving deposit in Korean Won, depository)

∎

Overdraft limit exhaustion rate

∎

Percentage of reduction in the balance of deferred deposits

∎

Percentage of concentration of funding by subject and period

∎

Won and foreign currency funding spread

- 62 -

ii)

Maturity analysis of non-derivative financial liabilities

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	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		436,572		53,234		52,655		32,389		324,118		17,501		916,469
Deposits due to customers		240,375,790		42,639,701		31,088,985		45,721,916		16,993,271		1,212,200		378,031,863
Borrowings		14,281,066		4,327,804		3,581,578		3,018,431		3,360,731		518,214		29,087,824
Debentures		3,398,896		1,691,707		1,922,086		2,277,982		19,036,653		2,555,145		30,882,469
Lease liabilities		52,235		42,363		38,545		33,985		255,895		19,382		442,405
Other financial liabilities		22,585,097		82,539		—		2,626		235,446		3,847,739		26,753,447

Total		281,129,656		48,837,348		36,683,849		51,087,329		40,206,114		8,170,181		466,114,477


	December 31, 2024
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		74,205		—		—		—		—		—		74,205
Deposits due to customers		236,298,950		41,158,837		32,874,946		42,446,187		16,599,482		1,441,449		370,819,851
Borrowings		9,737,351		5,577,169		4,338,707		3,477,117		3,391,285		563,870		27,085,499
Debentures		2,073,670		3,683,287		2,606,561		2,036,919		14,770,810		2,611,573		27,782,820
Lease liabilities		53,205		42,188		38,538		34,265		262,872		50,352		481,420
Other financial liabilities		17,495,078		73,587		402		756		129,235		4,287,098		21,986,156

Total		265,732,459		50,535,068		39,859,154		47,995,244		35,153,684		8,954,342		448,229,951

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	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		445,949		60,227		57,368		36,549		296,086		17,501		913,680
Deposits due to customers		247,316,349		44,727,394		30,657,625		39,953,741		14,486,615		433,032		377,574,756
Borrowings		14,283,463		4,328,924		3,582,649		3,020,493		3,354,081		518,214		29,087,824
Debentures		3,398,896		1,691,707		1,922,086		2,277,982		19,036,653		2,555,145		30,882,469
Lease liabilities		52,239		43,505		39,701		35,150		256,136		19,382		446,113
Other financial liabilities		22,585,097		82,539		—		2,626		235,446		3,847,739		26,753,447

Total		288,081,993		50,934,296		36,259,429		45,326,541		37,665,017		7,391,013		465,658,289


	December 31, 2024
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		74,205		—		—		—		—		—		74,205
Deposits due to customers		242,015,533		43,010,503		32,635,026		37,588,260		14,465,794		491,714		370,206,830
Borrowings		9,739,766		5,578,296		4,339,783		3,479,184		3,384,599		563,870		27,085,498
Debentures		2,073,670		3,683,287		2,606,561		2,036,919		14,770,810		2,611,573		27,782,820
Lease liabilities		53,208		43,333		39,738		35,465		267,183		50,352		489,279
Other financial liabilities		17,495,762		73,915		722		1,371		127,287		4,287,098		21,986,155

Total		271,452,144		52,389,334		39,621,830		43,141,199		33,015,673		8,004,607		447,624,787

- 63 -

iii)

Maturity analysis of derivative financial liabilities

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

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


		Within 3 months			4 to 6 months		7 to 9 months			10 to 12 months		1 to 5 years		Over 5 years			Total
December 31, 2025	Fair value hedge		4,867			11,239		(3,279	)		13,407		1,247		(10,613	)		16,868
	Trading		5,121,181			—		—			—		—		—			5,121,181
December 31, 2024	Fair value hedge		(6,816	)		46,231		(11,740	)		44,950		35,764		(5,834	)		102,555
	Trading		9,161,143			—		—			—		—		—			9,161,143

iv)

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

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


	December 31, 2025		December 31, 2024
Guarantees		16,070,080		16,610,473
Loan commitments		88,699,685		90,311,327
Other commitments		5,636,343		6,039,793

- 64 -

(4)	Operational risk

Definition

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

ii)

Operational risk measurement and management

The Group measures operational risk capital using the Basel III standardized approach. This approach calculates the required operational risk capital by multiplying the Business Indicator Component (BIC), which represents the scale of operations, with the Internal Loss Multiplier (ILM), which reflects the magnitude of actual historical internal losses relative to the scale of operations.

Operational risk limits are set with the approval of the Board of Risk Management Committee. The Group regularly calculates the operational risk capital and reports to the management, the Board of Risk Management Committee, and others.

Since a reduction in the size of internal loss events leads to a decrease in operational risk capital, it is important to prevent loss events in advance. Accordingly, the Group conducts operational risk management activities using tools such as Risk Control Self-Assessment (RCSA), Key Risk Indicators (KRI), and loss data. Additionally, to ensure continuity of operations in emergency situations such as disasters, the Group has established a Business Continuity Plan (BCP) and conducts annual simulation drills.

(5)	Capital management

The Group complies with the standard of capital adequacy provided by financial regulatory authorities. The capital adequacy standard is based on Basel III published by Basel Committee on Banking Supervision in Bank for International Settlement which has been implemented in Korea on December 31, 2013. The capital adequacy ratio is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the consolidated financial statements of the Group.

In accordance with the above regulations, the Group is maintaining the following ratios as of December 31, 2025 and 2024, respectively: a Common Equity Tier 1 capital ratio of 9.0% and 8.0%, a Tier 1 capital ratio of 10.5% and 9.5%, and a minimum total capital ratio of 12.5% and 11.5%.

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


	December 31, 2025 (*)			December 31, 2024
Risk-weighted assets for credit risk		165,110,790			171,533,503
Risk-weighted assets for market risk		2,271,256			2,178,805
Risk-weighted assets for operational risk		18,761,441			18,296,422

Total risk-weighted assets		186,143,487			192,008,730

Common Equity Tier 1 capital		26,296,573			25,060,125
Other Tier 1 capital		1,412,550			1,652,581
Tier 2 capital		3,581,401			3,717,491

Total risk-adjusted capital		31,290,524			30,430,197

Common Equity Tier 1 ratio		14.13	%		13.05	%

Tier 1 capital ratio		14.89	%		13.91	%

Total capital ratio		16.81	%		15.85	%

(*)	Tier 1 capital ratio as of December 31, 2025 is estimation.

- 65 -

5.	OPERATING SEGMENTS

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

(1)	Segment by types of customers

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

•

Consumer banking: Loans/deposits and financial services for retail and individual consumers, etc.

•

Corporate banking: Loans/deposits and export/import, Financial services for corporations, etc.

•

Investment banking: Domestic/foreign investment, Structured finance, M&A, Equity & fund investment related business, Venture advisory related tasks, Real estate SOC development practices, etc.

•

Capital market: Investment in securities and derivatives, etc.

•

Headquarters and others: Segments that do not belong to operating segments above.

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


	For the year ended December 31, 2025
	Consumer banking			Corporate banking			Investment banking			Capital market			Headquarters and others			Sub-total			Adjustments (*)			Continuing operations
Net interest income (expense)		2,073,271			3,134,469			(221,612	)		(41,276	)		1,870,034			6,814,886			1,001,619			7,816,505
Interest income		5,887,905			7,127,115			444,641			120,150			3,803,916			17,383,727			577,875			17,961,602
Interest expense		(2,338,283	)		(6,169,595	)		(29	)		16,162			(2,077,096	)		(10,568,841	)		423,744			(10,145,097	)
Inter-segment		(1,476,351	)		2,176,949			(666,224	)		(177,588	)		143,214			—			—			—
Net non-interest income		484,596			643,090			548,876			172,300			366,552			2,215,414			(1,054,812	)		1,160,602
Non-interest income		401,231			644,892			783,327			11,720,595			1,650,125			15,200,170			(13,089,448	)		2,110,722
Non-interest expense		(28,489	)		(99,705	)		(234,451	)		(11,548,295	)		(1,073,816	)		(12,984,756	)		12,034,636			(950,120	)
Inter-segment		111,854			97,903			—			—			(209,757	)		—			—			—
Other expense		(1,972,820	)		(1,694,632	)		(41,890	)		(16,377	)		(1,658,669	)		(5,384,388	)		(71,977	)		(5,456,365	)
Administrative expense		(1,942,080	)		(1,210,708	)		(40,019	)		(32,194	)		(1,031,702	)		(4,256,703	)		(36,759	)		(4,293,462	)
Reversal of (provision for) expected credit loss allowance		(30,740	)		(483,924	)		(1,871	)		15,817			(626,967	)		(1,127,685	)		(35,218	)		(1,162,903	)

Operating income		585,047			2,082,927			285,374			114,647			577,917			3,645,912			(125,170	)		3,520,742

Non-operating income (expense)		(2,822	)		(23,511	)		33,455			(32,211	)		(98,722	)		(123,811	)		(37,741	)		(161,552	)
Gain on valuation of investments in associates		—			—			30,627			235			15,066			45,928			—			45,928
Other non-operating income (expense)		(2,822	)		(23,511	)		2,828			(32,446	)		(113,788	)		(169,739	)		(37,741	)		(207,480	)

Net income before income tax expense		582,225			2,059,416			318,829			82,436			479,195			3,522,101			(162,911	)		3,359,190
Income tax expense		(153,708	)		(549,578	)		(84,171	)		(21,763	)		42,634			(766,586	)		(10,505	)		(777,091	)

Net interest income		428,517			1,509,838			234,658			60,673			521,829			2,755,515			(173,416	)		2,582,099

(*)	Adjustments were made for the presentation of profit or loss in accordance with K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.

- 66 -


	For the year ended December 31, 2024
	Consumer banking			Corporate banking			Investment banking			Capital market			Headquarters and others			Sub-total			Adjustments (*)			Continuing operations
Net interest income (expense)		2,347,537			3,236,304			(268,845	)		(61,738	)		1,292,907			6,546,165			1,020,076			7,566,241
Interest income		6,072,087			8,459,406			462,395			118,247			3,844,336			18,956,471			594,202			19,550,673
Interest expense		(3,225,417	)		(6,906,235	)		(58	)		11,696			(2,290,292	)		(12,410,306	)		425,874			(11,984,432	)
Inter-segment		(499,133	)		1,683,133			(731,182	)		(191,681	)		(261,137	)		—			—			—
Net non-interest income		435,555			611,386			584,626			206,750			107,580			1,945,897			(874,664	)		1,071,233
Non-interest income		413,213			657,790			798,762			19,470,420			1,014,657			22,354,842			(19,048,803	)		3,306,039
Non-interest expense		(67,906	)		(130,075	)		(214,136	)		(19,263,670	)		(733,158	)		(20,408,945	)		18,174,139			(2,234,806	)
Inter-segment		90,248			83,671			—			—			(173,919	)		—			—			—
Other expense		(1,967,867	)		(1,580,876	)		(24,618	)		(54,003	)		(750,351	)		(4,377,715	)		(190,451	)		(4,568,166	)
Administrative expense		(1,893,526	)		(1,097,939	)		(32,348	)		(33,495	)		(655,696	)		(3,713,004	)		(33,912	)		(3,746,916	)
Reversal of (provision for) expected credit loss allowance		(74,341	)		(482,937	)		7,730			(20,508	)		(94,655	)		(664,711	)		(156,539	)		(821,250	)

Operating income		815,225			2,266,814			291,163			91,009			650,136			4,114,347			(45,039	)		4,069,308

Non-operating income (expense)		(63,998	)		(6,900	)		49,216			—			(6,780	)		(28,462	)		(31,859	)		(60,321	)
Gain on valuation of investments in associates		—			—			26,935			307			16,825			44,067			—			44,067
Other non-operating income (expense)		(63,998	)		(6,900	)		22,281			(307	)		(23,605	)		(72,529	)		(31,859	)		(104,388	)

Net income before income tax expense		751,227			2,259,914			340,379			91,009			643,356			4,085,885			(76,898	)		4,008,987
Income tax expense		(198,324	)		(583,029	)		(89,860	)		(24,026	)		(31,921	)		(927,160	)		(34,891	)		(962,051	)

Net income		552,903			1,676,885			250,519			66,983			611,435			3,158,725			(111,789	)		3,046,936

(*)	Adjustments were made for the presentation of profit or loss in accordance with K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.

(2)	Information about products and services

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

(3)	Information about geographic area

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

(4)	Information about major customers

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

- 67 -

6.	CASH AND CASH EQUIVALENTS

(1)	Details of cash and cash equivalents as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Cash		1,825,654		1,661,098
Foreign currencies		641,954		811,732
Demand deposits		34,641,585		23,494,419
Time deposits		125,897		63,505

Total		37,235,090		26,030,754

(2)	Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Counterparty	December 31, 2025		Reason of restriction
Due from banks in local currency:
Due from Bank of Korea (BOK)	BOK		16,555,802	Reserve deposits under the BOK Act
Due from banks in foreign currencies:
Due from banks on demand	BOK and others		6,919,255	Reserve deposits and others

Total			23,475,057


	Counterparty	December 31, 2024		Reason of restriction
Due from banks in local currency:
Due from Bank of Korea (BOK)	BOK		9,712,194	Reserve deposits under the BOK Act
Due from banks in foreign currencies:
Due from banks on demand	BOK and others		2,954,868	Reserve deposits and others

Total			12,667,062

- 68 -

(3)	Among the investing and financing activities, significant transactions not involving cash inflows and outflows for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025			For the year ended December 31, 2024
Changes in other comprehensive income (loss) due to valuation of financial assets at FVTOCI		(38,610	)		(23,899	)
Changes in accounts payable related to acquisition of financial assets at FVTOCI		29,307			—
Changes in financial assets at FVTOCI due to debt-equity swap		—			13,536
Changes in other comprehensive income (loss) of investments accounted for using the equity method		(3,250	)		(7,937	)
Changes in other comprehensive income (loss) related to hedge of net investment of foreign operation		22,319			(114,827	)
Changes in other comprehensive income (loss) of foreign operations translation		(108,576	)		491,204
Reclassification investment properties to properties and equipment		—			65,280
Reclassification properties and equipment to investment properties		14,440			—
Reclassification properties and equipment to assets held for sale		107,479			19,692
Reclassification investment properties to assets held for sale		35,137			—
Increase in the right-of-use assets and lease liabilities		158,742			327,319
Changes in accounts payable related to acquisition of intangible assets		(6,808	)		24,134

- 69 -

(4)	Adjustments of liabilities from financing activities for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	January 1, 2025		Cash flow			Not involving cash inflows and outflows									December 31, 2025
	January 1, 2025		Cash flow			Foreign Exchange			Changed in value of hedged items			Others			December 31, 2025
Borrowings		26,379,689		2,873,831			(319,991	)		—			5			28,933,534
Debentures		25,534,324		3,025,075			(122,099	)		80,760			144,208			28,662,268
Lease liabilities		450,682		(210,536	)		(1,640	)		—			172,680			411,186
Net Derivative Liability (Hedging Purpose)		92,532		(9,109	)		—			(93,549	)		166			(9,960	)
Rental deposit		39,414		(51	)		—			—			—			39,363

Total		52,496,641		5,679,210			(443,730	)		(12,789	)		317,059			58,036,391


	For the year ended December 31, 2024
	January 1, 2024		Cash flow			Not involving cash inflows and outflows									December 31, 2024
	January 1, 2024		Cash flow			Foreign Exchange			Changed in value of hedged items			Others			December 31, 2024
Borrowings		25,254,732		(981,449	)		2,106,383			—			23			26,379,689
Debentures		21,277,033		3,377,666			683,588			17,417			178,620			25,534,324
Lease liabilities		299,621		(213,326	)		13,510			—			350,877			450,682
Net Derivative Liability (Hedging Purpose)		134,565		(25,442	)		—			(5,265	)		(11,326	)		92,532
Rental deposit		57,104		(17,690	)		—			—			—			39,414

Total		47,023,055		2,139,759			2,803,481			12,152			518,194			52,496,641

- 70 -

7.	FINANCIAL ASSETS AT FVTPL

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


	December 31, 2025		December 31, 2024
Due from banks:
Gold banking assets		261,470		73,951
Securities:
Debt securities
Korean treasury and government agencies		3,555,331		4,094,554
Financial institutions		139,440		159,968
Corporates		320,323		241,119
Securities loaned		—		12,361
Others		102,871		143,186
Equity securities		313,287		313,795
Capital contributions		2,445,936		2,258,811
Beneficiary certificates		7,906,695		6,969,099
Others		181,982		188,878

Sub-total		14,965,865		14,381,771

Derivatives assets		5,806,126		10,095,101
Other assets		83,949		48,346

Total		21,117,410		24,599,169

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

8.	FINANCIAL ASSETS AT FVTOCI

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


	December 31, 2025		December 31, 2024
Debt securities:
Korean treasury and government agencies		6,333,111		7,776,569
Financial institutions		27,980,461		25,266,163
Corporates		3,248,996		3,032,609
Bonds denominated in foreign currencies		5,740,314		6,598,937
Securities loaned		238,406		—
Mortgage-backed debt securities		4,135,189		238,279

Sub-total		47,676,477		42,912,557

Equity securities		935,704		785,527
Loans		10,241		—

Total		48,622,422		43,698,084

- 71 -

(2)	Details of equity securities designated as financial assets at FVTOCI as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


Purpose of acquisition	December 31, 2025		December 31, 2024
Investment for strategic business partnership purpose		838,909		683,894
Debt-equity swap		96,795		101,627
Others		—		6

Total		935,704		785,527

(3)	Changes in the expected credit loss allowance and gross carrying amount of financial assets at FVTOCI for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Credit loss allowances


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(29,082	)		—		—		(29,082	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(8,387	)		—		—		(8,387	)
Disposal		6,644			—		—		6,644
Others (*)		1,888			—		—		1,888

Ending balance		(28,937	)		—		—		(28,937	)

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(27,379	)		—		—		(27,379	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(8,866	)		—		—		(8,866	)
Disposal		6,788			—		—		6,788
Others (*)		375			—		—		375

Ending balance		(29,082	)		—		—		(29,082	)

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

- 72 -

ii)

Gross carrying amount


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		42,912,557			—		—		42,912,557
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		36,152,747			—		—		36,152,747
Disposal/Redemption		(30,793,820	)		—		—		(30,793,820	)
Loss on fair value valuation		(219,257	)		—		—		(219,257	)
Amortization on the effective interest method		125,398			—		—		125,398
Others (*)		(490,907	)		—		—		(490,907	)

Ending balance		47,686,718			—		—		47,686,718

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		36,694,110			—		—		36,694,110
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		31,911,154			—		—		31,911,154
Disposal/Redemption		(26,868,484	)		—		—		(26,868,484	)
Gain on fair value valuation		224,896			—		—		224,896
Amortization on the effective interest method		134,553			—		—		134,553
Others (*)		816,328			—		—		816,328

Ending balance		42,912,557			—		—		42,912,557

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

(4)

The reason for the disposal of equity securities designated as financial assets at FVTOCI during the years ended December 31, 2025 and 2024 include the disposal of stocks acquired through debt-equity swaps, etc. The fair values at disposal dates and the cumulative gains or losses are as follows (Unit: Korean Won in millions):


	For the years ended December 31,
	2025			2024
Fair value at disposal date		10,907			155,637
Cumulative losses		(1,800	)		72,744

- 73 -

9.	SECURITIES AT AMORTIZED COST

(1)

Details of securities at amortized cost as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Korean treasury and government agencies		9,698,695			7,646,463
Financial institutions		3,352,648			4,004,011
Corporates		4,587,882			5,997,996
Bonds denominated in foreign currencies		1,067,156			1,514,028
Mortgage-backed debt securities		12,145			41,442
Credit loss allowances		(11,067	)		(10,754	)

Total		18,707,459			19,193,186

(2)

Changes in the expected credit loss allowance and gross carrying amount of securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Credit loss allowances


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(10,754	)		—		—		(10,754	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(330	)		—		—		(330	)
Others (*)		17			—		—		17

Ending balance		(11,067	)		—		—		(11,067	)

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(13,941	)		—		—		(13,941	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of expected credit loss allowance		3,287			—		—		3,287
Others (*)		(100	)		—		—		(100	)

Ending balance		(10,754	)		—		—		(10,754	)

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

- 74 -

ii)

Gross carrying amount


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		19,203,940			—		—		19,203,940
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		5,312,962			—		—		5,312,962
Disposal / Redemption		(5,890,990	)		—		—		(5,890,990	)
Amortization on the effective interest method		111,965			—		—		111,965
Others (*)		(19,351	)		—		—		(19,351	)

Ending balance		18,718,526			—		—		18,718,526

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		24,010,113			—		—		24,010,113
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		2,586,171			—		—		2,586,171
Disposal / Redemption		(7,634,677	)		—		—		(7,634,677	)
Amortization on the effective interest method		93,318			—		—		93,318
Others (*)		149,015			—		—		149,015

Ending balance		19,203,940			—		—		19,203,940

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

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1)	Details of loans and other financial assets at amortized cost as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Due from banks		1,525,783		2,115,204
Loans		359,839,901		355,306,033
Other financial assets		9,843,621		9,126,604

Total		371,209,305		366,547,841

(2)	Details of due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Due from banks in local currencies:
Due from non-depository institutions		20,624			152
Others		16,249			256
Expected credit loss allowance		(27	)		—

Sub-total		36,846			408

Due from banks in foreign currencies:
Due from banks on demand		149,839			177,886
Due from banks on time		276,498			193,654
Others		1,066,872			1,749,580
Expected credit loss allowance		(4,272	)		(6,324	)

Sub-total		1,488,937			2,114,796

Total		1,525,783			2,115,204

- 75 -

(3)	Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Counterparty	December 31, 2025		Reason of restriction
Due from banks in local currency:
Others	MSBI LIMITED Seoul and others		16,246	Credit Support Annex (CSA) collateral and others

Sub-total			16,246

Due from banks in foreign currencies:
Due from banks on demand	National Bank of Cambodia and others		149,279	Reserve deposits and others
Due from banks on time	TORONTO DOMINION BANK, NEW YORK and others		129,141	Federal Reserve Discount Window
Others	Goldman Sachs Intl., LON and others		772,024	Credit Support Annex (CSA) collateral and others

Sub-total			1,050,444

Total			1,066,690


	Counterparty	December 31, 2024		Reason of restriction
Due from banks in local currency:
Others	Korea Exchange Co., Ltd. and others		253	Accumulated amount for Joint Compensation Fund and others

Sub-total			253

Due from banks in foreign currencies:
Due from banks on demand	National Bank of Cambodia and others		169,064	Reserve deposits and others
Due from banks on time	National Bank of Cambodia		284	Deposit using the fund settlement system and others
Others	BNP-PARIBAS, PAR and others		1,093,853	Credit Support Annex (CSA) collateral and others

Sub-total			1,263,201

Total			1,263,454

- 76 -

(4)	Changes in the expected credit loss allowance and gross carrying amount of due from banks for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Credit loss allowances


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(6,324	)		—		—		(6,324	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of expected credit loss allowance		2,017			—		—		2,017
Others (*)		8			—		—		8

Ending balance		(4,299	)		—		—		(4,299	)

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(15,843	)		—		—		(15,843	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of expected credit loss allowance		9,875			—		—		9,875
Others (*)		(356	)		—		—		(356	)

Ending balance		(6,324	)		—		—		(6,324	)

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

ii)

Gross carrying amount


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		2,121,528			—		—		2,121,528
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net decrease		(585,516	)		—		—		(585,516	)
Others (*)		(5,930	)		—		—		(5,930	)

Ending balance		1,530,082			—		—		1,530,082

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


	For the year ended December 31, 2024
	Stage 1		Stage 2		Stage 3		Total
Beginning balance		1,731,066		—		—		1,731,066
Transfer to 12-month expected credit losses		—		—		—		—
Transfer to lifetime expected credit losses		—		—		—		—
Transfer to credit-impaired financial assets		—		—		—		—
Net increase		275,579		—		—		275,579
Others (*)		114,883		—		—		114,883

Ending balance		2,121,528		—		—		2,121,528

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

- 77 -

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


	December 31, 2025			December 31, 2024
Loans in local currency		303,140,737			302,131,888
Loans in foreign currencies		32,243,233			33,126,734
Domestic banker’s usance		2,647,891			2,803,761
Credit card accounts		16,199			13,524
Bills bought in foreign currencies		4,396,122			4,328,404
Bills bought in local currency		82,657			54,405
Factoring receivables		130			237
Advances for customers on guarantees		11,909			7,541
Private placement bonds		75,397			91,400
Securitized loans		2,187,733			2,153,730
Call loans		2,430,625			1,847,377
Bonds purchased under resale agreements		13,886,494			10,098,618
Loan origination costs and fees		810,170			825,322
Discounted present value		(73	)		(95	)
Expected credit loss allowance		(2,089,323	)		(2,176,813	)

Total		359,839,901			355,306,033

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


	For the year ended December 31, 2025
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(157,643	)		(110,025	)		(154,861	)		(901,184	)		(558,150	)		(294,468	)
Transfer to 12-month expected credit losses		(29,973	)		29,061			912			(68,626	)		68,203			423
Transfer to lifetime expected credit losses		13,001			(13,938	)		937			34,824			(36,626	)		1,802
Transfer to credit-impaired financial assets		5,651			10,682			(16,333	)		102,381			111,004			(213,385	)
Net reversal of (provision for) expected credit loss allowance		24,292			(48,040	)		(242,369	)		(28,581	)		4,544			(836,547	)
Recovery		—			—			(34,681	)		—			—			(39,440	)
Write-off		—			—			195,950			—			—			598,956
Disposal		23			1,638			18,519			24			3,736			259,609
Interest income from impaired loans		—			—			11,970			—			—			26,717
Others		9,188			1,809			18,428			18,344			24,475			98,924

Ending balance		(135,461	)		(128,813	)		(201,528	)		(842,818	)		(382,814	)		(397,409	)


	For the year ended December 31, 2025
	Credit card accounts									Total (*)
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(482	)		—			—			(1,059,309	)		(668,175	)		(449,329	)
Transfer to 12-month expected credit losses		—			—			—			(98,599	)		97,264			1,335
Transfer to lifetime expected credit losses		—			—			—			47,825			(50,564	)		2,739
Transfer to credit-impaired financial assets		—			—			—			108,032			121,686			(229,718	)
Net reversal of (provision for) expected credit loss allowance		2			—			—			(4,287	)		(43,496	)		(1,078,916	)
Recovery		—			—			—			—			—			(74,121	)
Write-off		—			—			—			—			—			794,906
Disposal		—			—			—			47			5,374			278,128
Interest income from impaired loans		—			—			—			—			—			38,687
Others		—			—			—			27,532			26,284			117,352

Ending balance		(480	)		—			—			(978,759	)		(511,627	)		(598,937	)

(*)	Additional loss reserves are included for borrowers who have been subject to government support policies related to COVID-19.

- 78 -


	For the year ended December 31, 2024
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(124,382	)		(85,351	)		(109,733	)		(879,530	)		(530,765	)		(272,985	)
Transfer to 12-month expected credit losses		(21,444	)		21,160			284			(63,848	)		62,682			1,166
Transfer to lifetime expected credit losses		10,032			(10,665	)		633			56,928			(58,131	)		1,203
Transfer to credit-impaired financial assets		3,398			11,703			(15,101	)		126,752			86,380			(213,132	)
Net provision for expected credit loss allowance		(25,492	)		(48,403	)		(190,092	)		(113,048	)		(128,829	)		(312,139	)
Recovery		—			—			(52,575	)		—			—			(26,473	)
Write-off		—			—			148,652			—			—			265,413
Disposal		12			1,409			8,728			23			6,675			237,439
Interest income from impaired loans		—			—			9,815			—			—			19,240
Others		233			122			44,528			(28,461	)		3,838			5,800

Ending balance		(157,643	)		(110,025	)		(154,861	)		(901,184	)		(558,150	)		(294,468	)


	For the year ended December 31, 2024
	Credit card accounts									Total (*)
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(290	)		—			—			(1,004,202	)		(616,116	)		(382,718	)
Transfer to 12-month expected credit losses		—			—			—			(85,292	)		83,842			1,450
Transfer to lifetime expected credit losses		—			—			—			66,960			(68,796	)		1,836
Transfer to credit-impaired financial assets		—			—			—			130,150			98,083			(228,233	)
Net provision for expected credit loss allowance		(192	)		—			—			(138,732	)		(177,232	)		(502,231	)
Recovery		—			—			—			—			—			(79,048	)
Write-off		—			—			—			—			—			414,065
Disposal		—			—			—			35			8,084			246,167
Interest income from impaired loans		—			—			—			—			—			29,055
Others		—			—			—			(28,228	)		3,960			50,328

Ending balance		(482	)		—			—			(1,059,309	)		(668,175	)		(449,329	)

(*)	Additional loss reserves are included for borrowers who have been subject to government support policies related to COVID-19.

(7)	Changes in the gross carrying amount of loans for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		136,642,369			14,794,056			582,284			193,727,219			10,797,740			925,654
Transfer to 12-month expected credit losses		4,495,401			(4,479,996	)		(15,405	)		2,669,039			(2,666,625	)		(2,414	)
Transfer to lifetime expected credit losses		(6,234,683	)		6,261,274			(26,591	)		(4,200,106	)		4,204,573			(4,467	)
Transfer to credit-impaired financial assets		(180,242	)		(225,213	)		405,455			(954,135	)		(589,819	)		1,543,954
Write-off		—			—			(195,950	)		—			—			(598,956	)
Disposal		(149	)		(3,986	)		(169,663	)		(199	)		(11,067	)		(905,584	)
Net increase (decrease)		7,632,929			(1,392,116	)		173,418			2,174,129			(2,425,086	)		165,983

Ending balance		142,355,625			14,954,019			753,548			193,415,947			9,309,716			1,124,170


	For the year ended December 31, 2025
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		13,524			—			—			330,383,112			25,591,796			1,507,938
Transfer to 12-month expected credit losses		—			—			—			7,164,440			(7,146,621	)		(17,819	)
Transfer to lifetime expected credit losses		—			—			—			(10,434,789	)		10,465,847			(31,058	)
Transfer to credit-impaired financial assets		—			—			—			(1,134,377	)		(815,032	)		1,949,409
Write-off		—			—			—			—			—			(794,906	)
Disposal		—			—			—			(348	)		(15,053	)		(1,075,247	)
Net increase (decrease)		2,675			—			—			9,809,733			(3,817,202	)		339,401

Ending balance		16,199			—			—			335,787,771			24,263,735			1,877,718

- 79 -


	For the year ended December 31, 2024
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		127,674,653			14,354,290			451,815			176,679,421			9,254,469			644,675
Transfer to 12-month expected credit losses		4,489,361			(4,479,550	)		(9,811	)		2,113,183			(2,110,200	)		(2,983	)
Transfer to lifetime expected credit losses		(6,231,947	)		6,255,567			(23,620	)		(5,370,710	)		5,376,484			(5,774	)
Transfer to credit-impaired financial assets		(167,853	)		(203,536	)		371,389			(780,420	)		(418,239	)		1,198,659
Write-off		—			—			(148,652	)		—			—			(265,413	)
Disposal		(128	)		(21,525	)		(155,855	)		(134	)		(38,464	)		(759,391	)
Net increase (decrease)		10,878,283			(1,111,190	)		97,018			21,085,879			(1,266,310	)		115,881

Ending balance		136,642,369			14,794,056			582,284			193,727,219			10,797,740			925,654


	For the year ended December 31, 2024
	Credit card accounts									Total
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		9,634			—			—			304,363,708			23,608,759			1,096,490
Transfer to 12-month expected credit losses		—			—			—			6,602,544			(6,589,750	)		(12,794	)
Transfer to lifetime expected credit losses		—			—			—			(11,602,657	)		11,632,051			(29,394	)
Transfer to credit-impaired financial assets		—			—			—			(948,273	)		(621,775	)		1,570,048
Write-off		—			—			—			—			—			(414,065	)
Disposal		—			—			—			(262	)		(59,989	)		(915,246	)
Net increase (decrease)		3,890			—			—			31,968,052			(2,377,500	)		212,899

Ending balance		13,524			—			—			330,383,112			25,591,796			1,507,938

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


	December 31, 2025			December 31, 2024
Receivables		7,129,791			6,187,932
Accrued income		1,459,223			1,489,025
Telex and telephone subscription rights and refundable deposits		727,616			730,903
Other assets		696,239			873,086
Expected credit loss allowance		(169,248	)		(154,342	)

Total		9,843,621			9,126,604

- 80 -

(9)	Changes in the expected credit loss allowance on other financial assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(17,377	)		(4,566	)		(132,399	)		(154,342	)
Transfer to 12-month expected credit losses		(254	)		228			26			—
Transfer to lifetime expected credit losses		122			(139	)		17			—
Transfer to credit-impaired financial assets		35			190			(225	)		—
Net provision for expected credit loss allowance		(4,103	)		(2,650	)		(18,492	)		(25,245	)
Write-off		—			—			9,154			9,154
Disposal		—			—			467			467
Other increase (decrease)		827			(34	)		(75	)		718

Ending balance		(20,750	)		(6,971	)		(141,527	)		(169,248	)


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(4,194	)		(4,617	)		(115,649	)		(124,460	)
Transfer to 12-month expected credit losses		(274	)		257			17			—
Transfer to lifetime expected credit losses		234			(253	)		19			—
Transfer to credit-impaired financial assets		23			74			(97	)		—
Net provision for expected credit loss allowance		(5,098	)		(21	)		(14,046	)		(19,165	)
Write-off		—			—			429			429
Disposal		—			4			1,131			1,135
Other increase (decrease)		(8,068	)		(10	)		(4,203	)		(12,281	)

Ending balance		(17,377	)		(4,566	)		(132,399	)		(154,342	)

(10)	Changes in the gross carrying amount of other financial assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		8,837,712			59,175			384,059			9,280,946
Transfer to 12-month expected credit losses		13,226			(13,195	)		(31	)		—
Transfer to lifetime expected credit losses		(18,935	)		18,954			(19	)		—
Transfer to credit-impaired financial assets		(2,079	)		(1,836	)		3,915			—
Write-off		—			—			(9,154	)		(9,154	)
Disposal		—			—			(606	)		(606	)
Net increase (decrease) and others		716,084			(9,126	)		34,725			741,683

Ending balance		9,546,008			53,972			412,889			10,012,869


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		11,894,172			68,555			121,353			12,084,080
Transfer to 12-month expected credit losses		15,833			(15,813	)		(20	)		—
Transfer to lifetime expected credit losses		(30,158	)		30,179			(21	)		—
Transfer to credit-impaired financial assets		(1,797	)		(1,061	)		2,858			—
Write-off		—			—			(429	)		(429	)
Disposal		—			(7	)		(1,599	)		(1,606	)
Net increase (decrease) and others		(3,040,338	)		(22,678	)		261,917			(2,801,099	)

Ending balance		8,837,712			59,175			384,059			9,280,946

- 81 -

11.

THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

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

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


•		Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are 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 be categorized into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Group’s assessment of the significance of a particular input to a fair value measurement in its entirety requires judgment and consideration of inherent factors of the asset or liability.

(2)	Fair value hierarchy of financial assets and liabilities measured at fair value as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Due from banks		261,470		—		—		261,470
Debt securities		3,516,654		601,311		—		4,117,965
Equity securities		19,789		—		293,498		313,287
Capital contributions		—		325		2,445,611		2,445,936
Beneficiary certificates		290,242		2,928,546		4,687,907		7,906,695
Derivative assets		—		5,805,206		920		5,806,126
Other financial assets in foreign currencies		—		—		83,949		83,949
Others		—		—		181,982		181,982

Sub-total		4,088,155		9,335,388		7,693,867		21,117,410

Financial assets at FVTOCI
Debt securities		13,495,614		34,180,863		—		47,676,477
Equity securities		359,601		—		576,103		935,704
Loans		—		—		10,241		10,241

Sub-total		13,855,215		34,180,863		586,344		48,622,422

Derivative assets (designated for hedging)		—		37,010		—		37,010

Total		17,943,370		43,553,261		8,280,211		69,776,842

- 82 -


	December 31, 2025
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		263,251		—		—		263,251
Derivative liabilities		—		5,121,181		—		5,121,181
Securities sold		70,298		—		—		70,298

Sub-total		333,549		5,121,181		—		5,454,730

Financial liabilities designated to be measured at FVTPL
Deposit due to customers		—		557,501		—		557,501
Derivative liabilities (designated for hedging)		—		27,050		—		27,050

Total		333,549		5,705,732		—		6,039,281

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


	December 31, 2024
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Due from banks		73,951		—		—		73,951
Debt securities		4,029,244		621,944		—		4,651,188
Equity securities		14,064		—		299,731		313,795
Capital contributions		—		—		2,258,811		2,258,811
Beneficiary certificates		123,847		2,491,891		4,353,361		6,969,099
Derivative assets		—		10,093,915		1,186		10,095,101
Other financial assets in foreign currencies		—		—		48,346		48,346
Others		—		—		188,878		188,878

Sub-total		4,241,106		13,207,750		7,150,313		24,599,169

Financial assets at FVTOCI
Debt securities		14,117,594		28,794,963		—		42,912,557
Equity securities		315,639		—		469,888		785,527

Sub-total		14,433,233		28,794,963		469,888		43,698,084

Derivative assets (designated for hedging)		—		10,102		—		10,102

Total		18,674,339		42,012,815		7,620,201		68,307,355

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		74,205		—		—		74,205
Derivative liabilities		—		9,159,742		1,401		9,161,143

Sub-total		74,205		9,159,742		1,401		9,235,348

Financial liabilities designated to be measured at FVTPL
Deposit due to customers		—		547,816		—		547,816
Derivative liabilities (designated for hedging)		—		102,634		—		102,634

Total		74,205		9,810,192		1,401		9,885,798

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

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

- 83 -

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

①

Valuation methods and input variables used for the fair value measurement of financial assets and liabilities classified into level 2 as of December 31, 2025 and 2024 are as follows:


	Valuation methods	Input variables
Debt securities	Fair value is measured by discounting the future cash flows of debt securities applying the risk-free rate with credit spread	Risk-free rate and Credit spread

Capital contributions and beneficiary certificates	The capital contributions and beneficiary certificates are measured with Net Asset Value.	Values of underlying assets such as bond

Derivatives	The fair value is measured through Option Pricing Model, etc.	Discount rate, Volatility, Exchange rate, etc.

Deposit due to customers	The fair value is measured through Hull-White model.	Swaption volume, etc.

②

Valuation methods and input variables used for the fair value measurement of financial assets and liabilities classified into level 3 as of December 31, 2025 and 2024 are as follows:


	Valuation methods	Input variables
Loans	The fair value is measured using the DCF (Discounted Cash Flow) Model, a valuation technique commonly used in the market, which considers the price and volatility of the underlying assets	Price and volatility of underlying asset

Equity securities, capital contributions, beneficiary certificates and others	The fair value is measured by considering the characteristics of the subject being evaluated, using methods such as the DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, Least-Squares Monte Carlo and Binomial Tree.	Risk-free rate, Market risk premium, Corporate Beta, Stock price, Volatility of underlying assets, etc.

Derivatives	The fair value is measured through Option Pricing Model, etc.	Correlation coefficient, Stock price, Volatility of underlying assets, etc.

Others	The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the Binomial Tree, which are commonly used valuation techniques in the market.	Stock price, Volatility of underlying assets, etc.

- 84 -

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

①

December 31, 2025


	Fair value measurement technique	Type	Significant but unobservable input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative assets	Option valuation model and others	Equity related	Stock price, Volatility of underlying asset	22.55%	Variation of fair value increases as stock price and volatility of underlying assets increases.
			Discount rate	16.88%	Fair value increases as discount rate decreases.
			Liquidation value	0.00%	Fair value increases as liquidation value increases.
Equity securities, capital contributions and beneficiary certificates	Binominal Tree		Stock price, Volatility of underlying asset	14.91%~34.34%	Variation of fair value increases as stock price and volatility of underlying asset increases.
	DCF model and others		Discount rate	4.21%~18.15%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	-1.00%~1.00%	Fair value increases as liquidation value increases.
Loans	DCF model		Discount rate	0.7%~0.9%	Fair value increases as discount rate decreases
Others	Binominal Tree and others		Stock price, Volatility of underlying asset	14.91%~42.44%	Variation of fair value increases as stock price and volatility of underlying asset increases.

②

December 31, 2024


	Fair value measurement technique	Type	Significant but unobservable input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative	Option valuation model and others	Equity related	Correlation coefficient	0.29~0.65	Variation of fair value increases as correlation coefficient increases.
			Stock price, Volatility of underlying asset	25.71%	Variation of fair value increases as stock price and volatility increases.
			Discount rate	3.94%~19.62%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%	Fair value increases as terminal growth rate increases.
Equity securities, capital contributions and beneficiary certificates	Binominal Tree		Stock price, Volatility of underlying asset	18.76%~36.37%	Variation of fair value increases as stock price and volatility of underlying asset increases.
	DCF model and others		Discount rate	4.76%~19.84%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	-1.00%~1.00%	Fair value increases as liquidation value increases.
Others	Binominal Tree and others		Stock price, Volatility of underlying asset	18.36%~36.90%	Variation of fair value increases as stock price and volatility of underlying asset increases.

Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.

- 85 -

(3)	Changes in financial assets and liabilities measured at fair value classified into Level 3 for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	January 1, 2025		Net income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposal/ settlements			Transfer to or out of Level 3 (*2)			December 31, 2025
Financial assets:
Financial assets at FVTPL
Equity securities		299,731		4,618			—		12,903		(12,263	)		(11,491	)		293,498
Capital contributions		2,258,811		46,637			—		384,283		(242,521	)		(1,599	)		2,445,611
Beneficiary certificates		4,353,361		15,126			—		1,014,243		(694,823	)		—			4,687,907
Derivative assets		1,186		(123	)		—		—		(143	)		—			920
Other financial assets in foreign currencies		48,346		(118	)		—		35,721		—			—			83,949
Others		188,878		7,279			—		—		(14,175	)		—			181,982

Sub-total		7,150,313		73,419			—		1,447,150		(963,925	)		(13,090	)		7,693,867

Financial assets at FVTOCI
Equity securities		469,888		—			104,079		2,882		(746	)		—			576,103
Loans		—		—			3		348,428		(338,190	)		—			10,241

Sub-total		469,888		—			104,082		351,310		(338,936	)		—			586,344

Total		7,620,201		73,419			104,082		1,798,460		(1,302,861	)		(13,090	)		8,280,211

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		1,401		—			—		—		(1,401	)		—			—

Total		1,401		—			—		—		(1,401	)		—			—

(*1)

The losses that increase the financial liabilities are presented as positive amounts, and the gains that decrease the financial liabilities are presented as negative amounts. The profit amount to 65,012 million Won for the year ended December 31, 2025, which is from financial assets and liabilities that the Group holds as of December 31, 2025.

(*2)

Changes in the availability of observable market data for the financial instrument have resulted in transfer between fair value hierarchy level, and the Group recognize changes in levels at the end of reporting period that result in changes in events or circumstances that result in transfer between fair value hierarchy level.

- 86 -


	For the year ended December 31, 2024
	January 1, 2024		Net income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposals/ settlements			Transfer to or out of Level 3 (*2)		December 31, 2024
Financial assets:
Financial assets at FVTPL
Equity securities		275,075		9,732			—		14,283		(1,306	)		1,947		299,731
Capital contributions		1,858,728		114,735			—		475,667		(190,319	)		—		2,258,811
Beneficiary certificates		3,349,910		88,854			—		1,226,259		(311,662	)		—		4,353,361
Derivative assets		128,335		(970	)		—		327		(126,506	)		—		1,186
Other financial assets in foreign currency		42,406		5,940			—		—		—			—		48,346
Others		180,690		13,335			—		12,011		(17,158	)		—		188,878

Sub-total		5,835,144		231,626			—		1,728,547		(646,951	)		1,947		7,150,313

Financial assets at FVTOCI
Equity securities		467,842		—			5,077		2,922		(5,953	)		—		469,888
Loans		—		—			—		202,916		(202,916	)		—		—

Sub-total		467,842		—			5,077		205,838		(208,869	)		—		469,888

Total		6,302,986		231,626			5,077		1,934,385		(855,820	)		1,947		7,620,201

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		1,994		1,114			—		—		(1,707	)		—		1,401

Total		1,994		1,114			—		—		(1,707	)		—		1,401

(*1)

The losses that increase the financial liabilities are presented as positive amounts, and the gains that decrease the financial liabilities are presented as negative amounts. The profit amount to 258,943 million Won for the year ended December 31, 2024, which is from financial assets and liabilities that the Group holds as of December 31, 2024.

(*2)

(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.

Sensitivity analysis of financial instruments is performed by classifying the effect of changes in unobservable inputs on changes in the value of financial instruments into favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable input, the below table presents the most favorable or the most unfavorable circumstances. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity-linked securities, beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 8,280,211 million Won and 7,621,602 million Won as of December 31, 2025 and 2024, respectively, equity investments of 7,431,613 million Won and 7,162,562 million Won are excluded from the sensitivity analysis.

- 87 -

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


	December 31, 2025
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (1)(2)		19		(19	)		—		—
Equity securities (2) (3)		16,040		(11,738	)		—		—
Beneficiary certificates (3) (4)		835		(835	)		—		—
Others (*2)		2,731		(2,458	)		—		—
Financial assets at FVTOCI
Equity securities (*3)		—		—			24,554		(17,814	)

Total		19,625		(15,050	)		24,554		(17,814	)

(*1)	Fair value changes in equity related derivatives assets are calculated by increasing or decreasing liquidation value or discount rate, which are major unobservable variables, by 1%p.

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

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

(*4)

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


	December 31, 2024
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (*1)		50		(51	)		—		—
Equity securities (2) (3)		19,338		(13,996	)		—		—
Beneficiary certificates (*4)		706		(705	)		—		—
Others (2) (4)		2,554		(2,402	)		—		—
Financial assets at FVTOCI
Equity securities (3) (4)		—		—			34,080		(22,698	)

Total		22,648		(17,154	)		34,080		(22,698	)

(*1)	Fair value changes in equity related derivatives assets and liabilities are calculated by increasing or decreasing correlation coefficient or volatility, which are major unobservable variables, by 10%.

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

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

(*4)

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

- 88 -

(5)

Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions): Fair value information for cash that is not measured at fair value because the carrying amount is a reasonable approximation of fair value is not included.


	December 31, 2025
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		6,900,334		11,750,572		—		18,650,906		18,707,459
Loans and other financial assets at amortized cost		—		7,170,646		365,766,384		372,937,030		371,209,305
Financial liabilities:
Deposits due to customers		—		372,487,253		—		372,487,253		372,337,805
Borrowings		—		28,898,915		—		28,898,915		28,933,534
Debentures		—		28,537,580		—		28,537,580		28,662,268
Other financial liabilities (*)		—		34,547,172		—		34,547,172		34,547,235

(*)	Lease liabilities are excluded as of December 31, 2025


	December 31, 2024
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		3,242,385		15,894,576		—		19,136,961		19,193,186
Loans and other financial assets at amortized cost		—		6,392,635		363,857,524		370,250,159		366,547,841
Financial liabilities:
Deposits due to customers		—		364,348,962		—		364,348,962		364,032,938
Borrowings		—		26,416,049		—		26,416,049		26,379,689
Debentures		—		25,488,907		—		25,488,907		25,534,324
Other financial liabilities		—		28,855,883		—		28,855,883		28,856,921

(*)	Lease liabilities are excluded as of December 31, 2024

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


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

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

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

- 89 -

(6)	Financial instruments by category

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


	December 31, 2025
	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivative assets (designated for hedging)		Total
Financial assets:
Due from banks		261,470		—		1,525,783		—		1,787,253
Securities		14,965,865		48,612,181		18,707,459		—		82,285,505
Loans		—		10,241		359,839,901		—		359,850,142
Derivative assets		5,806,126		—		—		37,010		5,843,136
Other financial assets		83,949		—		9,843,621		—		9,927,570

Total		21,117,410		48,622,422		389,916,764		37,010		459,693,606


	December 31, 2025
	Financial liabilities at FVTPL		Financial liabilities designated to be measured at FVTPL		Financial liabilities at amortized cost		Derivative liabilities (designated for hedging)		Total
Financial liabilities:
Deposits due to customers		263,251		557,501		372,337,805		—		373,158,557
Borrowings		70,298		—		28,933,534		—		29,003,832
Debentures		—		—		28,662,268		—		28,662,268
Derivative liabilities		5,121,181		—		—		27,050		5,148,231
Other financial liabilities (*)		—		—		34,547,235		—		34,547,235

Total		5,454,730		557,501		464,480,842		27,050		470,520,123

(*)	Lease liabilities are excluded as of December 31, 2025.


	December 31, 2024
	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivative assets (designated for hedging)		Total
Financial assets:
Due from banks		73,951		—		2,115,204		—		2,189,155
Securities		14,381,771		43,698,084		19,193,186		—		77,273,041
Loans		—		—		355,306,033		—		355,306,033
Derivative assets		10,095,101		—		—		10,102		10,105,203
Other financial assets		48,346		—		9,126,604		—		9,174,950

Total		24,599,169		43,698,084		385,741,027		10,102		454,048,382


	December 31, 2024
	Financial liabilities at FVTPL		Financial liabilities designated to be measured at FVTPL		Financial liabilities at amortized cost		Derivative liabilities (designated for hedging)		Total
Financial liabilities:
Deposits due to customers		74,205		547,816		364,032,938		—		364,654,959
Borrowings		—		—		26,379,689		—		26,379,689
Debentures		—		—		25,534,324		—		25,534,324
Derivative liabilities		9,161,143		—		—		102,634		9,263,777
Other financial liabilities (*)		—		—		28,856,921		—		28,856,921

Total		9,235,348		547,816		444,803,872		102,634		454,689,670

(*)	Lease liabilities are excluded as of December 31, 2024.

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(7)	Income or expense from financial instruments by category

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


	For the year ended December 31, 2025
	Interest income (expense)			Fees and commissions income		Provision for credit loss			Gain on valuation and transaction		Dividend income		Total
Financial assets at FVTPL		144,034			90		—			336,560		363,102		843,786
Financial assets designated to be measured at FVTPL(*)		—			—		—			389		—		389
Financial assets at FVTOCI		1,278,693			280		(8,387	)		138,549		20,367		1,429,502
Securities at amortized cost		539,833			—		(330	)		—		—		539,503
Loans and other financial assets at amortized cost		15,999,042			—		(1,149,927	)		28,187		—		14,877,302
Financial liabilities at amortized cost		(10,128,584	)		—		—			—		—		(10,128,584	)
Net derivatives (designated for hedging)		—			—		—			13,257		—		13,257

Total		7,833,018			370		(1,158,644	)		516,942		383,469		7,575,155

(*)	The amount recognized as other comprehensive income in regard to financial liabilities designated to be measured at FVTPL for the year ended December 31, 2025 is 74 million Won.


	For the year ended December 31, 2024
	Interest income (expense)			Fees and commissions income		Reversal of (Provision for) credit loss			Gain (loss) on valuation and transaction			Dividend income		Total
Financial assets at FVTPL		153,055			864		—			1,473,568			356,921		1,984,408
Financial assets designated to be measured at FVTPL(*)		—			—		—			(19,647	)		—		(19,647	)
Financial assets at FVTOCI		1,281,641			951		(8,866	)		96,647			17,766		1,388,139
Securities at amortized cost		642,888			—		3,287			—			—		646,175
Loans and other financial assets at amortized cost		17,473,089			—		(827,485	)		165,192			—		16,810,796
Financial liabilities at amortized cost		(11,969,046	)		—		—			—			—		(11,969,046	)
Net derivatives (designated for hedging)		—			—		—			(22,511	)		—		(22,511	)

Total		7,581,627			1,815		(833,064	)		1,693,249			374,687		8,818,314

(*)	The amount recognized as other comprehensive income in regard to financial liabilities designated to be measured at FVTPL for the year ended December 31, 2024 is 1,831 million Won.

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12.

DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS

(1)	Derecognition of financial instruments

Transferred financial assets that do not meet the condition of derecognition

Bonds sold under repurchase agreements

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


		December 31, 2025		December 31, 2024
Assets transferred	Financial assets at FVTOCI		4,135,189		238,279
	Securities at amortized cost		12,145		41,442
Related liabilities	Bonds sold under repurchase agreements		3,955,860		278,767

Securities loaned

When the Group loans its securities to outside parties, the legal ownerships of the securities are transferred; however, they should be returned at the end of lending period. Therefore, the Group does not derecognize them from the consolidated financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amounts of the securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025		Loaned to
Financial assets at FVTOCI	Korean treasury and government bonds and others		238,406	Korea Securities Finance Corporation


		December 31, 2024		Loaned to
Financial assets at FVTPL	Korean treasury and government bonds and others		12,361	Korea Securities Finance Corporation

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

Securitization of financial assets

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


		December 31, 2025		December 31, 2024
		Book value (*)		Book value (*)
Assets transferred	Loans at amortized cost		2,187,733		2,153,730
Related liabilities	Securitization borrowings		2,187,733		2,153,730
	Securitization bonds		4,006		4,006

(*)	The carrying amount is the amount before the provision for credit losses is deducted.

- 92 -

(2)	The offset of financial assets and liabilities

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

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

The Group has entered into a sale and repurchase agreement and accounted it as a collateralized borrowing. The Group has also entered into a purchase and resale agreement and accounted it as a secured loan. The Group under the repurchase agreements has offsetting right only upon the counterparty’s default, insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement, which does not satisfy the offsetting criteria of K-IFRS No.1032. The Group disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loans and other financial assets at amortized cost.

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


	December 31, 2025
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Related amounts not setoff in the consolidated statement of financial position				Net amounts
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Netting agreements and others		Cash collateral received		Net amounts
Financial assets:
Derivative assets (*1)		5,830,683		—		5,830,683		10,126,842		67,406		1,947,283
Receivable spot exchange (*2)		6,310,848		—		6,310,848		10,126,842		67,406		1,947,283
Bonds purchased under resale agreements (*2)		13,886,494		—		13,886,494		13,886,494		—		—
Domestic exchanges settlement credits (2)(5)		37,873,998		37,601,886		272,112		—		—		272,112

Total		63,902,023		37,601,886		26,300,137		24,013,336		67,406		2,219,395


	December 31, 2025
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Related amounts not setoff in the consolidated statement of financial position				Net amounts
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Netting agreements and others		Cash collateral pledged		Net amounts
Financial liabilities:
Derivative liabilities (*1)		5,145,396		—		5,145,396		9,635,132		294,611		1,530,107
Payable spot exchange (*3)		6,314,454		—		6,314,454		9,635,132		294,611		1,530,107
Bonds sold under repurchase agreements (*4)		3,955,860		—		3,955,860		3,955,860		—		—
Domestic exchanges settlement debits (3) (5)		49,342,824		37,601,886		11,740,938		—		—		11,740,938

Total		64,758,534		37,601,886		27,156,648		13,590,992		294,611		13,271,045

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

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

(*3)	The items are included in other financial liabilities.

(*4)	The items are included in borrowings.

(*5)	Certain financial assets and liabilities are presented as net amounts.

- 93 -


	December 31, 2024
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Related amounts not setoff in the consolidated statement of financial position				Net amounts
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Netting agreements and others		Cash collateral received		Net amounts
Financial assets:
Derivative assets (*1)		10,100,965		—		10,100,965		12,148,980		235,654		3,301,458
Receivable spot exchange (*2)		5,585,127		—		5,585,127		12,148,980		235,654		3,301,458
Bonds purchased under resale agreements (*2)		10,098,618		—		10,098,618		10,098,618		—		—
Domestic exchanges settlement credits (2) (5)		33,347,374		32,915,242		432,132		—		—		432,132

Total		59,132,084		32,915,242		26,216,842		22,247,598		235,654		3,733,590


	December 31, 2024
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Related amounts not setoff in the consolidated statement of financial position				Net amounts
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Netting agreements and others		Cash collateral pledged		Net amounts
Financial liabilities:
Derivative liabilities (*1)		9,255,756		—		9,255,756		11,899,060		533,052		2,408,916
Payable spot exchange (*3)		5,585,272		—		5,585,272		11,899,060		533,052		2,408,916
Bonds sold under repurchase agreements (*4)		278,767		—		278,767		278,767		—		—
Domestic exchanges settlement debits (3) (5)		40,505,570		32,915,242		7,590,328		7,590,328		—		—

Total		55,625,365		32,915,242		22,710,123		19,768,155		533,052		2,408,916

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

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

(*3) The items are included in other financial liabilities.

(*4) The items are included in borrowings.

(*5) Certain financial assets and liabilities are presented as net amounts.

- 94 -

13.

INVESTMENTS IN ASSOCIATES

(1)	Investments in associates accounted for using the equity method of accounting as of December 31, 2025 and 2024 are as follows:


			Percentage of ownership (%)
Associates	Main business		December 31, 2025		December 31, 2024		Location		Financial statements as of
Woori Bank:
W Service Networks Co., Ltd. (*1)		Freight & staffing services		4.9		4.9		Korea		November 30, 2025 (*4)
Korea Credit Bureau Co., Ltd. (*2)		Credit information		9.9		9.9		Korea		December 31, 2025
Korea Finance Security Co., Ltd. (*2)		Security service		15.0		15.0		Korea		November 30, 2025 (*4)
Dongwoo C & C Co., Ltd. (*3)		Construction		23.2		23.2		Korea		—
SJCO Co., Ltd. (*3)		Aggregate transportation and wholesale		27.5		27.5		Korea		—
G2 Collection Co., Ltd. (*3)		Wholesale and retail sales		28.9		28.9		Korea		—
Kyesan Engineering Co., Ltd. (*3)		Construction		23.2		23.2		Korea		—
Good Software Lab Co., Ltd. (*3)		Service		28.9		28.9		Korea		—
Wongwang Co., Ltd. (*3)		Wholesale and real estate		29.0		29.0		Korea		—
Sejin Construction Co., Ltd. (*3)		Construction		29.6		29.6		Korea		—
DAEA SNC Co., Ltd. (*3)		Wholesale and retail sales		24.0		24.0		Korea		—
ARES-TECH Co., Ltd. (*3)		Electronic component manufacturing		23.4		23.4		Korea		—
PREXCO Co., Ltd. (*3)		Manufacturing		28.1		28.1		Korea		—
Jiwon Plating Co., Ltd. (*3)		Plating		20.5		20.5		Korea		—
NK Eng Co., Ltd. (*5)		Manufacturing		—		23.1		Korea		—
Youngdong Sea Food Co., Ltd. (*3)		Processed sea food manufacturing		24.0		24.0		Korea		—
Beomgyo Co., Ltd. (*3)		Telecommunication equipment retail sales		23.1		23.1		Korea		—
K BANK Co., Ltd. (*2)		Finance		12.0		12.0		Korea		November 30, 2025 (*4)
Partner One Value Up I Private Equity Fund		Other financial services		23.3		23.3		Korea		December 31, 2025
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership (*3)		Other financial services		20.0		20.0		Korea		December 31, 2025
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		Other financial services		25.0		25.0		Korea		December 31, 2025
Woori-Shinyoung Growth-Cap Private Equity Fund I		Other financial services		24.5		24.5		Korea		December 31, 2025
LOTTE CARD Co., Ltd.		Credit card and installment financing		20.0		20.0		Korea		September 30, 2025 (*4)
Woori-Q Corporate Restructuring Private Equity Fund (*7)		Trust and collective investment		19.7		20.4		Korea		December 31, 2025
PCC-Woori LP Secondary Fund		Other financial services		26.9		26.9		Korea		December 31, 2025

- 95 -

Percentage of ownership
(%)

Associates

Main business

December 31,
2025

December 31,
2024

Location

Financial statements
as of

Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]

Other financial
services

100.0

Korea

December 31, 2025

Union Technology Finance Investment

Association

Other financial
services

29.7

Korea

December 31, 2025

KUM HWA Co., Ltd. (*3)

Telecommunication
equipment retail
sales

20.0

Korea

December 31, 2025

Paratus Woori Material Component Equipment joint venture company

Other financial
services

20.8

Korea

December 31, 2025

Jinmyung Plus Co., Ltd. (*3)

Manufacturing

20.2

Korea

September 30, 2025 (*4)

Orient Shipyard Co., Ltd. (*3)

Manufacturing of
ship components

22.7

Korea

September 30, 2025 (*4)

BTS 2nd Private Equity Fund

Other financial
services

20.0

Korea

December 31, 2025

Woori Financial Digital Investment Association No. 1

Other financial
services

88.0

Korea

December 31, 2025

STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures

Other financial
services

28.3

Korea

December 31, 2025

KG Fashion Co., Ltd. (*3)

Manufacturing

20.8

Korea

November 30, 2025 (*4)

Win Mortgage Co., Ltd. (*1)

Other financial
services

4.5

Korea

September 30, 2025 (*4)

NH Woori Newdeal Growth Alpha Private Equity Fund 1

Other financial
services

22.3

22.4

Korea

December 31, 2025

SF CREDIT PARTNERS, LLC (*2)

Other financial
services

10.0

U.S.A.

December 31, 2025

Rea Company Ltd. (*3)

Manufacturing

24.5

Korea

—

Aram CMC Co., Ltd. (*3)

Manufacturing

20.0

Korea

—

Woori Financial Dino Lab Investment Association No. 1

Other financial
services

70.0

Korea

December 31, 2025

Woori Corporate Turnaround No. 1 Private Equity Fund

Other financial
services

27.3

Korea

December 31, 2025

Market & Farm Co., Ltd. (*3)

Wholesale and
commodity
brokerage business

23.7

Korea

December 31, 2025

SAMJI TEXTILE CO.,LTD. (*3)

Wholesale and
commodity
brokerage business

29.4

Korea

—

Woori Financial Dino Lab Investment Association No. 2 (*6)

Other financial
services

60.0

—

Korea

December 31, 2025

TH International Co.,Ltd.

Cosmetics
wholesale business
and general travel
business

21.3

—

Korea

—

Woori ESG Infrastructure Development Private Placement Investment Trust No. 1:

Ulsan Yeocheon Development Co., Ltd. (*6)

Sewage and
wastewater
treatment business

50.0

—

Korea

December 31, 2025

- 96 -

(*1)	Most of the significant business transactions of associates are with the Group as of December 31, 2025 and 2024.

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

(*3)	There is no investment balance as of December 31, 2025 and 2024.

(*4)

The equity method was applied using the most recent financial statements available because financial statement at the end of the reporting period cannot be obtained, and any significant transactions or events that occurred between the end of the reporting period of the associate and the end of the reporting period of the group were appropriately reflected.

(*5)	It was excluded from associates due to the sale liquidation and others for the year ended December 31, 2025.

(*6)	It was added to associates during the year ended December 31, 2025.

(*7)	The entity was classified as an associate based on the voting rights in proportion to the initial capital commitment ratio.

- 97 -

(2)	Changes in the carrying value of investments in associates accounted for using the equity method of accounting for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Acquisition cost		January 1, 2025		Share of profits (losses)			Acquisition		Disposal and others			Dividends			Change in capital and others			December 31, 2025
W Service Networks Co., Ltd.		108		204		5			—		—			(5	)		—			204
Korea Credit Bureau Co., Ltd.		3,313		9,001		3,443			—		—			(90	)		—			12,354
Korea Finance Security Co., Ltd.		3,267		3,616		216			—		—			—			—			3,832
K BANK Co., Ltd.		224,657		262,250		11,392			—		—			—			(3,942	)		269,700
Partner One Value Up I Private Equity Fund		5,039		2,123		(113	)		—		—			—			—			2,010
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		—		2,263		(28	)		—		—			(1,000	)		—			1,235
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		4,630		4,532		—			98		—			—			—			4,630
Woori-Shinyoung Growth-Cap Private Equity Fund I		3,638		20,702		9,107			—		(4,598	)		—			—			25,211
LOTTE CARD Co., Ltd.		346,810		575,580		22,967			—		—			(7,743	)		(185	)		590,619
Woori-Q Corporate Restructuring Private Equity Fund		16,186		20,386		148			—		(1,260	)		—			—			19,274
PCC-Woori LP Secondary Fund		7,000		5,994		(395	)		—		—			—			—			5,599
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		10,000		10,847		235			—		—			—			—			11,082
Union Technology Finance Investment Association		13,449		11,770		(2,487	)		—		—			—			—			9,283
KUM HWA Co., Ltd. (*)		—		—		—			—		—			—			—			—
Paratus Woori Material Component Equipment joint venture company		6,487		11,615		(180	)		—		(5,813	)		—			—			5,622
Jinmyung Plus Co., Ltd.		—		9		1			—		—			—			—			10
Orient Shipyard Co., Ltd. (*)		—		—		—			—		—			—			—			—
BTS 2nd Private Equity Fund		8,766		7,799		(175	)		620		—			—			—			8,244
Woori Financial Digital Investment Association No. 1		41,700		43,564		1,570			—		(2,300	)		(1,220	)		—			41,614
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		13,500		11,178		(239	)		1,500		—			—			—			12,439
KG Fashion Co., Ltd. (*)		—		—		—			—		—			—			—			—
Win Mortgage Co., Ltd.		23		135		(25	)		—		—			(9	)		—			101
NH Woori Newdeal Growth Alpha Private Equity Fund 1		40,272		36,752		(2,814	)		10,768		(4,497	)		—			—			40,209
SF CREDIT PARTNERS, LLC		15,504		16,000		938			2,445		—			—			(367	)		19,016
Woori Financial Dino Lab Investment Association No. 1		3,500		3,426		(110	)		—		—			—			—			3,316
Woori Corporate Turnaround No. 1 Private Equity Fund		1,718		8,134		2,332			4,247		(10,890	)		—			—			3,823
Rea Company Ltd. (*)		—		—		—			—		—			—			—			—
Market & Farm Co., Ltd. (*)		—		—		—			—		—			—			—			—
Woori Financial Dino Lab Investment Association No. 2		6,000		—		(107	)		6,000		—			—			—			5,893
Ulsan Yeocheon Development Co., Ltd.		207		—		(6	)		207		—			—			—			201

Total		775,774		1,067,880		45,675			25,885		(29,358	)		(10,067	)		(4,494	)		1,095,521

(*)

The amount for which no loss was recognized for associates due to discontinuation of the equity method was 30 million Won for KG Fashion Co., Ltd, 38 million Won for Market & Farm Co., Ltd., and 1 million Won for Orient Shipyard Co., Ltd., and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 48 million Won for Orient Shipyard Co., Ltd., 189 million Won for KG Fashion CO., Ltd., 118 million Won for Rea Company Ltd. and 38 million Won in Market & Farm Co., Ltd.

- 98 -


	For the year ended December 31, 2024
	Acquisition cost		January 1, 2024		Share of profits (losses)			Acquisition		Disposal and others			Dividends			Change in capital and others			December 31, 2024
W Service Networks Co., Ltd.		108		216		(7	)		—		—			(5	)		—			204
Korea Credit Bureau Co., Ltd.		3,313		6,433		2,658			—		—			(90	)		—			9,001
Korea Finance Security Co., Ltd.		3,267		3,285		331			—		—			—			—			3,616
K BANK Co., Ltd.		224,657		260,052		13,747			—		(13,029	)		—			1,480			262,250
Partner One Value Up I Private Equity Fund		5,039		3,230		(1,107	)		—		—			—			—			2,123
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		—		8,247		(784	)		—		(4,356	)		(844	)		—			2,263
Crevisse Raim Impact 1st Startup Venture Specialist Private Equity Fund		4,532		4,437		—			95		—			—			—			4,532
Woori-Shinyoung Growth-Cap Private Equity Fund I		8,237		23,496		(2,656	)		—		—			(138	)		—			20,702
LOTTE CARD Co., Ltd.		346,810		587,392		17,861			—		—			(15,591	)		(14,082	)		575,580
Woori-Q Corporate Restructuring Private Equity Fund		17,446		9,852		1,523			9,011		—			—			—			20,386
PCC-Woori LP Secondary Fund		7,000		7,298		(1,304	)		—		—			—			—			5,994
Together-Korea Government Private Pool Private Securities Investment Trust No. 3		10,000		10,540		307			—		—			—			—			10,847
Union Technology Finance Investment Association		13,449		12,270		(500	)		—		—			—			—			11,770
KUM HWA Co., Ltd (*)		—		—		—			—		—			—			—			—
Paratus Woori Material Component Equipment joint venture company		12,300		11,799		(184	)		—		—			—			—			11,615
Dicustody Co., Ltd.		—		1		—			—		(1	)		—			—			—
Jinmyung Plus Co., Ltd.		—		14		(5	)		—		—			—			—			9
Orient Shipyard Co., Ltd. (*)		—		—		—			—		—			—			—			—
BTS 2nd Private Equity Fund		8,146		4,838		41			2,920		—			—			—			7,799
Woori Financial Digital Investment Association No. 1		44,000		32,463		101			11,000		—			—			—			43,564
Joongang Network Solution Co., Ltd.		—		88		100			—		(101	)		—			(87	)		—
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		12,000		8,406		(228	)		3,000		—			—			—			11,178
KG Fashion Co., Ltd. (*)		—		—		—			—		—			—			—			—
Win Mortgage Co., Ltd.		23		105		32			—		—			(2	)		—			135
NH Woori Newdeal Growth Alpha Private Equity Fund 1		34,001		22,390		13,109			15,025		(4,656	)		(9,116	)		—			36,752
SF CREDIT PARTNERS, LLC		13,059		12,845		1,326			—		—			—			1,829			16,000
Woori FG DINNO Lab Fund 1st		3,500		—		(74	)		3,500		—			—			—			3,426
Woori Corporate Turnaround No. 1 Private Equity Fund		8,361		—		(227	)		8,361		—			—			—			8,134

		779,248		1,029,697		44,060			52,912		(22,143	)		(25,786	)		(10,860	)		1,067,880

(*1)

The amount for which no loss was recognized for associates due to discontinuation of the equity method was 19 million Won for Orient Shipyard Co., Ltd., and 39 million Won in KG Fashion CO., Ltd, and the accumulated amount is 4 million Won for KUM HWA Co., Ltd., 47 million Won for Orient Shipyard Co., Ltd., 159 million Won in KG Fashion CO., Ltd..

- 99 -

(3)	Summary financial information relating to investments in associates accounted for using the equity method of accounting as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	As of and for the year ended December 31, 2025
Subsidiaries	Assets		Liabilities		Operating revenue			Net income (loss)			Other comprehensive income (loss)			Total comprehensive income (loss)
W Service Networks Co., Ltd.		7,423		3,301		15,306			754			—			754
Korea Credit Bureau Co., Ltd.		160,778		38,645		202,976			36,559			—			36,559
Korea Finance Security Co., Ltd.		40,856		15,307		44,434			1,813			—			1,813
K BANK Co., Ltd.		32,826,189		30,643,202		1,133,400			88,207			(30,073	)		58,134
Partner One Value Up I Private Equity Fund		9,420		775		(391	)		(484	)		—			(484	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		6,212		38		2			(127	)		—			(127	)
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		15,747		100		1			(388	)		—			(388	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		103,810		1,077		37,506			36,345			—			36,345
LOTTE CARD Co., Ltd. (*)		24,614,346		21,040,011		2,235,400			108,426			(1,957	)		106,469
Woori-Q Corporate Restructuring Private Equity Fund		98,251		324		2,628			1,293			—			1,293
PCC-Woori LP Secondary Fund		21,317		522		2,438			(1,473	)		—			(1,473	)
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		11,084		1		241			235			—			235
Union Technology Finance Investment Association		31,762		509		2,015			1,483			—			1,483
KUM HWA Co., Ltd.		4		167		—			—			—			—
Paratus Woori Material Component Equipment joint venture company		27,487		427		2			(865	)		—			(865	)
Jinmyung Plus Co., Ltd.		494		447		131			(25	)		—			(25	)
Orient Shipyard Co., Ltd.		7,020		23,626		—			(4	)		—			(4	)
BTS 2nd Private Equity Fund		41,452		234		1			(881	)		—			(881	)
Woori Financial Digital Investment Association No. 1		47,288		—		3,989			1,784			—			1,784
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		44,196		245		60			(842	)		—			(842	)
KG Fashion Co., Ltd.		2,114		2,906		377			(122	)		—			(122	)
Win Mortgage Co., Ltd.		4,804		2,562		11,881			139			—			139
NH Woori Newdeal Growth Alpha Private Equity Fund 1		182,355		2,013		(10,792	)		(12,911	)		—			(12,911	)
SF CREDIT PARTNERS, LLC		333,410		148,541		21,326			11,068			(3,670	)		7,398
Woori Financial Dino Lab Investment Association No. 1		4,737		—		10			(158	)		—			(158	)
Woori Corporate Turnaround No.1 Private Equity Fund		25,152		642		9,684			8,558			—			8,558
Market & Farm Co., Ltd.		779		883		—			(160	)		—			(160	)
Woori Financial Dino Lab Investment Association No. 2		9,821		—		16			(179	)		—			(179	)
Ulsan Yeocheon Development Co., Ltd.		1,439		1,036		—			(12	)		—			(12	)

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

- 100 -


	As of and for the year ended December 31, 2024
Subsidiaries	Assets		Liabilities		Operating revenue			Net income (loss)			Other comprehensive income (loss)			Total comprehensive income (loss)
W Service Networks Co., Ltd.		6,621		2,475		16,788			738			—			738
Korea Credit Bureau Co., Ltd.		150,657		62,343		175,338			26,589			—			26,589
Korea Finance Security Co., Ltd.		36,797		12,692		42,640			1,695			—			1,695
K BANK Co., Ltd.		29,314,529		27,293,765		1,043,436			149,922			3,695			153,617
Partner One Value Up I Private Equity Fund		9,810		682		(4,358	)		(4,758	)		—			(4,758	)
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		11,474		165		(3,108	)		(3,887	)		—			(3,887	)
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		15,745		100		1			(388	)		—			(388	)
Woori-Shinyoung Growth-Cap Private Equity Fund I		84,775		419		4,422			(10,824	)		—			(10,824	)
LOTTE CARD Co., Ltd. (*)		24,416,416		20,937,932		2,103,130			100,468			(20,494	)		79,974
Woori-Q Corporate Restructuring Private Equity Fund		101,315		1,362		1,278			164			—			164
PCC-Woori LP Secondary Fund		22,863		600		2,549			(4,767	)		—			(4,767	)
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		10,849		1		306			300			—			300
Union Technology Finance Investment Association		40,269		641		19			(646	)		—			(646	)
KUM HWA Co., Ltd.		4		167		—			—			—			—
Paratus Woori Material Component Equipment joint venture company		58,285		2,380		—			(884	)		—			(884	)
Jinmyung Plus Co., Ltd.		499		459		96			(32	)		—			(32	)
Orient Shipyard Co., Ltd.		7,025		23,626		—			(76	)		—			(76	)
BTS 2nd Private Equity Fund		39,431		432		628			(468	)		—			(468	)
Woori Financial Digital Investment Association No. 1		49,506		2		857			114			—			114
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		39,694		197		40			(802	)		—			(802	)
KG Fashion Co., Ltd.		2,201		2,850		544			(197	)		—			(197	)
Win Mortgage Co., Ltd.		6,053		3,073		16,435			1,044			—			1,044
NH Woori Newdeal Growth Alpha Private Equity Fund 1		164,574		762		40,639			38,093			—			38,093
SF CREDIT PARTNERS, LLC		185,463		30,752		35,820			14,319			18,291			32,610
Aram CMC Co., Ltd.		541		453		717			(31	)		—			(31	)
Woori Financial Dino Lab Investment Association No. 1		4,896		1		14			(105	)		—			(105	)
Woori Corporate Turnaround No.1 Private Equity Fund		30,045		220		63			(833	)		—			(833	)
Market & Farm Co., Ltd.		954		902		4,933			(125	)		—			(125	)

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

- 101 -

(4)	The entities that the Group excluded from the associates although the Group’s shareholding ratio of common stock is more than 20% as of December 31, 2025 and 2024 are as follows:


	December 31, 2025
Associate (*)	Number of shares owned (shares)		Percentage of ownership (%)
CL Tech Co., Ltd.		10,191		28.6
CT INTERNATIONAL CO.,LTD.		1,741		26.7
Happy Home Co.,Ltd.		14,924		22.7

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


	December 31, 2024
Associate (*)	Number of shares owned (shares)		Percentage of ownership (%)
CL Tech Co., Ltd.		10,191		28.6
TH International Co.,Ltd.		6,737		21.3
WORK-LIFE BALANCE CO.,LTD		209		21.3

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

- 102 -

(5)	As of December 31, 2025 and 2024, the reconciliations from the net assets of the associates to the book value of the shares of the investment in associates are as follows (Unit: Korean Won in millions except for ownership):


	December 31, 2025
Associates	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Intercompany transaction and others			Book Value
W Service Networks Co., Ltd.		4,122			4.9		204			—		—			204
Korea Credit Bureau Co., Ltd.		122,133			9.9		12,107			247		—			12,354
Korea Finance Security Co., Ltd.		25,549			15.0		3,832			—		—			3,832
K BANK Co., Ltd. (*)		2,081,003			12.0		248,878			20,822		—			269,700
Partner One Value Up I Private Equity Fund		8,645			23.3		2,010			—		—			2,010
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		6,174			20.0		1,235			—		—			1,235
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		15,647			25.0		3,912			—		718			4,630
Woori-Shinyoung Growth-Cap Private Equity Fund I		102,733			24.5		25,211			—		—			25,211
LOTTE CARD Co., Ltd. (*)		2,953,104			20.0		590,619			—		—			590,619
Woori-Q Corporate Restructuring Private Equity Fund		97,927			19.7		19,274			—		—			19,274
PCC-Woori LP Secondary Fund		20,795			26.9		5,599			—		—			5,599
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		11,083			100.0		11,082			—		—			11,082
Union Technology Finance Investment Association		31,253			29.7		9,283			—		—			9,283
KUM HWA Co., Ltd.		(163	)		20.0		(33	)		—		33			—
Paratus Woori Material Component Equipment joint venture company		27,060			20.8		5,622			—		—			5,622
Jinmyung Plus Co., Ltd.		48			20.2		10			—		—			10
Orient Shipyard Co., Ltd.		(16,606	)		22.7		(3,774	)		—		3,774			—
BTS 2nd Private Equity Fund		41,218			20.0		8,244			—		—			8,244
Woori Financial Digital Investment Association No. 1		47,288			88.0		41,614			—		—			41,614
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		43,951			28.3		12,439			—		—			12,439
KG Fashion Co., Ltd.		(792	)		20.8		(164	)		—		164			—
Win Mortgage Co., Ltd.		2,242			4.5		101			—		—			101
NH Woori Newdeal Growth Alpha Private Equity Fund 1		180,342			22.3		40,209			—		—			40,209
SF CREDIT PARTNERS, LLC		184,869			10.0		18,487			529		—			19,016
Rea Company Ltd.		(2	)		24.5		(1	)		—		1			—
Woori Financial Dino Lab Investment Association No. 1		4,737			70.0		3,316			—		—			3,316
Woori Corporate Turnaround No.1 Private Equity Fund		24,510			27.3		6,685			—		(2,862	)		3,823
Market & Farm Co., Ltd.		(104	)		23.7		(25	)		—		25			—
Woori Financial Dino Lab Investment Association No. 2		9,821			60.0		5,893			—		—			5,893
Ulsan Yeocheon Development Co., Ltd.		402			50.0		201			—		—			201

(*)	The net asset and net asset equity amount is after the stock options, etc.

- 103 -


	December 31, 2024
Associates	Total net asset			Ownership (%)		Ownership portion of net assets			Basis difference		Intercompany transaction and others			Book Value
W Service Networks Co., Ltd.		4,146			4.9		204			—		—			204
Korea Credit Bureau Co., Ltd.		88,314			9.9		8,755			246		—			9,001
Korea Finance Security Co., Ltd.		24,105			15.0		3,616			—		—			3,616
K BANK Co., Ltd. (*)		2,018,704			12.0		241,429			20,821		—			262,250
Partner One Value Up I Private Equity Fund		9,128			23.3		2,123			—		—			2,123
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		11,309			20.0		2,263			—		—			2,263
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		15,645			25.0		3,911			—		621			4,532
Woori-Shinyoung Growth-Cap Private Equity Fund I		84,357			24.5		20,702			—		—			20,702
LOTTE CARD Co., Ltd. (*)		2,877,907			20.0		575,580			—		—			575,580
Woori-Q Corporate Restructuring Private Equity Fund		99,952			20.4		20,386			—		—			20,386
PCC-Woori LP Secondary Fund		22,262			26.9		5,994			—		—			5,994
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		10,848			100.0		10,847			—		—			10,847
Union Technology Finance Investment Association		39,627			29.7		11,770			—		—			11,770
KUM HWA Co., Ltd.		(163	)		20.0		(33	)		—		33			—
Paratus Woori Material Component Equipment joint venture company		55,904			20.8		11,615			—		—			11,615
Jinmyung Plus Co., Ltd.		40			20.2		9			—		—			9
Orient Shipyard Co., Ltd.		(16,601	)		22.7		(3,773	)		—		3,773			—
BTS 2nd Private Equity Fund		38,999			20.0		7,799			—		—			7,799
Woori Financial Digital Investment Association No. 1		49,504			88.0		43,564			—		—			43,564
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		39,497			28.3		11,178			—		—			11,178
KG Fashion Co., Ltd.		(649	)		20.8		(135	)		—		135			—
Win Mortgage Co., Ltd.		2,981			4.5		135			—		—			135
NH Woori Newdeal Growth Alpha Private Equity Fund 1		163,812			22.4		36,752			—		—			36,752
SF CREDIT PARTNERS, LLC		154,712			10.0		15,470			—		530			16,000
Aram CMC Co., Ltd.		88			20.0		18			—		(18	)		—
Woori Financial Dino Lab Investment Association No. 1		4,895			70.0		3,426			—		—			3,426
Woori Corporate Turnaround No.1 Private Equity Fund		29,825			27.3		8,134			—		—			8,134
Market & Farm Co., Ltd.		52			23.7		12			—		(12	)		—

(*)	The net asset and net asset equity amount is after the stock options , etc.

- 104 -

14.

INVESTMENT PROPERTIES

(1)	Details of investment properties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Acquisition cost		581,418			599,143
Accumulated depreciation		(78,533	)		(76,025	)

Net carrying value		502,885			523,118

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


	For the years ended December 31
	2025			2024
Beginning balance		523,118			592,528
Depreciation		(6,397	)		(8,768	)
Classification as assets held for sale		(35,137	)		—
Transfer (*)		14,440			(65,280	)
Foreign currencies translation adjustments		6,861			4,638

Ending balance		502,885			523,118

(*)	This is the reclassification amount between properties and equipment, and investment properties for land and buildings for the years ended December 31, 2025 and 2024.

(3)

Fair value of investment properties amounted to 863,170 million Won and 873,600 million Won as of December 31, 2025 and 2024, respectively. The fair value of investment properties has been assessed on the basis of recent similar real estate market price and officially assessed land price in the area of the investment properties, is classified as level 3 on the fair value hierarchy.

(4)

Rental fee earned from investment properties is amounted to 31,665 million Won and 31,657 million Won for the years ended December 31, 2025 and 2024, respectively. The operating expenses directly related to the investment properties where rental fee was earned are 6,397 million Won and 8,768 million Won for the years ended December 31, 2025 and 2024, respectively.

(5)	The minimum lease payments expected to be received in the future under the non-refundable lease agreement as of December 31, 2025 and 2024. (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Lease payments:
Within a year		13,150		10,762
More than 1 year and within 2 years		8,589		6,055
More than 2 years and within 3 years		7,038		3,772
More than 3 years and within 4 years		7,020		3,487
More than 4 years and within 5 years		5,753		3,438
More than 5 years		3,793		3,441

Total		45,343		30,955

- 105 -

15.

PROPERTIES AND EQUIPMENT

(1)	Details of properties and equipment as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Land		Building		Properties for business use		Leasehold improvement		Construction in progress		Total
Properties and equipment (owned)		1,542,661		576,648		255,493		70,188		45,761		2,490,751
Right-of-use assets		—		436,831		18,840		—		—		455,671

Carrying value		1,542,661		1,013,479		274,333		70,188		45,761		2,946,422


	December 31, 2024
	Land		Building		Properties for business use		Leasehold improvement		Construction in progress		Total
Properties and equipment (owned)		1,542,666		612,520		213,537		65,331		68,440		2,502,494
Right-of-use assets		—		475,908		23,473		—		—		499,381

Carrying value		1,542,666		1,088,428		237,010		65,331		68,440		3,001,875

(2)	Details of properties and equipment (owned) as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Land		Building			Properties for business use			Leasehold improvement			Construction in progress		Total
Acquisition cost		1,542,661		942,520			1,061,894			482,193			45,761		4,075,029
Accumulated depreciation		—		(365,821	)		(806,401	)		(412,005	)		—		(1,584,227	)
Accumulated impairment losses		—		(51	)		—			—			—		(51	)

Net carrying value		1,542,661		576,648			255,493			70,188			45,761		2,490,751


	December 31, 2024
	Land		Building			Properties for business use			Leasehold improvement			Construction in progress		Total
Acquisition cost		1,542,666		972,797			992,819			478,498			68,440		4,055,220
Accumulated depreciation		—		(360,277	)		(779,282	)		(413,167	)		—		(1,552,726	)

Net carrying value		1,542,666		612,520			213,537			65,331			68,440		2,502,494

- 106 -

(3)	Details of changes in properties and equipment (owned) for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress			Total
Beginning balance		1,542,666			612,520			213,537			65,331			68,440			2,502,494
Acquisition		26,291			28,057			115,430			27,138			74,919			271,835
Disposal		(148	)		—			(898	)		(1,221	)		(31,355	)		(33,622	)
Depreciation		—			(30,236	)		(72,948	)		(21,856	)		—			(125,040	)
Impairment loss		—			(51	)		—			—			—			(51	)
Foreign currencies translation adjustment		(990	)		(361	)		(1,310	)		(613	)		(51	)		(3,325	)
Transfer (*)		53,424			(4,371	)		2,163			1,342			(66,998	)		(14,440	)
Classification as held for sale		(78,582	)		(28,897	)		—			—			—			(107,479	)
Others		—			(13	)		(481	)		67			806			379

Ending balance		1,542,661			576,648			255,493			70,188			45,761			2,490,751

(*)	This is the reclassification amount between properties and equipment, and investment properties for land and buildings for the year ended December 31, 2025.


	For the year ended December 31, 2024
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress			Total
Beginning balance		1,495,945			614,415			184,298			52,364			36,486			2,383,508
Acquisition		215			27,919			88,160			28,639			37,821			182,754
Disposal		(7,253	)		—			(1,468	)		(1,517	)		—			(10,238	)
Depreciation		—			(30,854	)		(71,703	)		(18,965	)		—			(121,522	)
Foreign currencies translation adjustment		1,489			532			4,224			3,059			334			9,638
Transfer (*)		61,544			3,736			5,338			853			(6,191	)		65,280
Classification as held for sale		(16,477	)		(3,215	)		—			—			—			(19,692	)
Business combination		—			—			2			—			—			2
Others		7,203			(13	)		4,686			898			(10	)		12,764

Ending balance		1,542,666			612,520			213,537			65,331			68,440			2,502,494

(*)	This is the reclassification amount between properties and equipment, and investment properties for land and buildings for the year ended December 31, 2024

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


	December 31, 2025
	Building			Properties for business use			Total
Acquisition cost		893,177			38,683			931,860
Accumulated depreciation		(456,346	)		(19,843	)		(476,189	)

Net carrying value		436,831			18,840			455,671


	December 31, 2024
	Building			Properties for business use			Total
Acquisition cost		867,170			38,206			905,376
Accumulated depreciation		(391,262	)		(14,733	)		(405,995	)

Net carrying value		475,908			23,473			499,381

- 107 -

(5)	Details of changes in right-of-use assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions) :


	For the year ended December 31, 2025
	Building			Properties for business use			Total
Beginning balance		475,908			23,473			499,381
New contracts		145,170			7,309			152,479
Changes in contracts		55,056			—			55,056
Termination		(20,546	)		(665	)		(21,211	)
Depreciation		(217,572	)		(11,529	)		(229,101	)
Others		(1,185	)		252			(933	)

Ending balance		436,831			18,840			455,671


	For the year ended December 31, 2024
	Building			Properties for business use			Total
Beginning balance		327,554			17,899			345,453
New contracts		313,469			15,595			329,064
Changes in contracts		46,097			15			46,112
Termination		(14,764	)		(1,009	)		(15,773	)
Depreciation		(203,212	)		(11,488	)		(214,700	)
Others		6,764			2,461			9,225

Ending balance		475,908			23,473			499,381

- 108 -

16.

INTANGIBLE ASSETS

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


	December 31, 2025
	Goodwill			Industrial property rights			Development cost			Others			Membership			Construction in progress		Total
Acquisition cost		172,791			2,350			713,690			1,183,153			25,559			5,399		2,102,942
Accumulated amortization		—			(1,969	)		(494,624	)		(985,220	)		—			—		(1,481,813	)
Accumulated impairment losses		(45,714	)		—			—			(33,552	)		(1,044	)		—		(80,310	)

Net carrying value		127,077			381			219,066			164,381			24,515			5,399		540,819


	December 31, 2024
	Goodwill		Industrial property rights			Development cost			Others			Membership			Construction in progress		Total
Acquisition cost		181,229		2,245			635,314			1,137,672			26,241			6,003		1,988,704
Accumulated amortization		—		(1,810	)		(432,903	)		(921,629	)		—			—		(1,356,342	)
Accumulated impairment losses		—		—			—			(33,552	)		(1,093	)		—		(34,645	)

Net carrying value		181,229		435			202,411			182,491			25,148			6,003		597,717

(2)	Details of changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Goodwill			Industrial property rights			Development cost			Others			Membership			Construction in progress			Total
Beginning balance		181,229			435			202,411			182,491			25,148			6,003			597,717
Acquisition		—			1			78,384			44,640			2,044			5,285			130,354
Disposal		—			—			—			(34	)		(2,682	)		(16	)		(2,732	)
Amortization (*1)		—			(159	)		(61,729	)		(65,664	)		—			—			(127,552	)
Provision for impairment loss (*2)		(45,714	)		—			—			—			(8	)		—			(45,722	)
Transfer		—			104			—			4,839			—			(4,943	)		—
Foreign currencies translation adjustment		(8,438	)		—			—			(1,447	)		13			(116	)		(9,988	)
Others		—			—			—			(444	)		—			(814	)		(1,258	)

Ending balance		127,077			381			219,066			164,381			24,515			5,399			540,819

(*1)	Amortization of other intangible assets amounting to 32,495 million Won is included in other operating expenses.

(*2)	Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.

- 109 -


	For the year ended December 31, 2024
	Goodwill		Industrial property rights			Development cost			Others			Membership			Construction in progress			Total
Beginning balance		163,517		489			163,678			162,792			22,138			7,167			519,781
Acquisition		—		18			75,890			67,382			3,976			25,181			172,447
Disposal		—		—			(113	)		(1,717	)		(522	)		—			(2,352	)
Amortization (*1)		—		(182	)		(50,033	)		(61,256	)		—			—			(111,471	)
Provision for impairment loss (*2)		—		—			—			—			(217	)		—			(217	)
Transfer		—		110			12,989			10,990			—			(24,089	)		—
Foreign currencies translation adjustment		17,712		—			—			4,163			274			586			22,735
Business combination		—		—			—			1			—			—			1
Others		—		—			—			136			(501	)		(2,842	)		(3,207	)

Ending balance		181,229		435			202,411			182,491			25,148			6,003			597,717

(*1)	Amortization of other intangible assets amounting to 28,509 million Won is included in other operating expenses.

(*2)	Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.

(3)

Goodwill

Details of major goodwill as of December 31, 2025 and 2024 are as follows (Unit: Korea Won in millions):


Cash Generating Unit (*1)	December 31, 2025		December 31, 2024
PT Bank Woori Saudara Indonesia 1906 Tbk (*2)		72,404		109,262
Woori Bank (Cambodia) PLC (*3)		47,589		64,584

Total		119,993		173,846

(*1)	The goodwill has been allocated to the cash-generating unit that will benefit from the synergies of the business combination, and the cash-generating unit generally consists of a sales unit or its sub-sector.

(*2)	The Group has acquired Saudara Bank to expand retail sales in Indonesia, and recognized the goodwill as it is expected to strengthen our competitiveness by securing a local sales network in Indonesia.

(*3)	The Group has acquired Vision Fund Cambodia to expand Cambodian retail sales, and recognized goodwill based on the economies of scale and acquired customer base.

Impairment test

The recoverable amount of the cash-generating unit is measured at larger amount among the net fair value or the value in use.

The net fair value is calculated by deducting costs of disposal from the amount received from the sale of the cash-generating unit in an arm’s length transaction between the parties with reasonable judgment and willingness to negotiate. In case of difficulty in measuring this amount, the net fair value is calculated by reflecting the characteristics of the current cash-generating unit in the past sale amounts of similar cash-generating units in the market. If reliable information related to fair value less costs to sell is not available, value in use is considered as recoverable amount. Value in use is the present value of future cash flows expected to be generated by the cash-generating unit. Future cash flows are estimated based on the latest financial budget approved by the management, with an estimated period of up to five years. PT Bank Woori Saudara Indonesia 1906 Tbk and Woori Bank (Cambodia) PLC applied growth rate for 1% to estimate future cash flow for the period over five years. The main assumptions used to estimate cash flows are about the size of the market and the share of the Group. The appropriate discount rate for discounting future cash flows is the discount rate, including assumptions about risk-free rates, market risk premium, and systemic risk of cash-generating units. The impairment test, which compares the carrying amount and recoverable amount of the cash-generating unit to which goodwill has been allocated, is conducted every year and every time an impairment sign occurs. (Unit: Korean Won in millions):

- 110 -


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

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

Sensitivity analysis

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


			PT Bank Woori Saudara Indonesia 1906 Tbk			Woori Bank (Cambodia) PLC
Discount rate	Increase by 1.0	% point		(97,991	)		(52,311	)
Discount rate	Decrease by 1.0	% point		116,379			62,246
Terminal growth rate	Increase by 1.0	% point		78,719			42,278
Terminal growth rate	Decrease by 1.0	% point		(66,567	)		(35,687	)

17.

ASSETS HELD FOR SALE

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


	December 31, 2025		December 31, 2024
Properties and equipment (*)		91,480		31,266
Investment properties (*)		33,588		—

Total		125,068		31,266

(*)	The Group classifies above assets as assets held for sale that are highly likely to be sold within one year from December 31, 2025 and 2024, based on the management’s decision.

- 111 -

18.

ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES

(1)	Assets subjected to lien as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025
		Collateral given to	Amount		Reason for collateral
Loans and other financial assets at amortized cost	Due from banks in local currency	Korea Exchange Co.,Ltd.		3,362	Margin deposit for CCP
		MSBI LIMITED Seoul		12,634	CSA variable margin and others
	Due from banks in foreign currencies	Goldman Sachs Intl., and others		353,030	CSA variable margin and others
	Mortgage-backed securities	Public offering		2,067,313	Covered bonds
Financial assets at FVTPL	Korean financial institutions government bonds and others	ING BANK and others		587,591	CSA variable margin and others
Financial assets at FVTPL		The BOK and others		1,814,134	Settlement risk and others
Financial assets at FVTOCI	Korean treasury and government bonds and others	The BOK and others		3,056,643	Related to bonds sold under repurchase agreements (*)
		The BOK		362,317	Settlement risk and others
	Korean financial institutions debt securities and others	The BOK and others		927,890	Related to bonds sold under repurchase agreements (*)
		The BOK		9,283,095	Settlement risk and others
	Foreign financial institutions debt securities	CCIL Exchange		150,656	Related to bonds sold under repurchase agreements (*)
		SOCIETE GENERAL, PAR		386,609	CSA variable margin and others
		RJF		93,681	Collateral to receive a borrowing limit
Securities at amortized cost	Korean treasury and government bonds and others	The BOK and others		9,100,505	Settlement risk and others
	Korean financial institutions debt securities and others	The BOK and others		5,098,911	Settlement risk and others
	Foreign financial institutions debt securities	RJF and others		30,441	Collateral to receive a borrowing limit
		NATIXIS		12,145	Related to bonds sold under repurchase agreements (*)

		Total		33,340,957

(*1)

The financial assets are not derecognized and provided as collaterals because the Group entered into an agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Group continuously recognizes the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.

- 112 -


		December 31, 2024
		Collateral given to	Amount		Reason for collateral
Loans and other financial assets at amortized cost	Due from banks in local currency	Korea Exchange Co.,Ltd.		3	Margin deposit for CCP
	Due from banks in foreign currencies	BNP-PARIBAS, PAR and others		647,782	CSA variable margin and others
	Mortgage-backed securities	Public offering		1,790,810	Covered bonds
Financial assets at FVTPL	Korean financial institutions debt securities and others	DBS BANK LTD, SEL and others		698,231	CSA variable margin and others
Financial assets at FVTOCI	Korean financial institutions debt securities and others	CITIBANK, N.A. LONDON and others		74,143	Related to bonds sold under repurchase agreements (*)
	Korean financial institutions debt securities and others	The BOK and others		8,863,286	Settlement risk and others
	Foreign financial institutions debt securities	Central Bank of Brazil and others		164,136	Related to bonds sold under repurchase agreements (*)
		RJF		110,530	Collateral to receive a borrowing limit
		SOCIETE GENERAL, PAR		358,781	CSA variable margin
Securities at amortized cost	Korean treasury and government bonds and others	The BOK and others		11,526,197	Settlement risk and others
	Foreign financial institutions debt securities	NATIXIS		41,442	Related to bonds sold under repurchase agreements (*)
	Foreign financial institutions debt securities	RJF and others		34,508	Collateral to receive a borrowing limit

		Total		24,309,849

(*)

(2)

Assets acquired through foreclosures as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Non-operational real estates		47,849			48,576
Non-operational assets		484			497
Real estate assessment provision		(1,794	)		(1,898	)
Accumulated Depreciation		(3,490	)		(2,745	)

Total		43,049			44,430

- 113 -

(3)

Securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025		Loaned to
Financial assets at FVTOCI	Korean treasury and government bonds and others		238,406	Korea Securities Finance Corporation


		December 31, 2024		Loaned to
Financial assets at FVTPL	Korean treasury and government bonds and others		12,361	Korea Securities Finance Corporation

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

(4)

Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties

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


	December 31, 2025
	Fair values of collaterals		Fair values of collaterals disposed or re-subjected to lien
Securities		14,673,954		—


	December 31, 2024
	Fair values of collaterals		Fair values of collaterals disposed or re-subjected to lien
Securities		10,640,153		—

19.

OTHER ASSETS

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


	December 31, 2025		December 31, 2024
Prepaid expenses		335,506		296,902
Advance payments		10,121		8,502
Non-operational assets		43,050		44,430
Others		34,112		16,379

Total		422,789		366,213

- 114 -

20.

FINANCIAL LIABILITIES AT FVTPL

(1)	Financial liabilities at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Financial liabilities at FVTPL		5,454,730		9,235,348
Financial liabilities designated to be measured at FVTPL		557,501		547,816

Total		6,012,231		9,783,164

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


	December 31, 2025		December 31, 2024
Deposits due to customers :
Gold banking liabilities		263,251		74,205
Borrowings
Securities sold		70,298		—
Derivative liabilities		5,121,181		9,161,143

Total		5,454,730		9,235,348

(3)	Details of financial liabilities designated to be measured at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Deposits due to customers :
Time Deposits		557,501		547,816

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

(4)	Changes in fair value due to fluctuation in credit risk reflected in financial liabilities designated to be measuredat FVTPL for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025			For the year ended December 31, 2024
Financial liabilities designated to be measured at FVTPL		557,501			547,816
Changes in fair value due to fluctuation in credit risk (*)		74			(1,831	)
Accumulated changes in fair value due to fluctuation in credit risk (*)		(1,757	)		(1,831	)

(*)

The loss recognized in other comprehensive income for the year ended December 31, 2025 with respect to financial liabilities designated to be measured at FVTPL are 74 million Won, and the cumulative profit are 1,757 million Won. The profit recognized in other comprehensive income for the year ended December 31, 2024 with respect to financial liabilities designated to be measured at FVTPL are 1,831 million Won, and the cumulative profit are 1,831 million Won.

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

- 115 -

(5)	The difference between financial liabilities designated to be measured at FVTPL’s carrying amount and nominal amount at maturity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Carrying amount		557,501		547,816
Nominal amount at maturity		540,000		530,000
Difference		17,501		17,816

21.

DEPOSITS DUE TO CUSTOMERS

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


	December 31, 2025			December 31, 2024
Deposits in local currency:
Demand deposits		8,210,457			8,875,838
Saving deposits with flexible withdrawal options		125,842,027			115,920,730
Other saving deposits		172,747,445			175,594,379
Mutual installment		18,219			19,901
Certificate of deposits		9,274,299			11,742,425
Other deposits		955,588			1,037,810

Sub-total		317,048,035			313,191,083

Deposits in foreign currencies:
Deposits in foreign currencies		55,428,731			50,986,214
Present value discount		(138,961	)		(144,359	)

Total		372,337,805			364,032,938

22.

BORROWINGS AND DEBENTURES

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


	December 31, 2025
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from the BOK	The BOK		1.0		1,845,239
Borrowings from government funds	Small Enterprise and Market Service and others		0.0 ~ 3.5		2,195,534
Others	The Korea Development Bank and others		0.0 ~ 4.6		6,037,670

Sub-total					10,078,443

Borrowings in foreign currencies	The Export-Import Bank of Korea and others		0.8 ~ 8.0		12,884,832
Bills sold	Others		0.0 ~ 2.0		1,033
Call money	Bank and others		1.7 ~ 10.0		2,013,940
Bonds sold under repurchase agreements	The BOK and others		1.0 ~ 14.9		3,955,860

Present value discount					(574	)

Total					28,933,534

- 116 -


	December 31, 2024
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from the BOK	The BOK		1.5		1,981,928
Borrowings from government funds	Small Enterprise and Market Service and others		0.0 ~ 3.5		2,165,257
Others	The Korea Development Bank and others		0.0 ~ 4.8		5,609,910

Sub-total					9,757,095

Borrowings in foreign currencies	The Export-Import Bank of Korea and others		0.0 ~ 12.0		14,937,950
Bills sold	Others		0.0 ~ 2.7		3,690
Call money	Bank and others		1.7 ~ 4.9		1,402,780
Bonds sold under repurchase agreements	Other financial institutions		1.0 ~ 12.2		278,767

Present value discount					(593	)

Total					26,379,689

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


	December 31, 2025					December 31, 2024
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.8 ~ 5.4		24,816,021			0.8 ~ 6.3		22,170,995
Subordinated bonds		1.9 ~ 5.1		3,872,768			1.9 ~ 5.1		3,471,380
Other bonds		17.0		4,006			17.0		4,006

Sub-total				28,692,795					25,646,381

Discounts on bonds				(30,527	)				(112,057	)

Total				28,662,268					25,534,324

(*)

Includes debentures under fair value hedge amounting to 4,046,624 million Won and 3,952,047 million Won as of December 31, 2025 and 2024, respectively.

23.

PROVISIONS

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


	December 31, 2025		December 31, 2024
Provisions for guarantees (*1)		79,315		70,686
Provisions for unused commitments		72,412		76,713
Asset retirement obligation		91,231		87,599
Other provisions (*2)		394,517		295,108

Total		637,475		530,106

(*1)

Provisions for guarantees include provisions for financial guarantees of 52,730 million Won and 48,001 million Won as of December 31, 2025 and 2024, respectively.

(*2)

Other provisions consist of provisions for litigation, compensation for loss and others.

- 117 -

(2)	Changes in provisions for guarantees and unused loan commitments for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Provisions for guarantees


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		56,525			2,534			11,627		70,686
Transfer to 12-month expected credit loss		536			(536	)		—		—
Transfer to expected credit loss for the entire period		(438	)		438			—		—
Transfer to credit-impaired financial assets		(809	)		(39	)		848		—
Net provision for unused amount		4,005			1,015			3,344		8,364
Others (*)		270			(5	)		—		265

Ending balance		60,089			3,407			15,819		79,315

(*)

Includes the impact from change of financial guarantee liabilities.


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		68,894			2,800			7,225		78,919
Transfer to 12-month expected credit loss		317			(317	)		—		—
Transfer to expected credit loss for the entire period		(230	)		230			—		—
Transfer to credit-impaired financial assets		(100	)		(90	)		190		—
Net provision for (reversal of) unused amount		(9,352	)		(108	)		4,211		(5,249	)
Others (*)		(3,004	)		19			1		(2,984	)

Ending balance		56,525			2,534			11,627		70,686

(*)

Includes the impact from change of financial guarantee liabilities.

- 118 -

ii)

Provisions for unused loan commitments


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		67,341			9,372			—			76,713
Transfer to 12-month expected credit loss		2,054			(2,054	)		—			—
Transfer to expected credit loss for the entire period		(901	)		901			—			—
Transfer to credit-impaired financial assets		(51	)		(100	)		151			—
Net reversal of unused amount		(949	)		(3,009	)		(147	)		(4,105	)
Others		(197	)		1			—			(196	)

Ending balance		67,297			5,111			4			72,412


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		74,090			8,401			—			82,491
Transfer to 12-month expected credit loss		2,385			(2,385	)		—			—
Transfer to expected credit loss for the entire period		(1,602	)		1,602			—			—
Transfer to credit-impaired financial assets		(57	)		(53	)		110			—
Net provision for (reversal of) unused amount		(8,271	)		1,816			(110	)		(6,565	)
Others		796			(9	)		—			787

Ending balance		67,341			9,372			—			76,713

(3)	Changes in asset retirement obligation for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		87,599			86,290
Provisions provided		3,173			3,553
Provisions used		(7,825	)		(4,468	)
Reversal		—			(223	)
Amortization		1,076			1,243
Increase in restoration costs and others		7,208			1,204

Ending balance		91,231			87,599

- 119 -

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased properties as of end of reporting period discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each property’s lease period, and the Group has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery cost for the past 3 years and the inflation rate for the preceding year in order to estimate future recovery cost.

(4)	Changes in other provisions for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		295,108			458,264
Provisions provided		103,785			29,769
Provisions used and others		(4,486	)		(185,576	)
Reversal of unused amount		(72	)		(3,344	)
Foreign currencies translation adjustments		82			209
Others		100			(4,214	)

Ending balance		394,517			295,108

(5)

Others

①

The Group recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfill its current obligations at the end of the current period.

②

The Group recognized a provision for the estimated amount of contractual refunds and loss compensations that may be payable in relation to customer losses expected fund redemption delays, with ending balances of 259,168 million Won and 246,422 million Won as of December 31, 2025 and 2024, respectively. In addition, the Group recognized a provision—comprising estimated compensation for expected customer losses on equity-linked securities and the expected fines and penalties to be imposed by the Financial Services Commission—amounting to 2,847 million Won and 781 million Won as of December 31, 2025 and 2024, respectively.

- 120 -

24.

NET DEFINED BENEFIT LIABILITY(ASSET)

The retirement benefit of the Group is based on the defined benefit retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using actuarial assumptions that are considered to be the most reasonable estimate of the future cash flows (the projected unit method, which takes account of projected earnings increases).

The Group is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:


Volatility of asset		The defined benefit obligation was estimated with discount rate calculated based on return on high-quality corporate bonds. A deficit may occur if the rate of return of plan assets falls short of the discount rate.

Decrease in return on high quality corporate bonds		A decrease in return on high-quality corporate bonds will be partially offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation		Most defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1)	Details of net defined benefit liability(asset) as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Present value of defined benefit obligations		1,714,739			1,591,119
Fair value of plan assets		(1,872,173	)		(1,726,232	)

Net defined benefit asset		(157,434	)		(135,113	)

(2)	Changes in the carrying value of defined benefit obligation for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the years ended December 31
		2025			2024
Beginning balance			1,591,119			1,358,687
Current service cost			132,888			121,807
Interest cost			64,523			64,548
Remeasurements	Financial assumptions		(21,059	)		79,646
Remeasurements	Demographic assumptions		—			(533	)
	Experience adjustments		39,568			(14,545	)
Foreign currencies translation adjustments			780			400
Retirement benefit paid			(120,526	)		(87,193	)
Past service cost			26,469			—
Effect of moving in and out of associates			780			409
Liability acquired through business combination			—			68,237
Others			197			(344	)

Ending balance			1,714,739			1,591,119

- 121 -

(3)	Changes in the plan assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		1,726,232			1,577,806
Employer’s contributions		213,000			100,000
Interest income		69,761			77,208
Remeasurements		(10,825	)		(13,670	)
Retirement benefit paid		(123,693	)		(83,331	)
Effect of moving in and out of associates		464			2,514
Asset acquired through business combination		—			68,237
Other		(2,766	)		(2,532	)

Ending balance		1,872,173			1,726,232

(4)	The details of plan assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Time deposits and others		1,872,173		1,726,232

(5)	Realized returns on plan assets amount to 58,936 million Won and 63,538 million Won for the years ended December 31, 2025 and 2024, respectively, and the contribution expected to be paid in the current accounting year amounts to 131,611 million Won.

(6)	The amounts recognized in net income and total comprehensive income in relation to defined benefit plans for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025			For the year ended December 31, 2024
Current service cost		132,888			121,807
Past service cost (*)		26,469			—
Net interest income		(5,238	)		(12,660	)

Cost recognized in net income		154,119			109,147

Remeasurements		29,334			78,238

Cost recognized in total comprehensive income		183,453			187,385

(*)	This occurred due to changes in the criteria for determining ordinary wages during the year ended December 31, 2025.

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

(7)	Key actuarial assumptions used in defined benefit liability measurement as of December 31, 2025 and 2024 are as follows:


	December 31, 2025	December 31, 2024
Discount rate	4.46%	4.03%
Future wage growth rate	5.49%	5.19%
Mortality rate	Issued by Korea Insurance Development Institute	Issued by Korea Insurance Development Institute
Retirement rate	Experience rate for each employment classification	Experience rate for each employment classification

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

- 122 -

(8)	The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025 (*)			December 31, 2024 (*)
Discount rate	Increase by 1% point		(145,339	)		(137,958	)
Discount rate	Decrease by 1% point		167,619			159,621
Future wage growth rate	Increase by 1% point		169,126			160,833
Future wage growth rate	Decrease by 1% point		(149,127	)		(141,388	)

(*)

Although the above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant; in practice, more than one assumption are correlated. The sensitivity of the defined benefit obligation to changes in principal actuarial assumptions is calculated using the projected unit credit method, the same method applied when calculating the defined benefit obligations recognized in the statement of financial position.

(9)	The details of the maturity of the defined benefit obligation as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Within 1 year		71,790		60,056
After 1 year but less than 2 years		101,440		83,523
After 2 years but less than 5 years		427,450		409,094
After 5 years but less than 10 years		525,678		457,362
After 10 years		1,564,105		1,390,927

25.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

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


	December 31, 2025			December 31, 2024
Other financial liabilities:
Accounts payable		7,413,925			6,438,827
Accrued expenses		4,013,134			4,363,030
Borrowings from trust accounts		7,692,762			6,769,383
Agency business revenue		594,684			733,988
Foreign exchange payables		784,357			902,564
Domestic exchange payables		11,740,938			7,590,328
Lease liabilities		411,186			450,682
Other miscellaneous financial liabilities		2,308,664			2,059,919
Present value discount		(1,229	)		(1,118	)

Sub-total		34,958,421			29,307,603

Other liabilities:
Unearned income		72,837			111,796
Other miscellaneous liabilities		240,782			195,493

Sub-total		313,619			307,289

Total		35,272,040			29,614,892

- 123 -

26.

DERIVATIVES

(1)	Derivative assets and derivative liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
			Assets				Liabilities
	Nominal amount		For fair value hedge		For trading		For fair value hedge		For trading
Interest rate:
Futures		49,325		—		—		—		—
Forwards		3,340,000		—		155,174		—		92,925
Swaps		134,530,759		37,010		136,924		27,050		144,643
Written options		320,000		—		—		—		8,194
Currency:
Forwards		106,808,822		—		2,681,099		—		1,173,984
Swaps		71,716,550		—		2,830,743		—		3,700,608
Purchase options		67,650		—		1,267		—		—
Written options		81,999		—		—		—		827
Equity:
Forwards		163		—		104		—		—
Purchase options		1,711		—		815		—		—

Total		316,916,979		37,010		5,806,126		27,050		5,121,181


	December 31, 2024
			Assets				Liabilities
	Nominal amount		For fair value hedge		For trading		For fair value hedge		For trading
Interest rate:
Futures		101,831		—		—		—		—
Forwards		3,530,000		—		52,855		—		274,980
Swaps		138,866,980		10,102		308,647		102,634		204,086
Purchase options		50,000		—		81		—		—
Written options		360,000		—		—		—		10,595
Currency:
Forwards		111,916,607		—		5,638,033		—		1,804,764
Swaps		84,460,271		—		4,089,519		—		6,861,714
Purchase options		175,221		—		4,779		—		—
Written options		265,182		—		—		—		3,603
Equity:
Forwards		1,520		—		182		—		—
Swaps		7,698		—		—		—		1,401
Purchase options		1,767		—		1,005		—		—

Total		339,737,077		10,102		10,095,101		102,634		9,161,143

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

- 124 -

(2)	Overview of the Group’s hedge accounting

Fair value hedge

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

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

In this hedging relationship, only the market interest rate fluctuation, which is the most significant part of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging instrument.

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Group expects the value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate and pays interest at a variable interest rate.

Hedges of net investment in foreign operations

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

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

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

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

- 125 -

(3)	The nominal amounts of the hedging instrument as of December 31, 2025 and 2024 are as follows (Unit: USD, and Korean Won in millions):


	December 31, 2025
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swaps (USD)		550,000,000		2,100,000,000		—		2,650,000,000
Interest rate swaps (KRW)		—		—		290,000		290,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (USD)		—		863,959,317		—		863,959,317


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

(4)	The average interest rate and average exchange rate of the hedging instrument as of December 31, 2025 and 2024 are as follows:


		December 31, 2025
Fair value hedge
Interest rate risk
Interest rate swaps (USD)		Fixed 3.47% receipt and C.SOFR+1.06% floating paid
Interest rate swaps (KRW)		Fixed 3.94% receipt and CD 3M+0.01% floating paid
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (USD/KRW)		1,421.88


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

- 126 -

(5)	Fair value hedge

The amounts related to items designated as fair value hedging instruments as of December 31, 2025 and 2024 are as follows (Unit: USD, and Korean Won in millions):

December 31, 2025

Nominal amounts of the
hedging instrument

Carrying amounts
of the hedging
instrument

Line item in the consolidated
statement of financial position
where the hedging
instrument is located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Fair value hedge

Interest rate risk

USD 2,650,000,000

37,010

27,050

Derivative assets

(Designated for hedging)

93,549

Interest rate swaps

290,000

Derivative liabilities

(Designated for hedging)

December 31, 2024

Nominal amounts of the
hedging instrument

Carrying amounts
of the hedging
instrument

Line item in the consolidated
statement of financial position
where the hedging
instrument is located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Fair value hedge

Interest rate risk

USD 2,675,000,000

10,102

102,634

Derivative assets

(Designated for hedging)

5,265

Interest rate swaps

155,000

Derivative liabilities

(Designated for hedging)

- 127 -

Details of carrying amount to fair value hedged and amount adjusted due to hedge accounting as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Carrying amounts of the hedging 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 consolidated statement of financial position in which the hedged item is included		Changing in fair value used for calculating hedge ineffectiveness
	Assets		Liabilities		Assets		Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures		—		3,763,978		—		29,538		Debentures		(91,877	)
Korean Won denominated debentures		—		282,646		—		7,354		Debentures		11,117

(*)	The accumulated profit on foreign currency denominated debentures was 29,538 million Won, and the accumulated profit on Korean Won denominated debentures was 7,354 million Won as of December 31, 2025.


	December 31, 2024
	Carrying amounts of the hedging 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 consolidated statement of financial position in which the hedged item is included		Changing in fair value used for calculating hedge ineffectiveness
	Assets		Liabilities		Assets		Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures		—		3,792,388		—		124,647		Debentures		(12,758	)
Korean Won denominated debentures		—		159,659		—		4,659		Debentures		(4,659	)

(*)	The accumulated profit on foreign currency denominated debentures was 124,647 million Won, and the accumulated loss on Korean Won denominated debentures was 4,659 million Won as of December 31, 2024.

Amounts recognized in profit or loss due to the ineffective portion of fair value hedges for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss
Fair value hedge	Interest rate risk		12,789	Other operating income net


		For the year ended December 31, 2024
		Hedge ineffectiveness recognized in profit or loss			Line item in the profit or loss
Fair value hedge	Interest rate risk		(12,152	)	Other operating expense, net

- 128 -

(6)	Hedges of net investments in foreign operations

The amounts related to items designated as hedging instruments of net investments in foreign operations as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions, USD):

December 31, 2025

Nominal amounts of
the hedging
instrument

Carrying amounts of the
hedging instrument

Line item in the
consolidated
statement of financial
position where the
hedging instrument is
located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Hedges of net investment in foreign operations

Foreign exchange risk

Foreign currency denominated debentures

USD 863,959,317

—

1,239,695

Foreign currency denominated debentures

30,325

December 31, 2024

Nominal amounts of
the hedging
instrument

Carrying amounts of the
hedging instrument

Line item in the
consolidated
statement of financial
position where the
hedging instrument is
located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Hedges of net investment in foreign operations

Foreign exchange risk

Foreign currency denominated debentures

USD 863,959,317

—

1,270,020

Foreign currency
denominated debentures

(156,015

)

The amounts related to items designated as hedged items of net investments in foreign operations as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Changing in fair value used for calculating hedge ineffectiveness			Balance of foreign currency translation reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets		(30,325	)		(127,258	)


	December 31, 2024
	Changing in fair value used for calculating hedge ineffectiveness		Balance of foreign currency translation reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets		156,015		(149,577	)

- 129 -

The amounts recognized in other comprehensive income and profit or loss related to net investment hedges in foreign operations for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2025

Other comprehensive income

Profit or loss

Hedge gain or loss
recognized in other
comprehensive income

Income tax
effect

Sub-total

Hedge ineffectiveness
recognized in profit or
loss

Line item
recognizing
ineffectiveness

Hedges of net investment in foreign operations

Foreign exchange risk

30,325

(8,006

)

22,319

—


	For the year ended December 31, 2024
	Other comprehensive income								Profit or loss
	Hedge gain or loss recognized in other comprehensive income			Income tax effect		Sub-total			Hedge ineffectiveness recognized in profit or loss		Line item recognizing ineffectiveness
Hedges of net investment in foreign operations
Foreign exchange risk		(156,015	)		41,188		(114,827	)		—		—

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

27.

DEFERRED DAY 1 PROFITS OR LOSSES

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


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

Ending balance		—			28

In case some variables to measure fair values of financial instruments are not observable in the market, valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are recorded at the transaction price, even though there are differences noted between the transaction price and the fair value price produced by the valuation techniques at the time of acquisition. In addition, the difference between fair value and transaction price is deferred and amortized to maturity and reflected in profit or loss. The table above presents the difference yet to be realized as profit or losses for the years ended December 31, 2025 and 2024.

- 130 -

28.

SHARE CAPITAL AND CAPITAL SURPLUS

(1)	The number of authorized shares and others as of December 31, 2025 and 2024 are as follows:


	December 31, 2025		December 31, 2024
Shares of common stock authorized		5,000,000,000 Shares		5,000,000,000 Shares
Par value per share		5,000 Won		5,000 Won
Shares of common stock issued		716,000,000 Shares		716,000,000 Shares
Share capital		3,581,392 million Won		3,581,392 million Won

(2)	Details of capital surplus as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Capital in excess of par value		1,068,420		1,068,420
Other capital surplus		40,255		40,030

Total		1,108,675		1,108,450

29.

HYBRID SECURITIES

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


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

		Total						1,406,513			1,645,947

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

- 131 -

30.

OTHER EQUITY

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


	December 31, 2025			December 31, 2024
Accumulated other comprehensive income:
Net gain (loss) on valuation of financial assets at FVTOCI		(9,489	)		29,121
Net gain on changes in credit risk of financial liabilities designated to be measured at FVTPL		1,274			1,348
Loss on evaluation of investment stocks by equity method		(4,480	)		(1,230	)
Gain on foreign currency translation of foreign operations		416,980			525,556
Loss on evaluation of hedge of net investment in foreign operations		(127,258	)		(149,577	)
Remeasurement loss related to defined benefit plan		(94,186	)		(74,068	)

Sub-total		182,841			331,150

Other capital adjustments		(1,609,023	)		(1,658,940	)

Total		(1,426,182	)		(1,327,790	)

(2)	Changes in the accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		29,121			30,103			(81,510	)		12,797			(9,489	)
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at FVTPL		1,348			(74	)		—			—			1,274
Gain (loss) on evaluation of investment stocks by equity method		(1,230	)		(4,493	)		—			1,243			(4,480	)
Gain (loss) on foreign currency translation of foreign operations		525,556			(111,864	)		—			3,288			416,980
Gain (loss) on evaluation of hedge of net investment in foreign operations		(149,577	)		30,325			—			(8,006	)		(127,258	)
Remeasurement gain (loss) related to defined benefit plan		(74,068	)		(29,334	)		—			9,216			(94,186	)

Total		331,150			(85,337	)		(81,510	)		18,538			182,841

(*)	Net loss on valuation of financial assets at FVTOCI includes 1,326 million Won which was transferred to retained earnings due to disposal of equity securities.

- 132 -


	For the year ended December 31, 2024
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		53,020			(23,295	)		(17,770	)		17,166			29,121
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at FVTPL		—			1,831			—			(483	)		1,348
Gain (loss) on evaluation of investment stocks by equity method		6,697			(10,847	)		—			2,920			(1,230	)
Gain (loss) on foreign currency translation of foreign operations		34,352			503,947			—			(12,743	)		525,556
Gain (loss) on evaluation of hedge of net investment in foreign operations		(34,750	)		(156,015	)		—			41,188			(149,577	)
Remeasurement gain (loss) related to defined benefit plan		(17,068	)		(78,238	)		—			21,238			(74,068	)

Total		42,251			237,383			(17,770	)		69,286			331,150

(*)	Net gain on valuation of financial assets at FVTOCI included the 53,539 million Won which was transferred to retained earnings due to disposal of equity securities.

31.

RETAINED EARNINGS

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


		December 31, 2025		December 31, 2024
Legal reserve	Legal reserves in Korea		3,329,754		3,049,754
	Other legal reserve		33,239		33,239

	Sub-total		3,362,993		3,082,993

Voluntary reserve	Business rationalization reserve		8,000		8,000
Voluntary reserve	Reserve for financial structure improvement		235,400		235,400
	Additional reserve		8,576,104		8,576,104
	Regulatory reserve for credit loss		2,160,089		1,905,354
	Revaluation reserve		701,685		701,685

	Sub-total		11,681,278		11,426,543

Retained earnings before appropriation			9,860,112		9,298,518

	Total		24,904,383		23,808,054

Legal reserve

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

Other legal reserve

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

Business rationalization reserve

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

- 133 -

Reserve for financial structure improvement

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

Additional reserve

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

Regulatory reserve for credit loss

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

Revaluation reserve

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

32.

REGULATORY RESERVE FOR CREDIT LOSS

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

(1)

Balance of the regulatory reserve for credit loss as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Regulatory reserve for credit loss		2,160,089		1,905,354
Planned provision for regulatory reserve for credit loss		239,509		254,735

Ending balance		2,399,598		2,160,089

(2)

Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions, except for EPS amount):


	For the years ended December 31
	2025		2024
Net income		2,582,099		3,046,936
Required provision for regulatory reserve for credit loss		239,509		254,735
Adjusted net income after the provision for regulatory reserve		2,342,590		2,792,201
Adjusted EPS after the provision for regulatory reserve (Unit: Korean Won)(*)		3,147		3,793

(*)	For the years ended December 31, 2025 and 2024, it was calculated by deducting 89,134 million Won and 76,249 million Won, respectively, of dividends on hybrid securities from adjusted net income after the provision for regulatory reserve.

- 134 -

33.

DIVIDENDS

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

34.

NET INTEREST INCOME

(1)

Interest income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Financial assets at FVTPL		144,034		153,055
Financial assets at FVTOCI		1,278,693		1,281,641
Securities at amortized cost		539,833		642,888
Loans and other financial assets at amortized cost:
Interest on due from banks		505,631		549,438
Interest on loans		15,461,086		16,884,040
Interest on other receivables		32,325		39,611

Sub-total		15,999,042		17,473,089

Total		17,961,602		19,550,673

(2)

Interest expense recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Interest on deposits due to customers		7,907,331		9,437,205
Interest on borrowings		981,477		1,183,535
Interest on debentures		946,284		977,084
Interest on lease liabilities		16,513		15,386
Other interest expense		293,492		371,222

Total		10,145,097		11,984,432

- 135 -

35.

NET FEES AND COMMISSIONS INCOME

(1)

Details of fees and commissions income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Fees and commissions received for brokerage		225,889		241,762
Fees and commissions received related to credit		138,871		157,226
Fees and commissions received for electronic finance		131,857		130,172
Fees and commissions received on foreign exchange handling		55,653		57,335
Fees and commissions received on foreign exchange		111,348		115,450
Fees and commissions received for guarantee		98,548		104,301
Fees and commissions received on credit card		3,131		3,209
Fees and commissions received on securities business		59,439		48,157
Fees and commissions from trust management		197,678		172,624
Other fees		201,153		185,356

Total		1,223,567		1,215,592

(2)

Details of fees and commissions expense incurred for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Fees and commissions paid		223,495		203,790
Credit card commissions		2,250		1,279
Brokerage commissions		24		24
Others		4,579		4,010

Total		230,348		209,103

- 136 -

36.

DIVIDEND INCOME

(1)	Details of dividend income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Dividend income related to financial assets at FVTPL
Dividends on equity securities		17,721		14,215
Dividends on capital contributions		76,871		96,918
Dividends on beneficiary certificates		268,510		245,788

Sub-total		363,102		356,921

Dividend income related to financial assets at FVTOCI
Dividends on equity securities		20,327		17,606
Dividends on capital contributions		40		160

Sub-total		20,367		17,766

Total		383,469		374,687

(2)	Details of dividend income related to financial assets at FVTOCI for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Dividend income recognized from assets held Equity securities		19,800		17,766
Dividend income generated from assets disposed Equity securities		567		—

Total		20,367		17,766

- 137 -

37.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL

(1)

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


	For the years ended December 31
	2025		2024
Net gain on financial instruments at FVTPL		336,560		1,473,568
Net gain (loss) on financial instruments designated to be measured at FVTPL		389		(19,647	)

Total		336,949		1,453,921

(2)

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


			For the years ended December 31
			2025			2024
Financial instruments at FVTPL	Securities	Gain on transactions and valuation		413,565			607,503
		Loss on transactions and valuation		(585,086	)		(225,553	)

		Sub-total		(171,521	)		381,950

	Loans	Gain on transactions and valuation		—			11,672
	Loans
		Sub-total		—			11,672

	Other financial instruments	Gain on transactions and valuation		29,176			6,084
		Loss on transactions and valuation		(25,988	)		(5,456	)

		Sub-total		3,188			628

	Sub-total			(168,333	)		394,250

Derivatives (for trading)	Interest rate derivatives	Gain on transactions and valuation		2,087,012			2,963,221
		Loss on transactions and valuation		(1,817,864	)		(2,925,208	)

		Sub-total		269,148			38,013

	Currency derivatives	Gain on transactions and valuation		9,164,256			14,841,469
		Loss on transactions and valuation		(8,928,447	)		(13,789,059	)

		Sub-total		235,809			1,052,410

	Equity derivatives	Gain on transactions and valuation		111			1,182,989
		Loss on transactions and valuation		(175	)		(1,194,094	)

		Sub-total		(64	)		(11,105	)

	Sub-total			504,893			1,079,318

	Total			336,560			1,473,568

(*)	The Group manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. Details on gains and losses related to foreign exchange are described in Notes 40. (2) and (3).

(3)

Details of net gain or loss on financial instruments designated to be measured at FVTPL for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Net gain (loss) on deposit due to customers:
Net gain (loss) on valuation of time deposit		389		(19,647	)

- 138 -

38.

NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

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


	For the years ended December 31
	2025			2024
Gain on redemption of securities		138,573			96,647
Loss on disposal of securities		(24	)		—

Total		138,549			96,647

39.

REVERSAL OF (PROVISION FOR) EXPECTED CREDIT LOSS ALLOWANCE

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


	For the years ended December 31
	2025			2024
Reversal (provision for) of expected credit loss allowance on financial assets measured at FVTOCI		(8,387	)		(8,866	)
Reversal (provision for) of expected credit loss allowance on securities measured at amortized cost		(330	)		3,287
Reversal (provision for) of expected credit loss allowance on loans and other financial assets measured at amortized cost		(1,149,927	)		(827,485	)
Reversal of (provision for) provision on guarantees		(8,364	)		5,249
Reversal of unused loan commitments		4,105			6,565

Total		(1,162,903	)		(821,250	)

- 139 -

40.

GENERAL ADMINISTRATIVE EXPENSES AND OTHER OPERATING INCOME (EXPENSES), NET

(1)	Details of general and administrative expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


			For the years ended December 31
			2025		2024
Employee benefits	Short-term employee benefits	Salaries		1,671,335		1,581,947
Employee benefits	Short-term employee benefits	Employee benefits		636,788		561,023
	Share-based payments			50,934		23,261
	Retirement benefit service costs			156,902		111,177
	Termination benefits			169,013		(3,485	)

	Sub-total			2,684,972		2,273,923

Depreciation and amortization				449,197		419,185

Other general and administrative expenses	Rent			95,924		95,805
	Taxes and public dues			160,748		167,278
	Service charges			257,477		244,174
	Computer and IT related			213,579		192,317
	Telephone and communication			58,857		57,071
	Advertising			172,019		145,459
	Printing			4,853		5,620
	Traveling			11,462		10,673
	Supplies			6,573		6,829
	Insurance premium			11,160		11,825
	Maintenance			19,463		20,676
	Water, light and heating			18,377		18,455
	Vehicle maintenance			9,379		11,689
	Others			119,422		65,937

	Sub-total			1,159,293		1,053,808

	Total			4,293,462		3,746,916

(2)	Details of other operating income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Gain on transactions of foreign exchange (*)		1,427,054		720,989
Gain on derivatives (designated for hedging)		102,915		40,843
Gain on fair value hedged items		12,013		25,469
Others		29,050		14,773

Total		1,571,032		802,074

(*)	The Group manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).

- 140 -

(3)	Details of other operating expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Loss on transactions of foreign exchange (*1)		1,059,987		1,561,619
KDIC deposit insurance premium		485,054		495,308
Contribution to miscellaneous funds		524,126		528,484
Loss on derivatives (designated for hedging)		9,532		24,252
Loss on fair value hedged items		92,138		64,571
Others (*2)		119,966		153,543

Total		2,290,803		2,827,777

(*1)	The Group manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).

(*2)	‘Others’ for the years ended December 31, 2025 and 2024, include 32,495 million Won and 28,509 million Won, respectively, of amortization expenses for intangible assets.

(4)	Share-based payment

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

Performance condition share-based payment


Subject to		Shares granted for the year 2021 (*4)
Type of payment		Cash-settled
Vesting period		January 1, 2021 ~ December 31, 2024
Date of payment		January 1, 2025
Fair value (Unit: Korean Won) (*1)		—
Valuation method		—
Dividend yield		—
Expected maturity		—
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	—
Number of shares measured as of the closing date (2),(3)	As of December 31, 2024	865,494 shares
Subject to		Shares granted for the year 2022
Type of payment		Cash-settled
Vesting period		January 1, 2022 ~ December 31, 2025
Date of payment		January 1, 2026
Fair value (Unit: Korean Won) (*1)		27,713
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		0 year
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	737,601 shares
Number of shares measured as of the closing date (2),(3)	As of December 31, 2024	737,601 shares

- 141 -


Subject to		Shares granted for the year 2023
Type of payment		Cash-settled
Vesting period		January 1, 2023 ~ December 31, 2026
Date of payment		January 1, 2027
Fair value (Unit: Korean Won) (*1)		25,763
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		1 year
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	755,920 shares
Number of shares measured as of the closing date (2),(3)	As of December 31, 2024	755,920 shares
Subject to		Shares granted for the year 2024
Type of payment		Cash-settled
Vesting period		January 1, 2024 ~ December 31, 2027
Date of payment		January 1, 2028
Fair value (Unit: Korean Won) (*1)		23,949
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		2 years
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	1,189,935 shares
Number of shares measured as of the closing date (2),(3)	As of December 31, 2024	1,189,935 shares
Subject to		Shares granted for the year 2025
Type of payment		Cash-settled
Vesting period		January 1, 2025 ~ December 31, 2028
Date of payment		January 1, 2029
Fair value (Unit: Korean Won) (*1)		22,263
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		3 years
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	875,569 shares
Number of shares measured as of the closing date (2),(3)	As of December 31, 2024	— shares

(*1)

As of December 31, 2025, the fair value calculated using the Black-Scholes model was used to measure liabilities by reflecting the average dividend rate for the past four years to the stock price of the weighted average of Woori Financial Group’s trading volume for the past week, month and two months.

(*2)

At the initial point in time (January 1st of each fiscal year), the maximum number of shares granted is determined. The final number of shares to be paid is confirmed based on the evaluation results of long-term performance indicators over a total of four years, including the current year. The final compensation is then paid in cash, reflecting the stock price at the time of payment. The long-term performance indicators include relative shareholder returns, common Equity Tier 1 capital ratio, net income, return on equity (ROE), cost-to-income ratio (C/I ratio), non-performing loan ratio, and performance in assigned duties.

(*3)	As of December 31, 2025, the remaining quantity and granted quantity are the same.

(*4)	It has been fully paid during the year ended December 31, 2025.

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 per every closing period. As of December 31, 2025 and 2024, the book value of the liabilities related to the performance condition share-based payments recognized by the Group is 87,906 million Won and 50,674 million Won, respectively.

- 142 -

41.

OTHER NON-OPERATING INCOME (EXPENSES)

(1)	Details of gains or losses on valuation of investments in associates recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Gains on valuation of investments in associate		52,494			50,359
Losses on valuation of investments in associate		(6,566	)		(6,292	)

Total		45,928			44,067

(2)	Details of other non-operating income and expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Other non-operating income		112,494			77,117
Other non-operating expenses		(319,974	)		(181,505	)

Total		(207,480	)		(104,388	)

(3)	Details of other non-operating income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Rental fee income		32,778		33,288
Gains on disposal of assets held for sale		33,598		—
Gains on disposal of investments in associates		—		11,053
Gains on disposal of properties and equipment, intangible assets and other assets		7,126		622
Others		38,992		32,154

Total		112,494		77,117

(4)	Details of other non-operating expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Depreciation on investment properties		6,397		8,768
Interest expenses of rent leasehold deposits		1,113		1,631
Losses on disposal of investments in associates		167		36
Losses on disposal of properties and equipment, intangible assets and other assets		1,725		1,661
Impairment loss of properties and equipment, intangible assets and other assets		46,073		217
Donation		143,797		111,891
Others (*)		120,702		57,301

Total		319,974		181,505

(*)	Other special losses related to other provisions for the years ended December 31, 2025 and 2024 are 98,913 million Won and 31,023 million Won, respectively.

- 143 -

42.

INCOME TAX EXPENSE

(1)	Details of income tax expenses for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Current tax expense
Current tax expense in respect of the current year		1,075,894			527,971
Adjustments recognized in the current period in relation to the current tax of prior periods		8,735			(32,584	)
Current tax charged to other equity directly		(8,006	)		41,188

Sub-total		1,076,623			536,575

Deferred tax expense
Changes in deferred tax assets (liabilities) relating to the temporary differences		(326,076	)		397,378
Deferred tax charged to other equity directly		26,544			28,098

Sub-total		(299,532	)		425,476

Income tax expense		777,091			962,051

(2)	Income tax expense reconciled to net income before income tax expense for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Net income before income tax expense		3,359,190			4,008,987
Tax calculated at statutory tax rate (*)		866,102			1,037,649
Adjustments
Effect of income that is exempt from taxation		(29,990	)		(30,868	)
Effect of expense not deductible in determining taxable profit		50,925			47,822
Adjustments recognized in the current period in relation to the current tax of prior periods		8,735			(32,584	)
Effect of income tax expense that is resulting from consolidated tax return		(111,659	)		(66,172	)
Others		(7,022	)		6,204

Sub-total		(89,011	)		(75,598	)

Income tax expense		777,091			962,051

Effective tax rate		23.1	%		24.0	%

(*)	The applicable income tax rate; 1) 9.9% for below 200 million Won, 2) 20.9% for above 200 million Won and below 20 billion Won, 3) 23.1% for above 20 billion Won and below 300 billion Won, 4) 26.4% for above 300 billion Won.

- 144 -

(3)	Changes in cumulative temporary differences for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Beginning balance			Recognized as income (expense)			Recognized as other comprehensive income (expense)		Ending balance
Gain (loss) on financial assets		(240,476	)		88,838			12,797		(138,841	)
Gain (loss) on valuation using the equity method of accounting		(11,365	)		(12,976	)		1,243		(23,098	)
Gain (loss) on valuation of derivatives		(227,075	)		46,882			—		(180,193	)
Accrued income		(111,437	)		(7,421	)		—		(118,858	)
Provision for loan losses		52,147			16,339			—		68,486
Loan and receivables written off		4,494			210			—		4,704
Loan origination costs and fees		(158,895	)		33,996			—		(124,899	)
Defined benefit liability		440,994			45,831			9,216		496,041
Deposits with employee retirement insurance trust		(463,300	)		(68,765	)		—		(532,065	)
Provision for guarantee		5,593			1,413			—		7,006
Other provision		107,612			15,509			—		123,121
Others (*)		(230,973	)		139,678			3,288		(88,007	)

Net deferred tax assets (liabilities)		(832,681	)		299,534			26,544		(506,603	)

(*)	The deferred tax assets arising from tax loss carryforwards among other deferred tax assets and liabilities amount to 12,188 million Won.


	For the year ended December 31, 2024
	Beginning balance			Recognized as income (expense)			Recognized as other comprehensive income (expense)			Ending balance
Gain (loss) on financial assets		(145,585	)		(112,057	)		17,166			(240,476	)
Gain (loss) on valuation using the equity method of accounting		(9,884	)		(4,401	)		2,920			(11,365	)
Gain (loss) on valuation of derivatives		49,556			(276,631	)		—			(227,075	)
Accrued income		(128,508	)		17,071			—			(111,437	)
Provision for loan losses		(3,366	)		55,513			—			52,147
Loan and receivables written off		4,382			112			—			4,494
Loan origination costs and fees		(145,464	)		(13,431	)		—			(158,895	)
Defined benefit liability		373,503			46,253			21,238			440,994
Deposits with employee retirement insurance trust		(445,731	)		(17,569	)		—			(463,300	)
Provision for guarantee		7,803			(2,210	)		—			5,593
Other provision		150,961			(43,349	)		—			107,612
Others (*)		(142,969	)		(74,778	)		(13,226	)		(230,973	)

Net deferred tax assets (liabilities)		(435,302	)		(425,477	)		28,098			(832,681	)

(*)	The deferred tax assets arising from tax loss carryforwards among other deferred tax assets and liabilities amount to 7,940 million Won.

(4)	Unrealizable temporary differences as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Deductible temporary differences		299,321			297,083
Taxable temporary differences		(2,496,928	)		(2,414,711	)

Total		(2,197,607	)		(2,117,628	)

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

- 145 -

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

•

The Group can control the timing of the reversal of the temporary difference, and the temporary difference is not subject to reversal through dividends.

•

It is probable that the temporary difference will not be reversed in the foreseeable future.

(5)	Details of accumulated deferred tax charged directly to other equity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Net gain (loss) on valuation of financial assets at FVTOCI		3,425			(9,372	)
Net loss on changes in credit risk of financial liabilities designated to be measured at FVTPL		(483	)		(483	)
Net gain on evaluation of investment stocks by equity method		1,425			182
Net loss on foreign currency translation of foreign operations		(5,805	)		(9,093	)
Net gain on evaluation of hedges of net investments in foreign operations		46,073			54,079
Remeasurement gain related to defined benefit plan		35,850			26,634

Total		80,485			61,947

(6)	Current tax assets and liabilities as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Current tax assets		51,168		47,653
Current tax liabilities		694,344		94,655

(7)	Impact of Pillar Two income taxes

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

- 146 -

43.

EARNINGS PER SHARE (“EPS”)

(1)	Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding for the years ended December 31, 2025 and 2024. (Unit: Korean Won in millions, except for EPS and number of shares):


	For the years ended December 31
	2025			2024
Net income for the period attributable to common shareholders		2,589,646			3,039,372
Dividends to hybrid securities		(89,134	)		(76,249	)

Net income attributable to common shareholders		2,500,512			2,963,123

Weighted average number of common shares outstanding (Unit: million shares)		716			716
Basic EPS (Unit: Korean Won)		3,492			4,138

(2)	The weighted average number of common shares outstanding for the years ended December 31, 2025 and 2024 are as follows:

For the year ended December 31, 2025

Period

Number of
shares

Days

Accumulated number
of shares outstanding
during period

Common shares issued at the beginning of the period

2025-01-01 ~ 2025-12-31

716,000,000

365

261,340,000,000

Sub-total (①)

261,340,000,000

Weighted average number of common shares outstanding (②=(①/365))

716,000,000

For the year ended December 31, 2024

Period

Number of
shares

Days

Accumulated number
of shares outstanding
during period

Common shares issued at the beginning of the period

2024-01-01 ~ 2024-12-31

716,000,000

366

262,056,000,000

Sub-total (①)

262,056,000,000

Weighted average number of common shares outstanding (②=(①/366))

716,000,000

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

- 147 -

44.

CONTINGENT LIABILITIES AND COMMITMENTS

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


	December 31, 2025 (*)		December 31, 2024 (*)
Confirmed guarantees
Guarantee for loans		69,961		60,571
Acceptances		495,942		617,599
Guarantees in acceptances of imported goods		66,879		75,265
Other confirmed guarantees		10,831,666		10,337,061

Sub-total		11,464,448		11,090,496

Unconfirmed guarantees
Local letter of credit		161,120		167,580
Letter of credit		2,615,813		3,213,170
Other unconfirmed guarantees		1,331,305		1,558,188

Sub-total		4,108,238		4,938,938

Commercial paper purchase commitments and others		497,394		581,039

Total		16,070,080		16,610,473

(*)	Includes financial guarantees of 5,032,789 million Won and 4,156,000 million Won as of December 31, 2025 and 2024, respectively.

(2)	Details of loan commitments and others as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Loan commitments		88,699,685		90,311,327
Other commitments		5,636,343		6,039,793

(3)	Litigation case

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

December 31, 2025

December 31, 2024

As plaintiff

As defendant

As plaintiff

As defendant

Number of cases (*)

32 cases

192 cases

28 cases

196 cases

Amount of litigation

286,147

217,645

260,653

232,073

Provisions for litigations

46,594

14,383

(*)	The number of cases as of December 31, 2025 and 2024 does not include cases such as loan-related execution or simple extension of loan prescription, litigation where the substantive party is not the Group, or fraudulent lawsuits.

- 148 -

45.

RELATED PARTY TRANSACTIONS

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

(1)	Related parties


		Related parties
Parent company		Woori Financial Group Inc.

Associates		W Service Networks Co., Ltd., Korea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., LOTTE CARD Co., Ltd., K BANK Co., Ltd., and others (Dongwoo C & C Co., Ltd. and 40 associates)

Other related parties		Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates (1), Woori Card Co., Ltd. and its subsidiaries, Woori Financial Capital Co., Ltd. and its subsidiaries and associates, Woori Investment Securities Co., Ltd. and its subsidiaries and associates (2), ABL Life Insurance Co.,Ltd. and its subsidiaries and associates (*1), Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Financial F&I Co., Ltd. and its subsidiaries and associates, Woori Asset Management Co., Ltd. and its subsidiaries and associates, Woori Venture Partners Co., Ltd. and its subsidiaries and associates, Woori Private Equity Asset Management Co., Ltd. and its associates, Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Godo Kaisha Oceanos No. 1, JC Assurance Private Equity Partnership No. 2, IGEN 2022 Private Equity Fund No. 1, etc.

(*1)	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates and ABL Life Insurance Co.,Ltd. and its subsidiaries and associates were incorporated into Woori Financial Group for the year ended December 31, 2025.

(*2)	Woori Investment Bank Co., Ltd. was renamed to Woori Investment Securities Co., Ltd. following a merger with Korea Foss Securities Co., Ltd. for the year ended December 31, 2024.

(2)	Major assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):


Related parties		A title of account	December 31, 2025			December 31, 2024
Parent company	Woori Financial Group Inc.	Other assets		27,364			33,632
		Deposits due to customers		489,321			1,285,912
		Other liabilities		652,362			63,893
Associates	W Service Networks Co., Ltd.	Deposits due to customers		3,009			3,054
		Other liabilities		316			309
	Korea Credit Bureau Co., Ltd.	Deposits due to customers		2,615			780
		Other liabilities		10			—
	Korea Finance Security Co., Ltd.	Loans		3,400			3,200
		Expected credit loss allowance		(23	)		(42	)
		Deposits due to customers		2,138			1,145
		Other liabilities		1			3
	LOTTE CARD Co., Ltd.	Loans		26,880			27,913
		Expected credit loss allowance		(295	)		(297	)
		Derivative assets		564			1,075
		Other assets		85			49
		Deposits due to customers		22,869			20,207
		Derivative liabilities		807			—
		Other liabilities		289			273
	K BANK Co., Ltd.	Other assets		43			—
		Other liabilities		158,668			193,719

- 149 -


Related parties		A title of account	December 31, 2025			December 31, 2024
	Others (*)	Loans		—			41
		Deposits due to customers		1,830			1,993
		Other liabilities		541			232
Other related parties	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates	Derivative assets		31,821			—
		Other assets		266,487			—
		Deposits due to customers		94,371			—
		Derivative liabilities		827			—
		Other liabilities		8,328			—
	Woori Card Co., Ltd. and its subsidiaries	Loans		13,224			5,880
		Expected credit loss allowance		(66	)		(39	)
		Derivative assets		102			315
		Other assets		14,047			12,943
		Deposits due to customers		67,095			48,509
		Borrowings		22,733			25,482
		Derivative liabilities		32,449			69,580
		Other liabilities		23,537			26,262
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates	Deposits due to customers		399,312			990,946
		Other liabilities		1,942			2,811
	ABL Life Insurance Co.,Ltd. and its subsidiaries and associates	Deposits due to customers		8,286			—
		Other liabilities		70			—
	Woori FIS Co., Ltd.	Other assets		177			111
		Deposits due to customers		9,082			6,968
		Other liabilities		15,682			18,324
	Woori Private Equity Asset Management Co., Ltd. and its associates	Derivative assets		—			255
		Deposits due to customers		15,408			12,730
		Other liabilities		18			1
	Woori Finance Research Institute Co., Ltd.	Deposits due to customers		1,301			1,839
		Other liabilities		553			534
	Woori Credit Information Co., Ltd.	Other assets		6			7
		Deposits due to customers		14,039			9,469
		Other liabilities		9,852			9,857
	Woori Fund Service Co., Ltd.	Deposits due to customers		20,939			17,910
		Other liabilities		1,619			1,707
	Woori Asset Management Co., Ltd. and its subsidiaries and associates	Deposits due to customers		33,797			21,302
	Woori Asset Trust Co., Ltd.	Deposits due to customers		93,370			198,773
		Other liabilities		116			253
	Woori Financial Capital Co., Ltd. and its subsidiaries and associates	Deposits due to customers		79,619			473,951
		Other liabilities		8,084			6,177
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates	Loans		—			4,900
		Expected credit loss allowance		—			(9	)
		Deposits due to customers		10,185			13,984
		Other liabilities		86			178

- 150 -


Related parties		A title of account	December 31 2025		December 31 2024
	Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-1 and its subsidiaries	Derivative liabilities		—		1
	Woori Savings Bank	Other assets		18		14
	Woori Venture Partners Co., Ltd. and its subsidiaries and associates	Deposits due to customers		56,120		78,494
		Other liabilities		189		359
	Godo Kaisha Oceanos No. 1	Loans		—		38,770
		Expected credit loss allowance		—		(272	)
		Other assets		—		63
	JC Assurance Private Equity Partnership No. 2	Deposits due to customers		1		28
	IGEN 2022 Private Equity Fund No. 1	Deposits due to customers		428		427

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

(3)	Major gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):


			For the years ended December 31
Related parties		A title of account	2025			2024
Parent company	Woori Financial Group Inc.	Fees income		19			19
		Other income		4,400			4,277
		Interest expenses		27,356			51,778
		Fees expenses		1,815			1,625
Associates	W Service Networks Co., Ltd.	Other income		37			35
		Interest expenses		30			37
	Korea Credit Bureau Co., Ltd.	Interest expenses		10			—
	Korea Finance Security Co., Ltd.	Interest income		152			142
		Interest expenses		2			3
		Reversal of impairment losses due to credit loss		(22	)		(30	)
	LOTTE CARD Co., Ltd.	Interest income		1,525			1,586
		Fees income		3,416			3,739
		Gain on derivatives		248			1,075
		Interest expenses		2,593			4,127
		Loss on derivatives		1,318			457
		Provision of impairment losses due to credit loss		15			11
	K BANK Co., Ltd.	Other expenses		2			—
	Others (*)	Interest expenses		14,016			18,044
Other related parties	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates	Fees income		8,809			—
		Gain on derivatives		20,410			—
		Other income		3,716			—
		Interest expenses		1,221			—
		Other expenses		2,513			—

- 151 -


			For the years ended December 31
Related parties		A title of account	2025		2024
	Woori Card Co., Ltd. and its subsidiaries	Interest income		1,701		1,635
		Fees income		70,655		89,354
		Gain on derivatives		1,924		2,865
		Other income		1,212		1,119
		Interest expenses		357		163
		Fees expenses		821		684
		Loss on derivatives		589		45,027
		Provision (Reversal) of impairment losses due to credit loss		35		(35	)
		Other expenses		7		—
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates	Interest income		156		5
		Fees income		3,410		2,874
		Other income		—		1,098
		Interest expenses		138		108
		Fees expenses		40		47
		Provision (Reversal) of impairment losses due to credit loss		9		(14	)
		Other expenses		577		123
	ABL Life Insurance Co.,Ltd. and its subsidiaries and associates	Fees income		8,036		—
		Interest expenses		23		—
		Provision of impairment losses due to credit loss		70		—
	Woori FIS Co., Ltd.	Fees income		355		681
		Other income		8,150		7,725
		Other expenses		135,202		138,151
	Woori Private Equity Asset Management Co., Ltd. and its associates	Fees income		22		23
		Gain on derivatives		—		255
		Interest expenses		316		553
		Loss on derivatives		109		268
	Woori Finance Research Institute Co., Ltd.	Fees income		23		20
		Other income		818		806
		Interest expenses		62		78
	Woori Credit Information Co., Ltd.	Fees income		95		91
		Other income		447		765
		Interest expenses		347		507
		Fees expenses		14,081		17,249
	Woori Fund Service Co., Ltd.	Fees income		51		51
		Other income		295		384
		Interest expenses		519		587
		Fees expenses		245		257
	Woori Asset Management Co., Ltd. and its subsidiaries and associates	Fees income		100		89
		Interest expenses		84		25
	Woori Asset Trust Co., Ltd.	Fees income		216		262
		Interest expenses		3,006		5,538
		Fees expenses		5,360		11,905

- 152 -


Woori Financial Capital Co., Ltd. and its subsidiaries and associates	Fees income	4,405		3,965
	Interest expenses	58		47
	Loss on derivatives	—		6
	Provision (Reversal) of impairment losses due to credit loss	11		(6	)
	Other expenses	5,297		1,857
Woori Savings Bank	Fees income	482		925
Woori Venture Partners Co., Ltd. and its subsidiaries and associates	Fees income	143		—
	Interest expenses	1,968		1,523
Woori Financial F&I Co., Ltd. and its subsidiaries and associates	Interest income	1,672		9,739
	Fees income	908		576
	Interest expenses	17		15
	Reversal of impairment losses due to credit loss	(100	)	(707	)
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-1 and its subsidiaries	Interest income	—		196
	Provision of impairment losses due to credit loss	—		465
	Loss on derivatives	—		(14	)
Godo Kaisha Oceanos No. 1	Interest income	354		702
	Provision (Reversal) of impairment losses due to credit loss	(272	)	214
IGEN 2022 Private Equity Fund No. 1	Interest expenses	—		1
Woori Zip 1	Interest income	—		59
	Reversal of impairment losses due to credit loss	—		(1	)
Woori Zip 2	Interest income	—		84
	Reversal of impairment losses due to credit loss	—		(1	)
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 2-1	Loss on derivatives	—		44

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

- 153 -

(4)	Major loan transactions with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
Related parties		Beginning balance		Loan		Collection		Others			Ending balance (*)
Associates	LOTTE CARD Co., Ltd.		27,913		12,531		13,213		(351	)		26,880
	Korea Finance Security Co., Ltd.		3,200		1,600		1,400		—			3,400
	Others		41		—		41		—			—
Other related parties	Woori Card Co., Ltd. and its subsidiaries		5,880		14,882		7,509		(29	)		13,224
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates		4,900		189,900		194,800		—			—
	Godo Kaisha Oceanos No. 1		38,770		22,921		64,002		2,311			—

(*)	Settlement payment from normal operation among the related parties were excluded, and in the case of a limited loan, it was presented as a net increase or decrease.


		For the year ended December 31, 2024
Related parties		Beginning balance		Loan		Collection		Others			Ending balance (*)
Associates	LOTTE CARD Co., Ltd.		12,209		288,794		274,484		1,394			27,913
	Korea Finance Security Co., Ltd.		3,197		2,300		2,297		—			3,200
	Others		41		—		—		—			41
Other related parties	Woori Financial Capital Co., Ltd. and its subsidiaries and associates		—		50,000		50,000		—			—
	Woori Card Co., Ltd. and its subsidiaries		12,138		4,632		11,973		1,083			5,880
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates		165,800		856,300		1,017,200		—			4,900
	Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries		19,589		—		19,784		195			—
	Godo Kaisha Oceanos No. 1		38,122		—		—		648			38,770
	WOORI ZIP 1		11,317		—		11,227		(90	)		—
	WOORI ZIP 2		16,063		—		15,936		(127	)		—

(*)	Settlement payment from normal operation among the related parties were excluded, and in the case of a limited loan, it was presented as a net increase or decrease.

- 154 -

(5)	Changes in major deposits due to customers with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
Related parties		Beginning balance		Borrowings		Repayment and others (*2)			Ending balance (*1)
Parent company	Woori Financial Group Inc.		1,274,000		6,245,000		7,054,000			465,000
Associates	W Service Networks Co., Ltd.		1,000		—		—			1,000
	Korea Credit Bureau Co., Ltd.		—		1,000		—			1,000
	Win Mortgage Co., Ltd.		1,387		3,529		3,564			1,352
Other related parties	Woori Credit Information Co., Ltd.		5,599		8,502		4,002			10,099
	Woori Fund Service Co., Ltd.		15,500		4,000		—			19,500
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates		2,431		2,000		3,000			1,431
	Woori Finance Research Institute Co., Ltd.		800		8,700		8,500			1,000
	Woori Asset Trust Co., Ltd.		175,000		569,720		654,720			90,000
	Woori Private Equity Asset Management Co., Ltd. And its subsidiaries		10,000		87,000		87,000			10,000
	Woori Venture Partners Co., Ltd. and its subsidiaries and associates		76,000		239,000		261,000			54,000
	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates (*3)		—		90,045		(2,505	)		92,550
	ABL Life Insurance Co.,Ltd. and its subsidiaries and associates (*3)		—		1,055		1,000			55

(*1)	The details of payments made between related parties and the deposits due to customers that can be taken in and out easily are excluded.

(*2)	It includes the gain (loss) on valuation of the financial liabilities designated to be measured at FVTPL of Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates.

(*3)	It includes the transactions that occurred prior to the inclusion of the related party.


		For the year ended December 31, 2024
Related parties		Beginning balance		Borrowings		Repayment and others		Ending balance (*)
Parent company	Woori Financial Group Inc.		1,354,000		4,703,000		4,783,000		1,274,000
Associates	W Service Networks Co., Ltd.		1,000		2,000		2,000		1,000
	Win Mortgage Co., Ltd.		600		2,266		1,479		1,387
Other related parties	Woori Credit Information Co., Ltd.		6,199		4,500		5,100		5,599
	Woori Fund Service Co., Ltd.		17,000		15,500		17,000		15,500
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates		2,000		2,431		2,000		2,431
	Woori Finance Research Institute Co., Ltd.		—		9,600		8,800		800
	Woori Asset Trust Co., Ltd.		56,000		874,816		755,816		175,000
	Woori Private Equity Asset Management Co., Ltd. and its associates		22,000		114,000		126,000		10,000
	Woori Venture Partners Co., Ltd.		23,000		201,000		148,000		76,000

(*)	The details of payments made between related parties and the deposits due to customers that can be taken in and out easily are excluded.

- 155 -

(6)	Major borrowing transactions with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

For the year ended December 31, 2025

Related parties

Beginning
balance

Borrowing

Repayment

Others

Ending
balance

Other related parties

Woori Card Co., Ltd. and its subsidiaries

25,482

312,656

315,405

—

22,733


		For the year ended December 31, 2024
Related parties		Beginning balance		Borrowing		Repayment		Others		Ending balance
Other related parties	Woori Card Co., Ltd. and its subsidiaries		24,002		282,802		281,322		—		25,482
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates		39		20,000		20,039		—		—

(7)	Guarantees with the related parties are as follows:

The amount of guarantees provided to the related parties by the Group as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Warranty	December 31, 2025		December 31, 2024
LOTTE CARD Co. Ltd.	Confirmed guarantees in foreign currencies		1,650		1,691

The amount of guarantees and unused loan commitments provided by the related parties to the Group as of December 31, 2025 and December 31, 2024 are as follows (Unit: Korean Won in millions):


	Warranty	December 31, 2025		December 31, 2024
Woori Card Co., Ltd. and its subsidiaries	Loan commitment in local currency		149,960		122,847

- 156 -

(8)	The amount of commitments of derivatives and other commitments to the related parties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Warranty	December 31, 2025		December 31, 2024
Woori Private Equity Asset Management Co., Ltd. and its associates	Derivatives		—		9,719
Woori Card Co., Ltd. and its subsidiaries	Derivatives		293,490		484,000
	Unsettled commitment		505,356		500,000
Woori Investment Securities Co., Ltd. and its subsidiaries and associates	Unsettled commitment		150,000		150,000
Woori Financial Capital Co., Ltd. and its subsidiaries and associates	Unsettled commitment		200,000		200,000
Woori Financial F&I Co., Ltd. and its subsidiaries and associates	Unsettled commitment		150,000		345,100
Tong Yang Life Insurance Co.,Ltd.	Derivatives		472,165		—
ABL Life Insurance Co.,Ltd.	Unsettled commitment		20,000		—
Korea Finance Security Co., Ltd.	Unsettled commitment		200		400
LOTTE CARD Co., Ltd.	Unsettled commitment		478,300		498,400
	Derivatives		440,000		350,000
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Securities purchase commitment		4,664		4,664
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund	Securities purchase commitment		50		148
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]	Securities purchase commitment		990,000		990,000
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures	Securities purchase commitment		1,500		3,000
NH Woori Newdeal Growth Alpha Private Equity Fund 1	Securities purchase commitment		611		11,379
BTS 2nd Private Equity Fund	Securities purchase commitment		1,234		1,854
Woori Corporate Turnaround No. 1 Private Equity Fund	Securities purchase commitment		17,391		21,639
Green ESG Growth No. 1 Private Equity Fund	Securities purchase commitment		7,048		19,136
Woori Equity Bridge Loan Private Placement Investment Trust No. 1	Securities purchase commitment		14,235		16,835
Woori GP Commitment Loan Private Placement Investment Trust No. 1	Securities purchase commitment		—		1,294
Woori GP Commitment Loan Private Placement Investment Trust No. 2	Securities purchase commitment		2,480		2,640
Woori GP Commitment Loan Private Placement Investment Trust No. 3	Securities purchase commitment		9,450		12,165
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1	Securities purchase commitment		6,794		6,162
Woori Renewable New Deal Private Placement Investment Trust No. 1	Securities purchase commitment		10,888		15,574
Woori Woori Bank Partners Private Placement Investment Trust No. 1	Securities purchase commitment		327,861		327,861
Woori Woori Bank Partners Private Placement Investment Trust No. 2	Securities purchase commitment		386,165		386,165
Woori Private Real Estate Investment Trust No. 1	Securities purchase commitment		35,137		75,137
Woori Private Real Estate Investment Trust No. 5	Securities purchase commitment		49,214		72,712
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries	Derivatives		—		72
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1	Securities purchase commitment		324		331
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1	Securities purchase commitment		5,312		5,312
Woori Equity Investment General Type Private Investment Trust No.1	Securities purchase commitment		456		456
Woori Fund Financing General Type Private Investment Trust	Securities purchase commitment		—		14,056
Woori Natixis Partnership Global Private Debt Fund No. 1-1(USD)	Securities purchase commitment		65,588		117,236
Woori Seoul Beltway Private Special Asset Fund No. 1	Securities purchase commitment		27,103		30,949

- 157 -


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

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

- 158 -

(9)	The details of major investment and recovery transactions with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


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

(*)	Investment and recovery transactions of associates are described in Note 13.(2).

- 159 -


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

(*)	Investment and recovery transactions of associates are described in Note 13.(2).

- 160 -

(10)	Compensation to key management is as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Short-term employee benefits		11,943		14,655
Share-based payment		12,141		7,569
Retirement benefit service costs		431		833

Total		24,515		23,057

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

(11)	The Group, Woori Card Co., Ltd. and its subsidiaries are liable to jointly reimburse the Group’s debts before the split.

(12)

During the year ended December 31, 2025, Woori Investment Securities Co., Ltd. underwrote 40,000 million Won of bonds issued by the Group and sold the entire underwritten amount on the issuance date. During the year ended December 31, 2024, Woori Investment Securities Co., Ltd. underwrote 40,000 million Won of hybrid securities issued by the Group and sold the entire underwritten amount on the issuance date.

(13)	The Group purchased and sold the bonds of 500,000 million Won and 440,000 million Won, respectively, through Woori Investment Securities Co., Ltd. during the year ended December 31, 2025. In addition, the Group sold the bonds of 80,000 million Won through Tong Yang Life Insurance Co., Ltd.

(14)	As of December 31, 2025, the plan assets deposited in the defined benefit (DB) retirement pension plan managed and administered by Tong Yang Life Insurance Co., Ltd. amount to 266,169 million Won.

- 161 -

46.

TRUST ACCOUNTS

(1)	Trust accounts of the Group as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Total assets				Operating income
					For the years ended December 31
	December 31, 2025		December 31, 2024		2025		2024
Trust accounts		94,330,961		85,894,740		3,043,016		2,544,969

(2)	Receivables and payables from the transactions between the Group and trust accounts as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Receivables
Trust fees receivables		48,172		46,273

Payables
Deposits due to customers		119,733		265,364
Borrowings from trust accounts		6,047,905		5,214,906

Total		6,167,638		5,480,270

(3)	Significant transactions between the Group and trust accounts for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Revenue:
Trust fees		180,515		156,911
Termination fees		19,249		3,345

Total		199,764		160,256

Expense:
Interest expenses on deposits due to customers		791		955
Interest expenses on borrowings from trust accounts		126,767		148,498

Total		127,558		149,453

- 162 -

(4)	Principal guaranteed trusts and principal and interest guaranteed trusts

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


	December 31, 2025		December 31, 2024
Partial principal guaranteed trusts:
Household money		7,456		7,823
Corporate money		193		189
Installment plan purpose		1,465		1,544

Sub-total		9,114		9,556

Principal guaranteed trusts:
Old-age pension trusts		2,455		2,450
Personal pension trusts		369,257		399,860
Pension trusts		542,034		592,533
Retirement trusts		26,043		26,159
New personal pension trusts		5,579		6,084
New old-age pension trusts		753		815

Sub-total		946,121		1,027,901

Principal and interest guaranteed trusts:
Development trusts		19		19
Unspecified money trusts		333		334

Sub-total		352		353

Total		955,587		1,037,810

47.

LEASES

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


	December 31, 2025		December 31, 2024
Lease payments
Within one year		167,128		168,195
After one year but within five years		255,895		262,872
After five years		19,382		50,353

Total		442,405		481,420

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


	For the year ended December 31, 2025		For the year ended December 31, 2024
Cash outflows for leases		210,536		213,326

(3)

There are no lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is low value for the years ended December 31, 2025 and 2024. The variable lease fee not included in the measurement of lease liability for the years ended December 31, 2025 and 2024 are 32,530 million Won and 24,373 million Won, respectively.

48.

EVENT AFTER THE REPORTING PERIOD

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

- 163 -

Exhibit 99.2

LOGO

WOORI BANK

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2025 and 2024

WOORI BANK


	Page(s)

INDEPENDENT AUDITORS’ REPORT		1-3

Separate Financial Statements

Separate Statements of Financial Position		5-6

Separate Statements of Comprehensive Income		7

Separate Statements of Changes in Equity		8

Separate Statements of Cash Flows		9-10

Notes to the Separate Financial Statements		11-157

Independent Auditors’ Review Report on Internal Control over Financial Reporting		158

INDEPENDENT AUDITORS’ REPORT

(Based on a report originally issued in Korean)

The Board of Directors and Shareholder of

Woori Bank

Opinion

We have audited the separate financial statements of Woori Bank (the “Bank”), which comprise the separate statement of financial position as of December 31, 2025 and 2024, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising of material accounting policy information and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Bank as of December 31, 2025 and 2024, and its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing (“KSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Bank in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in the Republic of Korea and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

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

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

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

determines is necessary to enable the preparation of the separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

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

- 1 -

Auditors’ Responsibilities for the Audit of the Separate Financial Statements

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

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

•

Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

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

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- 2 -

/s/ KPMG Samjong Accounting corp.

Seoul, Korea

March 3, 2026

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

- 3 -

WOORI BANK

SEPARATE FINANCIAL STATEMENTS

AS OF AND FOR THE YEARS ENDED

DECEMBER 31, 2025 AND 2024

The accompanying separate financial statements including all footnote disclosures were prepared

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

Jin Wan Jung

President and Chief Executive Officer

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

(Phone Number) 02-2002-3000

- 4 -

WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2025 AND 2024


	December 31, 2025		December 31, 2024
	(Korean Won in millions)
ASSETS
Cash and cash equivalents (Notes 4, 6 and 45)		35,070,209		23,772,681
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 7, 11, 12, 18, 26 and 45)		22,126,764		25,420,003
Financial assets at fair value through other comprehensive income (“FVTOCI”) (Notes 4, 8, 11, 12 and 18)		47,136,304		42,307,565
Securities at amortized cost (Notes 4, 9, 11 and 18)		18,445,064		18,719,264
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 45)		348,003,249		342,465,297
Investments in subsidiaries and associates (Note 13)		4,445,482		4,422,532
Investment properties (Note 14)		429,551		455,621
Properties and equipment (Note 15)		2,760,879		2,812,324
Intangible assets (Note 16)		364,984		365,004
Assets held for sale (Note 17)		125,068		31,266
Current tax assets (Note 42)		26,747		33,122
Derivative assets (Designated for hedging) (Notes 4, 11, 12, 26 and 45)		37,010		10,102
Net defined benefit assets (Note 24)		160,337		137,916
Other assets (Notes 19 and 45)		317,090		272,126

Total assets		479,448,738		461,224,823

LIABILITIES
Financial liabilities at FVTPL (Notes 4, 11, 12, 20, 26 and 45)		5,998,588		9,746,647
Deposits due to customers (Notes 4, 11, 21 and 45)		355,117,074		347,165,137
Borrowings (Notes 4, 11, 12, 22 and 45)		26,056,653		21,887,868
Debentures (Notes 4, 11 and 22)		28,535,472		25,530,318
Provisions (Notes 23, 44 and 45)		638,047		531,131
Current tax liabilities (Note 42)		676,845		76,361
Deferred tax liabilities (Note 42)		478,169		777,072
Derivative liabilities (Designated for hedging) (Notes 4, 11, 12, 26 and 45)		27,050		102,634
Other financial liabilities (Notes 4, 11, 12, 25 and 45)		34,134,277		28,449,451
Other liabilities (Notes 25 and 45)		256,839		230,894

Total liabilities		451,919,014		434,497,513

- 5 -

WOORI BANK

SEPARATE STATEMENTS OF FINANCIAL POSITION

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


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

Total equity		27,529,724			26,727,310

Total liabilities and equity		479,448,738			461,224,823

The accompanying notes are part of these separate financial statements.

- 6 -

WOORI BANK

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024


	For the years ended December 31
	2025			2024
	(Korean Won in millions, except for per share data)
Interest income		6,954,521			6,741,783
Financial assets at FVTPL		16,390,014			17,982,378
Financial assets at FVTOCI		111,864			120,688
Financial assets at amortized cost		1,227,532			1,227,748
Interest expense		(15,050,618	)		(16,633,942	)

Net interest income (Notes 11, 34 and 45)		6,954,521			6,741,783
Fees and commissions income		1,163,844			1,153,366
Fees and commissions expense		(200,068	)		(180,203	)

Net fees and commissions income (Notes 11, 35 and 45)		963,776			973,163
Dividend income (Notes 11, 36 and 45)		454,618			457,409
Net gain on financial instruments at FVTPL (Notes 11, 37 and 45)		307,917			1,509,161
Net gain on financial assets at FVTOCI (Notes 11 and 38)		137,515			92,107
Net gain on financial assets at amortized cost (Note 11)		28,187			165,192
Net gain on disposals of loans and other financial assets at amortized cost		28,187			165,192
Provision for expected credit loss allowance (Notes 11, 39 and 45)		(827,120	)		(698,265	)
General and administrative expenses (Notes 40 and 45)		(3,857,462	)		(3,327,224	)
Other net operating income (expenses), net (Notes 40 and 45)		(722,417	)		(2,219,561	)

Operating income		3,439,535			3,693,765
Impairment loss on investments in subsidiaries and associates (Note 13)		(5,368	)		(2,386	)
Other non-operating expenses		(125,566	)		(28,840	)

Non-operating expenses (Notes 13 and 41)		(130,934	)		(31,226	)

Net income before income tax expense		3,308,601			3,662,539
Income tax expense (Note 42)		(749,741	)		(867,987	)

Net income (Net income after the provision of regulatory reserve for credit loss for the years ended December 31, 2025 and 2024 are 2,334,284 million Won and 2,609,018 million Won, respectively) (Note 32)		2,558,860			2,794,552

Net gain (loss) on valuation of equity securities at FVTOCI		116,265			(142,223	)
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at FVTPL		(74	)		1,348
Remeasurement loss related to defined benefit plan		(20,877	)		(57,385	)
Items that will not be reclassified to profit or loss		95,314			(198,260	)

Net gain (loss) on valuation of debt securities at FVTOCI		(163,461	)		172,040
Gain (loss) on foreign currency translation of foreign operations		(9,168	)		33,520
Gain (loss) on evaluation of hedge of net investment in foreign operations		2,377			(12,217	)
Items that may be reclassified to profit or loss		(170,252	)		193,343

Other comprehensive income (loss), net of tax (Note 30)		(74,938	)		(4,917	)

Total comprehensive income		2,483,922			2,789,635

Earnings per share (Note 43)
Basic and diluted earnings per share (Unit: In Korean Won)		3,449			3,797

The accompanying notes are part of these separate financial statements.

- 7 -

WOORI BANK

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024


	Capital stock		Hybrid securities			Capital surplus		Other equity			Retained earnings			Total equity
	(Korean Won in millions)
January 1, 2024		3,581,392		1,546,447			1,068,420		51,880			18,848,614			25,096,753
Net income		—		—			—		—			2,794,552			2,794,552
Dividends on common stocks		—		—			—		—			(1,131,996	)		(1,131,996	)
Net gain on changes in credit risk of financial liabilities designated to be measured at FVTPL		—		—			—		1,348			—			1,348
Net gain on valuation of financial assets at FVTOCI		—		—			—		29,817			—			29,817
Net gain (loss) due to disposal of financial assets at FVTOCI		—		—			—		(53,539	)		53,539			—
Gain on foreign currency translation of foreign operations		—		—			—		33,520			—			33,520
Loss on evaluation of hedges of net investment in foreign operations		—		—			—		(12,217	)		—			(12,217	)
Remeasurement loss related to defined benefit plan		—		—			—		(57,385	)		—			(57,385	)
Appropriation of retained earnings		—		—			—		1,694			(1,694	)		—
Business combination under the common control		—		—			—		(590	)		—			(590	)
Dividends on hybrid securities		—		—			—		—			(76,249	)		(76,249	)
Issuance of hybrid securities		—		757,970			—		—			—			757,970
Redemption of hybrid securities		—		(658,470	)		—		(49,743	)		—			(708,213	)

December 31, 2024		3,581,392		1,645,947			1,068,420		(55,215	)		20,486,766			26,727,310

January 1, 2025		3,581,392		1,645,947			1,068,420		(55,215	)		20,486,766			26,727,310
Net income		—		—			—		—			2,558,860			2,558,860
Dividends to common stocks		—		—			—		—			(1,352,524	)		(1,352,524	)
Net loss on changes in credit risk of financial liabilities designated to be measured at FVTPL		—		—			—		(74	)		—			(74	)
Net loss on valuation of financial assets at FVTOCI		—		—			—		(47,196	)		—			(47,196	)
Net gain (loss) on disposal of financial assets at FVTOCI		—		—			—		1,326			(1,326	)		—
Loss on foreign currency translation of foreign operations		—		—			—		(9,168	)		—			(9,168	)
Gain on evaluation of hedge of net investment in foreign operations		—		—			—		2,377			—			2,377
Remeasurement loss related to defined benefit plan		—		—			—		(20,877	)		—			(20,877	)
Appropriation of retained earnings		—		—			—		50,333			(50,333	)		—
Dividends to hybrid securities		—		—			—		—			(89,134	)		(89,134	)
Redemption of hybrid securities		—		(239,434	)		—		(416	)		—			(239,850	)

December 31, 2025		3,581,392		1,406,513			1,068,420		(78,910	)		21,552,309			27,529,724

The accompanying notes are part of these separate financial statements.

- 8 -

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024


	For the years ended December 31
	2025			2024
	(Korean Won in millions)
Cash flows from operating activities:
Net income		2,558,860			2,794,552
Adjustments:
Income tax expense		749,741			867,987
Interest income		(16,390,014	)		(17,982,378	)
Interest expense		9,435,493			11,240,595
Dividend income		(497,805	)		(530,748	)

		(6,702,585	)		(6,404,544	)

Additions of expenses not involving cash outflows:
Loss on financial assets at FVTOCI		4,497			4,583
Provision for expected credit loss allowance		827,120			698,265
Impairment losses on investments in subsidiaries and associates		5,368			2,386
Loss on derivatives (designated for hedging)		9,532			24,252
Loss on fair value hedge		92,138			64,571
Loss on other provisions		103,671			40,605
Retirement benefits		154,041			109,088
Depreciation and amortization		415,905			387,730
Loss on disposal of properties and equipment, intangible asset and other assets		1,379			1,435
Impairment loss on properties and equipment, intangible asset and other assets		360			217
Loss on foreign currency translation		—			1,181,071
Other losses		—			10,888
Other operating expenses		—			8,627

		1,614,011			2,533,718

Deductions of incomes not involving cash inflows:
Gain on financial instruments at FVTPL		509,909			1,266,813
Gain on financial assets at FVTOCI		142,012			96,690
Gain on disposal of investments in subsidiaries and associates		—			12,609
Gain on derivatives (designated for hedging)		102,915			40,843
Gain on fair value hedge		12,013			25,469
Gain related to other provisions		39			2,752
Gain on disposal of properties and equipment, intangible assets and other assets		6,177			337
Reversal of impairment loss on properties and equipment, intangible asset and other assets		300			—
Gain on disposal of assets held for sale		33,598			—
Gain on foreign currency translation		278,740			—

		1,085,703			1,445,513

Changes in operating assets and liabilities:
Financial instruments at FVTPL		1,171,785			907,516
Loans and other financial assets at amortized cost		(6,893,012	)		(19,333,275	)
Other assets		(48,826	)		(8,198	)
Deposits due to customers		11,849,990			4,413,557
Provisions		(11,147	)		(209,556	)
Net defined benefit liability		(206,752	)		(103,436	)
Other financial liabilities		2,898,763			4,631,721
Other liabilities		30,034			(5,974	)

		8,790,835			(9,707,645	)

- 9 -

WOORI BANK

SEPARATE STATEMENTS OF CASH FLOWS

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


	For the years ended December 31
	2025			2024
	(Korean Won in millions)
Cash received (paid) from operating activities:
Interest income received		16,266,227			18,178,160
Interest expense paid		(9,739,921	)		(10,742,146	)
Dividends received		497,805			530,748
Income tax paid		(413,201	)		(297,011	)

Net cash inflow (outflow) from operating activities		11,786,328			(4,559,681	)

Cash flows from investing activities:
Disposal of financial instruments at FVTPL		19,593,569			13,414,415
Acquisition of financial instruments at FVTPL		(20,687,433	)		(13,410,068	)
Disposal of financial assets at FVTOCI		30,394,302			25,622,712
Acquisition of financial assets at FVTOCI		(35,167,708	)		(30,557,886	)
Redemption of securities at amortized cost		5,525,516			7,616,152
Acquisition of securities at amortized cost		(5,149,914	)		(2,494,615	)
Disposal of investments in subsidiaries and associates		29,360			33,161
Acquisition of investments in subsidiaries and associates		(57,679	)		(710,964	)
Disposal of properties and equipment		34,274			129
Acquisition of properties and equipment		(258,276	)		(166,448	)
Disposal of intangible assets		2,754			613
Acquisition of intangible assets		(126,932	)		(134,379	)
Disposal of assets held for sale		82,411			—
Net increase in other assets		37,954			18,348
Business combination under common control		—			2,627

Net cash outflow from investing activities		(5,747,802	)		(766,203	)

Cash flows from financing activities:
Net increase of derivatives (designated for hedging)		(9,109	)		(25,442	)
Net increase (decrease) in borrowings		4,466,273			(1,327,778	)
Issuance of debentures		12,702,236			16,756,011
Redemption of debentures		(9,793,897	)		(13,378,345	)
Redemption of lease liabilities		(171,528	)		(171,368	)
Net decrease of other liabilities		(51	)		(17,690	)
Dividends paid to common stocks		(1,352,524	)		(1,131,996	)
Issuance of hybrid securities		—			757,970
Redemption of hybrid securities		(240,000	)		(726,055	)
Dividends paid to hybrid securities		(89,134	)		(76,249	)

Net cash inflow from financing activities		5,512,266			659,058

Effects of exchange rate changes on cash and cash equivalents		(253,264	)		1,373,399
Net increase (decrease) in cash and cash equivalents		11,297,528			(3,293,427	)
Cash and cash equivalents, the beginning of the year		23,772,681			27,066,108

Cash and cash equivalents, the end of the year (Note 6)		35,070,209			23,772,681

The accompanying notes are part of these separate financial statements.

- 10 -

WOORI BANK

NOTES TO THE SEPARATE FINANCIAL STATEMENTS

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

1.	GENERAL

(1)	Summary of the Company

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

2.	BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES

(1)	Basis of preparation

The Bank maintains its accounting records in Korean Won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (K-IFRS). The accompanying separate financial statements have been restructured and translated into English from the Korean language financial statements.

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

The separate financial statements of the Bank have been prepared in accordance with K-IFRS. These are the standards, subsequent amendments and related interpretations issued by the International Accounting Standards Board (IASB) that have been adopted by the Republic of Korea.

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

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

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

1)	From the accounting period beginning on January 1, 2025, the Bank has newly applied the following amendments and interpretations.

Amendments to K-IFRS No.1021 ‘The Effects of Changes in Foreign Exchange Rates’ and K-IFRS No.1101 ‘First-time Adoption of International Financial Reporting Standards’ – Lack of Exchangeability

- 11 -

2)	The details of K-IFRS that have been issued and published as of January 1, 2025 but have not yet reached the effective date, and which the Bank has not applied at an earlier date are as follows :

Amendments to K-IFRS No.1109 ‘Financial Instruments’, K-IFRS No.1107 ‘Financial Instruments: Disclosures’

When an entity K-IFRS No.1109 ‘Financial Instruments’ and K-IFRS No.1107 ‘Financial Instruments: Disclosures’ have been amended to respond to recent questions arising in practice, and to include new requirements. The amendments should be applied for annual periods beginning on or after January 1, 2026, and earlier application is permitted. The Bank is in review for the impact of these amendments on the financial statements. These amendments

•

permit to deem the financial liability to be settled (discharged) through an electronic payment system before the settlement date in cases of meeting certain conditions;

•

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

•

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

ii)

Annual Improvements to K-IFRS

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

•

K-IFRS No.1101 ‘First-time Adoption of International Financial Reporting Standards’: Hedge accounting by a first-time adopter

•

K-IFRS No.1107 ‘Financial Instruments: Disclosures’: Gain or loss on derecognition and implementation guidance

•

K-IFRS No.1109 ‘Financial Instruments’: Derecognition of lease liabilities and definition of transaction price

•

K-IFRS No.1110 ‘Consolidated Financial Statements’: Determination of a ‘de facto agent’

•

K-IFRS No.1007 ‘Statement of Cash Flows’: Cost method

iii)

Standards to K-IFRS No.1118 ‘Presentation and Disclosure in Financial Statements’

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

- 12 -

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

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

(2)	Business combinations

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

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

•

deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with K-IFRS No.1012 ‘Income Taxes’ and K-IFRS No.1019 ‘Employee Benefits’, respectively;

•

liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Bank entered into to replace share-based payment arrangements of the acquiree are measured in accordance with K-IFRS No.1102 ‘Share-based Payment’ at the acquisition date; and

•

non-current assets (or disposal groups) that are classified as held for sale in accordance with K-IFRS No.1105 ‘Non-current Assets Held for Sale and Discontinued Operations’ are measured at the lower of their previous carrying amounts and fair value less costs to sell.

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

If, after reassessment, the Bank’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognized immediately in net income (or other comprehensive income, if applicable) identical to the treatment assuming interests are sold directly.

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

- 13 -

consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration other than the above is remeasured at subsequent reporting dates as appropriate, with the corresponding gain or loss being recognized in profit or loss.

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

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

(3)	Investment in joint operation

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

•

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

•

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

•

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

•

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

•

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

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

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

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

(4)	Revenue recognition

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

Revenue from contracts with customers

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

- 14 -

The Bank recognizes revenue by major sources as shown below:

①

Fees and commission received for brokerage

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

②

Fees and commission received related to credit

③

Fees and commission received for electronic finance

④

Fees and commission received on foreign exchange handling

⑤

Fees and commission received on foreign exchange

⑥

Fees and commission received for guarantee

⑦

Fees and commission received on securities business

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

⑧

Fees and commission from trust management

- 15 -

⑨

Other fees

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

ii)

Other revenue from contracts with customers

①

Interest income

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

The effective interest method is a method of calculating the amortized cost of debt securities (or group of financial assets) and of allocating the interest income over the expected life of the asset. The effective interest rate is the rate that exactly discounts estimated future cash flows to the instrument’s initial total carrying amount over the expected period, or shorter if appropriate. Future cash flows include commissions and cost of reward points (limited to the primary component of effective interest rate) and other premiums or discounts that are paid or received between the contractual parties, and future cash flows exclude expected credit loss when calculating the effective interest rate. All contractual terms of a financial instrument are considered when estimating future cash flows.

②

Loan origination fees and costs

(5)	Accounting for foreign currencies

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

Assets and liabilities of the foreign operations subject to consolidation are translated into Korean Won at foreign exchange rates at the end of the reporting period. Except for situations in which it is required to use exchange rates at the date of transaction due to significant changes in exchange rates during the period, items that belong to profit or loss are measured by average exchange rate, with foreign exchange differences recognized as other comprehensive income and added to equity. When foreign operations are disposed, the controlling interest’s share of accumulated foreign exchange differences related to such foreign operations will be reclassified to profit or loss.

(6)	Cash and cash equivalents

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

(7)	Financial assets and financial liabilities

Financial assets

- 16 -

On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets at FVTOCI, and financial assets at amortized cost.

Business model

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

•

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

•

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

•

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

•

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

•

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

Contractual cash flows

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

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

•

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

•

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

•

Early payment features and maturity extension features

•

Contractual terms that limit the Bank’s claim on cash flows arising from certain assets (e.g., non-recourse feature)

•

Terms of holding multiple contractually linked financial tranche that concentrate credit risk In such case, credit risk comparison information of the instrument itself, the contractual cash flow characteristics of underlying financial instrument group and the underlying financial instrument group

①

Financial assets at FVTPL

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

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

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②

Financial assets at FVTOCI

At initial recognition, financial assets at FVTOCI is measured at its fair value plus any direct transaction cost, and is subsequently measured in fair value. The changes in fair value except for profit or loss items such as impairment losses (reversals), interest revenue calculated by using effective interest method, and foreign exchange gain or loss, and related income tax effects are recognized as other comprehensive income until the asset’s disposal. Upon derecognition, the accumulated other comprehensive income is reclassified from equity to net income for FVTOCI (debt instruments), and reclassified within the equity for FVTOCI (equity instruments)

③

Financial assets at amortized cost

Financial liabilities

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

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

It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition: (a) it is possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have occurred if not for its designation as financial liability at FVTPL; (b) the financial asset forms part of the Bank’s financial instrument group (a group composed of a combination of financial asset or liability) according to the Bank’s documented risk management or investment strategy, is measured at fair value and is being evaluated for its performance, and such information is provided internally; and (c) the financial liability is part of a contract that contains one or more of embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL is allowed under K-IFRS No.1109 ‘Financial Instruments’.

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

Reclassification

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

Derecognition

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

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

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

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

Fair value of financial instruments

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

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

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working capital and estimated residual value of financial investments are being considered when deriving future cash flows. Valuation techniques such as the above include estimates based on the financial instruments’ complexity and usefulness of observable information in the market.

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

Financial assets at FVTPL and Financial assets at FVTOCI

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

Derivatives

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

Adjustment of valuation amount

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

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

Expected credit losses on financial assets

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

•

Financial assets at amortized cost

•

Debt instruments measured at FVTOCI

•

Contract assets as defined by K-IFRS No.1115

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

•

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

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•

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

•

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

Measurement of expected credit losses on financial asset at amortized cost

When financial assets are not individually significant, they are included in a group of financial assets with similar credit risk characteristics and expected credit losses of the Bank are calculated collectively.

Measurement of expected credit losses on financial asset at FVTOCI

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

(8)	Offsetting financial instruments

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

(9)	Investment properties

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

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

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

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

- 21 -

(10)	Properties and equipment

Properties and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of properties and equipment is expenditure directly attributable to their purchase or construction, which includes any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. It also includes the initial estimate of costs of dismantling and removing the item and restoring the site on which it is located.

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

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


	Useful life
Buildings used for business purpose		40 years
Structures in leased office		5 years
Properties for business purpose		5 years

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

(11)	Intangible assets and goodwill

The Bank is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus additional incidental expenses less accumulated amortization and accumulated impairment losses. The Bank’s intangible asset are amortized over the following economic lives using the straight-line method. The estimated useful life and amortization method are reviewed at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting estimate.


		Useful life
Industrial property rights		5 to 10 years
Development costs		5 years
Other intangible assets		5 years or contract period

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

Goodwill is allocated to each of the Bank’s cash-generating unit (or groups of cash-generating units) that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro rata basis based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill cannot be reversed in subsequent periods.

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(12)	Impairment of non-monetary assets

(13)

Leases

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

The Bank as a lessee

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

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

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

•

Fixed payments (including in-substance fixed payments)

•

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

•

Amounts expected to be payable by the lessee under residual value guarantees

•

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

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

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

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

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

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The Bank as a lessor

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

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

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

If the agreement contains both lease and non-lease elements, the Bank applies K-IFRS No.1115 to allocate the consideration of the contract.

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

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

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

(14)	Derivative instruments

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

Embedded derivatives

If embedded derivatives are part of a hybrid contract of which the host contract is not a financial asset within the scope of K-IFRS No.1109 (e.g., financial liability), then these are treated as separate derivatives if embedded derivatives meet the definition of a derivative, characteristics and risk of the embedded derivatives are not closely related to that of host contract, and if the host contract is not measured at FVTPL.

Hedge accounting

The Bank is applying K-IFRS No.1109 in regard to hedge accounting. The Bank designates certain derivatives as hedging instrument against fair value changes in relation to the interest rate risk, foreign currency translation and interest rate risk, and foreign currency translation risk.

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

•

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

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•

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

•

When the hedge ratio is equal to the proportion and the number of hedged items to those of the hedging instruments.

The Bank designated only the part of derivative financial instruments except for the foreign currency basis spread. Changes in value due to the corresponding foreign currency basis spread are recognized in other comprehensive income and accumulated in equity items. If the hedged item relates to a transaction, the accumulated other comprehensive income is reclassified to profit or loss when the hedged item affects profit or loss.

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

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

Fair value hedge

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

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

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

(16)	Provisions

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

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

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(17)	Capital and compound financial instruments

The Bank classifies a financial instrument that it issues as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. A financial liability is a contractual obligation to deliver cash or another financial asset to another entity. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

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

(18)	Financial guarantee liabilities

•

Loss allowance in accordance with K-IFRS No.1109

•

Initial book value less accumulated profit measured in accordance with K-IFRS No.1115

(19)	Employee benefits and pensions

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

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

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

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

The retirement benefit obligation recognized in the separate statement of financial position represents the actual deficit or surplus in the Bank’s defined benefit plans. Any surplus resulting from this calculation is recognized

- 27 -

as an asset limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Liabilities for termination benefits are recognized at the earlier of either 1) the date when the Bank is no longer able to cancel its proposal for termination benefits or 2) the date when the Bank has recognized the cost of restructuring that accompanies the payment of termination benefits.

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

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

(21)	Income taxes

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

The tax uncertainty arises from the compensation claim filed by the company, and the refund litigation for the amount of tax levied by the tax authority due to differences in tax law analysis

In response, the Bank paid taxes in accordance with K-IFRS No.2123 due to the tax authority’s claim, but recognized as a corporate tax asset if it is highly probable of a refund in the future.

(22)	Earnings per share (“EPS”)

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3.	SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS

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

(1)	Income taxes

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

(2)	Valuation of financial instruments

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

As described in Note 2 (7) 5), ‘Fair value of financial assets and liabilities’, when valuation techniques are used to determine the fair value of a financial instrument, various general and internally developed techniques are used, and various types of assumptions and variables are incorporated during the process.

(3)	Impairment of financial instruments

The accuracy of the provision for credit losses is determined by the estimation of the expected cash flows for

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

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

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

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

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

(4) Defined benefit plan

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

4.	RISK MANAGEMENT

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

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

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

(1)	Credit risk

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

Credit risk management

Credit facilities limit management

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

Credit risk monitoring organization and role

①

Large Corporate Credit Analysis & Approval Dept.

•

Examination, approval, and maintenance of loans to large enterprises (including small- and medium-sized enterprises affiliated with major debt group)

•

Examination, approval, and maintenance of loans to government agencies, public institutions (50% or more of government investments and contributions) and other corporations

•

Examination, approval, and maintenance of relevant real estate PF (Project Financing) (large or non-confirmed construction enterprises)

•

Operation controls over the ‘Credit Management for Affiliate Enterprise Groups’ as specified by the Regulation on Supervision of Bank Business, etc.

•

Establishing and managing total exposure limits for affiliated companies

•

Management of approved loans (delinquency, asset quality, portfolios, etc.)

•

Credit limit management designated by the Banking Act for the affiliated companies

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②

IB/Global Investment Banking Credit Analysis & Approval Dept.

•

Examination, approval and maintenance of overseas branches or subsidiaries of local companies, foreign companies.

•

Support for related tasks such as credit screening and maintenance of overseas review centers

•

Management of approved loans (delinquency, asset quality, portfolios, etc.)

•

Establishing and managing total exposure limits for affiliated companies

•

Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies

•

Credit research and credit rating for affiliated companies

•

Derivative-related risk examination and management for affiliated customers

③

SME Credit Analysis & Approval Dept.

•

Examination, approval, and maintenance of loans to public institutions (less than 50% of government investments and contributions) and other corporations

•

Consultation on loan examination, and agreement on the approval (including follow-up) of overseas branches and local corporations of the enterprises

•

Examination, approval, and maintenance of relevant real estate PF (small and medium-sized construction enterprises)

•

Examination, approval, and maintenance, etc. of business loans related to National Housing and Urban Fund

•

Develop and maintain examination techniques

•

Management of approved loans (delinquency, asset quality, portfolios, etc.)

•

Establishing and managing total exposure limits for affiliated companies

•

Credit research and credit rating for affiliated companies

•

Credit limit management (including reduction plans) designated by the Banking Act for the affiliated companies

•

Derivative-related risk examination and management for affiliated customers

④

Retail Credit Analysis & Approval Dept.

•

Examination, approval, and maintenance of personal and individual business loans

•

Examination and approval of collective loans (including cases where construction enterprise is subject to workout)

⑤

Corporate Restructuring Dept.

•

General management of enterprises subject to workout, etc.

•

General management of enterprises subject to pre-workout, etc.

•

General management on the borrower in the course of corporate rehabilitation procedures

•

Workout activities such as the establishment and implementation of corporate workout plans performed for affiliated companies

•

Pre-workout activities such as the establishment and implementation of corporate management diagnosis and management plans performed for affiliated companies

•

Credit examination, approval, setting total exposure limit and follow-up management for affiliated companies

•

Examination and execution of loans for sound post-management of rehabilitation loans

- 31 -

Credit screening and post monitoring or post management

①

Objective

•

To maintain appropriate credit ratings and improve asset quality

②

Main activities

•

Review the adequacy of credit and credit ratings, and maintain the consistency in application of ratings

•

Review the appropriateness of asset classification by quality and the provision for credit losses

•

Overall analysis of loan portfolio quality

•

Inspection of compliance with loan policies and relevant regulations, and recommendation for modification of policies

•

Review the appropriateness of loan approval and compliance with loan commitments

•

Assessing the accuracy of the identification of bad loans and the timeliness of actions taken by the person in charge of the loan

•

Post-inspection of the branches’ discretionary decision for loans

•

Reporting management on audit results and follow-up actions, and follow-up management

•

Monitoring results of inspections of branches for unauthorized use

•

Continuous assessment of corporate credit risk

•

Review of the adequacy of management activities for Watch List companies

•

Support and overall management of audit activities for overseas branches

ii)

Current status by measurement method

Method of calculating risk-weighted assets

①

The Bank calculates the risk-weighted assets of the credit risk by obtaining approval of the internal rating-based approach.

②

•

The internal rating-based approach

Overview and utilization scope of credit rating evaluation model

①

Definition of corporate credit rating model

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

- 32 -

②

Operation of corporate credit rating model

•

General corporate evaluation model: Classified to external audit based on K-IFRS, external audit based on GAAP, non-external audit 1, non-external audit 2, and personal business based on their total assets, sales volume, accounting standards, whether subject to external audit or not, loan size and type of business, such as individual or corporation.

•

Evaluation model of local governments

•

Evaluation model of public institutions

•

Evaluation model of financial institutions: Banks, insurance companies, financial investment, and other financing

•

Evaluation model of overseas companies

•

Evaluation model of non-profit organization: Private schools, medical institutions, religious organizations, and other organizations

•

Specialized lending evaluation model: PF (Project Finance) (*1), OF (Object Finance) (*2), CF (Commodities Finance) (*3), real estate financing for sale, real estate financing for rent, fund financing, acquisition financing, and asset securitization.

(*1) Project Finance (PF)

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

(*2) Object Finance (OF)

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

(*3) Commodities Finance (CF)

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

③

Corporate credit rating system

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

①

Definition of retail credit scoring model

•

②

Operation of retail credit scoring model

•

SOHO (Small Office Home Office) loan credit scoring model: ASS / BSS scoring model

•

Household loan credit scoring model: ASS / BSS scoring model

③

Retail credit scoring model evaluation system: Presented in number from grade 1 to 10

- 33 -

①

Utilizes as a key component in calculating BIS credit risk-weighted assets

②

Supports prompt loan decision-making by applying for interest rate (pricing), and discretionary decision-making, etc.

③

Utilizes to measure overall risk such as assets quality and provisions for the credit losses

④

Utilizes as an indicator of Risk Adjusted Performance Management and relevant performance measurement, etc.

Control structure for credit evaluation system (including content related to grade change)

①

Securing the independence of granting credit rating

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

②

Securing independence of credit risk control operations

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

③

Validation of credit evaluation systems by an independent third party

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

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

④

Strengthen the role of the Board of Directors and management

- 34 -

Scope of application of internal rating-based approach


BIS Ratio calculation method		Exposure category	Date of approval
Standard method	Permanent standard method	Government, public institutions, and banks	October 30, 2008

	Standard method	Subsidiaries, overseas branches, and other assets	October 30, 2008
Internal rating-based approach		Large/small and medium-sized enterprise exposure (external audit IFRS, external audit GAAP, non-external audit1, non-external audit2, personal business model), retail exposure, and asset-backed exposure (Credit rating-based approach)	October 30, 2008 February 13, 2015
Stepwise application		Special financing, financial institutions and non-profit organizations	October 30, 2008

iii)	Measurement of expected credit loss

K-IFRS No.1109 ‘Financial Instruments’ requires entities to measure loss allowances equal to 12-month expected credit losses or lifetime expected credit losses after classifying financial assets into one of the three stages, depending on the degree of increase in credit risk since their initial recognition.


Classification	Stage 1	Stage 2	Stage 3
Definition	No significant increase in credit risk after initial recognition (*)	Significant increase in credit risk after initial recognition	Credit-impaired
	12-month expected credit losses	Lifetime expected credit losses
Loss allowance	Expected credit losses that result from those default events on the financial instrument that 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 Bank may assume that the credit risk has not increased significantly since initial recognition.

At the end of each reporting period, the Bank assesses whether the credit risk has increased significantly since initial recognition by using credit rating, asset quality, early warning system, days past due, and others. For financial assets whose contractual cash flows have been modified, the Bank assesses whether there is a significant increase in credit risk on the same basis. The Bank performs the assessment above to both corporate and retail exposures, and indicators of significant increase in credit risk are as follows:


Corporate Exposures		Retail Exposures
Asset quality level ‘Precautionary’ or lower		Asset quality level ‘Precautionary’ or lower

More than 30 days past due		More than 30 days past due

‘Warning’ level in early warning system		Significant decrease in credit rating (*)

Debtor experiencing financial difficulties (Capital impairment, Adverse opinion or Disclaimer of opinion by external auditors)		Deferment of repayment of principal and interest

Significant decrease in credit rating		Deferment of interest

Deferment of repayment of principal and interest		-

Deferment of interest		-

- 35 -

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

•

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

•

For loans overdue within 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

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

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

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

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

- 36 -

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

•


Major macroeconomic variables		Correlation between credit risk and macroeconomic indicators
Gross Domestic Product (real, original series) growth rate		Negative (-) Correlation
Average manufacturing utilization rate		Negative (-) Correlation
Unemployment rate (original series)		Positive (+) Correlation
Apartment sales price index (KB, Seoul)		Negative (-) Correlation
KOSPI		Negative (-) Correlation
Gross Domestic Income (GDI)		Negative (-) Correlation
Retail sales index		Negative (-) Correlation
Housing transaction price index (KB, Nationwide)		Negative (-) Correlation
KOSDAQ		Negative (-) Correlation

•

Probability weight

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


	Normal Scenario		Good Scenario		Bad Scenario		Worst Scenario
Probability weight		45.58		5.69		28.73		20.00

- 37 -

•

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


Scenarios	Probability weight			Assuming 100%		Difference from book value
Good		5.69	%		1,280,714		(675,757	)
Normal		45.58	%		1,394,081		(562,390	)
Bad		28.73	%		1,796,726		(159,745	)
Worst		20.00	%		4,255,128		2,298,657

- 38 -

iv)

Maximum exposure to credit risk

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

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


		December 31, 2025		December 31, 2024
Loans and other financial assets at amortized cost	Korean treasury and government agencies		151,916		189,416
	Banks		20,938,253		20,954,225
	Corporates		150,854,458		148,116,648
	Retail		176,058,622		173,205,008

	Sub-total		348,003,249		342,465,297

Financial assets at FVTPL (*1)	Due from banks		261,470		73,951
	Debt securities		3,218,978		3,642,795
	Derivative assets		5,792,257		10,067,381

	Sub-total		9,272,705		13,784,127

Financial assets at FVTOCI	Debt securities		46,251,080		41,569,907
Securities at amortized cost	Debt securities		18,445,064		18,719,264
Derivative assets (Designated for hedging)			37,010		10,102
Off-balance accounts	Guarantees (*2)		18,448,946		18,703,691
Off-balance accounts	Loan commitments		86,157,613		88,385,611

	Sub-total		104,606,559		107,089,302

	Total		526,615,667		523,637,999

(*1)	Puttable financial instruments are not included.

(*2)	As of December 31, 2025 and 2024, the financial guarantee amount of 7,911,285 million Won and 6,978,786 million Won are included, respectively.

- 39 -

Credit risk exposure by geographical areas

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


	December 31, 2025
	Korea		U.S.A		U.K		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		338,873,371		2,069,001		773,798		1,259,028		5,028,051		348,003,249
Securities at amortized cost		17,720,610		707,789		—		—		16,665		18,445,064
Financial assets at FVTPL		6,713,611		1,040,587		502,905		277,765		737,837		9,272,705
Financial assets at FVTOCI		42,866,080		2,175,952		309,244		—		899,804		46,251,080
Derivative assets (Designated for hedging)		—		30,719		—		6,291		—		37,010
Off-balance accounts		99,705,376		992,117		756,252		35,333		3,117,481		104,606,559
Guarantees		16,333,218		372,400		261,870		13,746		1,467,712		18,448,946
Loan commitments		83,372,158		619,717		494,382		21,587		1,649,769		86,157,613

Total		505,879,048		7,016,165		2,342,199		1,578,417		9,799,838		526,615,667

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


	December 31, 2024
	Korea		U.S.A		U.K		Japan		Others (*)		Total
Loans and other financial assets at amortized cost		331,602,881		2,609,745		584,060		850,835		6,817,776		342,465,297
Securities at amortized cost		18,042,879		650,578		—		—		25,807		18,719,264
Financial assets at FVTPL		9,392,994		1,824,414		553,842		430,341		1,582,536		13,784,127
Financial assets at FVTOCI		37,736,177		3,015,615		190,793		22,112		605,210		41,569,907
Derivative assets (Designated for hedge)		—		3,216		—		6,886		—		10,102
Off-balance accounts		103,814,908		1,253,700		87,755		20,758		1,912,181		107,089,302
Guarantees		16,904,726		677,133		87,755		20,758		1,013,319		18,703,691
Loan commitments		86,910,182		576,567		—		—		898,862		88,385,611

Total		500,589,839		9,357,268		1,416,450		1,330,932		10,943,510		523,637,999

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

- 40 -

Credit risk exposure by industries


	December 31, 2025
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		81,263,553		47,872,354		32,082,343		3,898,202		173,589,894		9,296,903		348,003,249
Securities at amortized cost		89,611		—		7,906,995		39,968		—		10,408,490		18,445,064
Financial assets at FVTPL		65,673		429,913		5,572,276		4,392		100		3,200,351		9,272,705
Financial assets at FVTOCI		113,729		178,602		33,373,410		50,694		—		12,534,645		46,251,080
Derivative assets (Designated for hedging)		—		—		37,010		—		—		—		37,010
Off-balance accounts		21,226,123		27,854,749		14,514,096		2,983,678		33,237,222		4,790,691		104,606,559
Guarantees		5,009,861		10,083,803		1,482,143		681,857		2,119		1,189,163		18,448,946
Loan commitments		16,216,262		17,770,946		13,031,953		2,301,821		33,235,103		3,601,528		86,157,613

Total		102,758,689		76,335,618		93,486,130		6,976,934		206,827,216		40,231,080		526,615,667


	December 31, 2024
	Service		Manufacturing		Finance and insurance		Construction		Individuals		Others		Total
Loans and other financial assets at amortized cost		85,796,324		44,742,153		28,656,365		4,231,975		170,567,627		8,470,853		342,465,297
Securities at amortized cost		169,352		—		10,059,175		59,866		—		8,430,871		18,719,264
Financial assets at FVTPL		129,606		578,507		9,429,339		9,471		693		3,636,511		13,784,127
Financial assets at FVTOCI		282,766		391,261		29,657,215		153,624		—		11,085,041		41,569,907
Derivative assets (Designated for hedge)		—		—		10,102		—		—		—		10,102
Off-balance accounts		20,167,915		30,992,940		14,759,589		2,730,178		33,476,894		4,961,786		107,089,302
Guarantees		4,384,434		10,546,091		1,506,565		842,558		5,704		1,418,339		18,703,691
Loan commitments		15,783,481		20,446,849		13,253,024		1,887,620		33,471,190		3,543,447		88,385,611

Total		106,545,963		76,704,861		92,571,785		7,185,114		204,045,214		36,585,062		523,637,999

- 41 -

Credit risk exposure

Financial assets


	December 31, 2025
	Stage 1				Stage 2				Stage 3		Total		Expected credit loss allowances			Total, net
	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		Total		Expected credit loss allowances			Total, net
Loans and other financial assets at amortized cost		301,886,486		22,499,123		12,341,750		11,415,691		1,780,054		349,923,104		(1,919,855	)		348,003,249
Korean treasury and government agencies		152,414		—		—		—		—		152,414		(498	)		151,916
Banks		20,958,419		—		—		—		—		20,958,419		(20,166	)		20,938,253
Corporates		126,054,837		18,179,544		2,349,527		4,840,358		817,709		152,241,975		(1,387,517	)		150,854,458
General business		92,748,296		11,808,039		2,020,587		3,639,279		722,998		110,939,199		(1,136,338	)		109,802,861
Small- and medium-sized enterprise		22,466,262		6,054,610		320,696		1,197,879		94,195		30,133,642		(211,591	)		29,922,051
Project financing and others		10,840,279		316,895		8,244		3,200		516		11,169,134		(39,588	)		11,129,546
Retails		154,720,816		4,319,579		9,992,223		6,575,333		962,345		176,570,296		(511,674	)		176,058,622
Securities at amortized cost		18,455,854		—		—		—		—		18,455,854		(10,790	)		18,445,064
Financial assets at FVTOCI (*3)		46,177,626		73,454		—		—		—		46,251,080		(27,987	)		46,251,080

Total		366,519,966		22,572,577		12,341,750		11,415,691		1,780,054		414,630,038		(1,958,632	)		412,699,393


	December 31, 2025
	Collateral value
	Stage 1		Stage 2		Stage 3		Total
Loans and other financial assets at amortized cost		233,674,781		21,697,429		1,008,679		256,380,889
Korean treasury and government agencies		103,817		—		—		103,817
Banks		1,815,479		—		—		1,815,479
Corporates		92,469,723		6,504,152		556,479		99,530,354
General business		61,019,342		5,128,816		475,788		66,623,946
Small- and medium-sized enterprise		23,442,962		1,375,336		80,691		24,898,989
Project financing and others		8,007,419		—		—		8,007,419
Retails		139,285,762		15,193,277		452,200		154,931,239
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		233,674,781		21,697,429		1,008,679		256,380,889

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

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

(*3)	Financial assets at FVTOCI are disclosed as the amount before deducting allowances for credit losses as it does not reduce the carrying amount.

- 42 -


	December 31, 2024
	Stage 1				Stage 2				Stage 3		Total		Expected credit loss allowances			Total, net
	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		Total		Expected credit loss allowances			Total, net
Loans and other financial assets at amortized cost		296,872,036		20,955,733		12,456,496		12,756,686		1,486,677		344,527,628		(2,062,331	)		342,465,297
Korean treasury and government agencies		190,038		—		—		—		—		190,038		(622	)		189,416
Banks		20,908,352		—		66,150		—		—		20,974,502		(20,277	)		20,954,225
Corporates		124,864,682		15,909,050		2,654,852		5,552,972		610,334		149,591,890		(1,475,242	)		148,116,648
General business		87,833,338		9,840,595		2,271,381		3,960,010		482,323		104,387,647		(1,112,581	)		103,275,066
Small- and medium-sized enterprise		26,599,385		5,725,164		373,513		1,498,926		128,011		34,324,999		(297,570	)		34,027,429
Project financing and others		10,431,959		343,291		9,958		94,036		—		10,879,244		(65,091	)		10,814,153
Retails		150,908,964		5,046,683		9,735,494		7,203,714		876,343		173,771,198		(566,190	)		173,205,008
Securities at amortized cost		18,729,732		—		—		—		—		18,729,732		(10,468	)		18,719,264
Financial assets at FVTOCI (*3)		41,506,811		63,096		—		—		—		41,569,907		(26,596	)		41,569,907

Total		357,108,579		21,018,829		12,456,496		12,756,686		1,486,677		404,827,267		(2,099,395	)		402,754,468


	December 31, 2024
	Collateral value
	Stage 1		Stage 2		Stage 3		Total
Loans and other financial assets at amortized cost		232,052,490		22,420,577		818,518		255,291,585
Korean treasury and government agencies		55,775		—		—		55,775
Banks		2,474,302		—		—		2,474,302
Corporates		94,374,525		7,209,853		433,447		102,017,825
General business		59,099,372		5,578,709		328,666		65,006,747
Small- and medium-sized enterprise		27,647,198		1,570,506		104,781		29,322,485
Project financing and others		7,627,955		60,638		—		7,688,593
Retails		135,147,888		15,210,724		385,071		150,743,683
Securities at amortized cost		—		—		—		—
Financial assets at FVTOCI (*3)		—		—		—		—

Total		232,052,490		22,420,577		818,518		255,291,585

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

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

(*3)	Financial assets at FVTOCI are disclosed as the amount before deducting allowances for credit losses as it does not reduce the carrying amount.

- 43 -

Guarantees and loan commitments

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


	December 31, 2025
Financial assets	Stage 1				Stage 2				Stage 3		Total
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)		Stage 3		Total
Off-balance accounts		17,922,313		434,273		18,603		50,649		23,108		18,448,946
Guarantees
Loan commitments		81,862,333		1,925,126		2,179,026		190,895		233		86,157,613

Total		99,784,646		2,359,399		2,197,629		241,544		23,341		104,606,559

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

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


	December 31, 2024
Financial assets	Stage 1				Stage 2				Stage 3		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)		Stage 3		Total
Off-balance accounts		18,165,791		421,822		41,866		52,059		22,153		18,703,691
Guarantees
Loan commitments		84,038,949		2,046,212		2,080,131		220,319		—		88,385,611

Total		102,204,740		2,468,034		2,121,997		272,378		22,153		107,089,302

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

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

vi)

Collateral and other credit enhancements

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

vii)

viii)

The Bank determines which loan is subject to write-off in accordance with internal guidelines and writes off loan receivables when it is determined that the loans are practically irrecoverable. For example, loans are practically irrecoverable when application is made for rehabilitation under the Debtor Rehabilitation and Bankruptcy Act, and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation or when it is not possible to recover the loan amount through legal means such as selling debtor’s assets via auctions or through any other means available. Notwithstanding the write-off, the Bank may still exercise its right of collection after the asset has been written off in accordance with its collection policies.

As the Bank manages receivables that have not lost the right of claim to the debtor for the grounds of incomplete statute limitation and uncollected receivables under the related laws as receivable charge-offs, the balance as of December 31, 2025 and 2024 is 7,653,568 million Won and 7,357,330 million Won, respectively. In addition, the contractual uncollected amount of financial assets written off during the year ended December 31, 2025, but still in the process of recovery is 668,476 million Won.

- 44 -

(2)	Market risk

Market risk management for trading activities

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

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

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

- 45 -

Trading activities

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


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

	Total		181,701		174,304

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

ii)

Market risk management for non-trading activities

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

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


December 31, 2025		December 31, 2024
ΔEVE (*1)	ΔNII (*2)	ΔEVE (*1)	ΔNII (*2)
333,874	720,920	783,172	710,685

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

(*2)	ΔNII: change in Net Interest Income

- 46 -

The Bank measures and manages the risks resulting from interest rate fluctuations caused by mismatches in interest rates and maturities of assets and liabilities. At the interest rate re-pricing date, cash flows (both principal and interest) of interest-bearing assets and liabilities, which is the basis of non-trading position interest rate risk management are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Within 3 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		222,967,995		48,006,581		18,694,642		11,277,382		62,215,480		2,644,980		365,807,060
Financial assets at FVTPL		21,445		—		—		—		—		—		21,445
Financial assets at FVTOCI		15,422,275		3,781,877		2,489,062		1,978,694		23,307,523		1,239,784		48,219,215
Securities at amortized cost		944,068		1,049,537		2,193,501		2,125,125		11,904,679		1,142,341		19,359,251

Total		239,355,783		52,837,995		23,377,205		15,381,201		97,427,682		5,027,105		433,406,971

Liability:
Deposits due to customers		162,727,753		52,523,051		41,694,291		41,100,872		60,356,306		29,217		358,431,490
Borrowings		18,800,947		2,341,629		1,058,369		942,171		2,644,443		518,214		26,305,773
Debentures		3,722,023		1,689,439		1,919,818		1,950,739		18,909,791		2,555,145		30,746,955

Total		185,250,723		56,554,119		44,672,478		43,993,782		81,910,540		3,102,576		415,484,218


	December 31, 2024
	Within 3 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		209,754,801		48,861,282		22,091,076		13,766,595		59,663,804		2,972,722		357,110,280
Financial assets at FVTPL		22,850		—		—		—		—		—		22,850
Financial assets at FVTOCI		6,759,630		4,833,724		2,346,824		2,567,298		25,857,015		1,357,034		43,721,525
Securities at amortized cost		1,168,747		1,550,614		1,742,034		628,917		12,898,211		1,817,296		19,805,819

Total		217,706,028		55,245,620		26,179,934		16,962,810		98,419,030		6,147,052		420,660,474

Liability:
Deposits due to customers		160,594,127		50,075,938		43,055,529		38,700,998		58,603,669		34,242		351,064,503
Borrowings		14,915,413		2,125,771		1,066,941		1,089,172		2,460,850		513,870		22,172,017
Debentures		2,623,670		3,528,439		2,602,985		1,633,304		14,766,804		2,611,435		27,766,637

Total		178,133,210		55,730,148		46,725,455		41,423,474		75,831,323		3,159,547		401,003,157

- 47 -

iii)

Currency risk


		December 31, 2025
		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		10,249		14,706,248		161,769		1,484,439		83		16,951		130		219,225		260,730		16,687,593
	Loans and other financial assets at amortized cost		15,756		22,607,837		98,422		903,147		1,352		276,962		2,069		3,487,143		2,357,272		29,632,361
	Financial assets at FVTPL		1,089		1,562,783		4,835		44,367		—		—		190		320,823		51,258		1,979,231
	Financial assets at FVTOCI		2,363		3,390,995		—		—		—		—		271		456,846		617,732		4,465,573
	Securities at amortized cost		557		799,783		—		—		—		—		—		—		16,846		816,629

	Total		30,014		43,067,646		265,026		2,431,953		1,435		293,913		2,660		4,484,037		3,303,838		53,581,387

Liability	Financial liabilities at FVTPL		62		88,508		—		1		—		—		—		774		137		89,420
	Deposits due to customers		17,855		25,619,863		214,343		1,966,873		1,704		348,876		5,664		9,548,682		1,861,231		39,345,525
	Borrowings		8,380		12,024,145		34,754		318,915		99		20,303		596		1,004,852		382,934		13,751,149
	Debentures		3,093		4,438,023		—		—		—		—		—		—		—		4,438,023
	Other financial liabilities		2,889		4,146,049		12,113		111,154		234		47,949		60		101,901		186,070		4,593,123

	Total		32,279		46,316,588		261,210		2,396,943		2,037		417,128		6,320		10,656,209		2,430,372		62,217,240

Off-balance accounts			9,630		13,818,579		19,704		180,807		1,274		260,767		681		1,148,038		436,653		15,844,844


		December 31, 2024
		USD				JPY				CNY				EUR				Others		Total
		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Foreign currency		Korean Won equivalent		Korean Won equivalent		Korean Won equivalent
Asset	Cash and cash equivalents		7,669		11,273,774		76,878		719,944		230		46,231		84		127,877		229,820		12,397,646
	Loans and other financial assets at amortized cost		14,895		21,895,927		103,400		968,320		4,227		850,810		2,212		3,382,452		2,474,288		29,571,797
	Financial assets at FVTPL		966		1,420,278		6,655		62,327		—		—		154		234,683		46,882		1,764,170
	Financial assets at FVTOCI		3,303		4,854,847		—		—		—		—		14		21,472		544,105		5,420,424
	Securities at amortized cost		718		1,055,442		—		—		—		—		—		—		25,821		1,081,263

	Total		27,551		40,500,268		186,933		1,750,591		4,457		897,041		2,464		3,766,484		3,320,916		50,235,300

Liability	Financial liabilities at FVTPL		112		164,400		2		15		—		—		1		1,766		687		166,868
	Deposits due to customers		18,752		27,565,607		249,024		2,332,060		2,526		508,444		1,944		2,972,155		1,771,311		35,149,577
	Borrowings		7,936		11,666,633		48,801		457,012		284		57,146		814		1,243,829		594,472		14,019,092
	Debentures		3,379		4,967,433		—		—		—		—		—		—		—		4,967,433
	Other financial liabilities		1,895		2,786,006		20,479		191,786		2,315		466,007		240		366,260		314,329		4,124,388

	Total		32,074		47,150,079		318,306		2,980,873		5,125		1,031,597		2,999		4,584,010		2,680,799		58,427,358

Off-balance accounts			8,295		12,194,238		23,861		223,454		1,371		275,934		653		997,941		1,393,216		15,084,783

- 48 -

(3)	Liquidity risk

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

Liquidity risk management

Basel III regulatory response

Analysis of financing and operation status by maturity

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

Establishment and implementation of Contingency Plan

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

•

Inspection items related to liquidity risk on the Contingency Plan checklist

•

The amount of Won and foreign currency and insufficiency of funds

•

Liquidity coverage ratio (monthly average balance, daily balance)

•

The amounts of deposits and withdrawals (saving deposit in Korean Won, depository)

•

Overdraft limit exhaustion rate

•

Percentage of reduction in the balance of deferred deposits

•

Percentage of concentration of funding by subject and period

•

Won and foreign currency funding spread

- 49 -

ii)

Maturity analysis of non-derivative financial liabilities

Cash flows of principals and interests by remaining contractual maturities of non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	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		436,572		53,234		52,655		32,389		324,118		17,501		916,469
Deposits due to customers		233,660,615		41,102,090		30,260,029		41,996,265		12,762,148		358,819		360,139,966
Borrowings		12,300,740		4,139,382		3,554,313		2,863,089		3,134,120		518,214		26,509,858
Debentures		3,398,896		1,691,707		1,922,086		2,277,982		18,909,791		2,555,145		30,755,607
Lease liabilities		43,138		34,587		31,232		26,941		200,293		900		337,091
Other financial liabilities		22,199,582		—		—		—		—		3,782,829		25,982,411

Total		272,039,543		47,021,000		35,820,315		47,196,666		35,330,470		7,233,408		444,641,402


	December 31, 2024
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		74,205		—		—		—		—		—		74,205
Deposits due to customers		228,817,183		39,365,840		32,087,428		39,540,677		12,352,715		501,541		352,665,384
Borrowings		6,708,466		5,063,765		4,078,088		3,160,313		2,890,869		513,870		22,415,371
Debentures		2,073,670		3,683,287		2,606,561		2,036,919		14,766,804		2,611,435		27,778,676
Lease liabilities		44,324		35,462		32,238		28,552		205,258		26,898		372,732
Other financial liabilities		17,005,872		—		—		—		—		4,220,186		21,226,058

Total		254,723,720		48,148,354		38,804,315		44,766,461		30,215,646		7,873,930		424,532,426

Cash flows of principals and interests by expected maturities of non-derivative financial liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	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		445,949		60,227		57,368		36,549		296,086		17,501		913,680
Deposits due to customers		240,545,185		43,137,608		29,780,153		36,183,335		9,922,050		194,819		359,763,150
Borrowings		12,300,740		4,139,382		3,554,313		2,863,089		3,134,120		518,214		26,509,858
Debentures		3,398,896		1,691,707		1,922,086		2,277,982		18,909,791		2,555,145		30,755,607
Lease liabilities		43,142		35,729		32,388		28,106		200,534		900		340,799
Other financial liabilities		22,199,582		—		—		—		—		3,782,829		25,982,411

Total		278,933,494		49,064,653		35,346,308		41,389,061		32,462,581		7,069,408		444,265,505


	December 31, 2024
	Within 3 months		4 to 6 months		7 to 9 months		10 to 12 months		1 to 5 years		Over 5 years		Total
Financial liabilities at FVTPL		74,205		—		—		—		—		—		74,205
Deposits due to customers		234,475,073		41,162,636		31,796,373		34,635,657		9,853,396		217,074		352,140,209
Borrowings		6,708,466		5,063,765		4,078,088		3,160,313		2,890,869		513,870		22,415,371
Debentures		2,073,670		3,683,287		2,606,561		2,036,919		14,766,804		2,611,435		27,778,676
Lease liabilities		44,327		36,607		33,438		29,753		209,570		26,898		380,593
Other financial liabilities		17,005,872		—		—		—		—		4,220,186		21,226,058

Total		260,381,613		49,946,295		38,514,460		39,862,642		27,720,639		7,589,463		424,015,112

- 50 -

iii)

Maturity analysis of derivative financial liabilities

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

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


		Within 3 months			4 to 6 months		7 to 9 months			10 to 12 months		1 to 5 years		Over 5 years			Total
December 31, 2025	Fair value hedge		4,867			11,239		(3,279	)		13,407		1,247		(10,613	)		16,868
	Trading		5,107,538			—		—			—		—		—			5,107,538
December 31, 2024	Fair value hedge		(6,816	)		46,231		(11,740	)		44,950		35,764		(5,834	)		102,555
	Trading		9,124,626			—		—			—		—		—			9,124,626

iv)

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

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


	December 31, 2025		December 31, 2024
Guarantees		18,448,946		18,703,691
Loan commitments		86,157,613		88,385,611
Other		7,520,384		6,871,259

- 51 -

(4)	Operational risk

Definition

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

ii)

Operational risk measurement and management

The Bank measures operational risk capital using the Basel III standardized approach. This approach calculates the required operational risk capital by multiplying the Business Indicator Component (BIC), which represents the scale of operations, with the Internal Loss Multiplier (ILM), which reflects the magnitude of actual historical internal losses relative to the scale of operations.

Operational risk limits are set with the approval of the Board of Risk Management Committee. The Bank regularly calculates the operational risk capital and reports to the management, the Board of Risk Management Committee, and others.

Since a reduction in the size of internal loss events leads to a decrease in operational risk capital, it is important to prevent loss events in advance. Accordingly, the Bank conducts operational risk management activities using tools such as Risk Control Self-Assessment (RCSA), Key Risk Indicators (KRI), and loss data. Additionally, to ensure continuity of operations in emergency situations, such as disasters, the Bank has established a Business Continuity Plan (BCP) and conducts annual simulation drills.

(5)	Capital management

The Bank complies with the standard of capital adequacy provided by financial regulatory authorities. The capital adequacy standard is based on Basel III published by Basel Committee on Banking Supervision in Bank for International Settlement which has been implemented in Korea in December 2013. The capital adequacy ratio is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the consolidated financial statements of the Bank.

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

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


	December 31, 2025 (*)			December 31, 2024
Risk-weighted assets for credit risk		165,110,790			171,533,503
Risk-weighted assets for market risk		2,271,256			2,178,805
Risk-weighted assets for operational risk		18,761,441			18,296,422

Total risk-weighted assets		186,143,487			192,008,730

Common Equity Tier 1 capital		26,296,573			25,060,125
Other Tier 1 capital		1,412,550			1,652,581
Tier 2 capital		3,581,401			3,717,491

Total risk-adjusted capital		31,290,524			30,430,197

Common Equity Tier 1 ratio		14.13	%		13.05	%

Tier 1 capital ratio		14.89	%		13.91	%

Total capital ratio		16.81	%		15.85	%

(*)	Tier 1 capital ratio as of December 31, 2025 is estimation.

- 52 -

5.	OPERATING SEGMENTS

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

(1)	Segment by type of customers

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

•

Consumer banking: Loans/deposits and financial services for retail and individual consumers, etc.

•

Corporate banking: Loans/deposits and export/import, Financial services for corporations, etc.

•

Investment banking: Domestic/foreign investment, Structured finance, M&A, Equity & fund investment related business, Venture advisory related tasks, Real estate SOC development practices, etc.

•

Capital market: Investment in securities and derivatives, etc.

•

Headquarters and others: Segments that do not belong to operating segments above

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


	For the year ended December 31, 2025
	Consumer banking			Corporate banking			Investment banking			Capital market			Headquarters and others			Sub-total			Adjustments (*)			Total
Net interest income(expense)		2,073,271			3,134,469			(221,612	)		(41,276	)		1,008,050			5,952,902			1,001,619			6,954,521
Interest income		5,887,905			7,127,115			444,641			120,150			2,146,050			15,725,861			664,153			16,390,014
Interest expense		(2,338,283	)		(6,169,595	)		(29	)		16,162			(1,281,214	)		(9,772,959	)		337,466			(9,435,493	)
Inter-segment		(1,476,351	)		2,176,949			(666,224	)		(177,588	)		143,214			—			—			—
Net non-interest income		484,596			643,090			548,876			172,300			284,502			2,133,364			(963,768	)		1,169,596
Non-interest income		401,231			644,892			783,327			11,720,595			1,249,548			14,799,593			(12,707,511	)		2,092,082
Non-interest expense		(28,489	)		(99,705	)		(234,451	)		(11,548,295	)		(755,289	)		(12,666,229	)		11,743,743			(922,486	)
Inter-segment		111,854			97,903			—			—			(209,757	)		—			—			—
Other expense		(1,972,820	)		(1,694,632	)		(41,890	)		(16,377	)		(921,012	)		(4,646,731	)		(37,851	)		(4,684,582	)
Administrative expense		(1,942,080	)		(1,210,708	)		(40,019	)		(32,194	)		(632,461	)		(3,857,462	)		—			(3,857,462	)
Reversal of (provision for) expected credit loss allowance		(30,740	)		(483,924	)		(1,871	)		15,817			(288,551	)		(789,269	)		(37,851	)		(827,120	)

Operating income		585,047			2,082,927			285,374			114,647			371,540			3,439,535			—			3,439,535

Non-operating income(expense)		(2,822	)		(23,511	)		33,454			(32,211	)		(105,844	)		(130,934	)		—			(130,934	)
Impairment loss on investments in subsidiaries and associates		—			—			(273	)		—			(5,095	)		(5,368	)		—			(5,368	)
Other non-operating income (expense)		(2,822	)		(23,511	)		33,727			(32,211	)		(100,749	)		(125,566	)		—			(125,566	)

Net income before income tax expense		582,225			2,059,416			318,828			82,436			265,696			3,308,601			—			3,308,601

Income tax expense (income)		(153,708	)		(549,578	)		(84,171	)		(21,763	)		59,479			(749,741	)		—			(749,741	)

Net income		428,517			1,509,838			234,657			60,673			325,175			2,558,860			—			2,558,860

(*)	Adjustments were made for the presentation of profit or loss in accordance with K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.

- 53 -


	For the year ended December 31, 2024
	Consumer banking			Corporate banking			Investment banking			Capital market			Headquarters and others			Sub-total			Adjustments (*)			Total
Net interest income (expense)		2,347,537			3,236,304			(268,845	)		(61,738	)		469,538			5,722,796			1,018,987			6,741,783
Interest income		6,072,087			8,459,406			462,395			118,247			2,156,385			17,268,520			713,858			17,982,378
Interest expense		(3,225,417	)		(6,906,235	)		(58	)		11,696			(1,425,710	)		(11,545,724	)		305,129			(11,240,595	)
Inter-segment		(499,133	)		1,683,133			(731,182	)		(191,681	)		(261,137	)		—			—			—
Net non-interest income		435,555			611,386			584,626			206,750			7,526			1,845,843			(868,372	)		977,471
Non-interest income		413,213			657,790			798,762			19,470,420			631,981			21,972,166			(18,594,932	)		3,377,234
Non-interest expense		(67,906	)		(130,075	)		(214,136	)		(19,263,670	)		(450,536	)		(20,126,323	)		17,726,560			(2,399,763	)
Inter-segment		90,248			83,671			—			—			(173,919	)		—			—			—
Other expense		(1,967,867	)		(1,580,876	)		(24,618	)		(54,003	)		(247,510	)		(3,874,874	)		(150,615	)		(4,025,489	)
Administrative expense		(1,893,526	)		(1,097,939	)		(32,348	)		(33,495	)		(269,916	)		(3,327,224	)		—			(3,327,224	)
Reversal of (provision for) expected credit loss allowance		(74,341	)		(482,937	)		7,730			(20,508	)		22,406			(547,650	)		(150,615	)		(698,265	)

Operating income		815,225			2,266,814			291,163			91,009			229,554			3,693,765			—			3,693,765

Non-operating income (expense)		(63,998	)		(6,900	)		49,216			—			(9,544	)		(31,226	)		—			(31,226	)
Impairment loss on investments in subsidiaries and associates		—			—			(1,107	)		—			(1,279	)		(2,386	)		—			(2,386	)
Other non-operating income (expense)		(63,998	)		(6,900	)		50,323			—			(8,265	)		(28,840	)		—			(28,840	)

Net income before income tax expense		751,227			2,259,914			340,379			91,009			220,010			3,662,539			—			3,662,539

Income tax expense (income)		(198,324	)		(583,029	)		(89,860	)		(24,026	)		27,252			(867,987	)		—			(867,987	)

Net income		552,903			1,676,885			250,519			66,983			247,262			2,794,552			—			2,794,552

(*)	Adjustments were made for the presentation of profit or loss in accordance with K-IFRS from the reporting segments in accordance with the Managerial Accounting Standards.

(2)	Information about products and services

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

(3)	Information about geographical area

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

(4)	Information about major customers

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

- 54 -

6.	CASH AND CASH EQUIVALENTS

(1)	Details of cash and cash equivalents as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Cash		1,825,654		1,661,098
Foreign currencies		533,684		697,455
Demand deposits		32,595,874		21,386,723
Time deposits		114,997		27,405

Total		35,070,209		23,772,681

(2)	Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Counterparty	December 31, 2025		Reason of restriction
Due from banks in local currency:
Due from Bank of Korea (BOK)	BOK		16,555,802	Reserve deposits under the BOK Act
Due from banks in foreign currencies:
Due from banks on demand	BOK and others		6,737,243	Reserve deposits and others

Total			23,293,045


	Counterparty	December 31, 2024		Reason of restriction
Due from banks in local currency:
Due from Bank of Korea (BOK)	BOK		9,712,194	Reserve deposits under the BOK Act
Due from banks in foreign currencies:
Due from banks on demand	BOK and others		2,679,127	Reserve deposits and others

Total			12,391,321

- 55 -

(3)	Among the investing and financing activities, significant transactions not involving cash inflows and outflows for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025			For the year ended December 31, 2024
Changes in other comprehensive income (loss) due to valuation of financial assets at FVTOCI		(45,871	)		(23,722	)
Changes in accounts payable related to acquisition of financial assets at FVTOCI		29,307			—
Changes in financial assets at FVTOCI due to debt—equity swap		—			13,536
Changes in other comprehensive income (loss) of foreign operations translation		(9,168	)		33,520
Changes in other comprehensive income (loss) related to hedges of net investment in foreign operations		2,377			(12,217	)
Reclassification investment property to properties and equipment		—			65,280
Reclassification properties and equipment to investment properties		14,440			—
Reclassification properties and equipment to assets held for sale		107,479			19,692
Reclassification investment properties to assets held for sale		35,137			—
Increase in the right-of-use assets and lease liabilities		116,468			294,255
Changes in accounts payable related to acquisition of intangible assets		(6,808	)		24,134

(4)	Adjustments of liabilities from financing activities for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	January 1, 2025		Cash flow			Not involving cash inflows and outflows									December 31, 2025
	January 1, 2025		Cash flow			Foreign exchange			Changed in value of hedged items			Others			December 31, 2025
Borrowings		21,887,868		4,466,273			(297,493	)		—			5			26,056,653
Debentures		25,530,318		2,908,339			(126,685	)		80,760			142,740			28,535,472
Lease liabilities		349,797		(171,528	)		(538	)		—			125,608			303,339
Net Derivative Liability (Hedging Purpose		92,532		(9,109	)		—			(93,549	)		166			(9,960	)
Rental deposit		39,414		(51	)		—			—			—			39,363

Total		47,899,929		7,193,924			(424,716	)		(12,789	)		268,519			54,924,867


	For the year ended December 31, 2024
	January 1, 2024		Cash flow			Not involving cash inflows and outflows									December 31, 2024
	January 1, 2024		Cash flow			Foreign exchange			Changed in value of hedged items			Others			December 31, 2024
Borrowings		21,461,867		(1,327,778	)		1,753,756			—			23			21,887,868
Debentures		21,273,027		3,377,666			683,588			17,417			178,620			25,530,318
Lease liabilities		205,854		(171,368	)		2,524			—			312,787			349,797
Net Derivative Liability (Hedging Purpose		134,565		(25,442	)		—			(5,265	)		(11,326	)		92,532
Rental deposit		57,104		(17,690	)		—			—			—			39,414

Total		43,132,417		1,835,388			2,439,868			12,152			480,104			47,899,929

- 56 -

7.	FINANCIAL ASSETS AT FVTPL

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


	December 31, 2025		December 31, 2024
Due from banks:
Gold banking assets		261,470		73,951
Securities:
Debt securities
Korean treasury and government agencies		3,199,025		3,630,434
Financial institutions		19,953		—
Securities loaned		—		12,361
Equity securities		280,408		283,961
Capital contributions		2,417,984		2,231,904
Beneficiary certificates		9,926,494		8,882,787
Others		181,982		188,878

Sub-total		16,025,846		15,230,325

Derivatives assets		5,792,257		10,067,381
Others		47,191		48,346

Total		22,126,764		25,420,003

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

8.	FINANCIAL ASSETS AT FVTOCI

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


	December 31, 2025		December 31, 2024
Debt securities:
Korean treasury and government agencies		6,333,111		7,776,569
Financial institutions		27,980,461		25,266,162
Corporates		3,248,996		3,032,609
Bonds denominated in foreign currencies		4,429,706		5,406,920
Mortgage-backed debt securities		4,020,400		87,647
Securities loaned		238,406		—

Sub-total		46,251,080		41,569,907

Equity securities		885,224		737,658

Total		47,136,304		42,307,565

(2)	Details of equity securities designated as financial assets at FVTOCI as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


Purpose of acquisition	December 31, 2025		December 31, 2024
Investment for strategic business partnership purpose		788,429		636,031
Debt-equity swap		96,795		101,627

Total		885,224		737,658

- 57 -

(3)	Changes in the expected credit loss allowance and gross carrying amount of financial assets at FVTOCI for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Credit loss allowances


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(26,596	)		—		—		(26,596	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(8,595	)		—		—		(8,595	)
Disposal		6,644			—		—		6,644
Others (*)		560			—		—		560

Ending balance		(27,987	)		—		—		(27,987	)

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(24,714	)		—		—		(24,714	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(8,865	)		—		—		(8,865	)
Disposal		6,788			—		—		6,788
Others (*)		195			—		—		195

Ending balance		(26,596	)		—		—		(26,596	)

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

ii)

Gross carrying amount


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		41,569,907			—		—		41,569,907
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		35,197,016			—		—		35,197,016
Disposal/Redemption		(30,245,895	)		—		—		(30,245,895	)
Loss on fair value valuation		(231,088	)		—		—		(231,088	)
Amortization on the effective interest method		127,128			—		—		127,128
Others (*)		(165,988	)		—		—		(165,988	)

Ending balance		46,251,080			—		—		46,251,080

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

- 58 -


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		35,303,429			—		—		35,303,429
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		30,557,870			—		—		30,557,870
Disposal/Redemption		(25,376,177	)		—		—		(25,376,177	)
Gain on fair value valuation		224,885			—		—		224,885
Amortization on the effective interest method		133,211			—		—		133,211
Others (*)		726,689			—		—		726,689

Ending balance		41,569,907			—		—		41,569,907

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

(4)


	For the years ended December 31,
	2025			2024
Fair value at disposal date		10,907			155,637
Cumulative losses		(1,800	)		72,744

9.	SECURITIES AT AMORTIZED COST

(1)

Details of securities at amortized cost as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Korean treasury and government agencies		9,698,695			7,646,463
Financial institutions		3,352,648			4,004,011
Corporates		4,587,882			5,997,996
Bond denominated in foreign currencies		816,629			1,081,262
Credit loss allowances		(10,790	)		(10,468	)

Total		18,445,064			18,719,264

(2)

Changes in the expected credit loss allowance and gross carrying amount of securities at amortized cost for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Credit loss allowances


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(10,468	)		—		—		(10,468	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(335	)		—		—		(335	)
Others (*)		13			—		—		13

Ending balance		(10,790	)		—		—		(10,790	)

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

- 59 -


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(13,626	)		—		—		(13,626	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of expected credit loss allowance		3,233			—		—		3,233
Others (*)		(75	)		—		—		(75	)

Ending balance		(10,468	)		—		—		(10,468	)

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

ii)

Gross carrying amount


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		18,729,732			—		—		18,729,732
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		5,149,914			—		—		5,149,914
Disposal / Redemption		(5,525,516	)		—		—		(5,525,516	)
Amortization on the effective interest method		112,417			—		—		112,417
Others (*)		(10,693	)		—		—		(10,693	)

Ending balance		18,455,854			—		—		18,455,854

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


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		23,598,234			—		—		23,598,234
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Acquisition		2,494,615			—		—		2,494,615
Disposal / Redemption		(7,616,152	)		—		—		(7,616,152	)
Amortization on the effective interest method		91,116			—		—		91,116
Others (*)		161,919			—		—		161,919

Ending balance		18,729,732			—		—		18,729,732

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

- 60 -

10.

LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST

(1)

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


	December 31, 2025		December 31, 2024
Due from banks		695,395		857,811
Loans		337,941,453		332,871,221
Other financial assets		9,366,401		8,736,265

Total		348,003,249		342,465,297

(2)

Details of due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Due from banks in local currency:
Others		16,249			256
Expected credit loss allowance		(27	)		—

Sub-total		16,222			256

Due from banks in foreign currencies:
Due from banks on demand		18,938			23,935
Due from banks on time		156,670			72,194
Others		506,626			766,027
Expected credit loss allowance		(3,061	)		(4,601	)

Sub-total		679,173			857,555

Total		695,395			857,811

(3)

Details of restricted due from banks as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Counterparty	December 31, 2025		Reason of restriction
Due from banks in local currency:
Others	MSBI LIMITED Seoul and others		16,246	Credit Support Annex (CSA) collateral and others

Sub-total			16,246

Due from banks in foreign currencies:
Due from banks on demand	Reserve Bank of India and others		18,938	Local capital requirements regulation (CRR) and others
Due from banks on time	TORONTO DOMINION BANK, NEW YORK and others		129,141	Federal Reserve Discount Window
Others	Goldman Sachs Intl., LON and others		506,626	Credit Support Annex (CSA) collateral and others

Sub-total			654,705

Total			670,951

- 61 -


	Counterparty	December 31, 2024		Reason of restriction
Due from banks in local currency:
Others	Korea Exchange Co., Ltd. and others		253	Accumulated amount for Joint Compensation Fund and others

Sub-total			253

Due from banks in foreign currencies:
Due from banks on demand	Reserve Bank of India and others		23,935	Local capital requirements regulation (CRR) and others
Others	BNP-PARIBAS, PAR and others		759,348	Credit Support Annex (CSA) collateral and others

Sub-total			783,283

Total			783,536

(4)	Changes in the expected credit loss allowances and gross carrying amount of due from banks for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Credit loss allowances


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(4,601	)		—		—		(4,601	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net reversal of expected credit loss allowance		1,513			—		—		1,513

Ending balance		(3,088	)		—		—		(3,088	)


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		(3,327	)		—		—		(3,327	)
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net provision for expected credit loss allowance		(1,274	)		—		—		(1,274	)

Ending balance		(4,601	)		—		—		(4,601	)

- 62 -

ii)

Gross carrying amount


	For the year ended December 31, 2025
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		862,412			—		—		862,412
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net decrease		(163,929	)		—		—		(163,929	)

Ending balance		698,483			—		—		698,483


	For the year ended December 31, 2024
	Stage 1			Stage 2		Stage 3		Total
Beginning balance		926,001			—		—		926,001
Transfer to 12-month expected credit losses		—			—		—		—
Transfer to lifetime expected credit losses		—			—		—		—
Transfer to credit-impaired financial assets		—			—		—		—
Net decrease		(63,589	)		—		—		(63,589	)

Ending balance		862,412			—		—		862,412

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


	December 31, 2025			December 31, 2024
Loans in local currency		300,758,900			299,968,927
Loans in foreign currencies		16,591,089			16,909,942
Domestic banker’s usance		2,602,802			2,763,613
Bills bought in foreign currencies		4,331,586			4,115,225
Bills bought in local currency		5,231			5,965
Factoring receivables		130			237
Advances for customers on guarantees		11,909			4,880
Private placement bonds		32,350			47,300
Call loans		1,238,633			697,083
Bonds purchased under resale agreements		13,470,200			9,609,800
Loan origination costs and fees		684,950			668,530
Discounted present value		—			1
Expected credit loss allowance		(1,786,327	)		(1,920,282	)

Total		337,941,453			332,871,221

- 63 -

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


	For the year ended December 31, 2025
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(131,935	)		(105,857	)		(92,334	)		(826,093	)		(538,035	)		(226,028	)
Transfer to 12-month expected credit losses		(29,760	)		29,061			699			(68,501	)		68,078			423
Transfer to lifetime expected credit losses		13,001			(13,874	)		873			34,736			(36,538	)		1,802
Transfer to credit-impaired financial assets		5,612			10,585			(16,197	)		102,050			110,868			(212,918	)
Net reversal of (provision for) expected credit loss allowance		24,224			(28,998	)		(154,185	)		(27,248	)		20,655			(647,621	)
Recovery		—			—			(33,216	)		—			—			(39,418	)
Write-off		—			—			158,938			—			—			517,422
Disposal		23			1,638			18,519			24			3,736			259,609
Interest income from impaired loans		—			—			11,970			—			—			26,717
Others		2			1			2			8,427			5,641			7,093

Ending balance		(118,833	)		(107,444	)		(104,931	)		(776,605	)		(365,595	)		(312,919	)


	For the year ended December 31, 2025
	Total (*)
	Stage 1			Stage 2			Stage 3
Beginning balance		(958,028	)		(643,892	)		(318,362	)
Transfer to 12-month expected credit losses		(98,261	)		97,139			1,122
Transfer to lifetime expected credit losses		47,737			(50,412	)		2,675
Transfer to credit-impaired financial assets		107,662			121,453			(229,115	)
Net reversal of (provision for) expected credit loss allowance		(3,024	)		(8,343	)		(801,806	)
Recovery		—			—			(72,634	)
Write-off		—			—			676,360
Disposal		47			5,374			278,128
Interest income from impaired loans		—			—			38,687
Others		8,429			5,642			7,095

Ending balance		(895,438	)		(473,039	)		(417,850	)

(*)	Additional loss reserves are included for borrowers who have been subject to government support policies related to COVID-19.

- 64 -


	For the year ended December 31, 2024
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		(105,367	)		(84,202	)		(76,070	)		(809,271	)		(517,124	)		(217,322	)
Transfer to 12-month expected credit losses		(21,416	)		21,157			259			(63,848	)		62,682			1,166
Transfer to lifetime expected credit losses		10,032			(10,632	)		600			56,598			(57,801	)		1,203
Transfer to credit-impaired financial assets		3,397			11,699			(15,096	)		126,738			86,209			(212,947	)
Net provision for expected credit loss allowance		(18,592	)		(45,287	)		(103,468	)		(129,038	)		(115,836	)		(282,514	)
Recovery		—			—			(52,318	)		—			—			(26,462	)
Write-off		—			—			135,229			—			—			263,969
Disposal		12			1,409			8,728			23			6,675			237,439
Interest income from impaired loans		—			—			9,815			—			—			19,240
Others		(1	)		(1	)		(13	)		(7,295	)		(2,840	)		(9,800	)

Ending balance		(131,935	)		(105,857	)		(92,334	)		(826,093	)		(538,035	)		(226,028	)


	For the year ended December 31, 2024
	Total (*)
	Stage 1			Stage 2			Stage 3
Beginning balance		(914,638	)		(601,326	)		(293,392	)
Transfer to 12-month expected credit losses		(85,264	)		83,839			1,425
Transfer to lifetime expected credit losses		66,630			(68,433	)		1,803
Transfer to credit-impaired financial assets		130,135			97,908			(228,043	)
Net provision for expected credit loss allowance		(147,630	)		(161,123	)		(385,982	)
Recovery		—			—			(78,780	)
Write-off		—			—			399,198
Disposal		35			8,084			246,167
Interest income from impaired loans		—			—			29,055
Others		(7,296	)		(2,841	)		(9,813	)

Ending balance		(958,028	)		(643,892	)		(318,362	)

(*)	Additional loss reserves are included for borrowers who have been subject to government support policies related to COVID-19.

(7)	Changes in the gross carrying amount of loans for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		129,837,224			14,717,839			386,623			178,693,489			10,437,028			719,300
Transfer to 12-month expected credit losses		4,494,100			(4,479,906	)		(14,194	)		2,635,643			(2,633,229	)		(2,414	)
Transfer to lifetime expected credit losses		(6,233,979	)		6,260,503			(26,524	)		(4,188,151	)		4,192,619			(4,468	)
Transfer to credit-impaired financial assets		(177,659	)		(224,971	)		402,630			(921,607	)		(589,646	)		1,511,253
Write-off		—			—			(158,938	)		—			—			(517,422	)
Disposal		(149	)		(3,986	)		(169,663	)		(199	)		(11,067	)		(905,584	)
Net increase (decrease)		7,894,626			(1,471,415	)		45,677			2,586,373			(2,485,645	)		133,669

Ending balance		135,814,163			14,798,064			465,611			178,805,548			8,910,060			934,334


	For the year ended December 31, 2025
	Total
	Stage 1			Stage 2			Stage 3
Beginning balance		308,530,713			25,154,867			1,105,923
Transfer to 12-month expected credit losses		7,129,743			(7,113,135	)		(16,608	)
Transfer to lifetime expected credit losses		(10,422,130	)		10,453,122			(30,992	)
Transfer to credit-impaired financial assets		(1,099,266	)		(814,617	)		1,913,883
Write-off		—			—			(676,360	)
Disposal		(348	)		(15,053	)		(1,075,247	)
Net increase (decrease)		10,480,999			(3,957,060	)		179,346

Ending balance		314,619,711			23,708,124			1,399,945

- 65 -


	For the year ended December 31, 2024
	Consumers									Corporates
	Stage 1			Stage 2			Stage 3			Stage 1			Stage 2			Stage 3
Beginning balance		122,208,011			14,287,856			341,838			163,705,402			9,010,221			524,251
Transfer to 12-month expected credit losses		4,488,306			(4,478,522	)		(9,784	)		2,113,183			(2,110,200	)		(2,983	)
Transfer to lifetime expected credit losses		(6,231,603	)		6,255,185			(23,582	)		(5,348,943	)		5,354,718			(5,775	)
Transfer to credit-impaired financial assets		(166,956	)		(203,099	)		370,055			(779,607	)		(417,653	)		1,197,260
Write-off		—			—			(135,229	)		—			—			(263,969	)
Disposal		(128	)		(21,525	)		(155,855	)		(134	)		(38,464	)		(759,391	)
Net increase (decrease)		9,539,594			(1,122,056	)		(820	)		19,003,588			(1,361,594	)		29,907

Ending balance		129,837,224			14,717,839			386,623			178,693,489			10,437,028			719,300


	For the year ended December 31, 2024
	Total
	Stage 1			Stage 2			Stage 3
Beginning balance		285,913,413			23,298,077			866,089
Transfer to 12-month expected credit losses		6,601,489			(6,588,722	)		(12,767	)
Transfer to lifetime expected credit losses		(11,580,546	)		11,609,903			(29,357	)
Transfer to credit-impaired financial assets		(946,563	)		(620,752	)		1,567,315
Write-off		—			—			(399,198	)
Disposal		(262	)		(59,989	)		(915,246	)
Net increase (decrease)		28,543,182			(2,483,650	)		29,087

Ending balance		308,530,713			25,154,867			1,105,923

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


	December 31, 2025			December 31, 2024
Receivables		6,760,146			5,923,026
Accrued income		1,331,704			1,364,352
Telex and telephone subscription rights and refundable deposits		716,756			721,513
Other assets		688,235			864,822
Expected credit loss allowance		(130,440	)		(137,448	)

Total		9,366,401			8,736,265

- 66 -

(9)	Changes in the expected credit loss allowance on other financial assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,229	)		(4,463	)		(129,756	)		(137,448	)
Transfer to 12-month expected credit losses		(254	)		228			26			—
Transfer to lifetime expected credit losses		121			(138	)		17			—
Transfer to credit-impaired financial assets		34			189			(223	)		—
Net reversal of (provision for) expected credit loss allowance		713			816			(4,142	)		(2,613	)
Write-off		—			—			9,154			9,154
Disposal		—			—			467			467

Ending balance		(2,615	)		(3,368	)		(124,457	)		(130,440	)


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		(3,656	)		(4,533	)		(113,192	)		(121,381	)
Transfer to 12-month expected credit losses		(274	)		257			17			—
Transfer to lifetime expected credit losses		234			(253	)		19			—
Transfer to credit-impaired financial assets		23			73			(96	)		—
Net reversal of (provision for) expected credit loss allowance		444			(11	)		(11,613	)		(11,180	)
Write-off		—			—			429			429
Disposal		—			4			1,130			1,134
Other increase (decrease)		—			—			(6,450	)		(6,450	)

Ending balance		(3,229	)		(4,463	)		(129,756	)		(137,448	)

(10)	Changes in the gross carrying amount of other financial assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		8,434,645			58,314			380,754			8,873,713
Transfer to 12-month expected credit losses		13,166			(13,135	)		(31	)		—
Transfer to lifetime expected credit losses		(18,862	)		18,881			(19	)		—
Transfer to credit-impaired financial assets		(1,958	)		(1,834	)		3,792			—
Write-off		—			—			(9,154	)		(9,154	)
Disposal		—			—			(606	)		(606	)
Net increase (decrease) and others		640,424			(12,909	)		5,373			632,888

Ending balance		9,067,415			49,317			380,109			9,496,841


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		11,556,403			68,025			116,673			11,741,101
Transfer to 12-month expected credit losses		15,829			(15,809	)		(20	)		—
Transfer to lifetime expected credit losses		(30,096	)		30,117			(21	)		—
Transfer to credit-impaired financial assets		(1,786	)		(1,053	)		2,839			—
Write-off		—			—			(429	)		(429	)
Disposal		—			(7	)		(1,599	)		(1,606	)
Net increase (decrease) and others		(3,105,705	)		(22,959	)		263,311			(2,865,353	)

Ending balance		8,434,645			58,314			380,754			8,873,713

- 67 -

11.

THE FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

(1)	The fair value hierarchy

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

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

•

Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for 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 which do not require significant judgment.

•

Level 3— fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The types of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and debt securities of which valuation techniques require significant judgments and subjectivity.

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

- 68 -

(2)	Fair value hierarchy of financial assets and liabilities measured at fair value as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Due from banks		261,470		—		—		261,470
Debt securities		3,180,311		38,667		—		3,218,978
Equity securities		4,283		—		276,125		280,408
Capital contributions		—		325		2,417,659		2,417,984
Beneficiary certificates		287,676		2,939,563		6,699,255		9,926,494
Derivative assets		—		5,791,337		920		5,792,257
Other financial assets in foreign currencies		—		—		47,191		47,191
Others		—		—		181,982		181,982

Sub-total		3,733,740		8,769,892		9,623,132		22,126,764

Financial assets at FVTOCI
Debt securities		13,495,614		32,755,466		—		46,251,080
Equity securities		359,601		—		525,623		885,224

Sub-total		13,855,215		32,755,466		525,623		47,136,304

Derivative assets (designated for hedging)		—		37,010		—		37,010

Total		17,588,955		41,562,368		10,148,755		69,300,078

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		263,251		—		—		263,251
Derivative liabilities		—		5,107,538		—		5,107,538
Securities sold		70,298		—		—		70,298

Sub-total		333,549		5,107,538		—		5,441,087

Financial liabilities designated to be measured at FVTPL
Deposits due to customers		—		557,501		—		557,501
Derivative liabilities (designated for hedging)		—		27,050		—		27,050

Total		333,549		5,692,089		—		6,025,638

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

- 69 -


	December 31, 2024
	Level 1 (*)		Level 2 (*)		Level 3		Total
Financial assets:
Financial assets at FVTPL
Due from banks		73,951		—		—		73,951
Debt securities		3,614,390		28,405		—		3,642,795
Equity securities		—		—		283,961		283,961
Capital contributions		—		—		2,231,904		2,231,904
Beneficiary certificates		121,298		2,502,671		6,258,818		8,882,787
Derivative assets		—		10,066,195		1,186		10,067,381
Other financial assets in foreign currencies		—		—		48,346		48,346
Others		—		—		188,878		188,878

Sub-total		3,809,639		12,597,271		9,013,093		25,420,003

Financial assets at FVTOCI
Debt securities		14,117,594		27,452,313		—		41,569,907
Equity securities		315,639		—		422,019		737,658

Sub-total		14,433,233		27,452,313		422,019		42,307,565

Derivative assets (designated for hedging)		—		10,102		—		10,102

Total		18,242,872		40,059,686		9,435,112		67,737,670

Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers		74,205		—		—		74,205
Derivative liabilities		—		9,123,225		1,401		9,124,626

Sub-total		74,205		9,123,225		1,401		9,198,831

Financial liabilities designated to be measured at FVTPL
Deposits due to customers		—		547,816		—		547,816
Derivative liabilities (designated for hedging)		—		102,634		—		102,634

Total		74,205		9,773,675		1,401		9,849,281

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

- 70 -

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

①

Valuation methods and input variables used for the fair value measurement of financial assets and liabilities classified into level 2 as of December 31, 2025 and 2024 are as follows:


	Valuation methods	Input variables
Debt securities	Fair value is measured by discounting the future cash flows of debt securities applying the risk-free rate with credit spread.	Risk-free rate and Credit spread

Capital contributions and beneficiary certificates	The capital contributions and beneficiary certificates are measured with Net Asset Value.	Values of underlying assets such as bond

Derivatives	The fair value is measured through Option pricing model etc.	Discount rate, Volatility of underlying assets, Exchange rate etc.

Deposit due to customers	The fair value is measured through Hull-White model.	Swaption volume etc.

②

Valuation methods and input variables used for the fair value measurement of financial assets and liabilities classified into level 3 as of December 31, 2025 and 2024 are as follows:


	Valuation techniques	Input variables
Equity securities, capital contributions, beneficiary certificates and others	The fair value is measured by considering the characteristics of the subject being evaluated, using methods such as the DCF (Discounted Cash Flow) Model, FCFE (Free Cash Flow to Equity) Model, Comparable Company Analysis, Dividend Discount Model, Risk-adjusted Rate of Return Method, Net Asset Value Method, Least-Squares Monte Carlo and Binomial Tree.	Risk-free rate, Market risk premium, Corporate Beta, Stock price, Volatility of underlying assets, etc.

Derivatives	The fair value is measured through Option pricing model, etc.	Correlation coefficient, Stock price, Volatility of underlying assets, etc.

Others	The fair value of the underlying asset, after calculating the fair value using the DCF model, etc., considering the price and volatility of the calculated underlying asset, is calculated using the Binomial Tree which is commonly used valuation technique in the market.	Stock price, Volatility of underlying assets, etc.

- 71 -

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

①

December 31, 2025


	Fair value measurement technique	Type	Significant but unobservable input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative assets	Option valuation model and others	Equity related	Stock price, Volatility of underlying asset	22.55%	Variation of fair value increases as stock price and volatility of underlying assets increases.
			Discount rate	16.88%	Fair value increases as discount rate decreases.
			Liquidation value	0.00%	Fair value increases as liquidation value increases.
Equity securities, capital contributions and beneficiary certificates	Binominal Tree		Stock price, Volatility of underlying asset	14.91%~34.34%	Variation of fair value increases as stock price and volatility of underlying asset increases.
	DCF model and others		Discount rate	4.21%~18.15%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	-1.00%~1.00%	Fair value increases as liquidation value increases.
Others	Binominal Tree and others		Stock price, Volatility of underlying asset	14.91%~42.44%	Variation of fair value increases as stock price and volatility of underlying asset increases.

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②

December 31, 2024


	Fair value measurement technique	Type	Significant but unobservable input variable	Range	Impact of changes in significant unobservable inputs on fair value measurement
Derivative	Option valuation model and others	Equity related	Correlation coefficient	0.29~0.65	Variation of fair value increases as correlation coefficient increases.
			Stock price, Volatility of underlying asset	25.71%	Variation of fair value increases as stock price and volatility increases.
			Discount rate	3.94%~19.62%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%	Fair value increases as terminal growth rate increases.
Equity securities, capital contributions and beneficiary certificates	Binominal Tree		Stock price, Volatility of underlying asset	18.76%~36.37%	Variation of fair value increases as stock price and volatility of underlying asset increases.
	DCF model and others		Discount rate	4.76%~19.84%	Fair value increases as discount rate decreases.
			Terminal growth rate	0.00%, 1.00%	Fair value increases as terminal growth rate increases.
			Liquidation value	-1.00%~1.00%	Fair value increases as liquidation value increases.
Others	Binominal Tree and others		Stock price, Volatility of underlying asset	18.36%~36.90%	Variation of fair value increases as stock price and volatility of underlying asset increases.

Fair value of financial assets and liabilities classified into Level 3 is measured by the Bank using its own valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are produced by the internal system of the Bank and the appropriateness of inputs is reviewed regularly.

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(3)	Changes in financial assets and liabilities measured at fair value classified into Level 3 for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	January 1, 2025		Net income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposals/ settlements			Transfer to or out of Level 3 (*2)			December 31, 2025
Financial assets:
Financial assets at FVTPL
Equity securities		283,961		4,618			—		11,300		(12,263	)		(11,491	)		276,125
Capital contributions		2,231,904		45,628			—		383,395		(241,669	)		(1,599	)		2,417,659
Beneficiary certificates		6,258,818		14,810			—		1,682,484		(1,256,857	)		—			6,699,255
Derivative assets		1,186		(123	)		—		—		(143	)		—			920
Other financial assets in foreign currency		48,346		(1,155	)		—		—		—			—			47,191
Others		188,878		7,279			—		—		(14,175	)		—			181,982

Sub-total		9,013,093		71,057			—		2,077,179		(1,525,107	)		(13,090	)		9,623,132

Financial assets at FVTOCI
Equity securities		422,019		—			104,327		15		(738	)		—			525,623

Total		9,435,112		71,057			104,327		2,077,194		(1,525,845	)		(13,090	)		10,148,755

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		1,401		—			—		—		(1,401	)		—			—

Total		1,401		—			—		—		(1,401	)		—			—

(*1)

The losses that increase the financial liabilities are presented as positive amounts, and the gains that decrease the financial liabilities are presented as negative amounts. The profit amount to 64,805 million Won for year ended December 31, 2025, which is from financial assets and liabilities that the Bank holds as of December 31, 2025.

(*2)

Changes in the availability of observable market data for the financial instrument have resulted in transfer between fair value hierarchy level, and the Bank recognizes changes in levels at the end of reporting period that result in changes in events or circumstances that result in transfer between fair value hierarchy level.

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	For the year ended December 31, 2024
	January 1, 2024		Net income (loss) (*1)			Other comprehensive income		Purchases/ issuances		Disposals/ settlements			Transfer to or out of Level 3 (*2)		December 31, 2024
Financial assets:
Financial assets at FVTPL
Equity securities		254,337		9,732			—		19,251		(1,306	)		1,947		283,961
Capital contributions		1,839,972		113,396			—		468,095		(189,559	)		—		2,231,904
Beneficiary certificates		4,933,773		134,739			—		1,815,487		(625,181	)		—		6,258,818
Derivative assets		128,335		(970	)		—		327		(126,506	)		—		1,186
Other financial assets in foreign currency		42,406		5,940			—		—		—			—		48,346
Others		180,690		13,335			—		12,011		(17,158	)		—		188,878

Sub-total		7,379,513		276,172			—		2,315,171		(959,710	)		1,947		9,013,093

Financial assets at FVTOCI
Equity securities		422,552		—			5,404		15		(5,952	)		—		422,019

Total		7,802,065		276,172			5,404		2,315,186		(965,662	)		1,947		9,435,112

Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities		1,994		1,114			—		—		(1,707	)		—		1,401

Total		1,994		1,114			—		—		(1,707	)		—		1,401

(*1)

The losses that increase the financial liabilities are presented as positive amounts, and the gains that decrease the financial liabilities are presented as negative amounts. The profit amount to 272,164 million Won for year ended December 31, 2024, which is from financial assets and liabilities that the Bank holds as of December 31, 2024.

(*2)

Changes in the availability of observable market data for the financial instrument have resulted in transfer between fair value hierarchy level, and the Bank recognize changes in levels at the end of each report that result in changes in events or circumstances that result in transfer between fair value hierarchy level.

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

Sensitivity analysis of financial instruments is performed by classifying the effect of changes in unobservable inputs on changes in the value of financial instruments into favorable and unfavorable changes. When the fair value of a financial instrument is affected by more than one unobservable input, the below table presents the most favorable or the most unfavorable circumstances. The sensitivity analysis was performed for two types of level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related derivatives, equity linked securities, beneficiary certificates and loans of which fair value changes are recognized as net income; (2) equity securities of which fair value changes are recognized as other comprehensive income.

Meanwhile, among the financial instruments that are classified as Level 3 amounting to 10,148,755 million Won and 9,436,513 million Won as of December 31, 2025 and 2024, respectively, equity investments of 9,300,157 million Won and 8,977,473 million Won are excluded from the sensitivity analysis.

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	December 31, 2025
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (1)(2)		19		(19	)		—		—
Equity securities (2)(3)		16,040		(11,738	)		—		—
Beneficiary certificates (3)(4)		835		(835	)		—		—
Others (*2)		2,731		(2,458	)		—		—
Financial assets at FVTOCI
Equity securities (*3)		—		—			24,554		(17,814	)

Total		19,625		(15,050	)		24,554		(17,814	)

(*1)	Fair value changes in equity related derivatives assets and liabilities are calculated by increasing or decreasing liquidation value or discount rate, which are major unobservable variables, by 1%p.

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

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

(*4)


	December 31, 2024
	Net income (loss)					Other comprehensive income (loss)
	Favorable		Unfavorable			Favorable		Unfavorable
Financial assets:
Financial assets at FVTPL
Derivatives assets (*1)		50		(51	)		—		—
Equity securities (2)(3)		19,338		(13,996	)		—		—
Beneficiary certificates (*4)		706		(705	)		—		—
Others (2)(4)		2,554		(2,402	)		—		—
Financial assets at FVTOCI
Equity securities (3)(4)		—		—			34,080		(22,698	)

Total		22,648		(17,154	)		34,080		(22,698	)

(*1)	Fair value changes in equity related derivatives assets and liabilities are calculated by increasing or decreasing correlation coefficient or volatility, which are major unobservable variables, by 10%.

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

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

(*4)

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(5)


	December 31, 2025
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		6,900,334		11,488,177		—		18,388,511		18,445,064
Loans and other financial assets at amortized cost		—		6,951,301		342,779,672		349,730,973		348,003,249
Financial liabilities:
Deposits due to customers		—		355,266,522		—		355,266,522		355,117,074
Borrowings		—		26,022,034		—		26,022,034		26,056,653
Debentures		—		28,410,784		—		28,410,784		28,535,472
Other financial liabilities (*)		—		33,830,875		—		33,830,875		33,830,938

(*)	Lease liabilities are excluded as of December 31, 2025.


	December 31, 2024
	Fair value								Book value
	Level 1		Level 2		Level 3		Total		Book value
Financial assets:
Securities at amortized cost		3,242,385		15,420,653		—		18,663,038		18,719,264
Loans and other financial assets at amortized cost		—		6,264,152		339,903,462		346,167,614		342,465,297
Financial liabilities:
Deposits due to customers		—		347,481,161		—		347,481,161		347,165,137
Borrowings		—		21,924,229		—		21,924,229		21,887,868
Debentures		—		25,484,901		—		25,484,901		25,530,318
Other financial liabilities (*)		—		28,098,616		—		28,098,616		28,099,654

(*)	Lease liabilities are excluded as of December 31, 2024.

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


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

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

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

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(6)	Financial instruments by category

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


	December 31, 2025
	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivative assets (designated for hedging)		Total
Financial assets:
Due from banks		261,470		—		695,395		—		956,865
Securities		16,025,846		47,136,304		18,445,064		—		81,607,214
Loans		—		—		337,941,453		—		337,941,453
Derivative assets		5,792,257		—		—		37,010		5,829,267
Other financial assets		47,191		—		9,366,401		—		9,413,592

Total		22,126,764		47,136,304		366,448,313		37,010		435,748,391


	December 31, 2025
	Financial liabilities at FVTPL		Financial liabilities designated to be measured at FVTPL		Financial liabilities at amortized cost		Derivative liabilities (designated for hedging)		Total
Financial liabilities:
Deposits due to customers		263,251		557,501		355,117,074		—		355,937,826
Borrowings		70,298		—		26,056,653		—		26,126,951
Debentures		—		—		28,535,472		—		28,535,472
Derivative liabilities		5,107,538		—		—		27,050		5,134,588
Other financial liabilities (*)		—		—		33,830,938		—		33,830,938

Total		5,441,087		557,501		443,540,137		27,050		449,565,775

(*)	Lease liabilities are excluded as of December 31, 2025.


	December 31, 2024
	Financial assets at FVTPL		Financial assets at FVTOCI		Financial assets at amortized cost		Derivative assets (designated for hedging)		Total
Financial assets:
Due from banks		73,951		—		857,811		—		931,762
Securities		15,230,325		42,307,565		18,719,264		—		76,257,154
Loans		—		—		332,871,221		—		332,871,221
Derivative assets		10,067,381		—		—		10,102		10,077,483
Other financial assets		48,346		—		8,736,265		—		8,784,611

Total		25,420,003		42,307,565		361,184,561		10,102		428,922,231


	December 31, 2024
	Financial liabilities at FVTPL		Financial liabilities designated to be measured at FVTPL		Financial liabilities at amortized cost		Derivative liabilities (designated for hedging)		Total
Financial liabilities:
Deposits due to customers		74,205		547,816		347,165,137		—		347,787,158
Borrowings		—		—		21,887,868		—		21,887,868
Debentures		—		—		25,530,318		—		25,530,318
Derivative liabilities		9,124,626		—		—		102,634		9,227,260
Other financial liabilities (*)		—		—		28,099,654		—		28,099,654

Total		9,198,831		547,816		422,682,977		102,634		432,532,258

(*)	Lease liabilities are excluded as of December 31, 2024.

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(7)	Income or expense from financial instruments by category

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


	For the year ended December 31, 2025
	Interest income (expense)			Fees and commissions income		Provision for credit loss			Gain on valuation and transaction		Dividend income		Total
Financial assets at FVTPL		111,864			90		—			307,528		434,293		853,775
Financial liabilities designated to be measured at FVTPL(*)		—			—		—			389		—		389
Financial assets at FVTOCI		1,227,532			280		(8,595	)		137,515		20,325		1,377,057
Securities at amortized cost		526,918			—		(335	)		—		—		526,583
Loans and other financial assets at amortized cost		14,523,700			—		(814,273	)		28,187		—		13,737,614
Financial liabilities at amortized cost		(9,423,762	)		—		—			—		—		(9,423,762	)
Net derivatives (designated for hedging)		—			—		—			13,257		—		13,257

Total		6,966,252			370		(823,203	)		486,876		454,618		7,084,913

(*)	The amount recognized as other comprehensive income in regard to financial liabilities designated to be measured at FVTPL for the year ended December 31, 2025 is 74 million Won.


	For the year ended December 31, 2024
	Interest income (expense)			Fees and commissions income		Reversal of (Provision for) credit loss			Gain (Loss) on valuation and transaction			Dividend income		Total
Financial assets at FVTPL		120,688			864		—			1,528,808			439,683		2,090,043
Financial liabilities designated to be measured at FVTPL(*)		—			—		—			(19,647	)		—		(19,647	)
Financial assets at FVTOCI		1,227,748			951		(8,865	)		92,107			17,726		1,329,667
Securities at amortized cost		628,637			—		3,233			—			—		631,870
Loans and other financial assets at amortized cost		16,005,305			—		(707,189	)		165,192			—		15,463,308
Financial liabilities at amortized cost		(11,227,703	)		—		—			—			—		(11,227,703	)
Net derivatives (designated for hedging)		—			—		—			(22,511	)		—		(22,511	)

Total		6,754,675			1,815		(712,821	)		1,743,949			457,409		8,245,027

(*)	The amount recognized as other comprehensive income in regard to financial liabilities designated to be measured at FVTPL for the year ended December 31, 2024 is 1,831 million Won.

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12.

DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS

(1)	Derecognition of financial instruments

Transferred financial assets that do not meet the condition of derecognition

Bonds sold under repurchase agreements

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


		December 31, 2025		December 31, 2024
Asset transferred	Financial assets at FVTOCI		4,020,400		87,647
Related liabilities	Bonds sold under repurchase agreements		3,832,036		86,733

Securities loaned

When the Bank loans its securities to outside parties, the legal ownerships of the securities are transferred; however, they should be returned at the end of lending period. Therefore, the Bank does not derecognize them from the financial statements as it owns majority of risks and benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying amounts of the securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025		Loaned to
Financial assets at FVTOCI	Korea treasury and government bonds and others		238,406	Korea Securities Finance Corporation

		December 31, 2024		Loaned to
Financial assets at FVTPL	Korea treasury and government bonds and others		12,361	Korea Securities Finance Corporation

(2)	The offset of financial assets and liabilities

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

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

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The Bank has entered into a sale and repurchase agreement and accounted it as a collateralized borrowing. The Bank has also entered into a purchase and resale agreement and accounted it as a secured loan. The Bank under the repurchase agreements has offsetting right only upon the counterparty’s default, insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master Repurchase Agreement, which does not satisfy the offsetting criteria of K-IFRS No.1032. The Bank disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale agreements as loans and other financial assets at amortized cost.

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


	December 31, 2025
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Related amounts not setoff in the statement of financial position				Net amounts
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Netting agreements and others		Cash collateral received		Net amounts
Financial assets:
Derivative assets (*1)		5,811,220		—		5,811,220		10,072,762		67,406		1,963,000
Receivable spot exchange (*2)		6,291,948		—		6,291,948
Bonds purchased under resale agreements (*2)		13,470,200		—		13,470,200		13,470,200		—		—
Domestic exchanges settlement credits (2) (5)		37,873,998		37,601,886		272,112		—		—		272,112

Total		63,447,366		37,601,886		25,845,480		23,542,962		67,406		2,235,112


	December 31, 2025
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Related amounts not setoff in the statement of financial position				Net amounts
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Netting agreements and others		Cash collateral pledged		Net amounts
Financial liabilities:
Derivative liabilities (*1)		5,131,753		—		5,131,753		9,581,052		294,611		1,551,661
Payable spot exchange (*3)		6,295,571		—		6,295,571
Bonds sold under repurchase agreements (*4)		3,832,036		—		3,832,036		3,832,036		—		—
Domestic exchanges settlement debits (3) (5)		49,342,824		37,601,886		11,740,938		—		—		11,740,938

Total		64,602,184		37,601,886		27,000,298		13,413,088		294,611		13,292,599

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

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

(*3)	The items are included in other financial liabilities.

(*4)	The items are included in borrowings.

(*5)	Certain financial assets and liabilities are presented as net amounts.

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	December 31, 2024
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Related amounts not setoff in the statement of financial position				Net amounts
	Gross amounts of recognized financial assets		Gross amounts of recognized financial assets setoff		Net amounts of financial assets presented		Netting agreements and others		Cash collateral received		Net amounts
Financial assets:
Derivative assets (*1)		10,059,218		—		10,059,218		12,082,628		235,654		3,290,742
Receivable spot exchange (*2)		5,549,806		—		5,549,806
Bonds purchased under resale agreements (*2)		9,609,800		—		9,609,800		9,609,800		—		—
Domestic exchanges settlement credits (2)(5)		33,347,374		32,915,242		432,132		—		—		432,132

Total		58,566,198		32,915,242		25,650,956		21,692,428		235,654		3,722,874


	December 31, 2024
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Related amounts not setoff in the statement of financial position				Net amounts
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial liabilities setoff		Net amounts of financial liabilities presented		Netting agreements and others		Cash collateral pledged		Net amounts
Financial liabilities:
Derivative liabilities (*1)		9,216,515		—		9,216,515		11,832,708		533,052		2,400,362
Payable spot exchange (*3)		5,549,607		—		5,549,607
Bonds sold under repurchase agreements (*4)		86,733		—		86,733		86,733		—		—
Domestic exchanges settlement debits (3)(5)		40,505,570		32,915,242		7,590,328		7,590,328		—		—

Total		55,358,425		32,915,242		22,443,183		19,509,769		533,052		2,400,362

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

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

(*3)	The items are included in other financial liabilities.

(*4)	The items are included in borrowings.

(*5)	Certain financial assets and liabilities are presented as net amounts.

- 82 -

13.

INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES

(1)	The Bank has the following subsidiaries as of December 31, 2025 and 2024 (Unit: Korean Won in 100 million, USD in 10 thousand, CNY in 100 million, RUB in 100 million, IDR in 100 million, BRL in 10 thousand, PHP in 100 million, VND in trillions, MMK in 100 million, EUR in 10 thousand):


Subsidiaries	Location	Share capital		Main business
Woori America Bank	U.S.A	USD	29,250	Finance
PT Bank Woori Saudara Indonesia 1906 Tbk	Indonesia	IDR	14,692	Finance
Woori Global Markets Asia Limited	Hong Kong	USD	10,000	Finance
Woori Bank China Limited	China	CNY	21.6	Finance
AO Woori Bank (*1)	Russia	RUB	14.5	Finance
Banco Woori Bank do Brasil S.A.	Brazil	BRL	7,709	Finance
Korea BTL Infrastructure Fund	Korea		7,659	Finance
Woori Finance Myanmar Co., Ltd.	Myanmar	MMK	162	Finance
Wealth Development Bank	Philippines	PHP	7.7	Finance
Woori Bank Vietnam Limited	Vietnam	VND	12.5	Finance
Woori Bank (Cambodia) PLC	Cambodia	USD	27,239	Finance
Woori Bank Europe	Germany	EUR	10,000	Finance


	December 31, 2025					December 31, 2024
Subsidiaries	Number of shares owned		Percentage of ownership (%)		Financial statements as of	Number of shares owned		Percentage of ownership (%)		Financial statements as of
Woori America Bank		58,500,000		100.0	December 31, 2025		58,500,000		100.0	December 31, 2024
PT Bank Woori Saudara Indonesia 1906 Tbk		13,333,457,836		90.8	December 31, 2025		13,333,457,836		90.8	December 31, 2024
Woori Global Markets Asia Limited		78,000,000		100.0	December 31, 2025		78,000,000		100.0	December 31, 2024
Woori Bank China Limited		—		100.0	December 31, 2025		—		100.0	December 31, 2024
AO Woori Bank		57,999,999		100.0	December 31, 2025		57,999,999		100.0	December 31, 2024
Banco Woori Bank do Brasil S.A.		77,093,999		100.0	December 31, 2025		77,093,999		100.0	December 31, 2024
Korea BTL Infrastructure Fund		153,012,509		99.9	December 31, 2025		146,625,975		99.9	December 31, 2024
Woori Finance Myanmar Co., Ltd.		1,200,000		100.0	December 31, 2025		1,200,000		100.0	December 31, 2024
Wealth Development Bank		3,931,365		51.0	December 31, 2025		3,931,365		51.0	December 31, 2024
Woori Bank Vietnam Limited		—		100.0	December 31, 2025		—		100.0	December 31, 2024
Woori Bank (Cambodia) PLC		11,035,803		100.0	December 31, 2025		11,035,803		100.0	December 31, 2024
Woori Bank Europe		100,000,000		100.0	December 31, 2025		100,000,000		100.0	December 31, 2024

(*1)

Following Russia’s further invasion of Ukraine in February 2022, various countries, including the United States, have imposed additional sanctions on a number of Russian individuals and entities, and restricted or prohibited certain activities relating to Russia such as making new investments or the provision of certain services. These sanctions may result in a decrease in the value of financial or operating assets held by banks in relation to the disputed country, an increase in the collection period, restrictions on capital transfers, and a decrease in profits. As a result, the Bank expect future financial impacts on the business of its subsidiary, AO Woori Bank of Russia, as of December 31, 2025, but it is difficult to assess the maximum potential exposure or the ultimate adverse impact with any degree of certainty.

- 83 -

(2)

As for the structured entities in accordance with K-IFRS No.1110 and K-IFRS No.1112, it is determined that the Bank controls the entity after considering facts and circumstances, such as the Bank’s power over the entity’s related business activities, the Bank’s exposure to variable returns from its involvement with the entity and the Bank’s ability to affect the returns through its power over the entity.

Details of structured entities that the Bank controls as of December 31, 2025 and 2024 are as follows:


	December 31, 2025
Structured entities	Location	Main business	Percentage of ownership (%)	Financial statements as of
*Structured entities established for securitization of financial assets (1)**
Jeonju Iwon Ltd. and 41 structured entities	Korea	Asset securitization	—	December 31, 2025
KAMCO Value Recreation First Securitization Specialty Co., Ltd.	Korea	Asset securitization	15.0	December 31, 2025
*Money trust under the FISCM Act (2)**
Principal Guaranteed Trust and Principal and Interest Guaranteed Trust	Korea	Trust	—	December 31, 2025
Structured entities for the investments in securities
IGIS Australia Investment Trust No. 209-1	Korea	Securities investment	99.4	December 31, 2025
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2	Korea	Securities investment	99.0	December 31, 2025
AI Partners UK Water Supply Private Placement Investment Trust No. 2	Korea	Securities investment	97.3	December 31, 2025
Heungkuk Global Private Placement Investment Trust No. 1	Korea	Securities investment	98.8	December 31, 2025
Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust	Korea	Securities investment	99.9	December 31, 2025
Woori Infrastructure New Deal Private Placement Investment Trust No. 1	Korea	Securities investment	99.5	December 31, 2025
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1	Korea	Securities investment	99.3	December 31, 2025
Woori Global Secondary Private Placement Investment Trust No. 1	Korea	Securities investment	98.8	December 31, 2025
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1	Korea	Securities investment	95.2	December 31, 2025
Kiwoom Harmony Private Placement Investment Trust No. 1	Korea	Securities investment	97.7	December 31, 2025
JB Airline Private Placement Investment Trust No. 8	Korea	Securities investment	97.0	December 31, 2025
Kiwoom Harmony Private Placement Investment Trust No. 4	Korea	Securities investment	96.2	December 31, 2025
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1	Korea	Securities investment	93.5	December 31, 2025
Woori Fund Financing General Type Private Investment Trust	Korea	Securities investment	99.0	December 31, 2025
Kiwoom Harmony Private Placement Investment Trust No. 9	Korea	Securities investment	100.0	December 31, 2025
Woori Bank Partners General Type Private Investment Trust No.4	Korea	Securities investment	99.0	December 31, 2025

(*1)

It is determined that the Bank controls the entity after considering all the facts and circumstances, such as the Bank’s power over the entity’s related business activities, the Bank’s exposure to variable returns from its involvement with the entity, and the Bank’s ability to affect the returns through its power over the entity, even though the Bank holds less than 50% ownership interest of the entity.

(*2)	The Bank controls the trust because it has power that determines the management performance over the trust, and is exposed to variable returns to absorb losses through the guarantees of payment of principal and fixed rate of return.

- 84 -


	December 31, 2024
Structured entities	Location	Main business	Percentage of ownership (%)	Financial statements as of
*Structured entities established for securitization of financial assets (1)**
Jeonju Iwon Ltd. and 44 structured entities	Korea	Asset securitization	—	December 31, 2024
KAMCO Value Recreation First Securitization Specialty Co., Ltd.	Korea	Asset securitization	15.0	December 31, 2024
*Money trust under the FISCM Act (2)**
Principal Guaranteed Trust and Principal and Interest Guaranteed Trust	Korea	Trust	—	December 31, 2024
Structured entities for the investments in securities
IGIS Australia Investment Trust No. 209-1	Korea	Securities investment	99.4	December 31, 2024
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2	Korea	Securities investment	99.0	December 31, 2024
AI Partners UK Water Supply Private Placement Investment Trust No. 2	Korea	Securities investment	97.3	December 31, 2024
Heungkuk Global Private Placement Investment Trust No. 1	Korea	Securities investment	98.8	December 31, 2024
Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust	Korea	Securities investment	99.9	December 31, 2024
Woori Infrastructure New Deal Private Placement Investment Trust No. 1	Korea	Securities investment	99.5	December 31, 2024
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1	Korea	Securities investment	99.3	December 31, 2024
Woori Global Secondary Private Placement Investment Trust No. 1	Korea	Securities investment	98.8	December 31, 2024
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1	Korea	Securities investment	95.2	December 31, 2024
Kiwoom Harmony Private Placement Investment Trust No. 1	Korea	Securities investment	97.4	December 31, 2024
Kiwoom Harmony Private Placement Investment Trust No. 2	Korea	Securities investment	97.3	December 31, 2024
JB Airline Private Placement Investment Trust No. 8	Korea	Securities investment	97.0	December 31, 2024
Kiwoom Harmony Private Placement Investment Trust No. 4	Korea	Securities investment	96.2	December 31, 2024
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1	Korea	Securities investment	93.5	December 31, 2024
Woori Fund Financing General Type Private Investment Trust	Korea	Securities investment	99.3	December 31, 2024

(*1)

(*2)	The Bank controls the trust because it has power that determines the management performance over the trust, and is exposed to variable returns to absorb losses through the guarantees of payment of principal and fixed rate of return.

- 85 -

The following companies have been excluded from the consolidation scope despite the Bank’s majority ownership interest as of December 31, 2025 and 2024:


	December 31, 2025
Structured entities	Location	Main business	Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*1)	Korea	Securities investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*1)	Korea	Securities investment		88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)	Korea	Securities investment		97.8
IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)	Korea	Securities investment		69.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)	Korea	Securities investment		69.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)	Korea	Securities investment		66.7
Hangang Blue Water Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		55.6
Korea Investment Pocheon-Hwado Highway Private Special Asset Trust 2 (*1)	Korea	Securities investment		55.2
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1 (*1)	Korea	Securities investment		55.0
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)	Korea	Securities investment		58.3
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] (*3)	Korea	Securities investment		100.0
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2 (*1)	Korea	Securities investment		55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		92.6
Woori Private Real Estate Investment Trust No. 1 (*1)	Korea	Securities investment		86.8
INMARK France Private Placement Real Estate Investment Trust No. 18-1 (*1)	Korea	Securities investment		93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W (EUR) (*2)	Korea	Securities investment		99.5
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		80.0
KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*2)	Korea	Securities investment		99.7
Hana UBS Class One Private Equity No. 3 C2 (*1)	Korea	Securities investment		51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1)	Korea	Securities investment		50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		65.0
Woori Private Real Estate Investment Trust No. 5 (*1)	Korea	Securities investment		87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		76.7
Woori Innovative Growth New Deal Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		55.0
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		60.0

- 86 -


	December 31, 2025
Structured entities	Location	Main business	Percentage of ownership (%)
NH-Amundi WSCP VIII Private Placement Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (USD) (*2)	Korea	Securities investment		98.0
Woori Equity Investment General Type Private Investment Trust No. 1 (*1)	Korea	Securities investment		93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1)	Korea	Securities investment		60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		66.7
Woori Financial Digital Investment Association No. 1 (*1)	Korea	Securities investment		88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		85.0
IGIS Global Private Placement Real Estate Fund No. 316-1 (*2)	Korea	Securities investment		99.3
INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2)	Korea	Securities investment		97.7
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No. 1 (*2)	Korea	Securities investment		99.9
Woori Private Real Estate Investment Trust No. 6 (*1)	Korea	Securities investment		85.0
Woori New Growth Credit Fund 1 (*1)	Korea	Securities investment		70.9
Woori Asset Global Partnership Fund No. 5 (*1)	Korea	Securities investment		57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)	Korea	Securities investment		76.9
CHILLE PMGD Solar PV Investment Project Fund II (*2)	Korea	Securities investment		75.2
Woori Financial Dino Lab Investment Association No. 1 (*1)	Korea	Securities investment		70.0
Woori Bank Partners General Type Private Investment Trust No. 3 (*1)	Korea	Securities investment		90.9
Woori Natixis Partnership Global Private Debt Fund No. 1-1 (USD) (*1)	Korea	Securities investment		80.0
NH-Amundi BXD Private Placement Real Estate Investment Trust No. 2 (USD) (*2)	Korea	Securities investment		77.8
Woori Private Real Estate Investment Trust No. 7 (*1)	Korea	Securities investment		87.0
Woori Junior Equity General Type Private Investment Trust (*1)	Korea	Securities investment		85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		50.0
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 2 (*1)	Korea	Securities investment		92.8
Woori Financial Dino Lab Investment Association No. 2 (*1)	Korea	Securities investment		60.0
Woori Top-Class Senior and Junior Loan Private Investment Trust (*1)	Korea	Securities investment		85.0
Woori Real Estate Blind Investment General Type Private Investment Trust No.1 (*2)	Korea	Securities investment		70.0
Woori Natixis Partnership Global Private Debt Fund No. 1-2 (EUR) (*1)	Korea	Securities investment		80.0

(*1)

Since the investee is a discretionary funds, the Bank does not have power over the investee 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 Bank, but also for other investors as well. The Bank does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

- 87 -

(*2)

The investment target for the fund was determined in advance, and the disposition of investment assets cannot be determined by the Bank, and as a fund of funds, the Bank does not have the power to participate in decision-making regarding investment assets in parent funds. The Bank does not have the power over the fund’s activities even though it holds more than 50% of ownership interest.

(*3)

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


	December 31, 2024
Structured entities	Location	Main business	Percentage of ownership (%)
Mirae Asset Maps Clean Water Private Equity Investment Trust No. 7 (*1)	Korea	Securities investment		59.7
Kiwoom Yonsei Private Equity Investment Trust (*1)	Korea	Securities investment		88.9
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*2)	Korea	Securities investment		97.8
IGIS Global Private Placement Real Estate Fund No. 148-1 (*1)	Korea	Securities investment		69.0
IGIS Global Private Placement Real Estate Fund No. 148-2 (*1)	Korea	Securities investment		69.0
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*1)	Korea	Securities investment		66.7
Hangang Blue Water Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		55.6
Korea Investment Pocheon-Hwado Highway Private Special Asset Trust 2 (*1)	Korea	Securities investment		55.2
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 1 (*1)	Korea	Securities investment		55.0
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*1)	Korea	Securities investment		58.3
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs] (*3)	Korea	Securities investment		100.0
Woori Innovative Growth General Private Equity Special Asset Investment Trust No. 2 (*1)	Korea	Securities investment		55.0
Woori Woori Bank Partners Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		92.6
Woori Private Real Estate Investment Trust No. 1 (*1)	Korea	Securities investment		84.9
INMARK France Private Placement Real Estate Investment Trust No. 18-1 (*1)	Korea	Securities investment		93.8
Kiwoom Vibrato Private Placement Investment Trust 1-W (EUR) (*2)	Korea	Securities investment		99.5
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		80.0
KOTAM Global Infrastructure Private Equity Investment Trust No. 1-4 (*2)	Korea	Securities investment		99.7
Hana UBS Class One Private Equity No. 3 C2 (*1)	Korea	Securities investment		51.0
Consus Gyeongju Green Private Equity Investment Trust No. 1 (*1)	Korea	Securities investment		50.0
Woori Woori Bank Partners Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		90.9
Woori Equity Bridge Loan Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		65.0
Woori Private Real Estate Investment Trust No. 5 (*1)	Korea	Securities investment		87.0
Kiwoom Harmony Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		76.7
Consus Solar Energy Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		50.0
Woori Innovative Growth New Deal Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		79.8
Woori Renewable New Deal Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		55.0

- 88 -


	December 31, 2024
Structured entities	Location	Main business	Percentage of ownership (%)
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		66.7
Woori GP Commitment Loan Private Placement Investment Trust No. 2 (*1)	Korea	Securities investment		80.0
Kiwoom Aurora Private Placement Securities Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		60.0
NH-Amundi WSCP VIII Private Placement Investment Trust No. 2 (USD) (*1)	Korea	Securities investment		65.2
AI Partners Global Infrastructure Specialized Privately Placed Feeder Fund Trust No. 2 (USD) (*2)	Korea	Securities investment		98.0
Woori Equity Investment General Type Private Investment Trust No.1 (*1)	Korea	Securities investment		93.8
Hangang New Deal Infrastructure BTL Private Equity Investment Trust No. 4 (*1)	Korea	Securities investment		60.0
Woori Busan Logistics Infra Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		66.7
Woori Financial Digital Investment Association No. 1 (*1)	Korea	Securities investment		88.0
Woori GP Commitment Loan Private Placement Investment Trust No. 3 (*1)	Korea	Securities investment		85.0
IGIS Global Private Placement Real Estate Fund No. 316-1 (*2)	Korea	Securities investment		99.3
INMARK Spain Private Placement Real Estate Investment Trust No. 26-2 (*2)	Korea	Securities investment		97.7
Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-2 (*2)	Korea	Securities investment		98.8
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No. 1 (*2)	Korea	Securities investment		99.9
Woori Private Real Estate Investment Trust No. 6 (*1)	Korea	Securities investment		85.0
Woori New Growth Credit Fund 1 (*1)	Korea	Securities investment		70.9
Woori Asset Global Partnership Fund No. 5 (*1)	Korea	Securities investment		57.7
Woori PE Secondary Private Placement Investment Trust No. 1 (*1)	Korea	Securities investment		82.6
Kiwoom Harmony Private Placement Investment Trust No. 6 (*1)	Korea	Securities investment		76.9
Project Chile PMGD Solar (*2)	Korea	Securities investment		75.2
Woori Financial Dino Lab Investment Association No. 1 (*1)	Korea	Securities investment		70.0
Woori Bank Partners General Type Private Investment Trust No. 3 (*1)	Korea	Securities investment		90.9
Woori Natixis Partnership Global Private Debt Fund No. 1-1 (USD) (*1)	Korea	Securities investment		80.0
NH-Amundi BXD Private Placement Real Estate Investment Trust No. 2 (USD) (*2)	Korea	Securities investment		77.8
Woori Private Real Estate Investment Trust No. 7 (*1)	Korea	Securities investment		87.0
Woori Junior Equity General Type Private Investment Trust (*1)	Korea	Securities investment		85.0
Hangang Green Environment Private Placement Special Asset Investment Trust (*1)	Korea	Securities investment		50.0

(*1)

- 89 -

(*2)

(*3)

(3)	Investments in associates as of December 31, 2025 and 2024 are as follows:

Investees

Main

business

Percentage of
ownership (%)

Location

Financial
statements as of

December 31,
2025

December 31,
2024

W Service Networks Co., Ltd. (*1)

Freight & staffing services

4.9

Korea

November 30, 2025 (*4)

Korea Credit Bureau Co., Ltd. (*2)

Credit information

9.9

Korea

December 31, 2025

Korea Finance Security Co., Ltd. (*2)

Security service

15.0

Korea

November 30, 2025 (*4)

Dongwoo C & C Co., Ltd. (*3)

Construction

23.2

Korea

—

SJCO Co., Ltd. (*3)

Aggregate transportation and wholesale

27.5

Korea

—

G2 collection Co., Ltd. (*3)

Wholesale and retail sales

28.9

Korea

—

Kyesan Engineering Co., Ltd. (*3)

Construction

23.2

Korea

—

Good Software Lab Co., Ltd. (*3)

Service

28.9

Korea

—

Wongwang Co., Ltd. (*3)

Wholesale and real estate

29.0

Korea

—

Sejin Construction Co., Ltd. (*3)

Construction

29.6

Korea

—

DAEA SNC Co., Ltd. (*3)

Wholesale and retail sales

24.0

Korea

—

ARES-TECH Co., Ltd. (*3)

Electronic component manufacturing

23.4

Korea

—

PREXCO Co., Ltd. (*3)

Manufacturing

28.1

Korea

—

Jiwon Plating Co., Ltd. (*3)

Plating

20.5

Korea

—

NK Eng Co., Ltd. (*5)

Manufacturing

—

23.1

Korea

—

Youngdong Sea Food Co., Ltd. (*3)

Processed sea food manufacturing

24.0

Korea

—

Beomgyo Co., Ltd. (*3)

Telecommunication equipment retail sales

23.1

Korea

—

K BANK Co., Ltd. (*2)

Finance

12.0

Korea

November 30, 2025 (*4)

Partner One Value Up I Private Equity Fund

Other financial services

23.3

Korea

December 31, 2025

IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership (*3)

Other financial services

20.0

Korea

December 31, 2025

Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund

Other financial services

25.0

Korea

December 31, 2025

Woori-Shinyoung Growth-Cap Private Equity Fund I

Other financial services

24.5

Korea

December 31, 2025

LOTTE CARD Co., Ltd.

Credit card and installment financing

20.0

Korea

September 30, 2025 (*4)

Woori-Q Corporate Restructuring Private Equity Fund (*7)

Trust and collective investment

19.7

20.4

Korea

December 31, 2025

PCC-Woori LP Secondary Fund

Other financial services

26.9

Korea

December 31, 2025

Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]

Other financial services

100.0

Korea

December 31, 2025

Union Technology Finance Investment Association

Other financial services

29.7

Korea

December 31, 2025

KUM HWA Co., Ltd. (*3)

Telecommunication equipment retail sales

20.0

Korea

December 31, 2025

Paratus Woori Material Component Equipment joint venture company

Other financial services

20.8

Korea

December 31, 2025

Jinmyung Plus Co., Ltd. (*3)

Manufacturing

20.2

Korea

September 30, 2025 (*4)

Orient Shipyard Co., Ltd. (*3)

Manufacturing of ship components

22.7

Korea

September 30, 2025 (*4)

BTS 2nd Private Equity Fund

Other financial services

20.0

Korea

December 31, 2025

Woori Financial Digital Investment Association No. 1

Other financial services

88.0

Korea

December 31, 2025

STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures

Other financial services

28.3

Korea

December 31, 2025

KG Fashion Co., Ltd. (*3)

Manufacturing

20.8

Korea

November 30, 2025 (*4)

Win Mortgage Co., Ltd. (*1)

Other financial services

4.5

Korea

September 30, 2025 (*4))

NH Woori Newdeal Growth Alpha Private Equity Fund 1

Other financial services

22.3

22.4

Korea

December 31, 2025

SF CREDIT PARTNERS, LLC (*2)

Other financial services

10.0

U.S.A.

December 31, 2025

- 90 -

Investees

Main

business

Percentage of
ownership (%)

Location

Financial
statements as of

December 31,
2025

December 31,
2024

Rea Company Ltd. (*3)

Manufacturing

24.5

Korea

—

Aram CMC Co., Ltd. (*3)

Manufacturing

20.0

Korea

—

Woori Financial Dino Lab Investment Association No. 1

Other financial services

70.0

Korea

December 31, 2025

Woori Corporate Turnaround No. 1 Private Equity Fund

Other financial services

27.3

Korea

December 31, 2025

Market & Farm Co., Ltd. (*3)

Wholesale and commodity brokerage business

23.7

Korea

December 31, 2025

SAMJI TEXTILE CO., LTD. (*3)

Wholesale and commodity brokerage business

29.4

Korea

—

Woori Financial Dino Lab Investment Association No. 2 (*6)

Other financial services

60.0

—

Korea

December 31, 2025

TH International Co., Ltd. (*3) (*6)

Cosmetics wholesale business and general travel business

21.3

—

Korea

—

(*1)	Most of the significant business transactions of associates are with the Bank as of December 31, 2025 and 2024.

(*2)	The Bank has significant influence over the creditors’ council, which makes the financial and operating policy decisions.

(*3)	There is no investment amount as of December 31, 2025 and 2024.

(*4)

(*5)	It was excluded from associates due to the sale liquidation and others for the year ended December 31, 2025.

(*6)	It was added to associates through acquisition for the year ended December 31, 2025.

(*7)	The entity was classified as an associate based on the voting rights in proportion to the initial capital commitment ratio.

(4)	The entities excluded from associates, although the Bank’s shareholding ratio of common stock is higher than 20% as of December 31, 2025 and 2024 are as follows:


	December 31, 2025
Associate (*)	Number of shares owned (shares)		Percentage of ownership(%)
CL Tech Co., Ltd.		10,191		28.6
CT INTERNATIONAL CO.,LTD.		1,741		26.7
Happy Home Co.,Ltd.		14,924		22.7

(*)	Although the Bank’s ownership interest in the entity is more than 20%, it is determined that the Bank does not have significant influence over the entity since it is going through workout process under receivership; accordingly, it is excluded from the investment in associates.


	December 31, 2024
Associate (*)	Number of shares owned (shares)		Percentage of ownership(%)
CL Tech Co., Ltd.		10,191		28.6
TH International Co.,Ltd.		6,737		21.3
WORK-LIFE BALANCE CO.,LTD		209		21.3

(*)	Although the Bank’s ownership interest in the entity is more than 20%, it is determined that the Bank does not have significant influence over the entity since it is going through workout process under receivership; accordingly, it is excluded from the investment in associates.

- 91 -

(5)

Changes in carrying value of investments in subsidiaries and associates for the years ended December 31, 2025 and 2024 are as follows (Korean Won in millions). As the investments associated with structured entities were classified as financial assets at FVTPL for the years ended December 31, 2025 and 2024, they were excluded from the carrying value of investments in subsidiaries and associates.


	For the year ended December 31, 2025
Investees	January 1, 2025		Acquisition		Disposal and others			Reversal (Impairment)			December 31, 2025
Woori America Bank		399,831		—		—			—			399,831
PT Bank Woori Saudara Indonesia 1906 Tbk		704,244		—		—			—			704,244
Woori Global Markets Asia Limited		113,858		—		—			—			113,858
Woori Bank China Limited		427,802		—		—			—			427,802
AO Woori Bank		51,780		—		—			—			51,780
Banco Woori Bank do Brasil S.A.		21,043		—		—			(5,096	)		15,947
Korea BTL Infrastructure Fund		736,911		32,000		—			—			768,911
Woori Finance Myanmar Co., Ltd.		13,649		—		—			—			13,649
Wealth Development Bank		24,355		—		—			—			24,355
Woori Bank Vietnam Limited		644,590		—		—			—			644,590
Woori Bank (Cambodia) PLC		386,672		—		—			—			386,672
Woori Bank Europe		131,442		—		—			—			131,442
W Service Networks Co., Ltd.		108		—		—			—			108
Korea Credit Bureau Co., Ltd.		3,313		—		—			—			3,313
Korea Finance Security Co., Ltd.		3,267		—		—			—			3,267
K BANK Co., Ltd.		224,657		—		—			—			224,657
Partner One Value Up I Private Equity Fund		2,146		—		—			(273	)		1,873
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		4,532		98		—			—			4,630
Woori-Shinyoung Growth-Cap Private Equity Fund I		8,237		—		(4,599	)		—			3,638
LOTTE CARD Co., Ltd.		346,810		—		—			—			346,810
Woori-Q Corporate Restructuring Private Equity Fund		17,446		—		(1,260	)		—			16,186
PCC-Woori LP Secondary Fund		7,000		—		—			—			7,000
Union Technology Finance Investment Association		13,449		—		—			—			13,449
Paratus Woori Material Component Equipment joint venture company		12,300		—		(5,813	)		—			6,487
BTS 2nd Private Equity Fund		8,146		620		—			—			8,766
Woori Financial Digital Investment Association No. 1		44,000		—		(2,300	)		—			41,700
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		12,000		1,500		—			—			13,500
Win Mortgage Co., Ltd.		23		—		—			—			23
NH Woori Newdeal Growth Alpha Private Equity Fund 1		34,001		10,769		(4,498	)		—			40,272
SF CREDIT PARTNERS, LLC		13,059		2,445		—			—			15,504
Woori Financial Dino Lab Investment Association No. 1		3,500		—		—			—			3,500
Woori Corporate Turnaround No. 1 Private Equity Fund		8,361		4,247		(10,890	)		—			1,718
Woori Financial Dino Lab Investment Association No. 2		—		6,000		—			—			6,000

Total		4,422,532		57,679		(29,360	)		(5,369	)		4,445,482

- 92 -


	For the year ended December 31, 2024
Investees	January 1, 2024		Acquisition		Disposal and others			Reversal (Impairment)			December 31, 2024
Woori America Bank		399,831		—		—			—			399,831
PT Bank Woori Saudara Indonesia 1906 Tbk		444,813		259,431		—			—			704,244
Woori Global Markets Asia Limited		113,858		—		—			—			113,858
Woori Bank China Limited		427,802		—		—			—			427,802
AO Woori Bank		51,780		—		—			—			51,780
Banco Woori Bank do Brasil S.A.		22,322		—		—			(1,279	)		21,043
Korea BTL Infrastructure Fund		736,911		—		—			—			736,911
Woori Finance Myanmar Co., Ltd.		13,649		—		—			—			13,649
Wealth Development Bank		24,355		—		—			—			24,355
Woori Bank Vietnam Limited		384,430		260,160		—			—			644,590
Woori Bank (Cambodia) PLC		248,212		138,460		—			—			386,672
Woori Bank Europe		131,442		—		—			—			131,442
W Service Networks Co., Ltd.		108		—		—			—			108
Korea Credit Bureau Co., Ltd.		3,313		—		—			—			3,313
Korea Finance Security Co., Ltd.		3,267		—		—			—			3,267
K BANK Co., Ltd.		236,232		—		(11,575	)		—			224,657
Partner One Value Up I Private Equity Fund		3,253		—		—			(1,107	)		2,146
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership		4,356		—		(4,356	)		—			—
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund		4,436		96		—			—			4,532
Woori-Shinyoung Growth-Cap Private Equity Fund I		8,237		—		—			—			8,237
LOTTE CARD Co., Ltd.		346,810		—		—			—			346,810
Woori-Q Corporate Restructuring Private Equity Fund		8,435		9,011		—			—			17,446
PCC-Woori LP Secondary Fund		7,000		—		—			—			7,000
Union Technology Finance Investment Association		13,449		—		—			—			13,449
Paratus Woori Material Component Equipment joint venture company		12,300		—		—			—			12,300
Dicustody Co., Ltd.		1		—		(1	)		—			—
BTS 2nd Private Equity Fund		5,226		2,920		—			—			8,146
Woori Financial Digital Investment Association No. 1		33,000		11,000		—			—			44,000
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures		9,000		3,000		—			—			12,000
Win Mortgage Co., Ltd.		23		—		—			—			23
NH Woori Newdeal Growth Alpha Private Equity Fund 1		23,596		15,025		(4,620	)		—			34,001
SF CREDIT PARTNERS, LLC		13,059		—		—			—			13,059
Woori Financial Dino Lab Investment Association No. 1		—		3,500		—			—			3,500
Woori Corporate Turnaround No.1 Private Equity Fund		—		8,361		—			—			8,361

Total		3,734,506		710,964		(20,552	)		(2,386	)		4,422,532

- 93 -

(6)	Changes in the book value of subsidiaries and associated investments classified as financial assets at FVTPL as income securities for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
Investees	January 1, 2025		Acquisition		Disposal and others			Valuation and others			December 31, 2025
AI Partners UK Water Supply Private Placement Investment Trust No. 2		27,257		—		—			4,273			31,530
IGIS Australia Investment Trust No. 209-1		17,386		—		(985	)		236			16,637
Heungkuk Global Private Placement Investment Trust No. 1		6,667		—		(1,658	)		451			5,460
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2		12,964		—		—			(1,528	)		11,436
Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust		178,761		—		(26,256	)		(3,359	)		149,146
Woori Infrastructure New Deal Private Placement Investment Trust No. 1		54,323		4,704		(1,314	)		(452	)		57,261
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1		18,802		942		(1,585	)		2,710			20,869
Woori Global Secondary Private Placement Investment Trust No. 1		19,257		—		(1,475	)		(1,459	)		16,323
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		10,846		—		—			235			11,081
Woori ESG Infrastructure Development Private Placement Investment Trust No. 1		8,083		3,660		—			105			11,848
Kiwoom Harmony Private Investment Trust No. 1		687,769		86,000		(587	)		(979	)		772,203
Kiwoom Harmony Private Investment Trust No. 2		419,685		16,000		(435,685	)		—			—
JB Airline Private Placement Investment Trust No. 8		12,528		—		(195	)		267			12,600
Kiwoom Harmony Private Investment Trust No. 4		414,952		—		(99	)		(1,946	)		412,907
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1		38,188		12,430		—			(814	)		49,804
Woori Fund Financing General Type Private Investment Trust		122,014		41,374		(92,523	)		(195	)		70,670
Kiwoom Harmony Private Investment Trust No. 9		—		425,516		(2,356	)		4,005			427,165
Woori Bank Partners General Type Private Investment Trust No.4		—		81,394		(2,780	)		2,985			81,599

Total		2,049,482		672,020		(567,498	)		4,535			2,158,539

- 94 -


	For the year ended December 31, 2024
Investees	January 1, 2024		Acquisition		Disposal and others			Valuation and others			December 31, 2024
AI Partners UK Water Supply Private Placement Investment Trust No. 2		24,585		—		—			2,672			27,257
IGIS Australia Investment Trust No. 209-1		19,391		—		—			(2,005	)		17,386
Heungkuk Global Private Placement Investment Trust No. 1		8,558		—		(2,142	)		251			6,667
Mirae Asset Multi Overseas Real Estate General Private Investment Trust No. 5-2		12,904		—		—			60			12,964
Woori Global Development Infrastructure Synergy Company Private Placement Investment Trust		133,634		35,257		(9,772	)		19,642			178,761
Woori Infrastructure New Deal Private Placement Investment Trust No. 1		72,898		4,053		(24,869	)		2,241			54,323
Woori North America Energy Infrastructure Private Placement Investment Trust No. 1		13,060		4,449		(2,911	)		4,204			18,802
Woori Global Secondary Private Placement Investment Trust No. 1		14,009		3,597		(571	)		2,222			19,257
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]		10,538		—		—			308			10,846
Woori ESG Infrastructure Development Private Placement Investment Trust No.1		7,134		1,171		(504	)		282			8,083
Kiwoom Harmony Private Investment Trust No. 1		718,430		—		(31,979	)		1,318			687,769
Kiwoom Harmony Private Investment Trust No. 2		609,680		28,000		(218,434	)		439			419,685
JB Airline Private Placement Investment Trust No. 8		11,084		—		(270	)		1,714			12,528
Kiwoom Harmony Private Investment Trust No. 4		58,250		354,690		(7,743	)		9,755			414,952
WOORI REFS GENERAL TYPE INVESTMENT TRUST No. 1		—		37,477		(274	)		985			38,188
Woori Fund Financing General Type Private Investment Trust		—		134,945		(15,281	)		2,350			122,014

Total		1,714,155		603,639		(314,750	)		46,438			2,049,482

- 95 -

14.

INVESTMENT PROPERTIES

(1)	Details of investment properties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Acquisition cost		503,706			528,669
Accumulated depreciation		(74,155	)		(73,048	)

Net carrying value		429,551			455,621

(2)	Changes in investment properties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		455,621			528,615
Depreciation		(5,355	)		(7,810	)
Classification as asset held for sale		(35,137	)		—
Transfer (*)		14,440			(65,280	)
Foreign currencies translation adjustments		(18	)		96

Ending balance		429,551			455,621

(*)	This is the reclassification amount between property and equipment, and investment properties for land and buildings for the years ended December 31, 2025 and 2024.

(3)

Fair value of investment properties amounted to 789,836 million Won and 806,103 million Won as of December 31, 2025 and 2024, respectively. The fair value of investment properties has been assessed on the basis of recent similar real estate market price and officially assessed land price in the area of the investment properties, is classified as Level 3 on the fair value hierarchy.

(4)

Rental fee earned from investment properties amounted to 27,216 million Won and 27,707 million Won for the years ended December 31, 2025 and 2024, respectively. The operating expenses directly related to the investment property where rental fee was earned are 5,355 million Won and 7,810 million Won for the years ended December 31, 2025 and 2024, respectively.

(5)	The minimum lease payments expected to be received in the future under non-refundable lease agreement as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Lease payments
Within a year		9,363		7,328
More than 1 year and within 2 years		4,802		2,621
More than 2 years and within 3 years		3,251		338
More than 3 years and within 4 years		3,233		52
More than 4 years and within 5 years		1,966		3
More than 5 years		6		7

Total		22,621		10,349

- 96 -

15.

PROPERTIES AND EQUIPMENT

(1)	Details of properties and equipment as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Land		Building		Properties for business use		Leasehold improvement		Construction in progress		Total
Properties and equipment (owned)		1,527,004		571,876		218,665		49,140		44,666		2,411,351
Right-of-use assets		—		333,196		16,332		—		—		349,528

Carrying value		1,527,004		905,072		234,997		49,140		44,666		2,760,879


	December 31, 2024
	Land		Building		Properties for business use		Leasehold improvement		Construction in progress		Total
Properties and equipment (owned)		1,526,036		606,322		171,209		40,700		67,314		2,411,581
Right-of-use assets		—		380,404		20,339		—		—		400,743

Carrying value		1,526,036		986,726		191,548		40,700		67,314		2,812,324

(2)	Details of properties and equipment (owned) as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Land		Building			Properties for business use			Leasehold improvement			Construction in progress		Total
Acquisition cost		1,527,004		924,372			910,156			402,853			44,666		3,809,051
Accumulated depreciation		—		(352,445	)		(691,491	)		(353,713	)		—		(1,397,649	)
Accumulated impairment losses		—		(51	)		—			—			—		(51	)

Net carrying value		1,527,004		571,876			218,665			49,140			44,666		2,411,351


	December 31, 2024
	Land		Building			Properties for business use			Leasehold improvement			Construction in progress		Total
Acquisition cost		1,526,036		953,641			843,262			399,723			67,314		3,789,976
Accumulated depreciation		—		(347,319	)		(672,053	)		(359,023	)		—		(1,378,395	)

Net carrying value		1,526,036		606,322			171,209			40,700			67,314		2,411,581

(3)	Details of changes in properties and equipment (owned) for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress			Total
Beginning balance		1,526,036			606,322			171,209			40,700			67,314			2,411,581
Acquisition		26,291			28,057			107,125			24,593			72,210			258,276
Disposal		(148	)		—			(147	)		(902	)		(31,355	)		(32,552	)
Depreciation		—			(29,169	)		(59,455	)		(15,168	)		—			(103,792	)
Impairment loss		—			(51	)		—			—			—			(51	)
Classification to held for sale		(78,582	)		(28,897	)		—			—			—			(107,479	)
Transfer (*)		53,424			(4,370	)		—			—			(63,494	)		(14,440	)
Foreign currencies translation adjustments		(17	)		(1	)		(78	)		(82	)		(9	)		(187	)
Others		—			(15	)		11			(1	)		—			(5	)

Ending balance		1,527,004			571,876			218,665			49,140			44,666			2,411,351

(*)	This is reclassification amount between properties and equipment, and investment properties for land and buildings for the year ended December 31, 2025.

- 97 -


	For the year ended December 31, 2024
	Land			Building			Properties for business use			Leasehold improvement			Construction in progress			Total
Beginning balance		1,480,693			607,765			150,824			28,378			31,560			2,299,220
Acquisition		215			27,803			78,001			24,677			35,752			166,448
Disposal		—			—			(439	)		(600	)		—			(1,039	)
Depreciation		—			(29,737	)		(57,531	)		(11,883	)		—			(99,151	)
Classification to held for sale		(16,477	)		(3,215	)		—			—			—			(19,692	)
Transfer (*)		61,544			3,736			17			—			(17	)		65,280
Foreign currencies translation adjustments		86			(18	)		323			128			19			538
Business combination		—			—			2			—			—			2
Others		(25	)		(12	)		12			—			—			(25	)

Ending balance		1,526,036			606,322			171,209			40,700			67,314			2,411,581

(*)	This is the reclassification amount between properties and equipment, and investment properties for land and buildings for the year ended December 31, 2024.

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


	December 31, 2025
	Building			Properties for business use			Total
Acquisition cost		662,069			33,834			695,903
Accumulated depreciation		(328,873	)		(17,502	)		(346,375	)

Net carrying value		333,196			16,332			349,528


	December 31, 2024
	Building			Properties for business use			Total
Acquisition cost		661,591			33,225			694,816
Accumulated depreciation		(281,187	)		(12,886	)		(294,073	)

Net carrying value		380,404			20,339			400,743

(5)	Details of changes in right-of-use assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Building			Properties for business use			Total
Beginning balance		380,404			20,339			400,743
New contracts		95,938			6,143			102,081
Changes in contracts		55,035			—			55,035
Termination		(12,862	)		(220	)		(13,082	)
Depreciation		(179,470	)		(9,907	)		(189,377	)
Others		(5,849	)		(23	)		(5,872	)

Ending balance		333,196			16,332			349,528


	For the year ended December 31, 2024
	Building			Properties for business use			Total
Beginning balance		236,974			16,216			253,190
New contracts		276,849			14,250			291,099
Changes in contracts		46,097			15			46,112
Termination		(9,879	)		(1,001	)		(10,880	)
Depreciation		(169,816	)		(9,910	)		(179,726	)
Others		179			769			948

Ending balance		380,404			20,339			400,743

- 98 -

16.

INTANGIBLE ASSETS

(1)

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


	December 31, 2025
	Industrial property rights			Development cost			Others			Membership			Construction in progress		Total
Acquisition cost		2,350			713,690			1,052,938			23,244			166		1,792,388
Accumulated amortization		(1,970	)		(494,624	)		(896,214	)		—			—		(1,392,808	)
Accumulated impairment losses		—			—			(33,552	)		(1,044	)		—		(34,596	)

Net carrying value		380			219,066			123,172			22,200			166		364,984


	December 31, 2024
	Industrial property rights			Development cost			Others			Membership			Construction in progress		Total
Acquisition cost		2,245			635,314			1,010,992			23,948			2,751		1,675,250
Accumulated amortization		(1,810	)		(432,903	)		(840,888	)		—			—		(1,275,601	)
Accumulated impairment losses		—			—			(33,552	)		(1,093	)		—		(34,645	)

Net carrying value		435			202,411			136,552			22,855			2,751		365,004

(2)	Details of changes in intangible assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Industrial property rights			Development cost			Others			Membership			Construction in progress			Total
Beginning balance		435			202,411			136,552			22,855			2,751			365,004
Acquisition		1			78,384			39,610			2,044			85			120,124
Disposal		—			—			(34	)		(2,682	)		(16	)		(2,732	)
Amortization (*1)		(160	)		(61,729	)		(55,492	)		—			—			(117,381	)
Provision for impairment loss (*2)		—			—			—			(9	)		—			(9	)
Transfer		104			—			2,550			—			(2,654	)		—
Foreign currencies translation adjustment		—			—			(14	)		(8	)		—			(22	)

Ending balance		380			219,066			123,172			22,200			166			364,984

(*1)	Amortization of other intangible assets amounting to 32,495 million Won is included in other operating expenses.

(*2)	Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.

- 99 -


	For the year ended December 31, 2024
	Industrial property rights			Development cost			Others			Membership			Construction in progress			Total
Beginning balance		489			163,678			121,343			20,032			98			305,640
Acquisition		18			75,890			58,411			3,976			23,402			161,697
Disposal		—			(113	)		—			(500	)		—			(613	)
Amortization (*1)		(183	)		(50,033	)		(50,827	)		—			—			(101,043	)
Provision for impairment loss (*2)		—			—			—			(217	)		—			(217	)
Transfer		110			12,989			7,650			—			(20,749	)		—
Foreign currencies translation adjustment		—			—			(26	)		45			—			19
Business combination		—			—			1			—			—			1
Others		1			—			—			(481	)		—			(480	)

Ending balance		435			202,411			136,552			22,855			2,751			365,004

(*1)	Amortization of other intangible assets amounting to 28,509 million Won is included in other operating expenses.

(*2)	Membership is an intangible asset with an indefinite useful life that recognizes an impairment loss if recoverable value is lower than its carrying amount, while the reversal of an impairment loss should be recognized when the recoverable value is higher than its carrying amount.

17.

ASSETS HELD FOR SALE

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


	December 31, 2025		December 31, 2024
Properties and equipment (*)		91,480		31,266
Investment properties (*)		33,588		—

Total		125,068		31,266

(*)	The Bank classifies above assets as assets held for sale that are highly likely to be sold within one year from December 31, 2025 and 2024, based on the management’s decision.

- 100 -

18.

ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURE

(1)	Assets subjected to lien as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025
		Collateral given to	Amount		Reason for collateral
Loans and other financial assets at amortized cost	Due from banks in local currency	Korea Exchange Co., Ltd.		3,362	Margin deposit for CCP
		MSBI LIMITED Seoul		12,634	CSA variable margin and others
	Due from banks in foreign currencies	Goldman Sachs Intl., and others		353,030	CSA variable margin and others
	Mortgage-backed securities	Public offering		2,067,313	Covered bonds
Financial assets at FVTPL	Korean financial institutions debt securities and others	ING BANK and others		587,591	CSA variable margin and others
		The BOK and others		1,814,134	Settlement risk and others
Financial assets at FVTOCI	Korean treasury and government bonds and others	The BOK and others		3,056,643	Related to bonds sold under repurchase agreements (*)
		The BOK		362,317	Settlement risk and others
	Korean financial institutions debt securities and others	The BOK and others		927,890	Related to bonds sold under repurchase agreements (*)
		The BOK		9,283,095	Settlement risk and others
	Foreign financial institutions debt securities	CCIL Exchange		35,867	Related to bonds sold under repurchase agreements (*)
		SOCIETE GENERALE, PAR		386,609	CSA variable margin and others
Securities at amortized cost	Korean treasury and government bonds and others	The BOK and others		9,100,505	Settlement risk and others
	Korean financial institutions debt securities and others	The BOK and others		5,098,911	Settlement risk and others

		Total		33,089,901

(*)

The financial assets are not derecognized and provided as collaterals because the Bank entered into an agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Bank continuously recognizes the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.


		December 31, 2024
		Collateral given to	Amount		Reason for collateral
Loans and other financial assets at amortized cost	Due from banks in local currency	Korea Exchange Co., Ltd		3	Margin deposit for CCP
	Due from banks in foreign currencies	BNP-PARIBAS, PAR and others		647,782	CSA variable margin and others
	Mortgage-backed securities	Public offering		1,790,810	Covered Bonds
Financial assets at FVTPL	Korean financial institutions debt securities and others	DBS BANK LTD, SEL and others		698,231	CSA variable margin and others
Financial assets at FVTOCI	Korean financial institutions debt securities and others	CITIBANK, N.A. LONDON and others		74,143	Related to bonds sold under repurchase agreements (*)
	Korean financial institutions debt securities and others	The BOK and others		8,863,286	Settlement risk and others
	Foreign financial institutions debt securities	SOCIETE GENERALE, PAR		358,781	CSA variable margin
		CCIL Exchange		13,504	Related to bonds sold under repurchase agreements (*)
Securities at amortized cost	Korean treasury and government bonds and others	The BOK and others		11,526,197	Settlement risk and others

		Total		23,972,737

(*)

The financial assets are not derecognized and provided as collaterals because the Bank entered into an agreement to buy the transferred assets back at a predetermined price or the sale price plus a certain return rate. The Bank continuously recognize the transferred assets as liabilities (bond sold under repurchase agreements) after the repurchase.

(2)	As of December 31, 2025 and 2024, there is no asset acquired through foreclosures.

- 101 -

(3)	Securities loaned as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		December 31, 2025		Loaned to
Financial assets at FVTOCI	Korean treasury and government bonds and others		238,406	Korea Securities Finance Corporation

		December 31, 2024		Loaned to
Financial assets at FVTPL	Korean treasury and government bonds and others		12,361	Korea Securities Finance Corporation

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

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

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


	December 31, 2025
	Fair values of collaterals		Fair values of collaterals disposed or re-subjected to lien
Securities		14,220,954		—


	December 31, 2024
	Fair values of collaterals		Fair values of collaterals disposed or re-subjected to lien
Securities		10,101,204		—

19.

OTHER ASSETS

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


	December 31, 2025		December 31, 2024
Prepaid expenses		308,768		264,882
Advance payments		1,166		—
Others		7,156		7,244

Total		317,090		272,126

- 102 -

20.

FINANCIAL LIABILITIES AT FVTPL

(1)	Financial liabilities at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Financial liabilities at FVTPL		5,441,087		9,198,831
Financial liabilities designated to be measured at FVTPL		557,501		547,816

Total		5,998,588		9,746,647

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


	December 31, 2025		December 31, 2024
Deposits due to customers :
Gold banking liabilities		263,251		74,205
Borrowings
Securities sold		70,298		—
Derivative liabilities		5,107,538		9,124,626

Total		5,441,087		9,198,831

(3)	Details of financial liabilities designated to be measured at FVTPL as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Deposits due to customers:
Time deposits		557,501		547,816

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

(4)	Changes in fair value due to fluctuation in credit risk reflected in financial liabilities designated to be measured at FVTPL for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025			For the year ended December 31, 2024
Financial liabilities designated to be measured at FVTPL		557,501			547,816
Changes in fair value due to fluctuation in credit risk (*)		74			(1,831	)
Accumulated changes in fair value due to fluctuation in credit risk (*)		(1,757	)		(1,831	)

(*)

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

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(5)	The difference between financial liabilities designated to be measured at FVTPL’s carrying amount and nominal amount at maturity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Carrying amount		557,501		547,816
Nominal amount at maturity		540,000		530,000

Difference		17,501		17,816

21.

DEPOSITS DUE TO CUSTOMERS

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


	December 31, 2025			December 31, 2024
Deposits in local currency:
Demand deposits		8,210,531			8,875,919
Saving deposits with flexible withdrawal options		125,851,088			115,927,248
Other saving deposits		172,747,445			175,594,380
Mutual installment		18,219			19,901
Certificate of deposits		9,083,199			11,742,425

Sub-total		315,910,482			312,159,873

Deposits in foreign currencies
Deposits in foreign currencies		39,345,525			35,149,577
Present value discount		(138,933	)		(144,313	)

Total		355,117,074			347,165,137

- 104 -

22.

BORROWINGS AND DEBENTURES

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


	December 31, 2025
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from the BOK	The BOK		1.0		1,845,239
Borrowings from government funds	Small Enterprise and Market Service and others		0.0 ~ 3.5		2,195,534
Others	The Korea Development Bank and others		0.0 ~ 3.7		3,848,953

Sub-total					7,889,726

Borrowings in foreign currencies	The Export-Import Bank of Korea and others		0.8 ~ 4.6		12,303,199
Bills sold	Others		0.0 ~ 2.0		1,033
Call money	Banks and others		2.2 ~ 4.1		2,031,233
Bonds sold under repurchase agreements	The BOK and others		1.0 ~ 5.3		3,832,036
Present value discount					(574	)

Total					26,056,653


	December 31, 2024
	Lenders	Interest rate (%)		Amount
Borrowings in local currency:
Borrowings from the BOK	The BOK		1.5		1,981,928
Borrowings from government funds	Small Enterprise and Market Service and others		0.0 ~ 3.5		2,165,257
Others	The Korea Development Bank and others		0.0 ~ 3.6		3,454,951

Sub-total					7,602,136

Borrowings in foreign currencies	The Export-Import Bank of Korea and others		0.5 ~ 5.8		13,876,403
Bills sold	Others		0.0 ~ 2.7		3,690
Call money	Banks and others		1.7 ~ 4.9		319,499
Bonds sold under repurchase agreements	Other financial institutions		1.0 ~ 6.7		86,733
Present value discount					(593	)

Total					21,887,868

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


	December 31, 2025					December 31, 2024
	Interest rate (%)		Amount			Interest rate (%)		Amount
Face value of bond (*):
Ordinary bonds		0.8 ~ 5.4		24,693,165			0.8 ~ 6.3		22,170,995
Subordinated bonds		1.9 ~ 5.1		3,872,768			1.9 ~ 5.1		3,471,380

Sub-total				28,565,933					25,642,375

Discounts on bonds				(30,461	)				(112,057	)

Total				28,535,472					25,530,318

(*)	Includes debentures under fair value hedge amounting to 4,046,624 million Won and 3,952,047 million Won as of December 31, 2025 and 2024, respectively.

- 105 -

23.

PROVISIONS

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


	December 31, 2025		December 31, 2024
Provisions for guarantees (*1)		85,214		76,323
Provisions for unused commitments		68,550		73,303
Asset retirement obligation		91,231		87,599
Other provisions (*2)		393,052		293,906

Total		638,047		531,131

(*1)	Provisions for guarantees include provisions for financial guarantees of 59,738 million Won and 55,136 million Won as of December 31, 2025 and 2024, respectively.

(*2)	Other provisions consist of provisions for litigation, compensation for loss and others.

(2)	Changes in provisions for guarantees and unused loan commitments for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):

Provisions for guarantees


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		62,433			2,264			11,626		76,323
Transfer to 12-month expected credit loss		535			(535	)		—		—
Transfer to expected credit loss for the entire period		(438	)		438			—		—
Transfer to credit-impaired financial assets		(809	)		(39	)		848		—
Net provision for unused amount		3,968			1,278			3,344		8,590
Others (*)		300			—			1		301

Ending balance		65,989			3,406			15,819		85,214

(*)	Includes the impact from change of financial guarantee liabilities.


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3		Total
Beginning balance		76,507			2,779			7,225		86,511
Transfer to 12-month expected credit loss		317			(317	)		—		—
Transfer to expected credit loss for the entire period		(228	)		228			—		—
Transfer to credit-impaired financial assets		(100	)		(90	)		190		—
Net provision for (reversal of) unused amount		(10,894	)		(336	)		4,210		(7,020	)
Others (*)		(3,169	)		—			1		(3,168	)

Ending balance		62,433			2,264			11,626		76,323

(*)	Includes the impact from change of financial guarantee liabilities.

- 106 -

ii)

Provisions for unused loan commitments


	For the year ended December 31, 2025
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		63,943			9,360			—			73,303
Transfer to 12-month expected credit loss		2,054			(2,054	)		—			—
Transfer to expected credit loss for the entire period		(901	)		901			—			—
Transfer to credit-impaired financial assets		(51	)		(100	)		151			—
Net reversal of unused amount		(1,500	)		(3,026	)		(147	)		(4,673	)
Others		(81	)		1			—			(80	)

Ending balance		63,464			5,082			4			68,550


	For the year ended December 31, 2024
	Stage 1			Stage 2			Stage 3			Total
Beginning balance		72,043			8,383			—			80,426
Transfer to 12-month expected credit loss		2,385			(2,385	)		—			—
Transfer to expected credit loss for the entire period		(1,602	)		1,602			—			—
Transfer to credit-impaired financial assets		(57	)		(53	)		110			—
Net provision for (reversal of) unused amount		(9,241	)		1,815			(110	)		(7,536	)
Others		415			(2	)		—			413

Ending balance		63,943			9,360			—			73,303

(3)	Changes in asset retirement obligation for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		87,599			86,290
Provisions provided		3,173			3,553
Provisions used		(7,825	)		(4,468	)
Reversal		—			(223	)
Amortization		1,076			1,243
Increase in restoration costs and others		7,208			1,204

Ending balance		91,231			87,599

The amount of the asset retirement obligation is the present value of the best estimate of future expected expenditure to settle the obligation – arising from leased properties as of December 31, 2025, discounted by appropriate discount rate. The restoration cost is expected to occur by the end of each premise’s lease period, and the Bank has used average lease period of each category of leases terminated during the past years in order to rationally estimate the lease period. In addition, the Bank used average amount of actual recovery cost for the past 3 years and the inflation rate for the preceding year in order to estimate future recovery cost.

(4)	Changes in other provisions for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		293,906			452,280
Provisions provided		103,671			29,716
Provisions used and others		(4,486	)		(185,562	)
Reversal of unused amount		(39	)		(2,528	)

Ending balance		393,052			293,906

- 107 -

(5)

Others

①

The Bank recognized the estimated amount of compensation related to incomplete sales of Derivative Linked Fund (DLF) in 2019 and provisions for fines expected to be imposed by the Financial Services Commission as the best estimate of expenditure required to fulfill its current obligations at the end of the period.

②

The Bank recognized a provision for the estimated amount of contractual refunds and loss compensations that may be payable in relation to customer losses expected fund redemption delays, with ending balances of 259,168 million Won and 246,422 million Won as of December 31, 2025 and 2024, respectively. In addition, the Bank recognized a provision—comprising estimated compensation for expected customer losses on equity-linked securities and the expected fines and penalties to be imposed by the Financial Services Commission—amounting to 2,847 million Won and 781 million Won as of December 31, 2025 and 2024, respectively.

- 108 -

24.

NET DEFINED BENEFIT LIABILITY(ASSET)

The retirement benefit of the Bank is based on the defined retirement pension plan. Employees and directors with one or more years of service are entitled to receive a payment upon termination of their employment, based on their length of service and rate of salary at the time of termination. The assets of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured using actuarial assumptions that are considered to be the most reasonable estimate of future cash flows (the projected unit method, which takes account of projected earnings increases).

The Bank is exposed to various risks through defined benefit retirement pension plan, and the most significant risks are as follows:


Volatility of asset		The defined benefit obligation was estimated with a discount rate calculated based on return on high-quality corporate bonds. A deficit may occur if the rate of return of plan assets falls short of the discount rate.

Decrease in return on high quality corporate bonds		A decrease in return on high-quality corporate bonds will be partially offset by some increase in the value of debt securities that the employee benefit plan owns but will bring an increase in the defined benefit obligation.

Risk of inflation		Most defined benefit obligations are related to inflation rate; the higher the inflation rate is, the higher the level of liabilities. Therefore, deficit occurs in the system if an inflation rate increases.

(1)	Details of net defined benefit liability(asset) as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Present value of defined benefit obligations		1,711,836			1,588,316
Fair value of plan assets		(1,872,173	)		(1,726,232	)

Net defined benefit asset		(160,337	)		(137,916	)

(2)	Changes in the carrying value of defined benefit obligation for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the years ended December 31
		2025			2024
Beginning balance			1,588,316			1,356,260
Current service cost			132,826			121,766
Interest cost			64,507			64,530
Remeasurements	Financial assumptions		(20,119	)		79,376
	Demographic assumptions		—			(533	)
	Experience adjustments		39,583			(14,545	)
Foreign currencies translation adjustments			—			9
Retirement benefit paid			(120,526	)		(87,193	)
Past service cost			26,469			—
Effect of moving in and out of associates			780			409
Liability acquired through business combination			—			68,237

Ending balance			1,711,836			1,588,316

- 109 -

(3)	Changes in the plan assets for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Beginning balance		1,726,232			1,577,806
Employer’s contribution		213,000			100,000
Interest income		69,761			77,208
Remeasurements		(10,825	)		(13,670	)
Retirement benefit paid		(123,693	)		(83,331	)
Effect of moving in and out of associates		464			2,514
Asset acquired through business combination		—			68,237
Other		(2,766	)		(2,532	)

Ending balance		1,872,173			1,726,232

(4)	The details of plan assets as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Time deposits and others		1,872,173		1,726,232

(5)	Realized returns on plan assets amount to 58,936 million Won and 63,538 million Won for the years ended December 31, 2025 and 2024, respectively, and the contribution expected to be paid in the current accounting year amounts to 65,094 million Won.

(6)	The amounts recognized in net income and total comprehensive income in relation to defined benefit plans for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025			For the year ended December 31, 2024
Current service cost		132,826			121,766
Past service cost (*)		26,469			—
Net interest income		(5,254	)		(12,678	)

Cost recognized in net income		154,041			109,088

Remeasurements		30,289			77,968

Cost recognized in total comprehensive income		184,330			187,056

(*)	This occurred due to changes in the criteria for determining ordinary wages during the year ended December 31, 2025.

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

(7)	Key actuarial assumptions used in defined benefit liability measurement as of December 31, 2025 and 2024 are as follows:


	December 31, 2025	December 31, 2024
Discount rate	4.46%	4.03%
Future wage growth rate	5.49%	5.19%
Mortality rate	Issued by Korea Insurance Development Institute	Issued by Korea Insurance Development Institute
Retirement rate	Experience rate for each employment classification	Experience rate for each employment classification

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

- 110 -

(8)	The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation as of December 31, 2025 and 2024 is as follows (Unit: Korean Won in millions):


		December 31, 2025 (*)			December 31, 2024 (*)
Discount rate	Increase by 1% point		(145,339	)		(137,958	)
Discount rate	Decrease by 1% point		167,619			159,621
Future wage growth rate	Increase by 1% point		169,126			160,833
Future wage growth rate	Decrease by 1% point		(149,127	)		(141,388	)

(*)

(9)	The details of the maturity of the defined benefit obligation as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Within 1 year		71,790		60,056
After 1 year but less than 2 years		101,440		83,523
After 2 years but less than 5 years		427,450		409,094
After 5 years but less than 10 years		525,678		457,362
After 10 years		1,564,105		1,390,927

25.

OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES

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


	December 31, 2025			December 31, 2024
Other financial liabilities:
Accounts payable		7,001,638			6,119,411
Accrued expenses		3,759,657			4,124,197
Borrowings from trust accounts		7,844,068			6,874,714
Agency business revenue		594,684			733,988
Foreign exchange payables		761,462			882,269
Domestic exchanges payables		11,740,938			7,590,328
Lease liabilities		303,339			349,797
Other miscellaneous financial liabilities		2,129,720			1,775,865
Present value discount		(1,229	)		(1,118	)

Sub-total		34,134,277			28,449,451

Other liabilities:
Unearned income		47,859			66,853
Other miscellaneous liabilities		208,980			164,041

Sub-total		256,839			230,894

Total		34,391,116			28,680,345

- 111 -

26.

DERIVATIVES

(1)	Derivative assets and derivative liabilities as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Nominal amount		Assets				Liabilities
	Nominal amount		For fair value hedge		For trading		For fair value hedge		For trading
Interest rate:
Futures		49,325		—		—		—		—
Forwards		3,340,000		—		155,174		—		92,925
Swaps		135,834,660		37,010		142,513		27,050		147,844
Written options		320,000		—		—		—		8,194
Currency:
Forwards		106,417,617		—		2,677,319		—		1,171,597
Swaps		71,157,953		—		2,815,065		—		3,686,151
Purchase options		67,650		—		1,267		—		—
Written options		81,999		—		—		—		827
Equity:
Forwards		163		—		104		—		—
Purchase options		1,711		—		815		—		—

Total		317,271,078		37,010		5,792,257		27,050		5,107,538


	December 31, 2024
	Nominal amount		Assets				Liabilities
	Nominal amount		For fair value hedge		For trading		For fair value hedge		For trading
Interest rate:
Futures		101,831		—		—		—		—
Forwards		3,530,000		—		52,855		—		274,980
Swaps		139,967,836		10,102		322,586		102,634		204,743
Purchase options		50,000		—		81		—		—
Written options		360,000		—		—		—		10,595
Currency:
Forwards		111,318,517		—		5,630,127		—		1,799,433
Swaps		83,261,241		—		4,055,766		—		6,829,871
Purchase options		175,224		—		4,779		—		—
Written options		265,186		—		—		—		3,603
Equity:
Forwards		1,520		—		182		—		—
Swaps		7,698		—		—		—		1,401
Purchase options		1,767		—		1,005		—		—

Total		339,040,820		10,102		10,067,381		102,634		9,124,626

- 112 -

(2)	Overview of the Bank’s hedge accounting

Fair value hedge

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

The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying market rate of interest and the Bank expects the value of the interest rate swap contract and the value of the hedged item to generally change in the opposite direction.

The fair value of the interest rate swap at the end of the reporting period is determined by discounting future cash flows estimated using the yield curve at the end of the reporting period and the credit risk embedded in the contract and the average interest rate is determined based on the outstanding balance at the end of the reporting period. The variable interest rate applied to the interest rate swap is Compounding SOFR or CD 3M plus spread. In accordance with the terms of each interest rate swap contract designated as a hedging instrument, the Bank receives interest at a fixed interest rate and pays interest at a variable interest rate.

Hedges of net investment in foreign operations

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

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

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

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

- 113 -

(3)	The nominal amounts of the hedging instrument as of December 31, 2025 and 2024 are as follows (Unit: USD, and Korean Won in millions):


	December 31, 2025
	1 year or less		1 year to 5 years		More than 5 years		Total
Fair value hedge
Interest rate risk
Interest rate swaps (USD)		550,000,000		2,100,000,000		—		2,650,000,000
Interest rate swaps (KRW)		—		—		290,000		290,000
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (USD)		—		92,000,000		—		92,000,000


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

(4)	The average interest rate and average exchange rate of the hedging instrument as of December 31, 2025 and 2024 are as follows:


		December 31, 2025
Fair value hedge
Interest rate risk
Interest rate swaps (USD)		Fixed 3.47% receipt and C.SOFR+1.06% floating paid
Interest rate swaps (KRW)		Fixed 3.94% receipt and CD 3M+0.01% floating paid
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign currency denominated debentures (USD/KRW)		1,421.88


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

-114-

(5)	Fair value hedge

The amounts related to items designated as fair value hedging instruments as of December 31, 2025 and 2024 are as follows (Unit: USD and Korean Won in millions):

December 31, 2025

Nominal amounts of
the hedging
instrument

Carrying amounts of the hedging
instrument

Line item in the

statement of financial

position where the

hedging instrument is

located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Fair value hedge

Interest rate risk

Derivative assets

Interest rate swaps

USD 2,650,000,000

(Designated for hedging)

37,010

27,050

Derivative liabilities

93,549

290,000

(Designated for hedging)

December 31, 2024

Nominal amounts of
the hedging
instrument

Carrying amounts of the hedging
instrument

Line item in the

statement of financial

position where the

hedging instrument is

located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Fair value hedge

Interest rate risk

Derivative assets

Interest rate swaps

USD 2,675,000,000

(Designated for hedging)

10,102

102,634

Derivative liabilities

5,265

155,000

(Designated for hedging)

Details of carrying amount to fair value hedged and amount adjusted due to hedge accounting as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Carrying amounts of the hedging 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
	Assets		Liabilities		Assets		Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures		—		3,763,978		—		29,538		Debentures		(91,877	)
Korean Won denominated debentures		—		282,646		—		7,354		Debentures		11,117

(*)	The accumulated profit on foreign currency denominated debentures was 29,538 million Won, and the accumulated profit on Korean Won denominated debentures was 7,354 million Won as of December 31, 2025.

- 115 -


	December 31, 2024
	Carrying amounts of the hedging 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
	Assets		Liabilities		Assets		Liabilities
Fair value hedge
Interest rate risk
Foreign currency denominated debentures		—		3,792,388		—		124,647		Debentures		(12,758	)
Korean Won denominated debentures		—		159,659		—		4,659		Debentures		(4,659	)

(*)	The accumulated profit on foreign currency denominated debentures was 124,647 million Won, and the accumulated loss on Korean Won denominated debentures was 4,659 million Won as of December 31, 2024.

Amounts recognized in profit or loss due to the ineffective portion of fair value hedges for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
		Hedge ineffectiveness recognized in profit or loss		Line item in the profit or loss
Fair value hedge	Interest rate risk		12,789	Other operating income, net


		For the year ended December 31, 2024
		Hedge ineffectiveness recognized in profit or loss			Line item in the profit or loss
Fair value hedge	Interest rate risk		(12,152	)	Other operating expense, net

(6)	Hedges of net investment in foreign operations

The amounts related to items designated as hedging instruments of net investments in foreign operations as of December 31, 2025 and 2024 are as follows (Unit: USD and Korean Won in millions):

December 31, 2025

Nominal amounts of
the hedging
instrument

Carrying amounts of the hedging
instrument

Line item in the
consolidated statement
of financial position
where the hedging
instrument is located

Changing in fair
value used for
calculating hedge
ineffectiveness

Assets

Liabilities

Hedges of net investment in foreign operations

Foreign exchange risk

Foreign currency denominated debentures

USD 92,000,000

—

132,011

Foreign currency
denominated
debentures

3,230

- 116 -

December 31, 2024

Nominal amounts of
the hedging
instrument

Carrying amounts of the hedging
instrument

Line item in the consolidated
statement of financial position
where the hedging instrument
is located

Changing in
fair value used
for calculating
hedge
ineffectiveness

Assets

Liabilities

Hedges of net investment in foreign operations

Foreign exchange risk

Foreign currency denominated debentures

USD 92,000,000

—

135,240

Foreign currency
denominated debentures

(16,600

)

The amounts related to items designated as hedged items of net investments in foreign operations as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025
	Changing in fair value used for calculating hedge ineffectiveness			Balance of foreign currency translation reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets		(3,230	)		(6,159	)


	December 31, 2024
	Changing in fair value used for calculating hedge ineffectiveness		Balance of foreign currency translation reserve in hedge accounting
Hedges of net investment in foreign operations
Foreign exchange risk
Foreign operations net assets		16,600		(8,536	)


	For the year ended December 31, 2025
	Other comprehensive income							Profit or loss
	Hedge gain or loss recognized in other comprehensive income		Income tax effect			Sub-total		Hedge ineffectiveness recognized in profit or loss		Line item recognizing ineffectiveness
Hedges of net investment in foreign operations											—
Foreign exchange risk		3,230		(853	)		2,377		—		—


	For the year ended December 31, 2024
	Other comprehensive income								Profit or loss
	Hedge gain or loss recognized in other comprehensive income			Income tax effect		Sub-total			Hedge ineffectiveness recognized in profit or loss		Line item recognizing ineffectiveness
Hedges of net investment in foreign operations												—
Foreign exchange risk		(16,600	)		4,383		(12,217	)		—		—

- 117 -

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

27.

DEFERRED DAY 1 PROFITS OR LOSSES

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


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

Ending balance		—			28

28.

SHARE CAPITAL AND CAPITAL SURPLUS

(1)	The number of authorized shares and others as of December 31, 2025 and 2024 are as follows:


	December 31, 2025		December 31, 2024
Shares of common stock authorized		5,000,000,000 Shares		5,000,000,000 Shares
Par value per share		5,000 Won		5,000 Won
Shares of common stock issued		716,000,000 Shares		716,000,000 Shares
Share capital		3,581,392 million Won		3,581,392 million Won

(2)	Details of capital surplus as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Capital in excess of par value		1,068,420		1,068,420

- 118 -

29.

HYBRID SECURITIES

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


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

		Total						1,406,513			1,645,947

30.

OTHER EQUITY

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


	December 31, 2025			December 31, 2024
Accumulated other comprehensive income:
Net gain on valuation of financial assets at FVTOCI		4,392			50,263
Net gain on changes in credit risk of financial liabilities designated to be measured at FVTPL		1,274			1,348
Gain on foreign currency translation of foreign operations		15,303			24,470
Loss on evaluation of hedges of net investment in foreign operations		(6,159	)		(8,536	)
Remeasurement loss related to defined benefit plan		(93,304	)		(72,427	)

Sub-total		(78,494	)		(4,882	)

Other capital adjustments		(416	)		(50,333	)

Total		(78,910	)		(55,215	)

- 119 -

(2)	Changes in the accumulated other comprehensive income for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		50,263			18,007			(80,241	)		16,363			4,392
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at FVTPL		1,348			(74	)		—			—			1,274
Gain (loss) on foreign currency translation of foreign operations		24,470			(12,140	)		—			2,973			15,303
Gain (loss) on evaluation of hedge of net investment in foreign operations		(8,536	)		3,230			—			(853	)		(6,159	)
Remeasurement gain (loss) related to defined benefit plan		(72,427	)		(30,289	)		—			9,412			(93,304	)

Total		(4,882	)		(21,266	)		(80,241	)		27,895			(78,494	)

(*)	Net loss on valuation of financial assets at FVTOCI includes 1,326 million Won which was transferred to retained earnings due to disposal of equity securities.


	For the year ended December 31, 2024
	Beginning balance			Increase (decrease) (*)			Reclassification adjustments			Income tax effect (*)			Ending balance
Net gain (loss) on valuation of financial assets at FVTOCI		73,985			(19,001	)		(13,230	)		8,509			50,263
Net gain (loss) on changes in credit risk of financial liabilities designated to be measured at FVTPL		—			1,831			—			(483	)		1,348
Gain (loss) on foreign currency translation of foreign operations		(9,050	)		45,544			—			(12,024	)		24,470
Gain (loss) on evaluation of hedge of net investment in foreign operations		3,681			(16,600	)		—			4,383			(8,536	)
Remeasurement gain (loss) related to defined benefit plan		(15,042	)		(77,968	)		—			20,583			(72,427	)

Total		53,574			(66,194	)		(13,230	)		20,968			(4,882	)

(*)	Net gain on valuation of financial assets at FVTOCI includes 53,539 million Won which was transferred to retained earnings due to disposal of equity securities.

- 120 -

31.

RETAINED EARNINGS

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


		December 31, 2025		December 31, 2024
Legal reserve	Legal reserves in Korea		3,329,754		3,049,754
	Other legal reserve		33,239		33,239

	Sub-total		3,362,993		3,082,993

Voluntary reserve	Business rationalization reserve		8,000		8,000
	Reserve for financial structure improvement		235,400		235,400
	Additional reserve		8,576,104		8,576,104
	Regulatory reserve for credit loss		1,952,942		1,767,408
	Revaluation reserve		701,685		701,685

	Sub-total		11,474,131		11,288,597

Retained earnings before appropriation			6,715,185		6,115,176

Total			21,552,309		20,486,766

Legal Reserve

Other legal reserve

Business rationalization reserve

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

Reserve for financial structure improvement

Additional reserve

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

Regulatory reserve for credit loss

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

Revaluation reserve

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

- 121 -

(2)	Statements of appropriations of retained earnings (plan) for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean won in millions):


	For the years ended December 31
	2025			2024
Unappropriated retained earnings:
Unappropriated retained earnings carried over from prior years		4,246,785			3,343,333
Disposal gain or loss in FVTOCI financial assets		(1,326	)		53,540
Net income		2,558,860			2,794,552
Dividend on hybrid equity securities		(89,134	)		(76,249	)

		6,715,185			6,115,176

Transfer from retained earnings:
Regulatory reserve for credit loss		33,737			—

		33,737			—

Appropriation of retained earnings:
Legal reserve		256,000			280,000
Regulatory reserve for credit loss		224,576			185,534
Amortization of loss of repayment of hybrid equity securities		416			49,743
Business combination loss		—			590
Cash dividend (dividend per share (Dividend rate based on par value))		1,164,932			1,352,524
(2025: Common shares of 1,627 Won (33%)
2024: Common shares of 1,889 Won (38%))

		1,645,924			1,868,391

Unappropriated retained earnings to be carried forward to next year		5,102,998			4,246,785

- 122 -

32.

REGULATORY RESERVE FOR CREDIT LOSS

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

(1)	Balances of the regulatory reserve for credit loss as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Regulatory reserve for credit loss		1,952,942		1,767,408
Planned provision for regulatory reserve for credit loss		224,576		185,534

Ending balance		2,177,518		1,952,942

(2)	Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after the planned reserves provided for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions, except for EPS amount):


	For the years ended December 31
	2025		2024
Net income		2,558,860		2,794,552
Required provision for regulatory reserve for credit loss		224,576		185,534
Adjusted net income after the provision for regulatory reserve		2,334,284		2,609,018
Adjusted EPS after the provision for regulatory reserve (Unit: Korean Won) (*)		3,136		3,537

(*)	For the years ended December 31, 2025 and 2024, it was calculated by deducting 89,134 million Won and 76,249 million Won, respectively, of dividends on hybrid securities from adjusted net income after the provision for regulatory reserve.

33.

DIVIDENDS

- 123 -

34.

NET INTEREST INCOME

(1)	Interest income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Financial assets at FVTPL		111,864		120,688
Financial assets at FVTOCI		1,227,532		1,227,748
Securities at amortized cost		526,918		628,637
Loans and other financial assets at amortized cost:
Interest on due from banks		407,663		453,365
Interest on loans		14,085,257		15,516,770
Interest on other receivables		30,780		35,170

Sub-total		14,523,700		16,005,305

Total		16,390,014		17,982,378

(2)	Interest expense recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Interest on deposits due to customers		7,396,318		8,904,688
Interest on borrowings		786,620		975,397
Interest on debentures		945,401		977,084
Interest on lease liability		11,731		12,892
Other interest expense		295,423		370,534

Total		9,435,493		11,240,595

- 124 -

35.

NET FEES AND COMMISSIONS INCOME

(1)	Details of fees and commissions income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Fees and commissions received for brokerage		225,889		241,762
Fees and commissions received related to credit		134,366		151,860
Fees and commissions received for electronic finance		131,857		130,172
Fees and commissions received on foreign exchange handling		43,457		44,237
Fees and commissions received on foreign exchange		42,301		47,311
Fees and commissions received for guarantee		118,277		123,333
Fees and commissions received on securities business		59,512		48,230
Fees and commissions from trust management		203,895		178,352
Other fees		204,290		188,109

Total		1,163,844		1,153,366

(2)	Details of fees and commissions expense incurred for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Fees and commissions paid		199,785		179,992
Others		283		211

Total		200,068		180,203

- 125 -

36.

DIVIDEND INCOME

(1)	Details of dividend income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Dividend income related to financial assets at FVTPL
Dividends on equity securities		11,929		9,947
Dividends on capital contribution		76,871		96,918
Dividends on beneficiary certificates		345,493		332,818

Sub-total		434,293		439,683

Dividend income related to financial assets at FVTOCI
Dividends on equity securities		20,285		17,566
Dividends on capital contributions		40		160

Sub-total		20,325		17,726

Total		454,618		457,409

(2)	Details of dividends related to financial assets at FVTOCI for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Dividend income recognized from assets held
Equity securities		19,758		17,726
Dividend income generated from assets disposed
Equity securities		567		—

Total		20,325		17,726

- 126 -

37.

NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL

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


	For the years ended December 31
	2025		2024
Net gain on financial instruments at FVTPL		307,528		1,528,808
Net gain (loss) on financial instruments designated to be measured at FVTPL		389		(19,647	)

Total		307,917		1,509,161

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


			For the years ended December 31
			2025			2024
Financial assets at FVTPL	Securities	Gain on transactions and valuation		395,956			604,282
		Loss on transactions and valuation		(568,897	)		(215,363	)

		Sub-total		(172,941	)		388,919

	Loans	Gain on transactions and valuation		—			11,672

		Sub-total		—			11,672

	Other financial instruments	Gain on transactions and valuation		28,139			6,083
		Loss on transactions and valuation		(25,988	)		(5,456	)

		Sub-total		2,151			627

	Sub-total			(170,790	)		401,218

Derivatives (for trading)	Interest rate derivatives	Gain on transactions and valuation		2,086,925			2,971,144
		Loss on transactions and valuation		(1,828,669	)		(2,925,577	)

		Sub-total		258,256			45,567

	Currency derivatives	Gain on transactions and valuation		9,039,116			14,757,417
		Loss on transactions and valuation		(8,818,990	)		(13,664,289	)

		Sub-total		220,126			1,093,128

	Equity derivatives	Gain on transactions and valuation		111			1,182,989
		Loss on transactions and valuation		(175	)		(1,194,094	)

		Sub-total		(64	)		(11,105	)

	Sub-total			478,318			1,127,590

	Total			307,528			1,528,808

(*)	The Bank manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. Details on gains and losses related to foreign exchange are described in Notes 40. (2) and (3).

- 127 -

(3)	Details of net gain or loss on financial instruments designated to be measured at FVTPL for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Net gain (loss) on deposits due to customers:
Net gain (loss) on valuation of time deposit		389		(19,647	)

38.

NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI

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


	For the years ended December 31
	2025		2024
Gain on disposal of securities		137,515		92,107

39.

REVERSAL OF (PROVISION FOR) EXPECTED CREDIT LOSS ALLOWANCE

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


	For the years ended December 31
	2025			2024
Provision for expected credit loss allowance on financial assets measured at FVTOCI		(8,595	)		(8,865	)
Reversal of (provision for) expected credit loss allowance on securities at amortized cost		(335	)		3,233
Provision for expected credit loss allowance on loans and other financial assets at amortized cost		(814,273	)		(707,189	)
Reversal of (provision for) provision on guarantee		(8,590	)		7,020
Reversal of unused loan commitments		4,673			7,536

Total		(827,120	)		(698,265	)

- 128 -

40.

GENERAL ADMINISTRATIVE EXPENSES AND OTHER OPERATING INCOME (EXPENSES), NET

(1)	Details of general and administrative expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


			For the years ended December 31
			2025		2024
Employee benefits	Short-term employee benefits	Salaries		1,474,808		1,396,958
		Employee benefits		599,084		524,809
	Share-based payments			50,934		23,261
	Retirement benefit service costs			156,446		111,117
	Termination benefits			169,013		(3,485	)

	Sub-total			2,450,285		2,052,660

Depreciation and amortization				378,054		351,410

Other general and administrative expenses	Rent			81,158		79,766
	Taxes and public dues			148,982		151,414
	Service charges			239,268		226,428
	Computer and IT related			184,921		168,620
	Telephone and communication			47,472		45,041
	Advertising			167,316		140,399
	Printing			3,447		4,081
	Traveling			8,221		7,311
	Supplies			4,979		5,087
	Insurance premium			2,777		2,639
	Maintenance			13,261		13,795
	Water, light and heating			14,545		14,723
	Vehicle maintenance			6,560		6,783
	Others			106,216		57,067

	Sub-total			1,029,123		923,154

	Total			3,857,462		3,327,224

(2)	Details of other operating income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Gain on transactions of foreign exchange		1,386,918		661,501
Gain on derivatives (designated for hedging)		102,915		40,843
Gain on fair value hedged items		12,013		25,469
Others		2,677		881

Total		1,504,523		728,694

(*)	The Bank manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).

- 129 -

(3)	Details of other operating expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Loss on transactions of foreign exchange (*1)		1,010,813		1,693,920
KDIC deposit insurance premium		479,229		492,443
Contribution to miscellaneous funds		522,390		526,544
Loss on derivatives (designated for hedging)		9,532		24,252
Loss on fair value hedged items		92,138		64,571
Others (*2)		112,838		146,525

Total		2,226,940		2,948,255

(*1)	The Bank manages currency risk based on a comprehensive position that includes both domestic and international spot and futures foreign exchange positions. Details on gains and losses related to derivatives are described in Note 37. (2).

(*2)	‘Others’ for the years ended December 31, 2025 and 2024, include 32,495 million Won and 28,509 million Won, respectively, of amortization expenses for intangible assets.

(4)	Share-based Payment

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

Performance condition share-based payment


Subject to		Shares granted for the year 2021 (*4)
Type of payment		Cash-settled
Vesting period		January 1, 2021 ~ December 31, 2024
Date of payment		January 1, 2025
Fair value (Unit: Korean Won) (*1)		—
Valuation method		—
Dividend yield		—
Expected maturity		—
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	—
	As of December 31, 2024	865,494 shares
Subject to		Shares granted for the year 2022
Type of payment		Cash-settled
Vesting period		January 1, 2022 ~ December 31, 2025
Date of payment		January 1, 2026
Fair value (Unit: Korean Won) (*1)		27,713
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		0 year
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	737,601 shares
	As of December 31, 2024	737,601 shares

- 130 -


Subject to		Shares granted for the year 2023
Type of payment		Cash-settled
Vesting period		January 1, 2023 ~ December 31, 2026
Date of payment		January 1, 2027
Fair value (Unit: Korean Won) (*1)		25,763
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		1 year
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	755,920 shares
	As of December 31, 2024	755,920 shares
Subject to		Shares granted for the year 2024
Type of payment		Cash-settled
Vesting period		January 1, 2024 ~ December 31, 2027
Date of payment		January 1, 2028
Fair value (Unit: Korean Won) (*1)		23,949
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		2 years
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	1,189,935 shares
	As of December 31, 2024	1,189,935 shares
Subject to		Shares granted for the year 2025
Type of payment		Cash-settled
Vesting period		January 1, 2025 ~ December 31, 2028
Date of payment		January 1, 2029
Fair value (Unit: Korean Won) (*1)		22,263
Valuation method		Black-Scholes Model
Dividend yield		7.300%
Expected maturity		3 years
Number of shares measured as of the closing date (2),(3)	As of December 31, 2025	875,569 shares
	As of December 31, 2024	- shares

(*1)

(*2)

(*3)	As of December 31, 2025, the remaining quantity and granted quantity are the same.

(*4)	It has been fully paid as of December 31, 2025.

The Bank 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 per every closing period. As of December 31, 2025 and 2024, the book value of the liabilities related to the performance condition share-based payments recognized by the Bank is 87,906 million Won and 50,674 million Won, respectively.

- 131 -

41.

OTHER NON-OPERATING INCOME (EXPENSES)

(1)	Details of gains or losses on valuation of investments in subsidiaries and associates recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Impairment loss		5,368		2,386

(2)	Details of other non-operating income and expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Other non-operating income		142,432			145,933
Other non-operating expenses		(267,998	)		(174,773	)

Total		(125,566	)		(28,840	)

(3)	Details of other non-operating income recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Rental fee income		28,330		29,338
Dividend gains on investment in subsidiaries and associates		43,187		73,339
Equity method trading income		—		12,609
Gains on disposal of assets held for sale		33,598		—
Gains on disposal of properties and equipment, intangible assets and other assets		6,177		337
Others		31,140		30,310

Total		142,432		145,933

(4)	Details of other non-operating expenses recognized for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Depreciation on investment properties		5,355		7,810
Interest expenses of rent leasehold deposits		1,113		1,631
Losses on disposal of properties and equipment, intangible assets and other assets		1,379		1,435
Impairment loss of properties and equipment, intangible assets and other assets		360		217
Donation		143,444		111,022
Others (*)		116,347		52,658

Total		267,998		174,773

(*)	Other special losses related to other provisions for the years ended December 31, 2025 and 2024 are 98,913 million Won and 31,023 million Won, respectively.

- 132 -

42.

INCOME TAX EXPENSE

(1)	Details of income tax expenses for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Current tax expense
Current tax expense in respect of the current year		1,012,014			474,798
Adjustments recognized in the current period in relation to the current tax of prior periods		8,735			(32,584	)
Current tax charged to other equity directly		(853	)		4,383

Sub-total		1,019,896			446,597

Deferred tax expense
Change in deferred tax assets (liabilities) relating to the temporary differences		(298,903	)		404,805
Deferred tax charged to other equity directly		28,748			16,585

Sub-total		(270,155	)		421,390

Income tax expense		749,741			867,987

(2)	Income tax expenses reconciled to net income before income tax expense for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025			2024
Net income before income tax expense		3,308,601			3,662,539
Tax calculated at statutory tax rate (*)		863,109			956,548
Adjustments
Effect of income that is exempt from taxation		(29,990	)		(30,868	)
Effect of expense not deductible in determining taxable profit		22,413			11,816
Adjustments recognized in the current period in relation to the current tax of prior periods		8,735			(32,584	)
Effect of income tax expense that is resulting from consolidated tax return		(111,659	)		(66,172	)
Others		(2,867	)		29,247

Sub-total		(113,368	)		(88,561	)

Income tax expense		749,741			867,987

Effective tax rate		22.7	%		23.7	%

(*)	The applicable income tax rate; 1) 9.9% for below 200 million Won, 2) 20.9% for above 200 million Won and below 20 billion Won, 3) 23.1% for above 20 billion Won and below 300 billion Won, 4) 26.4% for above 300 billion Won.

- 133 -

(3)	Changes in cumulative temporary differences for the years ended December 31, 2025 and 2024, are as follows (Unit: Korean Won in millions):


	For the year ended December 31, 2025
	Beginning balance			Recognized as income (loss)			Recognized as other comprehensive income (loss)			Ending balance
Gain (loss) on financial assets		(253,137	)		90,877			16,363			(145,897	)
Gain (loss) on valuation of derivatives		(226,996	)		46,903			—			(180,093	)
Accrued income		(112,273	)		(7,751	)		—			(120,024	)
Provision for loan losses		18,957			10,121			—			29,078
Loans and receivables written off		4,494			210			—			4,704
Loan origination costs and fees		(161,273	)		41,046			—			(120,227	)
Defined benefit liability		439,587			46,079			9,412			495,078
Deposits with employee retirement insurance trust		(463,300	)		(68,765	)		—			(532,065	)
Provision for guarantee		5,594			1,412			—			7,006
Other provision		107,006			15,432			—			122,438
Others		(135,731	)		94,591			2,973			(38,167	)

Net deferred tax assets (liabilities)		(777,072	)		270,155			28,748			(478,169	)


	For the year ended December 31, 2024
	Beginning balance			Recognized as income (loss)			Recognized as other comprehensive income (loss)			Ending balance
Gain (loss) on financial assets		(146,804	)		(114,842	)		8,509			(253,137	)
Gain (loss) on valuation of derivatives		49,556			(276,552	)		—			(226,996	)
Accrued income		(128,508	)		16,235			—			(112,273	)
Provision for loan losses		879			18,078			—			18,957
Loans and receivables written off		4,382			112			—			4,494
Loan origination costs and fees		(145,464	)		(15,809	)		—			(161,273	)
Defined benefit liability		373,503			45,500			20,584			439,587
Deposits with employee retirement insurance trust		(445,731	)		(17,569	)		—			(463,300	)
Provision for guarantee		7,803			(2,209	)		—			5,594
Other provision		150,961			(43,955	)		—			107,006
Others		(92,845	)		(30,379	)		(12,507	)		(135,731	)

Net deferred tax assets (liabilities)		(372,268	)		(421,390	)		16,586			(777,072	)

(4)	Unrealizable temporary differences as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Deductible temporary differences		264,208			258,693
Taxable temporary differences		(108,055	)		(108,055	)

Total		156,153			150,638

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

- 134 -

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

•

The Bank can control the timing of the reversal of the temporary differences.

•

It is probable that the temporary differences will not be reversed in the foreseeable future.

(5)	Details of accumulated deferred tax charged directly to other equity as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025			December 31, 2024
Net loss on valuation of financial assets at FVTOCI		(1,667	)		(18,030	)
Net loss on changes in credit risk of financial liabilities designated to be measured at FVTPL		(483	)		(483	)
Net loss on foreign currency translation of foreign operations		(5,805	)		(8,778	)
Net gain on evaluation of hedges of net investment in foreign operations		2,102			2,955
Remeasurement gain related to defined benefit plan		35,391			25,979

Total		29,538			1,643

(6)	Current tax assets and liabilities as of December 31, 2025 and 2024, are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Current tax assets		26,747		33,122
Current tax liabilities		676,845		76,361

(7)	Impact of Pillar Two income taxes

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

- 135 -

43.

EARNINGS PER SHARE (“EPS”)

(1)	Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding for the years ended December 31, 2025 and 2024 (Unit: Korean Won in millions, except for EPS and number of shares):


	For the years ended December 31
	2025			2024
Net income for the period attributable to common shareholders		2,558,860			2,794,552
Dividends to hybrid securities		(89,134	)		(76,249	)
Net income attributable to common shareholders		2,469,726			2,718,303
Weighted average number of common shares outstanding (Unit: million shares)		716			716
Basic EPS (Unit: Korean Won)		3,449			3,797

(2)	The weighted average number of common shares outstanding for the years ended December 31, 2025 and 2024 are as follows:

For the year ended December 31, 2025

Period

Number of
shares

Days

Accumulated
number of shares
outstanding
during period

Common shares issued at the beginning of the period

2025-01-01 ~ 2025-12-31

716,000,000

365

261,340,000,000

Sub-total (①)

261,340,000,000

Weighted average number of common shares
outstanding (②=(①/365))

716,000,000

For the year ended December 31, 2024

Period

Number of
shares

Days

Accumulated
number of shares
outstanding
during period

Common shares issued at the beginning of the period

2024-01-01 ~ 2024-12-31

716,000,000

366

262,056,000,000

Sub-total (①)

262,056,000,000

Weighted average number of common shares
outstanding (②=(①/366))

716,000,000

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

- 136 -

44.

CONTINGENT LIABILITIES AND COMMITMENTS

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


	December 31, 2025 (*)		December 31, 2024 (*)
Confirmed guarantees
Guarantee for loans		69,961		60,571
Acceptances		241,934		202,342
Guarantees in acceptances of imported goods		66,879		63,488
Other confirmed guarantees		11,419,406		10,893,270

Sub-total		11,798,180		11,219,671

Unconfirmed guarantees
Local letter of credit		146,464		163,053
Letter of credit		2,541,397		3,120,971
Other unconfirmed guarantees		1,277,778		1,465,226

Sub-total		3,965,639		4,749,250

Commercial paper purchase commitments and others		2,685,127		2,734,770

Total		18,448,946		18,703,691

(*)	Includes financial guarantees of 7,911,285 million Won and 6,978,786 million Won as of December 31, 2025 and December 31, 2024, respectively.

(2)	Details of loan commitments and others as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Loan commitments		86,157,613		88,385,611
Other commitments		7,520,384		6,871,259

(3)	Litigation case

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

December 31, 2025

December 31, 2024

As plaintiff

As defendant

As plaintiff

As defendant

Number of cases (*)

28 cases

187 cases

19 cases

195 cases

Amount of litigation

277,374

216,653

257,936

232,073

Provisions for litigations

46,594

14,383

(*)	The number of cases as of December 31, 2025 and 2024 does not include cases such as loan-related execution or simple extension of loan prescription, litigation where the substantive party is not the Bank, or fraudulent lawsuits.

- 137 -

45.

RELATED PARTY TRANSACTIONS

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

(1)	Related parties


		Related parties
Parent company		Woori Financial Group Inc.

Subsidiaries		Woori America Bank, PT Bank Woori Saudara Indonesia 1906 Tbk, Woori Global Markets Asia Limited, Woori Bank China Limited, AO Woori Bank, Banco Woori Bank do Brasil S.A., Korea BTL Infrastructure Fund, Woori Bank (Cambodia) PLC, Woori Finance Myanmar Co., Ltd., Wealth Development Bank, Woori Bank Vietnam Limited, Woori Bank Europe, Woori Bank Principal Guaranteed Trust and Woori Bank Principal and Interest Guaranteed Trust (Consolidated Trusts), Jeonju Iwon Ltd. and 42 structured entities (Consolidated structured entities), Heungkuk Global Private Placement Investment Trust No. 1 and 15 beneficiary certificates (Consolidated beneficiary certificates)

Associates		W Service Networks Co., Ltd., Korea Credit Bureau Co., Ltd., Korea Finance Security Co., Ltd., LOTTE CARD Co., Ltd., K BANK Co., Ltd., and others (Dongwoo C & C Co., Ltd. and 39 associates)

Other related parties		Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates(1), Woori Card Co., Ltd. and its subsidiaries, Woori Financial Capital Co., Ltd. and its subsidiaries and associates, Woori Investment Securities Co., Ltd. and its subsidiaries and associates (2), ABL Life Insurance Co.,Ltd. and its subsidiaries and associates(*1), Woori Asset Trust Co., Ltd., Woori Savings Bank, Woori Financial F&I Co., Ltd. and its subsidiaries and associates, Woori Asset Management Co., Ltd. and its subsidiaries and associates, Woori Venture Partners Co., Ltd. and its subsidiaries and associates, Woori Private Equity Asset Management Co., Ltd. and its associates, Woori Credit Information Co., Ltd., Woori Fund Service Co., Ltd., Woori FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Godo Kaisha Oceanos No. 1, JC Assurance Private Equity Partnership No. 2, IGEN 2022 Private Equity Fund No. 1, etc.

(*1)	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates and ABL Life Insurance Co.,Ltd. and its subsidiaries and associates were incorporated into Woori Financial Group for the year ended December 31, 2025.

(*2)	Woori Investment Bank Co., Ltd. was renamed to Woori Investment Securities Co., Ltd. following a merger with Korea Foss Securities Co., Ltd. for the year ended December 31, 2024.

(2)	Major assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):


Related parties		A title of account	December 31, 2025			December 31, 2024
Parent company	Woori Financial Group Inc.	Other assets		27,364			33,632
		Deposits due to customers		489,321			1,285,912
		Other liabilities		652,362			63,893
Subsidiaries	Woori America Bank	Cash and cash equivalents		377,580			528,095
		Other assets		6			3
	PT Bank Woori Saudara Indonesia 1906 Tbk	Cash and cash equivalents		39,297			45,884
		Loans		559,611			205,800
		Expected credit loss allowance		(1,140	)		(412	)
		Other assets		411			48
	Woori Global Markets Asia Limited	Loans		446,142			415,455
		Expected credit loss allowance		(263	)		(235	)
		Other assets		2,517			55
		Deposits due to customers		20,712			8,371
		Other liabilities		14			—

- 138 -


Related parties		A title of account	December 31, 2025			December 31, 2024
	Woori Bank China Limited	Cash and cash equivalents		47,869			61,263
		Other assets		17,377			13,313
		Deposits due to customers		188,266			389,395
		Borrowings		457,518			43,405
		Other liabilities		17,352			13,303
	AO Woori Bank	Cash and cash equivalents		7,626			74,761
		Loans		171,870			155,932
		Expected credit loss allowance		(1,163	)		(1,110	)
		Other assets		23,834			15,459
		Deposits due to customers		8,861			6,119
	Woori Finance Myanmar Co., Ltd.	Loans		15,497			10,114
		Expected credit loss allowance		(31	)		(19	)
		Other assets		120			16
		Other liabilities		42			241
	Woori Bank Vietnam Limited	Cash and cash equivalents		28,660			15,064
		Loans		365,866			29,844
		Expected credit loss allowance		(731	)		(58	)
		Derivative assets		4			—
		Other assets		1,858			70
		Deposits due to customers		8,988			2,423
		Borrowings		903,745			44,100
		Other liabilities		308			1,175
	Woori Bank (Cambodia) PLC	Loans		71,745			308,700
		Expected credit loss allowance		(144	)		(592	)
		Other assets		6			3
		Other liabilities		403			328
	Woori Bank Europe	Cash and cash equivalents		124,141			3,426
		Loans		432,749			478,495
		Expected credit loss allowance		(1,309	)		(1,083	)
		Other assets		4,093			7,200
		Borrowings		29,884			81,327
	Banco Woori Bank do Brasil S.A.	Loans		7,246			8,232
		Expected credit loss allowance		(4	)		(5	)
		Other assets		43			57
	Wealth Development Bank	Loans		14,349			—
		Expected credit loss allowance		(29	)		—
		Other assets		314			—
		Other liabilities		70			120
	Korea BTL Infrastructure Fund	Other assets		9			9
	Consolidated trusts	Other liabilities		151,307			105,332
	Consolidated structured entities	Loans		6,784			8,759
		Expected credit loss allowance		(26	)		(27	)
		Derivative assets		5,594			14,027
		Other assets		585			243
		Deposits due to customers		9,136			6,600
		Derivative liabilities		3,201			720
		Other liabilities		8,875			9,064

- 139 -


Related parties		A title of account	December 31, 2025			December 31, 2024
	Consolidated beneficiary certificates	Derivative liabilities		937			2,003
Associates	W Service Networks Co., Ltd.	Deposits due to customers		3,009			3,054
		Other liabilities		316			309
	Korea Credit Bureau Co., Ltd.	Deposits due to customers		2,615			780
		Other liabilities		10			—
	Korea Finance Security Co., Ltd.	Loans		3,400			3,200
		Expected credit loss allowance		(23	)		(42	)
		Deposits due to customers		2,138			1,145
		Other liabilities		1			3
	LOTTE CARD Co., Ltd.	Loans		14,349			14,700
		Expected credit loss allowance		(29	)		(28	)
		Derivative assets		564			1,075
		Other assets		62			48
		Deposits due to customers		22,869			20,207
		Derivative liabilities		807			—
		Other liabilities		289			273
	K BANK Co., Ltd.	Other assets		43			—
		Other liabilities		158,668			193,719
	Others (*)	Loans		—			41
		Deposits due to customers		1,830			1,993
		Other liabilities		541			232
Other related parties	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates	Derivative assets		31,821			—
		Other assets		266,487			—
		Deposits due to customers		94,371			—
		Derivative liabilities		827			—
		Other liabilities		8,328			—
	Woori Card Co., Ltd. and its subsidiaries	Loans		5,740			5,880
		Expected credit loss allowance		(40	)		(39	)
		Derivative assets		102			315
		Other assets		14,047			12,943
		Borrowings		22,733			48,464
		Deposits due to customers		67,039			25,482
		Derivative liabilities		32,449			69,580
		Other liabilities		23,537			26,262
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates	Deposits due to customers		399,312			990,946
		Other liabilities		1,942			2,811
	ABL Life Insurance Co.,Ltd. and its subsidiaries and associates	Deposits due to customers		8,286			—
		Other liabilities		70			—
	Woori FIS Co., Ltd.	Other assets		177			111
		Deposits due to customers		9,082			6,968
		Other liabilities		15,682			17,631
	Woori Private Equity Asset Management Co., Ltd. and its associates	Derivative assets		—			255
		Deposits due to customers		15,408			12,730
		Other liabilities		18			1
	Woori Finance Research Institute Co., Ltd.	Deposits due to customers		1,301			1,839
		Other liabilities		553			534
	Woori Credit Information Co., Ltd.	Other assets		6			7
		Deposits due to customers		14,039			9,469
		Other liabilities		9,852			9,857

- 140 -


Related parties		A title of account	December 31, 2025		December 31, 2024
	Woori Fund Service Co., Ltd.	Deposits due to customers		20,939		17,910
		Other liabilities		1,592		1,681
	Woori Asset Management Co., Ltd. and its subsidiaries and associates	Deposits due to customers		33,797		21,302
	Woori Asset Trust Co., Ltd.	Deposits due to customers		93,370		198,773
		Other liabilities		116		253
	Woori Financial Capital Co., Ltd. and its subsidiaries and associates	Deposits due to customers		79,619		473,951
		Other liabilities		8,084		6,177
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates	Loans		—		4,900
		Expected credit loss allowance		—		(9	)
		Deposits due to customers		10,185		13,984
		Other liabilities		86		178
	Woori Japan General Type Private Real Estate Feeder Investment Trust No. 1-1 and its subsidiaries	Derivative liabilities		—		1
	Woori Savings Bank	Other assets		18		14
	Godo Kaisha Oceanos No. 1	Loans		—		38,770
		Expected credit loss allowance		—		(272	)
		Other assets		—		63
	Woori Venture Partners Co., Ltd. and its subsidiaries and associates	Deposits due to customers		56,120		78,494
		Other liabilities		189		359
	JC Assurance Private Equity Partnership No. 2	Deposits due to customers		1		28
	IGEN 2022 Private Equity Fund No. 1	Deposits due to customers		428		427

(*)	Others include Win Mortgage Co., Ltd., Dongwoo C & C Co., Ltd. and others as of December 31. 2025 and 2024.

- 141 -

(3)	Major gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):


			For the years ended December 31
Related parties		A title of account	2025			2024
Parent company	Woori Financial Group Inc.	Fees income		19			19
		Other income		4,400			4,277
		Interest expenses		27,356			51,778
		Fees expenses		1,815			1,625
Subsidiaries	Woori America Bank	Interest income		—			347
		Fees income		562			432
		Other income		198			210
		Reversal of impairment losses due to credit loss		—			(11	)
	PT Bank Woori Saudara Indonesia 1906 Tbk	Interest income		19,577			17,856
		Dividends income		9,451			16,697
		Fees income		640			254
		Provision of impairment losses due to credit loss		729			213
	Woori Global Markets Asia Limited	Interest income		21,235			23,387
		Fees income		193			150
		Interest expenses		149			—
		Provision (Reversal) of impairment losses due to credit loss		28			(14	)
	Woori Bank China Limited	Interest income		71			48
		Fees income		660			579
		Gain on derivatives		33,057			54,050
		Interest expenses		3,171			444
		Fees expenses		237			217
		Loss on derivatives		47,258			10,824
	AO Woori Bank	Interest income		7,073			7,306
		Fees income		1			1
		Provision (Reversal) of impairment losses due to credit loss		53			(2,460	)
	Banco Woori Bank do Brasil S.A.	Interest income		564			725
		Fees income		21			29
		Reversal of impairment losses due to credit loss		—			2
	Wealth Development Bank	Interest income		135			—
		Fees income		250			13
		Provision (Reversal) of impairment losses due to credit loss		(34	)		81
	Korea BTL Infrastructure Fund	Dividends income		23,669			24,374
		Fees income		74			73
	Woori Finance Myanmar Co., Ltd.	Interest income		768			718
		Fees income		186			204
		Provision (Reversal) of impairment losses due to credit loss		(83	)		22

- 142 -


			For the years ended December 31
Related parties		A title of account	2025			2024
	Woori Bank Vietnam Limited	Interest income		3,402			1,335
		Dividends income		—			6,483
		Fees income		1,516			515
		Gain on derivatives		4			1
		Interest expenses		5,011			12,951
		Provision (Reversal) of impairment losses due to credit loss		660			(546	)
	Woori Bank (Cambodia) PLC	Interest income		10,026			30,337
		Fees income		484			492
		Reversal of impairment losses due to credit loss		(374	)		(708	)
	Woori Bank Europe	Interest income		11,113			20,034
		Fees income		400			124
		Provision (Reversal) of impairment losses due to credit loss		226			(1,092	)
	Consolidated trusts	Other income		6,217			5,728
		Interest expenses		3,650			3,547
	Consolidated beneficiary certificates	Gain on derivatives		1,066			—
		Loss on derivatives		—			988
	Consolidated structured entities	Interest income		328			573
		Fees income		23,912			22,895
		Gain on derivatives		361			9,869
		Interest expenses		6			5
		Loss on derivatives		10,951			909
		Provision (Reversal) of impairment losses due to credit loss		92			(1,585	)
Associates	W Service Networks Co., Ltd.	Dividends income		5			5
		Other income		37			35
		Interest expenses		30			37
	Korea Credit Bureau Co., Ltd.	Dividends income		90			90
		Interest expenses		10			—
	Korea Finance Security Co., Ltd.	Interest income		152			142
		Interest expenses		2			3
		Reversal of impairment losses due to credit loss		(22	)		(30	)
	LOTTE CARD Co., Ltd.	Interest income		1,503			1,581
		Fees income		3,416			3,739
		Dividends income		7,743			15,591
		Gain on derivatives		248			1,075
		Interest expenses		2,593			4,127
		Loss es on derivatives		1,318			457
		Provision of impairment losses due to credit loss		17			12
	K BANK Co., Ltd.	Other expenses		2			—
	Others (*)	Dividends income		2,229			10,100

- 143 -


			For the years ended December 31
Related parties		A title of account	2025		2024
		Interest expenses		14,016		18,044
Other related parties	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates	Fees income		8,809		—
		Gain on derivatives		20,410		—
		Other income		3,716		—
		Interest expenses		1,221		—
		Other expenses		2,513		—
	Woori Card Co., Ltd. and its subsidiaries	Interest income		1,082		974
		Fees income		70,655		89,354
		Gain on derivatives		1,924		2,865
		Other income		1,212		1,119
		Interest expenses		357		163
		Fees expenses		821		684
		Loss on derivatives		589		45,027
		Provision (Reversal) of impairment losses due to credit loss		9		(12	)
		Other expenses		7		—
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates	Interest income		156		5
		Fees income		3,410		2,874
		Other income		—		1,098
		Interest expenses		138		107
		Fees expenses		40		47
		Provision (Reversal) of impairment losses due to credit loss		9		(14	)
		Other expenses		577		91
	ABL Life Insurance Co.,Ltd. and its subsidiaries and associates	Fees income		8,036		—
		Interest expenses		23		—
		Other expenses		70		—
	Woori FIS Co., Ltd.	Fees income		355		681
		Other income		8,150		7,725
		Interest expenses		135,201		135,264
	Woori Private Equity Asset Management Co., Ltd. and its associates	Fees income		22		23
		Gain on derivatives		—		255
		Interest expenses		316		553
		Loss on derivatives		109		268
	Woori Finance Research Institute Co., Ltd.	Fees income		23		20
		Other income		818		806
		Interest expenses		62		78
	Woori Credit Information Co., Ltd.	Fees income		95		91
		Other income		447		765
		Interest expenses		347		507
		Fees expenses		14,081		17,249
	Woori Fund Service Co., Ltd.	Fees income		51		51
		Other income		295		384
		Interest expenses		519		587
		Fees expenses		21		35

- 144 -


			For the years ended December 31
Related parties		A title of account	2025			2024
	Woori Asset Management Co., Ltd. and its subsidiaries and associates	Fees income		100			89
		Interest expenses		84			25
	Woori Asset Trust Co., Ltd.	Fees income		216			262
		Interest expenses		3,006			5,538
		Fees expenses		5,360			11,905
	Woori Financial Capital Co., Ltd. and its subsidiaries and associates	Fees income		4,405			3,965
		Interest expenses		58			47
		Loss on derivatives		—			6
		Provision (Reversal) of impairment losses due to credit loss		11			(6	)
		Other expenses		5,297			1,857
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates	Interest income		1,672			9,739
		Fees income		908			576
		Interest expenses		17			15
		Reversal of impairment losses due to credit loss		(100	)		(707	)
	Woori Savings Bank	Fees income		482			925
	Woori Venture Partners Co., Ltd.	Fees income		143			—
		Interest expenses		1,968			1,523
	Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries	Interest income		—			196
		Reversal of impairment losses due to credit loss		—			(14	)
		Loss on derivatives		—			465
	Godo Kaisha Oceanos No. 1	Interest income		354			702
		Provision (Reversal) of impairment losses due to credit loss		(272	)		214
	IGEN 2022 Private Equity Fund No.1	Interest expenses		—			1
	WOORI ZIP 1	Interest income		—			59
		Reversal of impairment losses due to credit loss		—			(1	)
	WOORI ZIP 2	Interest income		—			84
		Reversal of impairment losses due to credit loss		—			(1	)
	Woori Japan General Type Private Real Estate Feeder Investment Trust No.2-1	Loss on derivatives		—			44

(*)	Others include Win Mortgage Co., Ltd., Dongwoo C & C Co., Ltd. and others as of December 31, 2025 and 2024.

- 145 -

(4)	Major loan transactions with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
Related parties		Beginning balance		Loan		Collection		Others			Ending balance (*)
Subsidiaries	PT Bank Woori Saudara Indonesia 1906 Tbk		205,800		675,007		329,520		8,324			559,611
	Woori Global Markets Asia Limited		415,455		1,281,672		1,244,315		(6,670	)		446,142
	Woori Bank China Limited		—		94,580		94,580		—			—
	AO Woori Bank		155,932		538,208		535,964		13,694			171,870
	Banco Woori Bank do Brasil S.A.		8,232		18,487		19,273		(200	)		7,246
	Wealth Development Bank		—		15,780		1,465		34			14,349
	Woori Finance Myanmar Co., Ltd.		10,114		5,625		—		(242	)		15,497
	Woori Bank Vietnam Limited		29,844		1,129,636		791,852		(1,762	)		365,866
	Woori Bank (Cambodia) PLC		308,700		—		229,157		(7,798	)		71,745
	Woori Bank Europe		478,495		658,109		728,207		24,352			432,749
	Consolidated structured entities		8,759		1,950		3,925		0			6,784
Associates	LOTTE CARD Co., Ltd.		14,700		—		—		(351	)		14,349
	Korea Finance Security Co., Ltd.		3,200		1,600		1,400		—			3,400
	Others		41		—		41		—			—
Other related Parties	Woori Card Co., Ltd. and its subsidiaries		5,880		5,754		5,866		(28	)		5,740
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates		4,900		189,900		194,800		—			—
	Godo Kaisha Oceanos No. 1		38,770		22,921		64,002		2,311			—

(*)	Settlement payment from normal operation among the related parties were excluded, and in the case of a limited loan, it was presented as a net increase or decrease.


		For the year ended December 31, 2024
Related parties		Beginning balance		Loan		Collection		Others			Ending balance (*)
Subsidiaries	PT Bank Woori Saudara Indonesia 1906 Tbk		322,350		373,520		528,924		38,854			205,800
	Woori Global Markets Asia Limited		404,506		757,502		789,077		42,524			415,455
	AO Woori Bank		153,741		388,872		387,889		1,208			155,932
	Banco Woori Bank do Brasil S.A.		3,739		32,424		28,681		750			8,232
	Woori Finance Myanmar Co., Ltd.		8,701		176		—		1,237			10,114
	Woori Bank Vietnam Limited		283,251		81,880		337,698		2,411			29,844
	Woori Bank (Cambodia) PLC		699,757		52,223		408,820		(34,460	)		308,700
	Woori America Bank		17,119		17,317		34,964		528			—
	Woori Bank Europe		571,156		2,470,815		2,557,929		(5,547	)		478,495
	Consolidated structured entities		9,956		1,022		2,219		—			8,759
Associates	LOTTE CARD Co., Ltd.		—		263,306		250,000		1,394			14,700
	Korea Finance Security Co., Ltd.		3,197		2,300		2,297		—			3,200
	Others		41		—		—		—			41
Other related Parties	Woori Financial Capital Co., Ltd. and its subsidiaries and associates		—		50,000		50,000		—			—
	Woori Card Co., Ltd. and its subsidiaries		5,158		—		—		722			5,880
	Woori Financial F&I Co., Ltd. and its subsidiaries and associates		165,800		856,300		1,017,200		—			4,900
	Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries		19,589		—		19,784		195			—
	Godo Kaisha Oceanos No. 1		38,122		—		—		648			38,770
	WOORI ZIP 1		11,317		—		11,227		(90	)		—
	WOORI ZIP 2		16,063		—		15,936		(127	)		—

(*)	Settlement payment from normal operation among the related parties were excluded, and in case of a limited loan, it was presented as a net increase or decrease.

- 146 -

(5)	Changes in major deposits due to customers with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
Related parties		Beginning balance		Borrowings		Repayment and others (*2)			Ending balance (*1)
Parent company	Woori Financial Group Inc.		1,274,000		6,245,000		7,054,000			465,000
Subsidiary	Woori Global Markets Asia Limited		6,525		74,451		66,191			14,785
Associates	W Service Networks Co., Ltd.		1,000		—		—			1,000
	Korea Credit Bureau Co., Ltd.		—		1,000		—			1,000
	Win Mortgage Co., Ltd.		1,387		3,529		3,564			1,352
Other related parties	Woori Credit Information Co., Ltd.		5,599		8,502		4,002			10,099
	Woori Fund Service Co., Ltd.		15,500		4,000		—			19,500
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates		2,431		2,000		3,000			1,431
	Woori Finance Research Institute Co., Ltd.		800		8,700		8,500			1,000
	Woori Asset Trust Co., Ltd.		175,000		569,720		654,720			90,000
	Woori Private Equity Asset Management Co., Ltd. and its associates		10,000		87,000		87,000			10,000
	Woori Venture Partners Co., Ltd. and its subsidiaries and associates		76,000		239,000		261,000			54,000
	Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates (*3)		—		90,045		(2,505	)		92,550
	ABL Life Insurance Co.,Ltd. and its subsidiaries and associates (*3)		—		1,055		1,000			55

(*1)	The details of payments made between related parties and the deposits due to customers that can be taken in and out easily are excluded.

(*2)	It includes the gain (loss) on valuation of the financial liabilities designated to be measured at FVTPL of Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates.

(*3)	It includes transactions that occurred prior to the inclusion of the related party.


		For the year ended December 31, 2024
Related parties		Beginning balance		Borrowings		Repayment and others		Ending balance (*)
Parent company	Woori Financial Group Inc.		1,354,000		4,703,000		4,783,000		1,274,000
Subsidiary	Woori Global Markets Asia Limited		—		51,883		45,358		6,525
Associates	W Service Networks Co., Ltd.		1,000		2,000		2,000		1,000
	Win Mortgage Co., Ltd.		600		2,266		1,479		1,387
Other related parties	Woori Credit Information Co., Ltd.		6,199		4,500		5,100		5,599
	Woori Fund Service Co., Ltd.		17,000		15,500		17,000		15,500
	Woori Investment Securities Co., Ltd. and its subsidiaries and associates		2,000		2,431		2,000		2,431
	Woori Finance Research Institute Co., Ltd.		—		9,600		8,800		800
	Woori Asset Trust Co., Ltd.		56,000		874,816		755,816		175,000
	Woori Private Equity Asset Management Co., Ltd. and its associates		22,000		114,000		126,000		10,000
	Woori Venture Partners Co., Ltd. and its subsidiaries and associates		23,000		201,000		148,000		76,000

(*)	The details of payments made between related parties and the deposits due to customers that can be taken in and out easily are excluded.

- 147 -

(6)	Major borrowing transactions with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


		For the year ended December 31, 2025
Related parties		Beginning balance		Borrowings		Repayment		Others		Ending balance
Subsidiaries	Woori Bank China Limited		43,405		1,059,576		645,594		131		457,518
	Woori Bank Vietnam Limited		44,100		2,825,624		1,966,537		558		903,745
	Woori Bank Europe		81,327		116,307		168,196		446		29,884
Other related parties	Woori Card Co., Ltd. and its subsidiaries		25,482		312,656		315,405		0		22,733


		For the year ended December 31, 2024
Related parties		Beginning balance		Borrowings		Repayment		Others		Ending balance
Subsidiaries	Woori Bank China Limited		13,589		127,565		97,749		—		43,405
	Woori Bank Vietnam Limited		434,780		180,720		571,400		—		44,100
	Woori Bank Europe		66,801		173,284		158,758		—		81,327
Other related parties	Woori Card Co., Ltd. and its subsidiaries		24,002		282,802		281,322		—		25,482

(7)	Guarantees with the related parties are as follows (Unit: Korean Won in millions):

The amount of guarantees provided to the related parties by the Bank as of December 31, 2025 and 2024 are as follows:


	December 31, 2025		December 31, 2024		Warranty
PT Bank Woori Saudara Indonesia 1906 Tbk		71,193		46,081	Confirmed guarantees in foreign currencies and others
Woori Bank China Limited		176,872		234,196	Confirmed guarantees in foreign currencies and others
AO Woori Bank		11,479		11,811	Confirmed guarantees in foreign currencies and others
Banco Woori Bank do Brasil S.A.		7,879		10,560	Confirmed guarantees in foreign currencies and others
Woori Global Markets Asia Limited		238,566		262,395	Confirmed guarantees in foreign currencies and others
Woori Bank Europe		51,971		56,570	Confirmed guarantees in foreign currencies and others
Woori Bank Vietnam Limited		136,552		95,882	Confirmed guarantees in foreign currencies and others
Woori Finance Myanmar Co., Ltd.		4,305		20,286	Confirmed guarantees in foreign currencies
Wealth Development Bank		64,571		46,599	Confirmed guarantees in foreign currencies
LOTTE CARD Co., Ltd.		1,650		1,691	Confirmed guarantees in foreign currencies

The amount of guarantees and unused loan commitments provided by the related parties to the Bank as of December 31, 2025 and 2024 are as follows:


	December 31, 2025		December 31, 2024		Warranty
Woori Card Co., Ltd. and its subsidiaries		149,960		122,847	Loan commitment in local currency
Woori Bank Vietnam Limited		158,043		226,515	Confirmed guarantees in foreign currencies and others
Woori Bank China Limited		3,362		3,375	Confirmed guarantees in foreign currencies and others

- 148 -

(8)	The amount of commitments of derivatives and other commitments to the related parties as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	Warranty	December 31, 2025		December 31, 2024
Woori Private Equity Asset Management Co., Ltd. and its associates	Derivatives		—		9,719
Woori Card Co., Ltd. and its subsidiaries	Derivatives		293,490		484,000
	Unsettled commitment		500,000		500,000
Woori Investment Securities Co., Ltd. and its subsidiaries and associates	Unsettled commitment		150,000		150,000
Woori Financial Capital Co., Ltd. and its subsidiaries and associates	Unsettled commitment		200,000		200,000
Woori Financial F&I Co., Ltd. and its subsidiaries and associates	Unsettled commitment		150,000		345,100
Tong Yang Life Insurance Co.,Ltd. and its subsidiaries and associates.	Derivatives		472,165		—
ABL Life Insurance Co.,Ltd. and its subsidiaries and associates.	Unsettled commitment		20,000		—
Woori Bank China Limited	Derivatives		173		115
Woori Finance Myanmar Co., Ltd.	Loan commitment in foreign currency		6,027		—
Woori Bank (Cambodia) PLC	Loan commitment in foreign currency		717,450		398,370
	Unsettled commitment		—		248,430
Wealth Development Bank	Unsettled commitment		21,524		—
Korea BTL Infrastructure Fund	Securities purchase commitment		208,078		240,078
Woori Bank Vietnam Limited	Derivatives		196		—
	Unsettled commitment		82,267		117,156
Consolidated beneficiary certificates	Derivatives		17,386		15,767
	Securities purchase commitment		1,727,021		650,997
Consolidated structured entities	Commercial paper purchase commitment and others		2,187,733		2,153,730
	Unsettled commitment		12,216		13,141
	Derivatives		1,308,000		1,131,500
Korea Finance Security Co., Ltd.	Unsettled commitment		200		400
LOTTE CARD Co., Ltd.	Unsettled commitment		478,300		498,400
	Derivatives		440,000		350,000
IBK KIP Seongjang Dideemdol 1st Private Investment Limited Partnership	Securities purchase commitment		4,664		4,664
Crevisse Lime Impact 1st Startup Venture Specialist Private Equity Fund	Securities purchase commitment		50		148
Samsung Together Korea IPPF Private Securities Investment Trust 3 [Equity-FoFs]	Securities purchase commitment		990,000		990,000
STASSETS No. 3 Private Equity Investment Limited Specialized In Start-up Ventures	Securities purchase commitment		1,500		3,000

- 149 -


	Warranty	December 31, 2025		December 31, 2024
NH Woori Newdeal Growth Alpha Private Equity Fund 1	Securities purchase commitment		611		11,379
BTS 2nd Private Equity Fund	Securities purchase commitment		1,234		1,854
Woori Corporate Turnaround No. 1 Private Equity Fund	Securities purchase commitment		17,391		21,639
Green ESG Growth No. 1 Private Equity Fund	Securities purchase commitment		7,048		19,136
Woori Equity Bridge Loan Private Placement Investment Trust No. 1	Securities purchase commitment		14,235		16,835
Woori GP Commitment Loan Private Placement Investment Trust No. 1	Securities purchase commitment		—		1,294
Woori GP Commitment Loan Private Placement Investment Trust No. 2	Securities purchase commitment		2,480		2,640
Woori GP Commitment Loan Private Placement Investment Trust No. 3	Securities purchase commitment		9,450		12,165
Woori Global Mid-market Secondaries Private Placement Investment Trust No. 1	Securities purchase commitment		6,794		6,162
Woori Renewable New Deal Private Placement Investment Trust No. 1	Securities purchase commitment		10,888		15,574
Woori Woori Bank Partners Private Placement Investment Trust No. 1	Securities purchase commitment		327,861		327,861
Woori Woori Bank Partners Private Placement Investment Trust No. 2	Securities purchase commitment		386,165		386,165
Woori Private Real Estate Investment Trust No. 1	Securities purchase commitment		35,137		75,137
Woori Private Real Estate Investment Trust No. 5	Securities purchase commitment		49,214		72,712
Woori Japan General Type Private Real Estate Feeder Investment Trust No.1-1 and its subsidiaries	Derivatives		—		72
Woori Japan Blind General Type Private Real Estate Feeder Investment Trust No.1	Securities purchase commitment		324		331
Woori Policy-type New Deal (Infra Investment) Private Placement Investment Trust No.1	Securities purchase commitment		5,312		5,312
Woori Equity Investment General Type Private Investment Trust No.1	Securities purchase commitment		456		456
Woori Fund Financing General Type Private Investment Trust	Securities purchase commitment		—		14,056
Woori Natixis Partnership Global Private Debt Fund No. 1-1 (USD)	Securities purchase commitment		65,588		117,236

- 150 -


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

- 151 -


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

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

(9)	The details of major investment and recovery transactions with related parties for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


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

(*)	Investment and recovery transactions of subsidiaries and associates are described in Note 13. (5).

- 152 -


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

(*)	Investment and recovery transactions of subsidiaries and associates are described in Note 13. (5).

- 153 -

(10)	Compensation to key management is as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Short-term employee benefits		11,943		14,655
Share-based payment		12,141		7,569
Retirement benefit service costs		431		833

Total		24,515		23,057

(11)	The Bank, Woori Card Co., Ltd. and its subsidiaries are liable to jointly reimburse the Bank’s debts before the split.

(12)

During the year ended December 31, 2025, Woori Investment Securities Co., Ltd. underwrote 40,000 million Won of bonds issued by the Bank and sold the entire underwritten amount on the issuance date. During the year ended December 31, 2024, Woori Investment Securities Co., Ltd. underwrote 40,000 million Won of hybrid securities issued by the Bank and sold the entire underwritten amount on the issuance date.

(13)	The Bank purchased and sold the bonds of 500,000 million Won and 440,000 million Won, respectively, through Woori Investment Securities Co., Ltd. during the year ended December 31, 2025. In addition, the Bank sold the bonds of 80,000 million Won through Tong Yang Life Insurance Co., Ltd.

(14)	As of December 31, 2025, the plan assets deposited in the defined benefit (DB) retirement pension plan managed and administered by Tong Yang Life Insurance Co., Ltd. amount to 266,169 million Won.

- 154 -

46.

TRUST ACCOUNTS

(1)	Trust accounts of the Bank as of December 31, 2025, and December 31, 2024 are as follows (Unit: Korean Won in millions):


	Total assets				Operating income
	December 31, 2025		December 31, 2024		For the years ended December 31
	December 31, 2025		December 31, 2024		2025		2024
Trust accounts		94,330,961		85,894,740		3,043,016		2,544,969

(2)	Receivables and payables from the transactions between the Bank and trust accounts as of December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	December 31, 2025		December 31, 2024
Receivables
Trust fees receivables		48,172		46,273
Payables
Deposits due to customers		119,733		265,364
Borrowings from trust accounts		6,199,212		5,320,238

Total		6,318,945		5,585,602

(3)	Significant transactions between the Bank and trust accounts for the years ended December 31, 2025 and 2024 are as follows (Unit: Korean Won in millions):


	For the years ended December 31
	2025		2024
Revenue:
Trust fees		186,732		162,639
Termination fees		19,249		3,345

Total		205,981		165,984

Expense:
Interest expenses on deposits due to customers		791		955
Interest expenses on borrowings from trust accounts		130,417		152,045

Total		131,208		153,000

- 155 -

(4)	Principal guaranteed trusts and principal and interest guaranteed trusts

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


	December 31, 2025		December 31, 2024
Partial principal guaranteed trusts:
Household money		7,456		7,823
Corporate money		193		189
Installment plan purpose		1,465		1,544

Sub-total		9,114		9,556

Principal guaranteed trusts:
Old-age pension trusts		2,455		2,450
Personal pension trusts		369,257		399,860
Pension trusts		542,034		592,533
Retirement trusts		26,043		26,159
New personal pension trusts		5,579		6,084
New old-age pension trusts		753		815

Sub-total		946,121		1,027,901

Principal and interest guaranteed trusts:
Development trusts		19		19
Unspecified money trusts		333		334

Sub-total		352		353

Total		955,587		1,037,810

- 156 -

47.

LEASES

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


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

Total		337,091		372,732

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


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

There are no lease payments that are not included in the measurement of lease liabilities due to the fact that they are short-term leases or leases for which the underlying asset is of low value for the years ended December 31, 2025 and 2024. The variable lease payments not included in the measurement of lease liabilities for the years ended December 31, 2025 and 2024 are 32,530 million Won and 24,373 million Won, respectively.

48.

EVENT AFTER THE REPORTING PERIOD

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

- 157 -

Independent Auditors’ Review Report on Internal Control over Financial Reporting

(Based on a report originally issued in Korean)

To the board of directors and shareholder of

Woori Bank :

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

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

A bank’s ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Korean International Financial Reporting Standards (“K-IFRS”). A bank’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with K-IFRS, and that receipts and expenditures of the Bank are being made only in accordance with authorizations of management and directors of the Bank; and (3) regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Bank’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, ICFR may not prevent or detect material misstatements in the financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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

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

/s/ KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2026

Notice to Readers

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

- 158 -

Source: View Original Filing on SEC EDGAR

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Woori Financial (WF) posts 2025 audited Woori Bank results with lower net income

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